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Although it is helpful to search for companies that analysts are bullish on, it is also helpful to search for groups of analysts that are historically correct. If those analysts are bullish on a company, it is probably worthwhile to take a second look.

Using analyst ratings from Reuters that are presented on a linear scale (with 1 = "Strong Buy" and 5 = "Strong Sell"), we sliced the ratings data of stocks seeing rapid dividend growth year-over-year into three time periods separated by a month, and identified the group of analysts who have shown predictive value, i.e. been able to accurately predict the direction of stock moves for two consecutive time periods.

We further narrowed down the list by only focusing on those stocks that have seen bullish trends in analyst opinion. In other words, predictive analysts, with a proven (short-term) track record of predicting a stock's direction, think these stocks are due for a rebound. The screen produced three stocks, listed below.

Although past performance is no guarantee of future results, the recent accuracy of these analyst ratings suggests their opinions may be a helpful starting point for your own analysis.

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.

Click to enlarge

Do you think these stocks will rebound like analysts predict? Use this list as a starting point for your own analysis.

List sorted by dividend yield.

1. JP Morgan Chase & Co. (JPM): Money Center Banks Industry. Market cap of $139.70B. Dividend yield at 2.80%, payout ratio at 13.26%. Current year dividend per share estimate at $0.97 vs. TTM dividend per share at $0.60. Mean average rating changed from 1.65 to 1.61 between 05/26/11 and 06/25/11 (bullish change). Analysts correctly predicted the direction of the stock over the next month, with the stock generating an alpha of 0.06%.

Analysts also got it right between 06/25/11 and 07/25/11, with the mean rating changing from 1.61 to 1.67 (bearish change). Over the following month, the stock generated an alpha of -2.11% relative to the S&P 500 index, as predicted by analysts.

This same group of analysts now expect the stock to outperform in the future, with the mean rating changing from 1.67 to 1.61 between 07/25/11 and 08/24/11 (i.e. bullish change). The stock has performed poorly over the last month, losing 13.54%.

2. Fifth Third Bancorp (FITB): Regional Banks Industry. Market cap of $9.29B. Dividend yield at 2.38%, payout ratio at 14.65%. Current year dividend per share estimate at $0.24 vs. TTM dividend per share at $0.14. Mean average rating changed from 2.19 to 2.03 between 05/26/11 and 06/25/11 (bullish change). Analysts correctly predicted the direction of the stock over the next month, with the stock generating an alpha of 1.38%.

Analysts also got it right between 06/25/11 and 07/25/11, with the mean rating changing from 2.03 to 2.06 (bearish change). Over the following month, the stock generated an alpha of -10.36% relative to the S&P 500 index, as predicted by the analysts.

This same group of analysts now expect the stock to outperform in the future, with the mean rating changing from 2.06 to 2.03 between 07/25/11 and 08/24/11 (i.e. bullish change). This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has performed poorly over the last month, losing 21.83%.

3. Fulton Financial Corp. (FULT):
Regional Banks Industry. Market cap of $1.70B. Dividend yield at 2.35%, payout ratio at 22.96%. Current year dividend per share estimate at $0.19 vs. TTM dividend per share at $0.15. Mean average rating changed from 2.08 to 2.14 between 05/26/11 and 06/25/11 (bearish change). Analysts correctly predicted the direction of the stock over the next month, with the stock generating an alpha of -3.45%.

Analysts also got it right between 06/25/11 and 07/25/11, with the mean rating changing from 2.14 to 2.2 (bearish change). Over the following month, the stock generated an alpha of -8.85% relative to the S&P 500 index, as predicted by the analysts.

This same group of analysts now expect the stock to outperform in the future, with the mean rating changing from 2.2 to 2.07 between 07/25/11 and 08/24/11 (i.e. bullish change). The stock has performed poorly over the last month, losing 19.38%.

*Ratings sourced from Reuters, dividend per share data sourced from Screener.co, all other data sourced from Finviz.

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

Source: 3 Stocks With Rapid Dividend Growth That Predictive Analysts Expect To Outperform