18 Highly Profitable Companies Reaching an Inflection Point

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 |  Includes: ANF, ASMIY, CMP, DNR, G, GGG, GHL, GYMB, HTLD, ITW, KUBTY, LUX, MASI, MSCC, OMC, PDE, SYT, TUP
by: Kapitall

The following is a list of highly profitable companies that are approaching an inflection point, based on moving average trends. For this article, we define an inflection point as the convergence between the 50-day and 200-day moving averages.

When these two moving averages cross, it often represents a shift in investor sentiment. If the 50-day MA moves above the 200-day MA (bullish), it's called a "Golden Cross" signal.

To compile this list, we started with a universe of stocks that have seen the 50-day MA move above the 200-day MA. We then narrowed down the universe to only focus on stocks that have been more profitable than their competitors, when comparing the 5-year average gross and net profit margins.

Moving average data sourced from Finviz, profitability data sourced from Reuters.

The list has been sorted alphabetically.

1. Abercrombie & Fitch Co. (NYSE:ANF): Apparel Stores Industry. Market cap of $3.78B. SMA50 at $38.39 vs. SMA200 at $38.08 (Price at $45.19). 5-yr average gross margin at 66.46% vs. industry average at 45.1%. 5-yr average net profit margin at 10.27% vs. industry average at 5.99%.

2. ASM International NV (ASMI): Semiconductor Equipment & Materials Industry. Market cap of $1.33B. SMA50 at $24.02 vs. SMA200 at $23.85 (Price at $25.2). 5-yr average gross margin at 36.12% vs. industry average at 33.93%. 5-yr average net profit margin at 6.56% vs. industry average at 4.85%.

3. Compass Minerals International Inc. (NYSE:CMP): Agricultural Chemicals Industry. Market cap of $2.57B. SMA50 at $74.98 vs. SMA200 at $74.66 (Price at $79.47). 5-yr average gross margin at 29.48% vs. industry average at -7.27%. 5-yr average net profit margin at 11.05% vs. industry average at 6.15%.

4. Denbury Resources Inc. (NYSE:DNR): Independent Oil & Gas Industry. Market cap of $6.84B. SMA50 at $16.06 vs. SMA200 at $15.99 (Price at $16.85). 5-yr average gross margin at 69.31% vs. industry average at 44.52%. 5-yr average net profit margin at 20.72% vs. industry average at 11.38%.

5. Genpact Ltd. (NYSE:G): Management Services Industry. Market cap of $3.57B. SMA50 at $16.17 vs. SMA200 at $15.94 (Price at $16.27). 5-yr average gross margin at 40.09% vs. industry average at 37.62%. 5-yr average net profit margin at 9.61% vs. industry average at 8.73%.

6. Graco Inc. (NYSE:GGG): Diversified Machinery Industry. Market cap of $2.12B. SMA50 at $30.66 vs. SMA200 at $30.4 (Price at $35.). 5-yr average gross margin at 52.45% vs. industry average at 30.75%. 5-yr average net profit margin at 15.8% vs. industry average at 8.81%.

7. Greenhill & Co., Inc. (NYSE:GHL): Investment Brokerage Industry. Market cap of $2.25B. SMA50 at $76.04 vs. SMA200 at $74.15 (Price at $75.77). 5-yr average gross margin at 53.41% vs. industry average at 33.74%. 5-yr average net profit margin at 25.56% vs. industry average at 4.92%.

8. Gymboree Corp. (NASDAQ:GYMB): Apparel Stores Industry. Market cap of $1.78B. SMA50 at $47.14 vs. SMA200 at $45.94 (Price at $65.01). 5-yr average gross margin at 47.29% vs. industry average at 45.07%. 5-yr average net profit margin at 8.76% vs. industry average at 5.98%.

9. Heartland Express, Inc. (NASDAQ:HTLD): Trucking Industry. Market cap of $1.36B. SMA50 at $14.58 vs. SMA200 at $14.56 (Price at $15.15). 5-yr average gross margin at 70.66% vs. industry average at 19.46%. 5-yr average net profit margin at 13.06% vs. industry average at 7.64%.

10. Illinois Tool Works Inc. (NYSE:ITW): Diversified Machinery Industry. Market cap of $23.63B. SMA50 at $45.48 vs. SMA200 at $45.40 (Price at $46.4). 5-yr average gross margin at 34.95% vs. industry average at 30.75%. 5-yr average net profit margin at 10.41% vs. industry average at 8.81%.

11. Kubota Corporation (KUB): Diversified Machinery Industry. Market cap of $11.48B. SMA50 at $44.18 vs. SMA200 at $43.36 (Price at $44.02). 5-yr average gross margin at 28.25% vs. industry average at 26.71%. 5-yr average net profit margin at 6.38% vs. industry average at 5.78%.

12. Luxottica Group SpA (NYSE:LUX): Specialty Retail, Other Industry. Market cap of $13.64B. SMA50 at $25.94 vs. SMA200 at $25.73 (Price at $28.95). 5-yr average gross margin at 66.95% vs. industry average at 41.01%. 5-yr average net profit margin at 8.34% vs. industry average at 6.39%.

13. Masimo Corporation (NASDAQ:MASI): Medical Appliances & Equipment Industry. Market cap of $1.78B. SMA50 at $26.45 vs. SMA200 at $25.47 (Price at $30.28). 5-yr average gross margin at 70.46% vs. industry average at 50.76%. 5-yr average net profit margin at 27.59% vs. industry average at 10.26%.

14. Microsemi Corp. (NASDAQ:MSCC): Semiconductor Industry. Market cap of $1.65B. SMA50 at $16.79 vs. SMA200 at $16.28 (Price at $19.65). 5-yr average gross margin at 42.41% vs. industry average at 22.79%. 5-yr average net profit margin at 4.7% vs. industry average at -0.97%.

15. Omnicom Group Inc. (NYSE:OMC): Advertising Agencies Industry. Market cap of $13.14B. SMA50 at $38.59 vs. SMA200 at $37.96 (Price at $43.96). 5-yr average gross margin at 28.7% vs. industry average at 25.78%. 5-yr average net profit margin at 7.93% vs. industry average at 2.56%.

16. Pride International Inc. (NYSE:PDE): Oil & Gas Drilling & Exploration Industry. Market cap of $5.39B. SMA50 at $27.77 vs. SMA200 at $27.73 (Price at $30.78). 5-yr average gross margin at 45.85% vs. industry average at 20.07%. 5-yr average net profit margin at 18.35% vs. industry average at 11.15%.

17. Syngenta AG (NYSE:SYT): Agricultural Chemicals Industry. Market cap of $27.32B. SMA50 at $50.73 vs. SMA200 at $49.6 (Price at $57.18). 5-yr average gross margin at 50.21% vs. industry average at -7.27%. 5-yr average net profit margin at 10.69% vs. industry average at 6.15%.

18. Tupperware Brands Corporation (NYSE:TUP): Packaging & Containers Industry. Market cap of $2.94B. SMA50 at $43.92 vs. SMA200 at $43.85 (Price at $46.15). 5-yr average gross margin at 65.04% vs. industry average at 27.53%. 5-yr average net profit margin at 6.82% vs. industry average at 3.05%.

Disclosure: No positions