Each weekend I publish a weekly "Stocks to Watch" list on Scott's Investments. The list is not a blanket buy recommendation, but is a way to generate potential future investment or trading ideas. The list is generated using Finviz and looks for stocks hitting 52-week highs on Fridays on high relative volume. Since the US equity market has struggled in recent weeks, recent lists have been sparse.
US equity markets had an outstanding week this past week, so the Stocks to Watch list is larger than previous weeks. There are several noteworthy names on this list, the largest being Amazon.com (NASDAQ:AMZN). AutoZone (NYSE:AZO), Hansen Natural Corporation (HANS), and Whole Foods Market (NASDAQ:WFM) are three other noteworthy names on the list. PriceSMart (NASDAQ:PSMT) is a stock which has made several of my "Stocks to Watch" lists, most recently discussed on September 5, and which appears on this week's list. It has institutional support, and The Benchmark Company upped its price target to $87 on September 14.
I typically use this list to find stocks that have attractive valuations or growth stories (in addition to the strong trend). Akorn (NASDAQ:AKRX) manufactures and markets diagnostic and therapeutic pharmaceutical products, hospital drugs, and injectable pharmaceuticals. The company looks attractive using technicals and fundamentals. It currently trades at a PEG ratio of .71 and has a strong balance sheet with a quick ratio of 8.49 and current ratio of 9.96. It has shown EPS growth this year 178.42% and is projected to growth EPS the next 5 years at 25.5% annually. The company has a return on assets of 31.26%, return on equity of 53.39%, and return on investment of 34.05%.
According to AlphaClone, 7 funds bought into the stock for the quarter ending June 30, 2011 (0 sold out). Twenty-three increased their positions in the company while three decreased their positions, so the company has institutional support. From a technical perspective, the stock has been in an upward channel since March:
Below are the 15 stocks qualifying for this week's list:
Disclaimer: Please note that Scott's Investments is not a financial adviser. Please consult your own investment adviser and do your own due diligence before making any investment decisions. Please read the full disclaimer at the bottom of Scott's Investments.