7 New Rising Stock Stars

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 |  Includes: AFFY, ASCA, DPS, FNF, FORM, HR, RGLD
by: Rougemont

The stocks below are showing new signs of strength and in the coming days and weeks, could be some of the next rising stock stars. After doing fundamental analysis, I like to see how a stock looks based on the charts, including what the 50 and 200 day moving averages are, and what the relative strength index is, before investing. When evaluating this data, you can find stocks that appear to be starting what might be a significant new uptrend.

One potential sign of this is when the 50 day moving average crosses above the 200 day moving average. This event is called a "Golden Cross Formation" and many view it as a bullish sign. These shares have reasonable valuations, and (most have) strong balance sheets. The fact that the charts might be indicating a new uptrend is an added bonus. Here are the stocks and their charts:

Dr. Pepper Snapple Group (NYSE:DPS) shares are trading at $37.46. DPS is a leading beverage maker, with a number of well known brands, including Nantucket Nectars, 7UP, Canada Dry, etc. These shares have a 52 week range of $32.69 and $40.24. The 50 day moving average is $36.35 and the 200 day moving average is $36.14. Earnings estimates for DPS are about $2.74 per share in 2011 and $2.98 for 2012. The book value is $10.98. DPS pays a dividend of $1 per share which is equivalent to a 2.7% yield.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation. This stock is reasonably priced when compared to other beverage companies, so I would not be surprised if this makes a run for new highs soon.

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Affymax, Inc. (OTCPK:AFFY) shares are trading at $6.60. AFFY is a biotechnology company focusing on treatments for medical problems like anemia. These shares have a 52 week range of $4.90 and $26.20. The 50 day moving average is $6.38 and the 200 day moving average is $6.26. Earnings estimates for AFFY are for a loss of $2.82 per share in 2011, and a loss of 77 cents for 2012. The book value is $2.85.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation. Analyst estimates for revenues are seen at about $36.44 million for 2011 and are expected to jump substantially next year to just over $115 million.

Another positive is that this company has a strong balance sheet with plenty of cash. According to Yahoo Finance, AFFY has about $97 million in cash and basically no long term debt. Since these shares are well off their 52 week highs, of $26.20, it's easy to see why investors are starting to take another look at this company.

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Ameristar Casinos, Inc. (NASDAQ:ASCA) shares are trading at $18.78. ASCA is based in Las Vegas, Nevada and owns and operates a number of casinos and resorts. These shares have a 52 week range of $13.44 and $20.69. The 50 day moving average is $16.88 and the 200 day moving average is $16.51. Earnings estimates for ASCA are about $1.13 per share in 2011, and $1.26 for 2012. The book value is $6.02. ASCA pays a dividend of 42 cents per share, which is equivalent to a 2.2% yield.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation. This stock is looking overbought right now with a relative strength index of about 74, so I would wait for pullbacks before buying.

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Fidelity National Financial, Inc. (NYSE:FNF) shares are trading at $14.73. FNF is based in Florida and provides title insurance and other real estate services. These shares have a 52 week range of $12.60 and $16.07. The 50 day moving average is $13.99 and the 200 day moving average is $13.93. Earnings estimates for FNF are about $1.09 per share in 2011 and $1.21 for 2012. The book value is $15.50. FNF pays a dividend of 48 cents per share, which is equivalent to a 3.3% yield.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation. This stock is looking overbought right now with a relative strength index of about 67, so I would wait for pullbacks before buying.

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FormFactor, Inc. (NASDAQ:FORM) shares are trading at $9.86. FORM is a maker of semiconductor products and is based in California. These shares have a 52 week range of $6.89 and $20.99. The 50 day moving average is $9.47 and the 200 day moving average is $9.31. Earnings estimates for FORM are for a loss of $1.28 per share in 2011, and a loss of 42 cents for 2012. The book value is $8.13.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation.

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Healthcare Realty Trust (NYSE:HR) shares are trading at $22.68. HR is a major real estate investment trust specializing in healthcare properties. These shares have a 52 week range of $20.06 and $25.24. The 50 day moving average is $22.21 and the 200 day moving average is $22. Earnings estimates for HR are about $1.30 per share in 2011, and $1.47 for 2012. The book value is $12.70. HR pays a dividend of $1.20 per share which is equivalent to a 5.3% yield.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation. This stock is reasonably priced, so I would not be surprised if this heads higher.

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Royal Gold, Inc. (NASDAQ:RGLD) shares are trading at $54. RGLD is based in Colorado and owns royalty interests in various gold mining and other projects. These shares have a 52 week range of $42.15 and $55.22. The 50 day moving average is $49.85 and the 200 day moving average is $49.19. Earnings estimates for RGLD are about $1.30 per share in 2011 and $1.77 for 2012. The book value is $25.92. RGLD pays a dividend of 44 cents per share which is equivalent to a .8% yield.

The chart below shows these shares are trading well above the 50 and 200 day moving averages and the chart shows a new Golden Cross Formation. This stock is reasonably priced when compared to other gold companies, so I would not be surprised if this makes a run for new highs soon. With the price of gold surging, a new high could happen any day now.

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The data is sourced from Yahoo Finance and Stockcharts.com.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I am not a registered investment advisor and do not provide specific investment advice. This information is solely educational in nature and not intended to serve as the basis for any investment decision.