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If you believe in technical analysis, this may be an interesting starting point for your own research

To construct this list we looked for stocks that had recently seen the 50-day MA cross above the 200-day MA, a momentum indicator often called the "Golden Cross."

We then focused on those names that were more profitable than their industry averages over the last year. In order to compare each company’s profitability we looked at the following metrics:

• Trailing twelve month gross margin

• Trailing twelve month operating margin

• Trailing twelve month pretax margin

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Considering this data, which of these stocks do you think is more likely to rally?

1. Bally Technologies, Inc. (NYSE:BYI): Gaming Activities Industry. Market cap of $2.14B. SMA50 at $37.53 vs. SMA200 at $37.51 (current price at $40.19). TTM gross margin at 71.9% vs. industry average at 36.22%. TTM operating margin at 21.09% vs. industry average at 18.02%. TTM pretax margin at 20.19% vs. industry average at 15.66%. The stock is a short squeeze candidate, with a short float at 12.76% (equivalent to 6.99 days of average volume). The stock has lost 10.93% over the last year

2. PPL Corporation (NYSE:PPL): Electric Utilities Industry. Market cap of $16.02B. SMA50 at $37.6 vs. SMA200 at $37.14 (current price at $27.97). TTM gross margin at 36.25% vs. industry average at 27.34%. TTM operating margin at 28.65% vs. industry average at 19.1%. TTM pretax margin at 17.7% vs. industry average at 14.15%. The stock has gained 11.9% over the last year

3. Vicor Corp. (NASDAQ:VICR): Diversified Electronics Industry. Market cap of $671.40M. SMA50 at $39.57 vs. SMA200 at $39.32 (current price at $16.15). TTM gross margin at 49.01% vs. industry average at 36.02%. TTM operating margin at 12.23% vs. industry average at 10.66%. TTM pretax margin at 12.32% vs. industry average at 7.09%. The stock is a short squeeze candidate, with a short float at 9.66% (equivalent to 16.6 days of average volume). The stock has gained 22.3% over the last year

4. Wal-Mart Stores Inc. (NYSE:WMT): Discount, Variety Stores Industry. Market cap of $195.44B. SMA50 at $38.44 vs. SMA200 at $38.32 (current price at $55.43). TTM gross margin at 27.07% vs. industry average at 24.83%. TTM operating margin at 6.05% vs. industry average at 5.56%. TTM pretax margin at 5.58% vs. industry average at 5.18%. The stock has gained 9.% over the last year

*Relevant data sourced from Fidelity and Finviz.

Source: Momentum Ideas: 4 Profitable Stocks Showing Bullish Crossover Signals