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Here we offer an interesting way to find companies that have recently outperformed in a persistent way. Although past performance is no guarantee of future results, winning streaks may indicate upward momentum and positive sentiment.

We compiled a universe of rumored takeover/leveraged buyout targets from various sources including Seeking Alpha and Wall St. Cheat Sheet. We then screened this universe for stocks that have seen a persistence of days in which the stock beat the S&P 500 benchmark over the last month and little persistence in underperforming the S&P 500, i.e. long winning streaks and short losing streaks, as measured by a ratio of the longest winning streak to the longest losing streak.

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.


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.

To access the complete list of takeover targets, click here.

Do you think these companies are likely takeover/LBO candidates? Use this list as a starting-off point for your own analysis.

List sorted by win streak/lose streak ratio.

  1. DSW Inc. (DSW): Apparel Stores Industry. Market cap of $2.15B. Takeover/LBO rumor sourced from Seeking Alpha. The stock's longest winning streak over the last month was 5 days, while the longest losing streak was 1 day, or a win streak/lose streak of 5. The stock is a short squeeze candidate, with a short float at 23.34% (equivalent to 6.06 days of average volume). It's been a rough couple of days for the stock, losing 8.72% over the last week.
  2. Apollo Group Inc. (APOL): Education & Training Services Industry. Market cap of $6.35B. Takeover/LBO rumor sourced from Wall St. Cheat Sheet. The stock's longest winning streak over the last month was 8 days, while the longest losing streak was 2 days, or a win streak/lose streak of 4. It's been a rough couple of days for the stock, losing 9.29% over the last week.
  3. BJ's Wholesale Club Inc. (BJ): Discount, Variety Stores Industry. Market cap of $2.71B. Takeover/LBO rumor sourced from Seeking Alpha. The stock's longest winning streak over the last month was 4 days, while the longest losing streak was 1 day, or a win streak/lose streak of 4. The stock has gained 10.02% over the last year.
  4. Petrohawk Energy Corporation (HK): Independent Oil & Gas Industry. Market cap of $11.59B. Takeover/LBO rumor sourced from Business Insider. The stock's longest winning streak over the last month was 7 days, while the longest losing streak was 2 days, or a win streak/lose streak of 3.5. Exhibiting strong upside momentum--currently trading 7.5% above its SMA20, 30.99% above its SMA50, and 65.37% above its SMA200. The stock has had a good month, gaining 51.83%.
  5. Stage Stores Inc. (SSI): Apparel Stores Industry. Market cap of $576.73M. Takeover/LBO rumor sourced from CNBC. The stock's longest winning streak over the last month was 6 days, while the longest losing streak was 2 days, or a win streak/lose streak of 3. The stock is a short squeeze candidate, with a short float at 13.24% (equivalent to 9.82 days of average volume). It's been a rough couple of days for the stock, losing 7.13% over the last week.
  6. Alexion Pharmaceuticals, Inc. (ALXN): Drug Manufacturers Industry. Market cap of $9.36B. Takeover/LBO rumor sourced from Minyanville. The stock's longest winning streak over the last month was 5 days, while the longest losing streak was 2 days, or a win streak/lose streak of 2.5. It's been a rough couple of days for the stock, losing 10.74% over the last week.
  7. Camelot Information Systems Inc. (CIS): Information Technology Services Industry. Market cap of $499.29M. Takeover/LBO rumor sourced from Seeking Alpha. The stock's longest winning streak over the last month was 4 days, while the longest losing streak was 2 days, or a win streak/lose streak of 2. The stock is a short squeeze candidate, with a short float at 16.76% (equivalent to 9.17 days of average volume). It's been a rough couple of days for the stock, losing 5.36% over the last week.
  8. Molson Coors Brewing Company (TAP): Beverages Industry. Market cap of $7.97B. Takeover/LBO rumor sourced from Seeking Alpha. The stock's longest winning streak over the last month was 4 days, while the longest losing streak was 2 days, or a win streak/lose streak of 2. The stock is currently stuck in a downtrend, trading 6.22% below its SMA20, 6.37% below its SMA50, and 9.5% below its SMA200. It's been a rough couple of days for the stock, losing 5.59% over the last week.

*Price data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: 8 Takeover/LBO Targets With a Recent History of Winning Streaks