Secure Your Portfolio With A LOCK

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 |  About: LifeLock, Inc. (LOCK)
by: Bill Gunderson

If you've read the headlines in the financial news lately, this looks all too familiar to you.

"Market Down Third Day in a Row"

"Worst Day Since August 2013"

"Market Down Triple Digits."

And if these headlines have given you the jitters, let me give you some advice: take this news on a stock-by-stock basis because despite all of the headlines, what matters at the end of the day is how YOUR individual holdings are holding-up.

Easy to say, I know.

When I look at my individual holdings, I get no jitters at all. Why? First, I take a look at all of my holdings everyday so nothing comes as a surprise to me anymore. Second, I own about 100 different stocks spread-out amongst four different portfolios. Many of holdings like ILMN, MDVN, JAZZ etc. continue to do just fine and some are even hitting new highs despite the market jitters.

I also continue to find some great stocks using my Best Stocks Now app. I focus on the top stocks that my app comes up with one at a time every day to see if there's anything that interests me. Once my interest is piqued I check the stock chart to determine buy and sell points.

Well I just found another small-cap, U.S.-based stock out of the financial sector that I like and even added it to my aggressive growth accounts recently. The stock is LifeLock Inc. (NYSE:LOCK) headquartered in Tempe, AZ and it's been on my radar for a while.

Data from Best Stocks Now App

LifeLock is a company that we didn't need ten, maybe not even five years ago. But today, it makes sense. LOCK provides proactive identity theft protection services for consumers and identity theft risk assessment as well as fraud protection.

You may have seen their ads on TV.

The company went public in 2012 at $6 per share and today it's trading at $19. With current events in the world (Target breach anyone?), this stock has the potential to go much further.

Performance

LOCK's performance has been tremendous so far. Over the past 12 months LifeLock has returned 106% to investors. And it has the potential to go even higher as the stock just broke-out again to new all-time highs.

LifeLock passes my performance test and gets a momentum grade 'A'.

Valuation

When I project out LOCK's earnings growth over the next five years, and then apply a multiple that I think is appropriate, I come up with a 5 year target price of around $35 per share.

As a reminder, the stock is currently trading at $19. LOCK has 87% upside potential. I like stocks with 80% upside potential or more. LifeLock not only passes my performance test, but my valuation test as well and earns a Gunderson Value Grade of 'B+'.

Stock Chart

My last test I require Best Stocks Now to pass is the stock chart test.

Click to enlarge

As I look at the chart of LifeLock, I see that it is in a very strong uptrend.

I hate sideways trends.

I deplore downtrends.

I like nice uptrends.

In fact out of 3,795 stocks in my Best Stocks Now app database, LOCK comes in at #59. It is also a stock that I currently own at Gunderson Capital Mgt.

Disclosure: I am long LOCK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.