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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 the narrowed it down by only focusing on companies that have outperformed their competitors over the last five years, based on average gross profit margin and net profit margin.

Moving average data sourced from Finviz, industry comps sourced from Reuters. 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 by current price.

1. NVR Inc. (NYSE:NVR): Residential Construction Industry. Market cap of $4.24B. SMA50 at $663.34 vs. SMA200 at $660.42 (current price at $766.02). 5-year average gross margin at 21.47% vs. industry average at 19.94%. 5-year average net profit margin at 8.29% vs. industry average at 2.31%. Short float at 6.72%, which implies a short ratio of 11.74 days. The stock has gained 5.92% over the last year.

2. Colgate-Palmolive Co. (NYSE:CL): Personal Products Industry. Market cap of $37.75B. SMA50 at $78.65 vs. SMA200 at $78.62 (current price at $78.41). 5-year average gross margin at 56.99% vs. industry average at 52.06%. 5-year average net profit margin at 13.14% vs. industry average at 8.55%. Short float at 1.51%, which implies a short ratio of 2.72 days. The stock has lost -0.6% over the last year.

3. Diamond Offshore Drilling Inc. (NYSE:DO): Oil & Gas Drilling & Exploration Industry. Market cap of $9.77B. SMA50 at $67.01 vs. SMA200 at $66.79 (current price at $71.65). 5-year average gross margin at 60.24% vs. industry average at 20.07%. 5-year average net profit margin at 34.56% vs. industry average at 11.08%. Short float at 8.23%, which implies a short ratio of 5.24 days. The stock has lost -29.45% over the last year.

4. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $32.82B. SMA50 at $59.23 vs. SMA200 at $57.24 (current price at $63.53). 5-year average gross margin at 59.39% vs. industry average at 31.48%. 5-year average net profit margin at 36.76% vs. industry average at 5.49%. Short float at 6.15%, which implies a short ratio of 2.09 days. The stock has lost -2.53% over the last year.

5. Range Resources Corporation (NYSE:RRC): Independent Oil & Gas Industry. Market cap of $7.63B. SMA50 at $43.06 vs. SMA200 at $41.9 (current price at $47.84). 5-year average gross margin at 82.11% vs. industry average at 43.58%. 5-year average net profit margin at 17.37% vs. industry average at 11.1%. Short float at 9.55%, which implies a short ratio of 5.48 days. The stock has lost -5.7% over the last year.

6. Copart, Inc. (NASDAQ:CPRT): Auto Dealerships Industry. Market cap of $3.08B. SMA50 at $35.63 vs. SMA200 at $35.32 (current price at $37.45). 5-year average gross margin at 43.65% vs. industry average at 39.86%. 5-year average net profit margin at 20.56% vs. industry average at 9.81%. Short float at 1.61%, which implies a short ratio of 1.69 days. The stock has gained 4.78% over the last year.

7. FLIR Systems, Inc. (NASDAQ:FLIR): Aerospace/Defense Products & Services Industry. Market cap of $4.58B. SMA50 at $28.32 vs. SMA200 at $28.19 (current price at $29.03). 5-year average gross margin at 56.02% vs. industry average at 33.69%. 5-year average net profit margin at 18.51% vs. industry average at 9.8%. Short float at 5.15%, which implies a short ratio of 5.12 days. The stock has lost -11.36% over the last year.

8. LHC Group, Inc. (NASDAQ:LHCG): Home Health Care Industry. Market cap of $558.35M. SMA50 at $27.48 vs. SMA200 at $27.23 (current price at $28.91). 5-year average gross margin at 49.51% vs. industry average at 47.85%. 5-year average net profit margin at 10.71% vs. industry average at 4.61%. Short float at 9.95%, which implies a short ratio of 10.84 days. The stock has lost -6.21% over the last year.

9. Nexen Inc. (NXY): Independent Oil & Gas Industry. Market cap of $12.23B. SMA50 at $21.76 vs. SMA200 at $21.5 (current price at $24.37). 5-year average gross margin at 66.82% vs. industry average at 43.58%. 5-year average net profit margin at 14.68% vs. industry average at 11.1%. Short float at 0.36%, which implies a short ratio of 0.88 days. The stock has gained 1.22% over the last year.

10. Bio-Reference Laboratories Inc. (NASDAQ:BRLI): Medical Laboratories & Research Industry. Market cap of $657.07M. SMA50 at $21.68 vs. SMA200 at $21.67 (current price at $23.54). 5-year average gross margin at 49.55% vs. industry average at 47.85%. 5-year average net profit margin at 5.69% vs. industry average at 4.61%. Short float at 19.14%, which implies a short ratio of 22.41 days. The stock has gained 20.89% over the last year.

11. GameStop Corp. (NYSE:GME): Electronics Stores Industry. Market cap of $3.06B. SMA50 at $21.09 vs. SMA200 at $20.76 (current price at $20.67). 5-year average gross margin at 26.54% vs. industry average at 21.3%. 5-year average net profit margin at 3.96% vs. industry average at 1.5%. Short float at 25.4%, which implies a short ratio of 9.6 days. The stock has lost -0.64% over the last year.

12. HB Fuller Co. (NYSE:FUL): Specialty Chemicals Industry. Market cap of $978.62M. SMA50 at $20.94 vs. SMA200 at $20.9 (current price at $23.). 5-year average gross margin at 28.6% vs. industry average at 23.42%. 5-year average net profit margin at 4.71% vs. industry average at 4.2%. Short float at 2.81%, which implies a short ratio of 6.06 days. The stock has lost -15.01% over the last year.

13. Charles Schwab Corp. (NYSE:SCHW): Investment Brokerage Industry. Market cap of $21.4B. SMA50 at $16.28 vs. SMA200 at $15.74 (current price at $18.15). 5-year average gross margin at 100.% vs. industry average at 34.49%. 5-year average net profit margin at 20.94% vs. industry average at 4.97%. Short float at 4.64%, which implies a short ratio of 4.59 days. The stock has lost -4.84% over the last year.

14. Investment Technology Group Inc. (NYSE:ITG): Investment Brokerage Industry. Market cap of $721.42M. SMA50 at $15.73 vs. SMA200 at $15.7 (current price at $17.8). 5-year average gross margin at 85.45% vs. industry average at 34.49%. 5-year average net profit margin at 13.85% vs. industry average at 4.97%. Short float at 5.11%, which implies a short ratio of 6.21 days. The stock has lost -14.19% over the last year.

15. Chico's FAS Inc. (NYSE:CHS): Apparel Stores Industry. Market cap of $1.91B. SMA50 at $11.48 vs. SMA200 at $11.26 (current price at $10.91). 5-year average gross margin at 56.76% vs. industry average at 45.22%. 5-year average net profit margin at 6.34% vs. industry average at 5.89%. Short float at 5.35%, which implies a short ratio of 2.35 days. The stock has lost -21.69% over the last year.

16. China Valves Technology, Inc. (OTC:CVVT): Industrial Equipment & Components Industry. Market cap of $306.56M. SMA50 at $10.11 vs. SMA200 at $9.86 (current price at $8.72). 5-year average gross margin at 44.24% vs. industry average at 31.25%. 5-year average net profit margin at 13.63% vs. industry average at 8.69%. Short float at 14.73%, which implies a short ratio of 6.42 days. The stock has lost -5.35% over the last year.

17. Sonic Corp. (NASDAQ:SONC): Restaurants Industry. Market cap of $677.93M. SMA50 at $9.77 vs. SMA200 at $9.49 (current price at $11.21). 5-year average gross margin at 60.47% vs. industry average at 51.42%. 5-year average net profit margin at 10.45% vs. industry average at 2.68%. Short float at 6.19%, which implies a short ratio of 3.6 days. The stock has gained 28.96% over the last year.

18. Kulicke & Soffa Industries Inc. (NASDAQ:KLIC): Semiconductor Equipment & Materials Industry. Market cap of $641.04M. SMA50 at $7.02 vs. SMA200 at $6.93 (current price at $9.45). 5-year average gross margin at 42.91% vs. industry average at 33.62%. 5-year average net profit margin at 6.41% vs. industry average at 4.71%. Short float at 6.2%, which implies a short ratio of 2.36 days. The stock has gained 53.83% over the last year.

19. Federal Signal Corp. (NYSE:FSS): Trucks & Other Vehicles Industry. Market cap of $462.29M. SMA50 at $6.51 vs. SMA200 at $6.41 (current price at $7.65). 5-year average gross margin at 25.64% vs. industry average at 21.59%. 5-year average net profit margin at 3.53% vs. industry average at 3.25%. Short float at 4.62%, which implies a short ratio of 7.89 days. The stock has gained 13.96% over the last year.

20. Cowen Group, Inc. (NASDAQ:COWN): Investment Brokerage Industry. Market cap of $355.98M. SMA50 at $4.44 vs. SMA200 at $4.3 (current price at $4.8). 5-year average gross margin at 75.23% vs. industry average at 34.49%. 5-year average net profit margin at 10.88% vs. industry average at 4.97%. Short float at 2.5%, which implies a short ratio of 12.06 days. The stock has lost -15.11% over the last year.

Source: Top 20 Most Profitable Breakout Stocks