20 Rallies That Analysts Think Will Continue

|
Includes: AGII, AIR, ANF, ATML, BDC, BEC, CNO, COO, CRUS, CVI, DMND, FCS, FITB, GHDX, GTLS, MMM, PSS, RBN, RVBD, SPY, SYKE
by: Kapitall

The following is a list of stocks in rally mode, i.e. trading above their 20-day, 50-day and 200-day moving averages. All of these stocks have seen improving analyst sentiment over the last three months, suggesting that analysts think the trend will continue.

To create this list, we started with the following screen:

  • All stocks with a market cap above $300M
  • All stocks are in an uptrend, trading more than 10% above their 20-day, 50-day and 200-day moving averages
  • All of these stocks have had positive ROE and ROA over the last 12 months.
  • All stocks have seen a significant improvement in analyst ratings over the past three months

We last wrote about this screen on September 20, 2010. On that day, the screen produced 20 companies. Since then, 16 out of 20 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 80.00%). The screen averaged a return of 20.81% vs. an index return of 8.55%. Click here to access a full breakdown of the screen's past performance.

Analyst ratings are presented on a linear scale, where ratings close to 1 indicate "Strong Buy" while ratings close to 5 indicate "Strong Sell". All of the stocks in this list have seen their ratings move closer towards 1 over the last 3 months, i.e. improving analyst sentiment.

Short float and moving average data sourced from Finviz, analyst ratings sourced from Reuters.

Interactive Chart: Press Play to visualize the changes in monthly and annual returns for the top 5 stocks mentioned below.

The list has been sorted by the change in analyst rating over the last three months.

1. The Cooper Companies Inc. (NYSE:COO): Medical Instruments & Supplies Industry. Market cap of $2.64B. The stock is currently 10.53% above its 20-day MA, 14.36% above its 50-day MA, and 36.32% above its 200-day MA. Current analyst rating at 1.75 vs. a rating of 2.12 three months ago. Short float at 12.71%, which implies a short ratio of 12.18 days. The stock has gained 59.25% over the last year.

2. AAR Corp. (NYSE:AIR): Aerospace/Defense Products & Services Industry. Market cap of $1.09B. The stock is currently 12.15% above its 20-day MA, 20.1% above its 50-day MA, and 31.9% above its 200-day MA. Current analyst rating at 1.38 vs. a rating of 1.62 three months ago. Short float at 8.64%, which implies a short ratio of 8.17 days. The stock has gained 39.21% over the last year.

3. Argo Group International Holdings, Ltd. (NASDAQ:AGII): Property & Casualty Insurance Industry. Market cap of $1.25B. The stock is currently 10.47% above its 20-day MA, 18.61% above its 50-day MA, and 29.5% above its 200-day MA. Current analyst rating at 2 vs. a rating of 2.33 three months ago. Short float at 2.61%, which implies a short ratio of 7.88 days. The stock has gained 11.22% over the last year.

4. CVR Energy, Inc. (NYSE:CVI): Oil & Gas Refining & Marketing Industry. Market cap of $1.17B. The stock is currently 12.87% above its 20-day MA, 27.39% above its 50-day MA, and 55.48% above its 200-day MA. Current analyst rating at 2 vs. a rating of 2.33 three months ago. Short float at 1.34%, which implies a short ratio of 1.83 days. The stock has gained 87.41% over the last year.

5. Atmel Corporation (NASDAQ:ATML): Semiconductor Industry. Market cap of $5.69B. The stock is currently 15.87% above its 20-day MA, 31.08% above its 50-day MA, and 90.56% above its 200-day MA. Current analyst rating at 1.55 vs. a rating of 1.8 three months ago. Short float at 2.58%, which implies a short ratio of 1.06 days. The stock has gained 201.95% over the last year.

6. Collective Brands, Inc. (NYSE:PSS): Apparel Stores Industry. Market cap of $1.3B. The stock is currently 17.7% above its 20-day MA, 23.86% above its 50-day MA, and 13.38% above its 200-day MA. Current analyst rating at 2.2 vs. a rating of 2.5 three months ago. Short float at 21.68%, which implies a short ratio of 9.73 days. The stock has lost -5.51% over the last year.

7. Belden, Inc. (NYSE:BDC): Industrial Electrical Equipment Industry. Market cap of $1.75B. The stock is currently 10.27% above its 20-day MA, 22.22% above its 50-day MA, and 40.41% above its 200-day MA. Current analyst rating at 1.33 vs. a rating of 1.5 three months ago. Short float at 5.24%, which implies a short ratio of 10.65 days. The stock has gained 64.45% over the last year.

8. Robbins & Myers Inc. (NYSE:RBN): Diversified Machinery Industry. Market cap of $1.14B. The stock is currently 11.56% above its 20-day MA, 17.97% above its 50-day MA, and 36.29% above its 200-day MA. Current analyst rating at 2.12 vs. a rating of 2.38 three months ago. Short float at 17.92%, which implies a short ratio of 12.32 days. The stock has gained 50.46% over the last year.

9. Fairchild Semiconductor International Inc. (NYSE:FCS): Semiconductor Industry. Market cap of $1.9B. The stock is currently 11.77% above its 20-day MA, 29.2% above its 50-day MA, and 49.04% above its 200-day MA. Current analyst rating at 2.14 vs. a rating of 2.38 three months ago. Short float at 91.82%, which implies a short ratio of 4.65 days. The stock has gained 66.78% over the last year.

10. Chart Industries Inc. (NASDAQ:GTLS): Metal Fabrication Industry. Market cap of $1.B. The stock is currently 18.87% above its 20-day MA, 39.62% above its 50-day MA, and 72.43% above its 200-day MA. Current analyst rating at 1.62 vs. a rating of 1.78 three months ago. Short float at 3.79%, which implies a short ratio of 3.59 days. The stock has gained 91.84% over the last year.

11. Sykes Enterprises, Incorporated (NASDAQ:SYKE): Information Technology Services Industry. Market cap of $987.6M. The stock is currently 13.74% above its 20-day MA, 25.31% above its 50-day MA, and 21.57% above its 200-day MA. Current analyst rating at 1.91 vs. a rating of 2.09 three months ago. Short float at 3.06%, which implies a short ratio of 4.11 days. The stock has lost -17.37% over the last year.

12. Cirrus Logic Inc. (NASDAQ:CRUS): Semiconductor Industry. Market cap of $1.14B. The stock is currently 10.25% above its 20-day MA, 10.49% above its 50-day MA, and 14.85% above its 200-day MA. Current analyst rating at 1.83 vs. a rating of 2 three months ago. Short float at 13.21%, which implies a short ratio of 1.52 days. The stock has gained 159.81% over the last year.

13. Abercrombie & Fitch Co. (NYSE:ANF): Apparel Stores Industry. Market cap of $4.92B. The stock is currently 11.81% above its 20-day MA, 22.15% above its 50-day MA, and 38.45% above its 200-day MA. Current analyst rating at 2.03 vs. a rating of 2.21 three months ago. Short float at 12.34%, which implies a short ratio of 3.25 days. The stock has gained 62.03% over the last year.

14. Diamond Foods, Inc. (NASDAQ:DMND): Processed & Packaged Goods Industry. Market cap of $1.16B. The stock is currently 12.61% above its 20-day MA, 18.39% above its 50-day MA, and 24.37% above its 200-day MA. Current analyst rating at 1.71 vs. a rating of 1.85 three months ago. Short float at 29.42%, which implies a short ratio of 24.62 days. The stock has gained 69.88% over the last year.

15. Ceradyne Inc. (CRDN): Industrial Equipment & Components Industry. Market cap of $786.34M. The stock is currently 18.6% above its 20-day MA, 25.89% above its 50-day MA, and 36.12% above its 200-day MA. Current analyst rating at 2.88 vs. a rating of 3.11 three months ago. Short float at 4.48%, which implies a short ratio of 7.94 days. The stock has gained 80.05% over the last year.

16. Riverbed Technology, Inc. (NASDAQ:RVBD): Networking & Communication Devices Industry. Market cap of $5.48B. The stock is currently 13.74% above its 20-day MA, 30.8% above its 50-day MA, and 94.36% above its 200-day MA. Current analyst rating at 2.26 vs. a rating of 2.43 three months ago. Short float at 8.68%, which implies a short ratio of 2.28 days. The stock has gained 268.58% over the last year.

17. CNO Financial Group, Inc. (NYSE:CNO): Accident & Health Insurance Industry. Market cap of $1.71B. The stock is currently 14.12% above its 20-day MA, 18.84% above its 50-day MA, and 21.25% above its 200-day MA. Current analyst rating at 2.5 vs. a rating of 2.67 three months ago. Short float at 8.3%, which implies a short ratio of 10.19 days. The stock has gained 41.96% over the last year.

18. Genomic Health Inc. (NASDAQ:GHDX): Medical Laboratories & Research Industry. Market cap of $656.85M. The stock is currently 21.14% above its 20-day MA, 40.76% above its 50-day MA, and 45.8% above its 200-day MA. Current analyst rating at 2.5 vs. a rating of 2.64 three months ago. Short float at 7.47%, which implies a short ratio of 13.28 days. The stock has gained 13.12% over the last year.

19. Beckman Coulter Inc. (NYSE:BEC): Scientific & Technical Instruments Industry. Market cap of $4.99B. The stock is currently 28.35% above its 20-day MA, 36.46% above its 50-day MA, and 29.88% above its 200-day MA. Current analyst rating at 2.78 vs. a rating of 2.93 three months ago. Short float at 8.86%, which implies a short ratio of 7.15 days. The stock has gained 8.51% over the last year.

20. Fifth Third Bancorp (NASDAQ:FITB): Regional Bank. Market cap of $11.6B. The stock is currently 15.09% above its 20-day MA, 15.46% above its 50-day MA, and 12.8% above its 200-day MA. Current analyst rating at 2.73 vs. a rating of 2.87 three months ago. Short float at 3.44%, which implies a short ratio of 2.13 days. The stock has gained 44.98% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.