Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

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 SMA50 move above the SMA200 (i.e. the "Golden Cross" signal), and then narrowed it down by only focusing on companies that have a track record of profitability.

Moving average and profitability data sourced from Finviz. Full analysis below.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.


The list has been sorted alphabetically.

1. Alere Inc. (NYSE:ALR): Medical Laboratories & Research Industry. Market cap of $3.25B. SMA50 at $32.22 vs. SMA200 at $31.99 (current price at $38.25). EPS has grown by 48.04% over the last five years, with EPS projected to grow by 11.00% over the next five years. Sales have grown by 38.74% over the last five years. Short float at 10.96%, which implies a short ratio of 13.82 days. The stock has lost -12.01% over the last year.

2. CVS Caremark Corporation (NYSE:CVS): Drug Stores Industry. Market cap of $48.09B. SMA50 at $32.32 vs. SMA200 at $32.11 (current price at $35.39). EPS has grown by 18.39% over the last five years, with EPS projected to grow by 10.9% over the next five years. Sales have grown by 26.4% over the last five years. Short float at 1.15%, which implies a short ratio of 1.67 days. The stock has gained 9.87% over the last year.

3. GameStop Corp. (NYSE:GME): Electronics Stores Industry. Market cap of $3.31B. SMA50 at $20.95 vs. SMA200 at $20.79 (current price at $21.89). EPS has grown by 33.65% over the last five years, with EPS projected to grow by 12.8% over the next five years. Sales have grown by 37.56% over the last five years. Short float at 25.4%, which implies a short ratio of 10.42 days. The stock has lost -6.93% over the last year.

4. Global Payments Inc. (NYSE:GPN): Business Services Industry. Market cap of $3.68B. SMA50 at $42.48 vs. SMA200 at $41.15 (current price at $46.18). EPS has grown by 16.72% over the last five years, with EPS projected to grow by 12.56% over the next five years. Sales have grown by 15.93% over the last five years. Short float at 3.38%, which implies a short ratio of 4.21 days. The stock has lost -12.05% over the last year.

5. IberiaBank Corp. (NASDAQ:IBKC): Regional Bank. Market cap of $1.62B. SMA50 at $54.4 vs. SMA200 at $53.9 (current price at $60.15). EPS has grown by 21.71% over the last five years, with EPS projected to grow by 12.5% over the next five years. Sales have grown by 20.01% over the last five years. Short float at 8.78%, which implies a short ratio of 16.96 days. The stock has gained 17.43% over the last year.

6. ITT Corporation (NYSE:ITT): Diversified Machinery Industry. Market cap of $9.62B. SMA50 at $48.77 vs. SMA200 at $48.29 (current price at $52.42). EPS has grown by 10.35% over the last five years, with EPS projected to grow by 10.46% over the next five years. Sales have grown by 12.82% over the last five years. Short float at 3%, which implies a short ratio of 4.31 days. The stock has gained 10.27% over the last year.

7. J. Crew Group, Inc. (JCG): Apparel Stores Industry. Market cap of $2.82B. SMA50 at $39.49 vs. SMA200 at $39.31 (current price at $44.04). EPS has grown by 20.83% over the last five years, with EPS projected to grow by 16.49% over the next five years. Sales have grown by 14.43% over the last five years. Short float at 6.53%, which implies a short ratio of 1.24 days. The stock has lost -2.42% over the last year.

8. Jacobs Engineering Group Inc. (NYSE:JEC): Technical Services Industry. Market cap of $5.74B. SMA50 at $41.88 vs. SMA200 at $40.77 (current price at $45.49). EPS has grown by 11.77% over the last five years, with EPS projected to grow by 11.95% over the next five years. Sales have grown by 11.97% over the last five years. Short float at 2.24%, which implies a short ratio of 2.37 days. The stock has gained 13.02% over the last year.

9. Pegasystems Inc. (NASDAQ:PEGA): Business Software & Services Industry. Market cap of $1.36B. SMA50 at $32.02 vs. SMA200 at $30.57 (current price at $36.6). EPS has grown by 30.95% over the last five years, with EPS projected to grow by 24.% over the next five years. Sales have grown by 20.65% over the last five years. Short float at 17.17%, which implies a short ratio of 8.32 days. The stock has gained 7.46% over the last year.

10. Regal Beloit Corporation (NYSE:RBC): Industrial Electrical Equipment Industry. Market cap of $2.65B. SMA50 at $61.3 vs. SMA200 at $60.15 (current price at $68.6). EPS has grown by 16.57% over the last five years, with EPS projected to grow by 15.79% over the next five years. Sales have grown by 19.27% over the last five years. Short float at 7.06%, which implies a short ratio of 4.4 days. The stock has gained 31.77% over the last year.

11. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $32.31B. SMA50 at $58.54 vs. SMA200 at $57.56 (current price at $61.92). EPS has grown by 65.62% over the last five years, with EPS projected to grow by 22.68% over the next five years. Sales have grown by 61.75% over the last five years. Short float at 6.15%, which implies a short ratio of 2.13 days. The stock has lost -5.32% over the last year.

12. Stryker Corp. (NYSE:SYK): Medical Instruments & Supplies Industry. Market cap of $21.71B. SMA50 at $52.05 vs. SMA200 at $51.29 (current price at $54.66). EPS has grown by 20.97% over the last five years, with EPS projected to grow by 11.79% over the next five years. Sales have grown by 10.85% over the last five years. Short float at 5.61%, which implies a short ratio of 8.1 days. The stock has gained 3.48% over the last year.

13. Synaptics Inc. (NASDAQ:SYNA): Computer Peripherals Industry. Market cap of $1.09B. SMA50 at $28.96 vs. SMA200 at $28.49 (current price at $31.51). EPS has grown by 11.58% over the last five years, with EPS projected to grow by 14.17% over the next five years. Sales have grown by 19.86% over the last five years. Short float at 26.95%, which implies a short ratio of 12.56 days. The stock has lost -2.2% over the last year.

14. TNS Inc. (NYSE:TNS): Communication Equipment Industry. Market cap of $512.41M. SMA50 at $19.75 vs. SMA200 at $19.42 (current price at $19.55). EPS has grown by 31.23% over the last five years, with EPS projected to grow by 12.07% over the next five years. Sales have grown by 13.77% over the last five years. Short float at 4.19%, which implies a short ratio of 9.11 days. The stock has lost -23.45% over the last year.

15. TETRA Technologies Inc. (NYSE:TTI): Oil & Gas Equipment & Services Industry. Market cap of $853.22M. SMA50 at $10.87 vs. SMA200 at $10.55 (current price at $11.2). EPS has grown by 30.26% over the last five years, with EPS projected to grow by 15.5% over the next five years. Sales have grown by 20.22% over the last five years. Short float at 4.62%, which implies a short ratio of 4.21 days. The stock has lost -9.09% over the last year.

16. Urban Outfitters Inc. (NASDAQ:URBN):
Apparel Stores Industry. Market cap of $5.86B. SMA50 at $35.38 vs. SMA200 at $34.92 (current price at $35.75). EPS has grown by 18.88% over the last five years, with EPS projected to grow by 19.83% over the next five years. Sales have grown by 18.54% over the last five years. Short float at 12.37%, which implies a short ratio of 3.67 days. The stock has gained 1.33% 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.

Source: 18 Highly Profitable Breakout Stocks