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Accounts receivable represents a big portion of revenue for many companies, but as the name implies, these funds are not yet “received.” This can therefore be an area of concern.

When accounts receivable becomes a larger percentage of the revenues reported by a company, it indicates lower quality revenues because there is no guarantee that accounts receivable will be paid back in full. Companies with shrinking accounts receivable (relative to revenue) are viewed favorably.

We ran a screen on stocks exhibiting the “golden cross” technical signal for those with positive receivable and revenue trends: increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable, and a decrease in quarterly accounts receivable as a percent of quarterly current assets year-over-year.

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.

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Do you think these stocks will move higher? Use this list as a starting point for your own analysis.

List sorted by difference between growth in revenue and accounts receivable.

1. Motorola Solutions, Inc. (NYSE:MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap of $14.90B. SMA50 at $43.54 vs. SMA200 at $43.07 (current price at $45.77). MRQ revenue has increased 10.32% ($2,105M vs. $1,908M y/y) while MRQ accounts receivable has decreased 55.02% ($1,638M vs. $3,642M y/y). Accounts receivable/current assets has decreased from 20.96% to 16.86%, comparing 3 months ending 2011-10-01 to 3 months ending 2010-10-02. The stock has gained 36.87% over the last year.

2. Brightpoint Inc. (NASDAQ:CELL): Provides supply chain solutions to the wireless technology industry. Market cap of $692.91M. SMA50 at $9.71 vs. SMA200 at $9.69 (current price at $10.16). MRQ revenue has increased 50.52% ($1,338.14M vs. $889.03M y/y) while MRQ accounts receivable has increased 2.40% ($423.65M vs. $413.73M y/y). Accounts receivable/current assets has decreased from 59.65% to 47.32%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 10.8% over the last year.

3. Sonesta International Hotels Corp. (NASDAQ:SNSTA): Operates hotels in Boston, Massachusetts. Market cap of $113.66M. SMA50 at $19.89 vs. SMA200 at $19.58 (current price at $30.72). MRQ revenue has increased 10.65% ($22.64M vs. $20.46M y/y) while MRQ accounts receivable has decreased 31.54% ($5.08M vs. $7.42M y/y). Accounts receivable/current assets has decreased from 18.63% to 17.17%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has had a couple of great days, gaining 41.18% over the last week.

4. Standard Motor Products Inc. (NYSE:SMP): Distributes replacement parts for motor vehicles in the automotive aftermarket industry primarily in the United States, Canada and Latin America. Market cap of $437.89M. SMA50 at $14.35 vs. SMA200 at $13.56 (current price at $19.35). MRQ revenue has increased 3.81% ($236.22M vs. $227.54M y/y) while MRQ accounts receivable has decreased 19.68% ($137.52M vs. $171.21M y/y). Accounts receivable/current assets has decreased from 38.70% to 33.63%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. This is a risky stock that is significantly more volatile than the overall market (beta = 2.24). The stock has had a couple of great days, gaining 23.41% over the last week.

5. Colfax Corporation (NYSE:CFX): Designs, manufactures and distributes fluid handling products that transfer or control liquids in various applications worldwide. Market cap of $1.23B. SMA50 at $22.66 vs. SMA200 at $22.59 (current price at $28.36). MRQ revenue has increased 28.62% ($170.29M vs. $132.4M y/y) while MRQ accounts receivable has increased 5.79% ($135.22M vs. $127.82M y/y). Accounts receivable/current assets has decreased from 44.87% to 39.20%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-10-01. The stock is a short squeeze candidate, with a short float at 27.88% (equivalent to 10.78 days of average volume). The stock has had a couple of great days, gaining 15.47% over the last week.

6. Total System Services, Inc. (NYSE:TSS): Provides electronic payment processing and other services to card-issuing and merchant acquiring institutions. Market cap of $3.89B. SMA50 at $18.27 vs. SMA200 at $18.02 (current price at $20.21). MRQ revenue has increased 6.12% ($459.75M vs. $433.24M y/y) while MRQ accounts receivable has decreased 16.14% ($246.97M vs. $294.51M y/y). Accounts receivable/current assets has decreased from 39.42% to 39.09%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a good month, gaining 10.08%.

7. Kansas City Southern (NYSE:KSU): Engages primarily in the freight rail transportation business. Market cap of $7.28B. SMA50 at $55.66 vs. SMA200 at $54.78 (current price at $66.25). MRQ revenue has increased 24.23% ($544.5M vs. $438.3M y/y) while MRQ accounts receivable has increased 7.48% ($186.9M vs. $173.9M y/y). Accounts receivable/current assets has decreased from 26.12% to 25.83%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 6.49% over the last week.

8. Black Diamond, Inc. (NASDAQ:BDE): Develops, manufactures and distributes outdoor recreation equipment and active lifestyle products in the United States and internationally. Market cap of $189.96M. SMA50 at $7.61 vs. SMA200 at $7.48 (current price at $8.73). MRQ revenue has increased 23.83% ($42.04M vs. $33.95M y/y) while MRQ accounts receivable has increased 7.85% ($28.73M vs. $26.64M y/y). Accounts receivable/current assets has decreased from 41.48% to 35.86%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 5.56% over the last week.

9. Liz Claiborne Inc. (LIZ): Engages in the design and marketing of a range of apparel and accessories. Market cap of $791.80M. SMA50 at $6.30 vs. SMA200 at $5.72 (current price at $8.37). MRQ revenue has increased 3.55% ($555.83M vs. $536.8M y/y) while MRQ accounts receivable has decreased 8.46% ($175.95M vs. $192.21M y/y). Accounts receivable/current assets has decreased from 29.63% to 28.60%, comparing 13 weeks ending 2011-07-02 to 13 weeks ending 2010-07-03. This is a risky stock that is significantly more volatile than the overall market (beta = 2.35). The stock is a short squeeze candidate, with a short float at 22.67% (equivalent to 5.07 days of average volume). The stock has had a good month, gaining 65.74%.

10. Panhandle Oil and Gas Inc. (NYSE:PHX): Engages in the acquisition, management, exploration and development of oil and natural gas properties. Market cap of $286.61M. SMA50 at $29.72 vs. SMA200 at $29.65 (current price at $34.74). MRQ revenue has increased 11.76% ($11.69M vs. $10.46M y/y) while MRQ accounts receivable has increased 5.28% ($9.57M vs. $9.09M y/y). Accounts receivable/current assets has decreased from 64.79% to 61.46%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has had a couple of great days, gaining 9.56% over the last week.

11. Standex International Corp. (NYSE:SXI): Operates as a diversified manufacturing company in the United States and internationally. Market cap of $485.63M. SMA50 at $33.88 vs. SMA200 at $33.13 (current price at $38.39). MRQ revenue has increased 11.23% ($174.69M vs. $157.06M y/y) while MRQ accounts receivable has increased 5.36% ($101.11M vs. $95.97M y/y). Accounts receivable/current assets has decreased from 47.04% to 41.87%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 6.55% over the last week.

12. Rentech, Inc. (NASDAQ:RTK): Provides alternative and clean energy solutions and manufactures and sells nitrogen fertilizer products. Market cap of $357.34M. SMA50 at $1.09 vs. SMA200 at $1.08 (current price at $1.60). MRQ revenue has increased 47.38% ($74.44M vs. $50.51M y/y) while MRQ accounts receivable has increased 44.03% ($16.88M vs. $11.72M y/y). Accounts receivable/current assets has decreased from 15.78% to 12.14%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. This is a risky stock that is significantly more volatile than the overall market (beta = 2.78). The stock has had a good month, gaining 66.67%.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 12 Golden Cross Stocks With Strong Receivable Trends