The golden cross is a technical indicator in which a stock’s 50-day moving average crosses above its 200-day MA, indicating recent momentum to the upside. When stocks exhibit this sign, it indicates that the upside momentum may persist.
We ran a screen on stocks exhibiting the golden cross for those trading at steep discounts to their analyst target prices.
Because target prices are notoriously inflated, we only used the most pessimistic (the lowest) target prices, and for stocks with sufficient analyst coverage we only screened for stocks with 5 or more analyst ratings.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 soon meet their targets? Use this list as a starting-off point for your own analysis.
List sorted by potential upside implied by target price.
1. Omnicell Inc. (NASDAQ:OMCL): Offers automated solutions for hospital medication dispensing and supply management primarily in the United States and Canada. Market cap of $489.48M. SMA50 at $14.95, SMA200 at $14.82 (current price at $15.49). Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $19.00. This implies a potential upside of 28.64% from current levels around $14.77. The stock is a short squeeze candidate, with a short float at 5.91% (equivalent to 9.31 days of average volume). It's been a rough couple of days for the stock, losing 7.28% over the last week.
2. Halozyme Therapeutics, Inc. (NASDAQ:HALO): Engages in the development and commercialization of recombinant human enzymes that transiently modify tissue under the skin to facilitate injection of other therapies or correct diseased tissue structures for clinical benefits. Market cap of $861.08M. SMA50 at $6.77, SMA200 at $6.69 (current price at $8.48). Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a potential upside of 20.34% from current levels around $8.31. The stock is a short squeeze candidate, with a short float at 5.37% (equivalent to 6.58 days of average volume). The stock has had a good month, gaining 37.58%.
3. Knight Capital Group Inc. (NYSE:KCG): Provides access to the capital markets across multiple asset classes to buy-and sell-side firms, and corporations, as well as offers capital markets services to corporate issuers and private companies primarily in the United States. Market cap of $1.22B. SMA50 at $12.77, SMA200 at $12.57 (current price at $12.14). Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $14.50. This implies a potential upside of 17.79% from current levels around $12.31. The stock has lost 5.74% over the last year.
*Target price data sourced from Thomson/First Call (via Yahoo Finance), 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.