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

The following is a list of breakout stocks, 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. If, on the other hand, the 50-day MA crosses below the 200-day MA (bearish), it's called the "Death Cross."

All of the stocks mentioned below have recently seen the SMA50 move above the SMA200 (bullish signal).

In addition, all of these stocks have low levels of risk, as defined by the RiskGrade ratings developed by the RiskMetrics Group. RiskGrades is calibrated to be more intuitive and easier to use than standard deviation or beta. According to the company, their rating system captures all the components of market risk: equity, interest rate, currency, and commodity risk.

The lower the RiskGrade rating, the lower the risk level of the stock. Kimberly-Clark Corporation (NYSE:KMB), the first company in our list, has a RiskGrade rating of 54, which means that it is less risky than 94% of tickers on U.S. markets.

We're not going to go into detailed analysis for each company. The goal here is to give a starting point to risk-averse investors looking to benefit from technical momentum. Full details below.

RiskGrades sourced from RiskMetrics group, short float and performance 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 RiskGrade score.

1. Kimberly-Clark Corporation (KMB): Personal Products Industry. Market cap of $26.21B. SMA50 at $62.31 vs. SMA200 at $62.24 (current price at $64.12). RiskGrade rating at 54. Short float at 1.37%, which implies a short ratio of 2.04 days. The stock has gained 11.37% over the last year.

2. Colgate-Palmolive Co. (NYSE:CL): Personal Products Industry. Market cap of $38.13B. SMA50 at $78.25 vs. SMA200 at $77.92 (current price at $79.49). RiskGrade rating at 56. Short float at 1.45%, which implies a short ratio of 2.62 days. The stock has gained 0.5% over the last year.

3. Sysco Corp. (NYSE:SYY): Food Wholesale Industry. Market cap of $17.52B. SMA50 at $29.18 vs. SMA200 at $29.17 (current price at $29.84). RiskGrade rating at 59. Short float at 2.56%, which implies a short ratio of 4.34 days. The stock has gained 12.81% over the last year.

4. Exelon Corp. (NYSE:EXC): Diversified Utilities Industry. Market cap of $28.58B. SMA50 at $41.05 vs. SMA200 at $40.72 (current price at $43.49). RiskGrade rating at 63. Short float at 2.27%, which implies a short ratio of 3.12 days. The stock has lost -5.49% over the last year.

5. FirstEnergy Corp. (NYSE:FE): Electric Utilities Industry. Market cap of $12.06B. SMA50 at $36.67 vs. SMA200 at $36.29 (current price at $39.73). RiskGrade rating at 63. Short float at 9.99%, which implies a short ratio of 8.06 days. The stock has lost -7.2% over the last year.

6. Redwood Trust Inc. (NYSE:RWT): REIT. Market cap of $1.17B. SMA50 at $14.51 vs. SMA200 at $14.45 (current price at $15.24). RiskGrade rating at 77. Short float at 4.84%, which implies a short ratio of 7.41 days. The stock has gained 9.7% over the last year.

7. Novell Inc. (NASDAQ:NOVL): Security Software & Services Industry. Market cap of $2.09B. SMA50 at $5.92 vs. SMA200 at $5.91 (current price at $5.95). RiskGrade rating at 78. Short float at 0.32%, which implies a short ratio of 0.13 days. The stock has gained 28.02% over the last year.

8. Rockwell Collins Inc. (NYSE:COL): Aerospace/Defense Products & Services Industry. Market cap of $9.88B. SMA50 at $58.33 vs. SMA200 at $58.27 (current price at $63.51). RiskGrade rating at 80. Short float at 0.94%, which implies a short ratio of 1.21 days. The stock has gained 20.66% over the last year.

9. White Mountains Insurance Group, Ltd. (NYSE:WTM): Property & Casualty Insurance Industry. Market cap of $2.85B. SMA50 at $329.73 vs. SMA200 at $325.29 (current price at $342.82). RiskGrade rating at 80. Short float at 0.57%, which implies a short ratio of 2.97 days. The stock has gained 4.68% over the last year.

10. Amgen Inc. (NASDAQ:AMGN): Biotechnology Industry. Market cap of $53.83B. SMA50 at $55.36 vs. SMA200 at $55.16 (current price at $57.72). RiskGrade rating at 87. Short float at 1.62%, which implies a short ratio of 2.45 days. The stock has gained 0.6% over the last year.

11. Hawaiian Electric Industries Inc. (NYSE:HE): Electric Utilities Industry. Market cap of $2.33B. SMA50 at $22.91 vs. SMA200 at $22.64 (current price at $24.90). RiskGrade rating at 89. Short float at 3.49%, which implies a short ratio of 5.56 days. The stock has gained 23.69% over the last year.

12. Leggett & Platt, Incorporated (NYSE:LEG): Home Furnishings & Fixtures Industry. Market cap of $3.28B. SMA50 at $21.89 vs. SMA200 at $21.46 (current price at $22.60). RiskGrade rating at 90. Short float at 2.64%, which implies a short ratio of 2.51 days. The stock has gained 17.41% over the last year.

13. Royal Bank of Canada (NYSE:RY): Money Center Banks Industry. Market cap of $77.34B. SMA50 at $52.78 vs. SMA200 at $52.77 (current price at $53.57). RiskGrade rating at 93. Short float at 0.79%, which implies a short ratio of 17.11 days. The stock has gained 11.62% over the last year.

14. Oritani Financial Corp. (NASDAQ:ORIT): Regional Bank. Market cap of $662.6M. SMA50 at $11.80 vs. SMA200 at $11.77 (current price at $11.97). RiskGrade rating at 95. Short float at 3.31%, which implies a short ratio of 4.47 days. The stock has lost -4.22% over the last year.

15. Beacon Roofing Supply Inc. (NASDAQ:BECN): Building Materials Wholesale Industry. Market cap of $841.88M. SMA50 at $17.48 vs. SMA200 at $17.32 (current price at $18.50). RiskGrade rating at 98. Short float at 7.01%, which implies a short ratio of 8.56 days. The stock has gained 10.82% over the last year.

16. KAR Auction Services, Inc. (NYSE:KAR): Auto Dealerships Industry. Market cap of $1.94B. SMA50 at $13.22 vs. SMA200 at $13.22 (current price at $14.46). RiskGrade rating at 98. Short float at 2.92%, which implies a short ratio of 10.33 days. The stock has lost -0.07% over the last year.

17. Bio-Reference Laboratories Inc. (NASDAQ:BRLI): Medical Laboratories & Research Industry. Market cap of $649.46M. SMA50 at $21.93 vs. SMA200 at $21.72 (current price at $23.41). RiskGrade rating at 99. Short float at 21.02%, which implies a short ratio of 22.77 days. The stock has gained 19.1% over the last year.

18. Calpine Corp. (NYSE:CPN): Electric Utilities Industry. Market cap of $6.33B. SMA50 at $13.18 vs. SMA200 at $13.03 (current price at $14.36). RiskGrade rating at 100. Short float at 5.56%, which implies a short ratio of 9.43 days. The stock has gained 25.66% over the last year.

19. NVR Inc. (NYSE:NVR): Residential Construction Industry. Market cap of $4.4B. SMA50 at $683.18 vs. SMA200 at $662.55 (current price at $778.83). RiskGrade rating at 101. Short float at 6.44%, which implies a short ratio of 10.48 days. The stock has gained 9.15% over the last year.

20. Iron Mountain Inc. (NYSE:IRM): Business Software & Services Industry. Market cap of $4.92B. SMA50 at $23.84 vs. SMA200 at $23.24 (current price at $24.80). RiskGrade rating at 104. Short float at 5.27%, which implies a short ratio of 6.01 days. The stock has gained 5.26% over the last year.

Source: 20 Low Risk Breakout Stocks