Five Bullish Financial Stocks

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 |  Includes: AVB, FITB, SLM, VTR, WRI
by: Steven Bauer

As I often say, "The market is doing what it loves to do.” Lately, that means it is both fundamentally and technically very fickle. What the investor frequently forgets is that what appears to be a fact, in reality, is very creative fiction. The fictional stories being told by Wall Street and the media are so compelling that the average investor takes the hook, every time. That’s a fact and for me, it is a very sad way for these guys to conduct their business, that is, not to be of help for investors to prosper.

The selection of these five companies is based on the following supportive data, my three disciplines and both their short and longer-term performance. I expect these companies to do very well in the coming months. However, we just may have to wait for a while before taking positions bullish positions again. Those disciplines are my weighted fundamental, technical and consensus analysis. These companies are rated and compared below both with a technical reference (see chart below) and a fundamental reference with brief comments (see table below).

In the chart below I am using a relative percent comparison for your study. This simple work can be of much value if studied before taking positions.

Click to enlarge

(Click to enlarge)

Earning estimates, on balance, for these companies are definitely very positive for the short - to intermediate term. However, you might remember - the way the “Street” will reward or punish any company in the future is always questionable.

My analysis, to a large degree, has to do with comparative analytics. Comparing these five companies with their peers and other top / growth/revenue producing companies, in general is what I believe makes or looses you money on an annual basis.

The question, as always, is: Can you afford the risk/reward ratio and how is your insight for making timely investments? I hope this information and data will help.

In the table below you will see why my approach of valuation offers five very strong companies that I believe can be profitable in the intermediate-term, however not necessarily in the immediate future. Remember to be a bit patient before taking positions.

Valuation Analytics Table

Stock and Symbol

Approx. Current Price

My Target Price % Above (+) / Below (-) Current Price – Valuation is “Tweaked.”

One Year Projections are from the next - - Bullish Inflection Point.

PEG

P/E

Forward P/E

Valuation Divergence (%)

One - Year Projected from a Mean – Sigma and from the next - - Bullish Inflection Point.

1. AvalonBay (NYSE:AVB)

115.7

Plus 40% to 60+%

3.17 - High

55.8

22.4

+100+%

Comments: Obviously, this is an excellent valuation and target price projection. When you do further fundamental studies it looks even better. Add to that, the technical and consensus analysis and you have a conformation that AVB is and remains a winner! This is why it is wise to compare ... frequently. My work/analytics are for your possibly taking positions at a future date. However, investing at this time may not be wise.

2. Fifth Third (NASDAQ:FITB)

14.9

Plus 50% to 70%

1.50

23.7

10.4

+100+%

Comments: Obviously, this is an excellent valuation and target price projection. When you do further fundamental studies it looks even better. Add to that, the technical and consensus analysis and you have a conformation that FITB is and remains a winner! This is why it is wise to compare ... frequently. My work/analytics are for your possibly taking positions at a future date. However, investing at this time may not be wise.

3. SLM Corp. (NYSE:SLM)

14.7

Plus 30% to 50%

0.88

15.6

8.4

+85%

Comments: Obviously, this is an excellent valuation and target price projection. When you do further fundamental studies it looks even better. Add to that, the technical and consensus analysis and you have a conformation that SLM is and remains a winner! This is why it is wise to compare ... frequently. My work/analytics are for your possibly taking positions at a future date. However, investing at this time may not be wise.

4. Ventas (NYSE:VTR)

55.2

Plus 50% to 70%

3.32 - High

39.2

17.4

+100+%

Comments: Obviously, this is an excellent valuation and target price projection. When you do further fundamental studies it looks even better. Add to that, the technical and consensus analysis and you have a conformation that VTR is and remains a winner! This is why it is wise to compare ... frequently. My work/analytics are for your possibly taking positions at a future date. However, investing at this time may not be wise.

5. Weingarten

(NYSE:WRI)

25.3

Plus 50% to 70%

2.97 - High

35.6

14.3

+100+%

Comments: Obviously, this is an excellent valuation and target price projection. When you do further fundamental studies it looks even better. Add to that, the technical and consensus analysis and you have a conformation that WRI is and remains a winner! This is why it is wise to compare ... frequently. My work/analytics are for your possibly taking positions at a future date. However, investing at this time may not be wise.

Click to enlarge

Summary:

These five companies are excellent examples of what can happen if management remains both forward thinking and in control.

AVB: Rating: Fundamental: Excellent, Technical: Very Good, Consensus: Average.

FITB: Rating: Fundamental: Excellent, Technical: Very Good, Consensus: Poor.

SLM: Rating: Fundamental: Excellent, Technical: Very Good, Consensus: Very Good.

VTR: Rating: Fundamental: Excellent, Technical: Very Good, Consensus: Excellent.

WRI: Rating: Fundamental: Excellent, Technical: Very Good, Consensus: Good.

The general market is currently over-valued and overbought with overly aggressive/greedy investors and interest rates on the rise. It is showing signs of deteriorations, especially in the area of breadth statistics. This means that you must consider holding cash or perhaps taking bearish positions.

My focus is “investing wisely,” e.g. taking advantage of the bull/bear cycles as they occur within the overall marketplace. Integrating modern fundamental analytics within these technical cycles means maintaining a process of the thorough and ongoing analysis of many companies, sectors and industry groups. The Street's consensus opinion must also be considered. I believe this is a vital discipline in “investing wisely.”

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