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We continue to find the MarketGrader app very useful when narrowing down initial stock screens (check it out in the SeekingAlpha App store if you have a chance). For this note, we used the app to identify a list of fundamentally solid stocks in a new uptrend, as defined by the Average Directional Index, or ADX(14) index.

To create the list, we created a universe of stocks in an uptrend that have an ADX(14) value above +20, which signals strengthening upward momentum. We then reduced the size of this universe by only focusing on stocks that are rated as a "Buy" by MarketGrader's quantitative scoring system. All of the stocks in this list have MarketGrader scores above 60--the higher the score, the better.

ADX(14) values sourced from Stockcharts.com, and short ratios sourced from Finviz. (Click for expanded images.)



The list has been sorted by the MarketGrader score.

1. Fortinet Inc. (NASDAQ:FTNT): Computer Peripherals Industry. Market cap of $1,497B. Daily ADX(14) line at 21.072, with a MarketGrader score at 79.6. Short float at 6.69%, which implies a short ratio of 4.09 days.

2. HealthSpring Inc. (Pending:HS): Health Care Plans Industry. Market cap of $1,235B. Daily ADX(14) line at 21.472, with a MarketGrader score at 78. Short float at 4.43%, which implies a short ratio of 4.23 days. The stock has gained 67.42% over the last year.

3. G-III Apparel Group, Ltd. (NASDAQ:GIII): Apparel Clothing Industry. Market cap of $534.99M. Daily ADX(14) line at 20.616, with a MarketGrader score at 67.8. Short float at 10.04%, which implies a short ratio of 7.42 days. The stock has gained 87.11% over the last year.

4. Nelnet Inc. (NYSE:NNI): Credit Services Industry. Market cap of $1,124B. Daily ADX(14) line at 20.617, with a MarketGrader score at 65.9. Short float at 3.67%, which implies a short ratio of 4.81 days. The stock has gained 67.9% over the last year.

5. Novartis A G (NYSE:NVS): Drug Manufacturer. Market cap of $121,924B. Daily ADX(14) line at 20.904, with a MarketGrader score at 63.8. Short float at .95%, which implies a short ratio of 6.41 days. The stock has gained 20.34% over the last year.

6. TransMontaigne Partners L.P. (NYSE:TLP): Oil & Gas Pipelines Industry. Market cap of $506.1M. Daily ADX(14) line at 20.393, with a MarketGrader score at 60.1. Short float at .13%, which implies a short ratio of 0.28 days. The stock has gained 42.62% over the last year.


Disclosure: No positions

Source: 6 Fundamentally Solid Companies in a Strengthening Uptrend