12 Golden Cross Stocks With Positive Inventory Trends

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 |  Includes: CAMP, COOL, CVGW, CVS, EL, ENVE, HAIN, MON, NXTM, PAA, TSLA, ZIGO
by: Kapitall

For a look into a company’s sales trends, one idea is to consider growth in inventory over time. Comparing this to growth in revenue could show some interesting results.

We ran a screen on stocks exhibiting the technical indicator “golden cross,” in which a stock’s 50-day moving average crosses above its 200-day moving average. We screened these stocks for those with positive trends in inventory, with growth in quarterly revenue outpacing growth in quarterly inventory year-over-year. We also screened for companies with quarterly inventory decreasing as a percent of current assets.

To understand why these trends are positive, think of why the opposite trends would be negative. If revenue were growing slower than inventory, it may indicate that the company is having trouble selling its inventory - although this could just indicate inventory building or a change in sales policies.

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 companies have strong sales trends? Use this list as a starting point for your own analysis.

List sorted by difference between revenue growth and inventory growth.

1. Plains All American Pipeline, L.P. (NYSE:PAA): Engages in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas-related petroleum products (LPG) in the United States and Canada. Market cap of $9.97B. SMA50 at $61.19 vs. SMA200 at $60.69 (current price at $64.08). MRQ revenue has increased 37.78% ($8,837M vs. $6,414M y/y) while MRQ inventory has decreased 30.21% ($1,086M vs. $1,556M y/y). Inventory/current assets have decreased from 41.26% to 25.92%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 11.2% over the last year.

2. Tesla Motors, Inc. (NASDAQ:TSLA): Designs, develops, manufactures and sells electric vehicles and advanced electric vehicle powertrain components. Market cap of $3.63B. SMA50 at $27.68 vs. SMA200 at $26.37 (current price at $33.52). MRQ revenue has increased 84.60% ($57.67M vs. $31.24M y/y) while MRQ inventory has increased 24.58% ($49.22M vs. $39.51M y/y). Inventory/current assets have decreased from 16.39% to 11.94%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock is a short squeeze candidate, with a short float at 44.46% (equivalent to 23.89 days of average volume). The stock has had a couple of great days, gaining 13.15% over the last week.

3. Zygo Corporation (NASDAQ:ZIGO): Designs, develops and manufactures ultra-high precision measurement solutions to enhance its customers' manufacturing yields; and optical sub-systems and components for original equipment manufacturers and end-user applications in the United States and internationally. Market cap of $302.71M. SMA50 at $13.52 vs. SMA200 at $13.14 (current price at $16.69). MRQ revenue has increased 41.36% ($43.99M vs. $31.12M y/y) while MRQ inventory has increased 6.15% ($26.6M vs. $25.06M y/y). Inventory/current assets have decreased from 25.11% to 21.17%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 11.75% over the last week.

4. Majesco Entertainment Co. (NASDAQ:COOL): Provides interactive entertainment products primarily in the United States and Europe. Market cap of $129.27M. SMA50 at $2.79 vs. SMA200 at $2.73 (current price at $3.03). MRQ revenue has increased 60.91% ($19.55M vs. $12.15M y/y) while MRQ inventory has increased 31.71% ($4.61M vs. $3.5M y/y). Inventory/current assets have decreased from 16.03% to 11.71%, comparing 3 months ending 2011-07-31 to 3 months ending 2010-07-31. It has been a rough couple of days for the stock, losing 6.57% over the last week.

5. Monsanto Co. (NYSE:MON): Provides agricultural products for farmers in the United States and internationally. Market cap of $38.83B. SMA50 at $70.27 vs. SMA200 at $69.33 (current price at $71.01). MRQ revenue has increased 15.05% ($2,247M vs. $1,953M y/y) while MRQ inventory has decreased 4.24% ($2,623M vs. $2,739M y/y). Inventory/current assets have decreased from 38.46% to 29.67%, comparing 3 months ending 2011-08-31 to 3 months ending 2010-08-31. The stock has gained 24.61% over the last year.

6. CalAmp Corp. (NASDAQ:CAMP): Develops and markets wireless communications solutions that deliver data, voice and video for critical networked communications and other applications in the United States. Market cap of $124.84M. SMA50 at $3.35 vs. SMA200 at $3.24 (current price at $4.28). MRQ revenue has increased 14.62% ($33.8M vs. $29.49M y/y) while MRQ inventory has decreased 1.25% ($11.84M vs. $11.99M y/y). Inventory/current assets have decreased from 32.94% to 30.63%, comparing 13 weeks ending 2011-08-31 to 13 weeks ending 2010-08-31. The stock has had a couple of great days, gaining 25.72% over the last week.

7. CVS Caremark Corporation (NYSE:CVS): Operates as a pharmacy services company in the United States. Market cap of $50.09B. SMA50 at $35.77 vs. SMA200 at $35.43 (current price at $38.41). MRQ revenue has increased 12.50% ($26,674M vs. $23,711M y/y) while MRQ inventory has decreased 1.95% ($10,379M vs. $10,585M y/y). Inventory/current assets has decreased from 61.05% to 54.81%, comparing 13 weeks ending 2011-09-30 to 13 weeks ending 2010-09-30. The stock has gained 30.84% over the last year.

8. Hickory Tech Corp. (HTCO): Provides integrated communications services to business and residential customers in the Midwest. Market cap of $142.76M. SMA50 at $10.10 vs. SMA200 at $9.88 (current price at $10.83). MRQ revenue has increased 4.05% ($45.24M vs. $43.48M y/y) while MRQ inventory has decreased 10.17% ($5.92M vs. $6.59M y/y). Inventory/current assets have decreased from 16.79% to 10.34%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 5.25%, current ratio at 1.55, and quick ratio at 1.39. The stock has gained 22.5% over the last year.

9. Nxstage Medical, Inc. (NASDAQ:NXTM): Engages in the development, manufacture and marketing of products for the treatment of kidney failure, fluid overload and related blood treatments and procedures in the United States. Market cap of $1.08B. SMA50 at $20.67 vs. SMA200 at $20.35 (current price at $19.45). MRQ revenue has increased 24.14% ($55.9M vs. $45.03M y/y) while MRQ inventory has increased 11.26% ($35.56M vs. $31.96M y/y). Inventory/current assets ave from 45.38% to 22.59%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock is a short squeeze candidate, with a short float at 12.35% (equivalent to 11.45 days of average volume). The stock has performed poorly over the last month, losing 13.16%.

10. Estee Lauder Companies Inc. (NYSE:EL): Engages in the manufacture, marketing and sale of skin care, makeup, fragrance and hair care products worldwide. Market cap of $22.02B. SMA50 at $99.74 vs. SMA200 at $97.79 (current price at $112.14). MRQ revenue has increased 18.41% ($2,476.7M vs. $2,091.7M y/y) while MRQ inventory has increased 8.51% ($982.2M vs. $905.2M y/y). Inventory/current assets have decreased from 28.30% to 27.57%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a good month, gaining 19.29%.

11. Calavo Growers Inc. (NASDAQ:CVGW): Procures and markets avocados and other perishable commodities and prepares and distributes processed avocado products in the United States and internationally. Market cap of $359.94M. SMA50 at $21.12 vs. SMA200 at $21.05 (current price at $24.64). MRQ revenue has increased 44.13% ($165.14M vs. $114.58M y/y) while MRQ inventory has increased 37.59% ($21.85M vs. $15.88M y/y). Inventory/current assets have decreased from 25.97% to 22.09%, comparing 3 months ending 2011-07-31 to 3 months ending 2010-07-31. The stock is a short squeeze candidate, with a short float at 15.64% (equivalent to 27.78 days of average volume). The stock has had a couple of great days, gaining 5.32% over the last week.

12. The Hain Celestial Group, Inc. (NASDAQ:HAIN): Manufactures, markets, distributes and sells natural and organic food and personal care products in the United States and internationally. Market cap of $1.56B. SMA50 at $31.98 vs. SMA200 at $31.82 (current price at $34.92). MRQ revenue has increased 13.34% ($292.36M vs. $257.96M y/y) while MRQ inventory has increased 6.88% ($181.51M vs. $169.82M y/y). Inventory/current assets have decreased from 48.53% to 46.75%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock is a short squeeze candidate, with a short float at 6.03% (equivalent to 6.63 days of average volume). The stock has had a couple of great days, gaining 7.36% over the last week.

*Accounting data sourced from Google 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.