Stocks went on another wild on Thursday (window-dressing?) and in an interesting turn of events the Dow finished up over 1% while the NASDAQ 100 finished down 1%. This was surprising to me since tech has been trading in a much more positive way than most other sectors or indexes.
This could mean there is a buying opportunity coming up for the following stocks. These five companies are all profitable and their 50-day exponential moving averages are in the process of turning up. (Note that we found these stocks using a freely available preset for the Premium Stock Screener at TradingStockAlerts.com)
Here are the five stocks, all of which were trading above their 50-day EMA as of the close on Thursday. I have included a quick take on their financial status, current valuation and technical outlook.
- CommVault Systems, Inc. (CVLT) -- This company has solid financials but is somewhat over-priced. Nevertheless, the stock is in an up-trend. It could be a buy on a pullback if you are comfortable with the elevated valuation. CommVault is a player in the virtualization space, which remains one of the hottest sectors within tech.
- FactSet Research Systems Inc. (FDS) -- This company has solid financials and it is fairly priced. In terms of the chart, the stock is more or less going sideways. We consider it a BUY on a breakout and with the 50-DMA turning up, the breakout may be at hand. FactSet, a provider of financial information, recently released good earnings, has been buying back stock and continues to grow internationally.
- Jabil Circuit, Inc. (JBL) -- This company also has solid financials and it is considered to be deep value. In terms of the chart, it has been more or less going sideways for the last month. We consider it a BUY on a breakout and with the 50-DMA turning up and a big up-day on Wednesday, the breakout looks to be happening right now. There is a risk a market downturn could drag it back into its channel which wouldn't be altogether bad news as it would provide a cheaper entry point. Jabil recently beat earnings expectations and delivered positive forward guidance and that is the primary reason behind the excellent action this week.
- Oracle Corporation (ORCL) -- This company also has solid financials and it is considered to be reasonable value. This stock has also been more or less going sideways but has shown much more positive behavior in the last few weeks. Unfortunately it was just rejected at its 200-day EMA. Oracle just came out with a great earnings report so the stock is getting some favorable attention lately. We consider it a BUY on a breakout and with the 50-DMA turning up, the breakout would be confirmed if it eventually moves above that 200-EMA.
- Teradata Corporation (TDC) -- This company has solid financials and it is fairly priced. In terms of the chart, the stock has started a nice up-trend. We consider it a BUY on a pullback and with tech weakening perhaps the pullback looks to be here sooner rather than later. Teradata is a major player in "big data", another hot tech sector, and provides one of the database platforms often used in enterprises for data warehousing and analytics.
Disclosure: no positions in any stocks mentioned in this post.