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Jim Van Meerten, Barchart (10 clicks)
Momentum, long only
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On Friday morning I screened Barchart for sectors that had the best momentum in the last month; results found that the Soft Beverage sector was on a tear. Three of the stocks stood out because of great momentum indicators: Peet's Coffee & Tea (PEET), Hansen Natural (HANS) and Fomento Economico Mexicano (FMX).

Peet's Coffee & Tea

From Yahoo Finance:

Peet's Coffee & Tea (PEET), together with its subsidiaries, operates as a coffee roaster and marketer of roasted whole bean coffee and tea in the United States. The company also offers whole leaf and bagged tea; and specialty food items, such as jellies, jams, candies, beverages, pastries, and other related items. In addition, it markets a range of merchandise, including brewing equipment for coffee and tea; paper filters and brewing accessories; and branded and nonbranded cups, saucers, travel mugs, and serveware. The company sells its products through multiple distribution channels comprising its own retail stores; and a network of grocery stores, home delivery, office, and restaurant and foodservice accounts. As of January 3, 2010, it operated 192 retail stores in California, Colorado, Illinois, Oregon, Massachusetts, and Washington. Peet's Coffee & Tea, Inc. was founded in 1966 and is headquartered in Emeryville, California.

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Factors to Consider

Barchart technical indicators:

  • 100% Barchart technical buy signal
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 12 new highs and up 17.18% in the last month
  • Relative Strength Index 83.62% and rising
  • Trades around 59.42 with a 50 day moving average of 50.35

Fundamental factors:

  • Wall Street brokerage analysts have released 2 strong buy and 6 hold recommendations recently
  • They forecast sales growth of 9.50% this year and 8.80% next year
  • Earnings are estimated to increase by 9.80% this year, 21.20% next year and 17.50% annually for the next 5 years

General investor sentiment:

  • On Motley Fool 70% of the readers giving opinions think the stock will beat the market
  • The more experienced All Stars are less optimistic with only a 65% vote for the same result

Hansen Natural

From Yahoo Finance:

Hansen (HANS) through its subsidiaries, engages in the development, marketing, sale, and distribution of beverages in the United States and internationally. The company principally offers natural sodas, fruit juices and juice drinks, energy drinks and energy sports drinks, fruit juice smoothies and functional drinks, non-carbonated ready-to-drink iced teas, children’s multi-vitamin juice drinks, and flavored sparkling beverages under the Hansen’s brand name. It also involves in the development, marketing, sale, and distribution of energy drinks under the Monster Energy, Monster Hitman Energy Shooter, Nitrous Monster Energy, and Lost Energy brand names; and Rumba, Samba, and Tango brand energy juices. In addition, the company markets, sells, and distributes ready-to-drink iced teas under the Peace Tea brand name; natural sodas, premium natural sodas with supplements, organic natural sodas, seltzer waters, and energy drinks under the Blue Sky brand name; and enhanced water beverages under the Vidration brand name, as well as Java Monster line of non-carbonated dairy based coffee and energy drinks, and X-Presso Monster Hammer energy drinks. Further, it offers Monster Energy brand energy drinks, including Monster Energy drinks, lo-carb Monster Energy drinks, Monster Energy Assault energy drinks, Monster Energy Khaos energy drinks, Monster Energy M-80 energy drinks, Monster Energy Heavy Metal energy drinks, Monster Energy MIXXD, Monster Energy Import energy drinks, and Monster Energy Dub Edition energy drinks. The company also provides Hansen’s Natural Lo-Cal juice cocktails; and Hansen’s SELF Beauty Elixir ready-to-drink beauty beverages. Its customers include full service beverage distributors, retail grocery and specialty chains, wholesalers, club stores, drug chains, mass merchandisers, convenience chains, health food distributors, and food service customers. Hansen Natural Corporation was founded in 1985 and is based in Corona, California. (Yahoo Finance)

Factors to Consider

Barchart technical indicators:

  • 100% Barchart technical buy signal
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 11 new highs and up 15.73% in the last month
  • Relative Strength Index 83.51% and climbing
  • Trades around 83.63 with a 50 day moving average of 70.49

Fundamental factors:

  • Wall Street brokerage analysts are mixed with 4 strong buy, 2 buy, 2 hold and 2 under perform ratings given to their customers
  • Sales are projected to increase by 21.80% this year and another 12.80% next year
  • Earnings increase consensuses are 26.80% this year, 16.30% next year and 14.60% annually for 5 years out

General investor sentiment:

  • The 1,787 reader on Motley Fool giving an opinion vote 93% that the stock will beat the market
  • The more experienced All Stars vote 96% for the same result

Fomento Economico Mexicano

From Yahoo Finance:

Fomento Economico Mexicano (FMX), through its subsidiaries, engages in non-alcoholic beverage, retail, and beer industries. It produces, markets, and distributes Coca-Cola trademark beverages, including sparkling beverages, such as colas and flavored sparkling beverages; water; still beverages comprising juice drinks, ready-to-drink teas, and isotonics. The company also operates a chain of convenience stores under the OXXO name, as well as other stores under the Bara, Six, and Matador names. As of December 31, 2010, it operated 8,426 OXXO stores, of which 8,409 were located in Mexico and 17 stores were located in Bogota, Colombia. In addition, the company produces and sells beer. Further, it engages in the production and distribution of coolers, commercial refrigeration equipment, and plastic cases, as well as transportation logistics and maintenance services to third parties. Fomento Economico Mexicano, S.A.B. de C.V. has operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Europe. The company was founded in 1890 and is headquartered in Monterrey, Mexico.

Factors to Consider

Barchart technical indicators:

  • 100% Barchart technical buy signal
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 7 new highs and 11.87% gain in the last month
  • Relative strength Index 77.63% and still going up
  • Trades around 68.92 with a 50 day moving average of 62.69

Fundamental factors:

  • Wall Street brokerage analysts have released 6 buy and 6 hold recommendations on this stock
  • Sales are projected to increase by 19.20% this your and 11.40% next year
  • Earnings increases are estimated to be 61.80% this year, 1.10% next year and a nice 13.50% annually for the next 5 year

General investor sentiment:

  • Readers of Motley Fool are very high on this security with 97% of the readers expressing an opinion that the stock will beat the market
  • The more experienced All Stars agree also with a 97% vote for the same result

Summary

Any of these 3 stocks could be a winner, but when I look at the demographics of the population in Mexico I see that a large portion of the population is under 25. They will be big consumers of soft beverages and tend to shop at the smaller convenience stores. That make Fomento Economico Mexicano (FMX) the winner in my book.

Source: 3 Soft Beverage Stocks With Strong Momentum Indicators