The Golden Cross is a bullish technical indicator in which a stock’s 50-day moving average has crossed above the stock’s 200-day moving average. This indicates recent momentum to the upside.
We ran a screen on stocks that have recently shown this signal for those that also appear undervalued relative to free cash flows, with P/FCF below 15.
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.
Do you think these stocks will keep moving onwards and upwards? Use this list as a starting-off point for your own analysis.
List sorted by P/FCF.
1. C&F Financial Corp. (CFFI): Operates as the holding company for Citizens and Farmers Bank that provides various banking and related financial services to individuals and businesses. Market cap of $68.30M. P/FCF at 1.68. SMA50 at $21.65 vs. SMA200 at $21.55 (current price at $21.82). It's been a rough couple of days for the stock, losing 7.15% over the last week.
2. China Eastern Airlines Corp. Ltd. (CEA): Operates in civil aviation industry. Market cap of $4.77B. P/FCF at 2.69. SMA50 at $23.20 vs. SMA200 at $22.88 (current price at $20.66). This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). It's been a rough couple of days for the stock, losing 7.59% over the last week.
3. Comtech Telecommunications Corp. (CMTL): Designs and produces a wide range of telecom systems and services. Market cap of $720.79M. P/FCF at 7.49. SMA50 at $27.35 vs. SMA200 at $27.28 (current price at $27.85). The stock has had a good month, gaining 10.76%.
4. pSivida Corp. (PSDV): Develops drug delivery products that are administered by implantation, injection, or insertion. Market cap of $91.88M. P/FCF at 10.09. SMA50 at $4.58 vs. SMA200 at $4.49 (current price at $4.37). This is a risky stock that is significantly more volatile than the overall market (beta = 2.47). The stock has gained 29.15% over the last year.
5. Microsoft Corporation (MSFT): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap of $215.66B. P/FCF at 11.08. SMA50 at $25.99 vs. SMA200 at $25.90 (current price at $25.67). The stock has gained 10.66% over the last year.
6. j2 Global Communications, Inc. (JCOM): Provides outsourced, value-added communication, messaging, and data backup services to businesses of all sizes, from individuals to enterprises worldwide. Market cap of $1.40B. P/FCF at 11.52. SMA50 at $28.82 vs. SMA200 at $28.73 (current price at $30.19). The stock is a short squeeze candidate, with a short float at 11.17% (equivalent to 13.46 days of average volume). The stock has gained 38.23% over the last year.
7. Greene County Bancorp, Inc. (GCBC): Operates as the holding company for The Bank of Greene County that provides various banking products and services in the Greene County, Columbia County, and southern Albany County, New York. Market cap of $74.99M. P/FCF at 12.80. SMA50 at $17.77 vs. SMA200 at $17.76 (current price at $18.07). The stock has gained 10.18% over the last year.
*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.