We are in a correction. Don’t believe me? You can read it on page one of Investors Business Daily. Kidding aside, the old adage of the market doing whatever hurts the most people seemingly proved true again. 5 months of work to the upside wiped out in fewer than 5 days! I am in the camp that the pullback, if not already over, will be short and shallow. Therefore, I find it useful to look for new buy ideas here, specifically leaders that have pulled back seemingly due solely to profit-taking.
Using StockVal, I created a screen to identify stocks that have been working in all senses of the word. I wanted to identify positive longer-term price momentum and rising EPS estimates but sharp short-term underperformance. Some constraints that I included are: Market Capitalization between $500mm and $2 billion, PE ratio of less than 40 and long-term growth expectations in excess of 12%. Here are the 25 names that met the criteria: