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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 the stocks mentioned below have conservative accounting practices, according to the ratings developed by forensic accounting firm Audit Integrity.

Audit Integrity was founded in 2002 to develop risk management tools based on a statistical analysis of corporate integrity. The Accounting and Governance Risk (AGR) rating is a forensic measure of the transparency and reliability of a corporation’s financial reporting and governance practices. The closer the score is to 100, the more conservative the company's accounting practices, according to Audit Integrity.

All the companies in this list have high AGR scores above 75, i.e. more conservative and transparent accounting practices than most other firms.

This list might offer an interesting starting point to momentum investors looking for quality companies.

AGR scores sourced from Audit Integrity, moving average data sourced from Finviz.

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 the AGR score.

1. Level 3 Communications Inc. (LVLT):
Diversified Communication Services Industry. Market cap of $2.12B. The stock is currently 22.57% above its 20-day MA, 24.48% above its 50-day MA, and 11.01% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 100. Short float at 9.11%, which implies a short ratio of 6.57 days. The stock has lost -13.61% over the last year.

2. TriQuint Semiconductor, Inc. (TQNT):
Semiconductor Industry. Market cap of $2.2B. The stock is currently 11.29% above its 20-day MA, 16.76% above its 50-day MA, and 60.5% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 100. Short float at 5.47%, which implies a short ratio of 2.17 days. The stock has gained 138.14% over the last year.

3. International Coal Group, Inc. (ICO):
Industrial Metals & Minerals Industry. Market cap of $1.88B. The stock is currently 23.09% above its 20-day MA, 30.83% above its 50-day MA, and 77.25% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 98. Short float at 7.94%, which implies a short ratio of 3.58 days. The stock has gained 116.16% over the last year.

4. Finisar Corp. (FNSR):
Networking & Communication Devices Industry. Market cap of $2.6B. The stock is currently 15.06% above its 20-day MA, 41.93% above its 50-day MA, and 91.2% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 94. Short float at 13.05%, which implies a short ratio of 2.99 days. The stock has gained 207.68% over the last year.

5. FelCor Lodging Trust Inc. (FCH): REIT. Market cap of $784.16M. The stock is currently 12.16% above its 20-day MA, 22.35% above its 50-day MA, and 35.44% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 91. Short float at 2.72%, which implies a short ratio of 3.09 days. The stock has gained 91.92% over the last year.

6. LSB Industries Inc. (LXU):
Electronic Equipment Industry. Market cap of $625.61M. The stock is currently 19.41% above its 20-day MA, 25.16% above its 50-day MA, and 60.1% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 90. Short float at 3.34%, which implies a short ratio of 3.99 days. The stock has gained 97.53% over the last year.

7. Robbins & Myers Inc. (RBN): Diversified Machinery Industry. Market cap of $1.37B. The stock is currently 14.66% above its 20-day MA, 25.75% above its 50-day MA, and 57.11% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 84. Short float at 20.91%, which implies a short ratio of 12.92 days. The stock has gained 59.21% over the last year.

8. Cypress Semiconductor Corporation (CY): Semiconductor Industry. Market cap of $3.37B. The stock is currently 15.09% above its 20-day MA, 24.77% above its 50-day MA, and 63.18% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 82. Short float at 6.19%, which implies a short ratio of 2.67 days. The stock has gained 83.41% over the last year.

9. Boyd Gaming Corp. (BYD):
Resorts & Casinos Industry. Market cap of $994.23M. The stock is currently 9.16% above its 20-day MA, 16.63% above its 50-day MA, and 20.55% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 77. Short float at 32.98%, which implies a short ratio of 6.88 days. The stock has gained 40.44% over the last year.

10. Huntsman Corporation (HUN): Chemicals Industry. Market cap of $4.22B. The stock is currently 11.25% above its 20-day MA, 18.74% above its 50-day MA, and 55.45% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 77. Short float at 2.96%, which implies a short ratio of 1.45 days. The stock has gained 48.69% over the last year.

11. Interactive Intelligence, Inc. (ININ):
Business Software & Services Industry. Market cap of $645.97M. The stock is currently 27.26% above its 20-day MA, 30.29% above its 50-day MA, and 75.7% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 76. Short float at 3.31%, which implies a short ratio of 3.37 days. The stock has gained 93.75% over the last year.

12. Varian Semiconductor Equipment Associates Inc. (VSEA): Semiconductor Equipment & Materials Industry. Market cap of $3.06B. The stock is currently 10.91% above its 20-day MA, 18.2% above its 50-day MA, and 32.59% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 76. Short float at 2.5%, which implies a short ratio of 2.98 days. The stock has gained 16.02% over the last year.

13. Eastman Chemical Co. (EMN):
Chemicals Industry. Market cap of $6.69B. The stock is currently 9.99% above its 20-day MA, 14.19% above its 50-day MA, and 35.98% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 75. Short float at 8.13%, which implies a short ratio of 6.02 days. The stock has gained 55.04% over the last year.

14. Harsco Corporation (HSC): Steel & Iron Industry. Market cap of $2.55B. The stock is currently 11.55% above its 20-day MA, 22.44% above its 50-day MA, and 25.05% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 73. Short float at 2.67%, which implies a short ratio of 2.85 days. The stock has lost -5.94% over the last year.

15. Weyerhaeuser Co. (WY):
REIT. Market cap of $11.55B. The stock is currently 10.81% above its 20-day MA, 18.04% above its 50-day MA, and 29.55% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 72. Short float at 3.24%, which implies a short ratio of 3.49 days. The stock has gained 32.78% 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: 15 Rallying Stocks With Conservative Accounting Practices