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In this article we will discuss the following stocks: Anheuser-Busch Inbev (NYSE:BUD), Harley-Davidson, Inc. (NYSE:HOG), Pepsico, Inc. (NYSE:PEP), Mastercard Incorporated (NYSE:MA), Ross Stores, Inc. (NASDAQ:ROST), Buffalo Wild Wings, Inc. (NASDAQ:BWLD) and Lockheed Martin Corporation Com (NYSE:LMT).

Trending stocks make for profitable trades. "The Trend is Your Friend" an often heard investing mantra. Welles Wilder's concept of Directional Movement to identify stocks that are entering a new trend or are already in an established trending pattern is the basis for this investing thesis. Directional Movement attempts to infer the "true" movement of a stock based on its price changes from one day to the next. For example, a stock's price could close up one day compared to the day before but Directional Movement indicators may reveal that the stock's actual movement is downward. The DM for a stock on a given day is one of up, +DM, down, -DM or zero.

Visually, it is fairly simple to determine the DM value for a stock. It is based on comparing the day's high and low with yesterday's high and low. For an in-depth understanding about Directional Movement, refer directly to Welles Wilder's book "New Concepts in Technical Trading Systems". In this book you will find all the formulas, accumulation techniques and sample worksheets required to get a working, hands-on understanding of this technique in stock price analysis.

Nevertheless, savvy investors know this is only one piece of the investing puzzle. You must couple this information with a fundamental analysis of the company to determine if the company is fairly valued at current levels. I have selected seven stocks that meet the requirements for being in a defined uptrend per the directional movement formula and will perform a review of each of the company's fundamentals to determine which stocks are in an uptrend and fairly valued.

Company Fundamental Reviews

Anheuser-Busch InBev, together with its subsidiaries, engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific.

Chart (Click to enlarge charts and tables)

Fundamentals

Charts and tables provided by Finviz.com

Fundamental Analysis - Buy

Anheuser-Busch has a PEG ratio of 1.35, a forward Price to Earnings ratio of 14.63, Price to Book ratio of 2.65 and a projected EPS growth rate of 10% for next year. Anheuser-Busch is 6% below its 52 week high. These fundamentals are strong. A PEG of less than 1 is extremely bullish and BUD's is close. This fact coupled with decent EPS growth and reasonable price performance confirms that BUD is properly valued.

Harley-Davidson, Inc. produces and sells heavyweight motorcycles, as well as offers motorcycle parts, accessories, and related services.

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Fundamentals

Fundamental Analysis - Buy

Harley-Davidson has a PEG ratio of 1.66, a forward Price to Earnings ratio of 15, Price to Book ratio of 3.74 and a projected EPS growth rate of 19% for next year. Harley-Davidson is 9% below its 52 week high. These fundamentals are strong. A PEG of less than 1 is extremely bullish and Harley-Davidson's is slightly over, nevertheless, coupled with strong EPS growth next year of 20% and reasonable price performance confirms that Harley-Davidson is properly valued.

PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide.

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Fundamentals

Fundamental Analysis - Sell

PepsiCo has a PEG ratio of 1.98, a forward Price to Earnings ratio of 14.50, Price to Book ratio of 4.40 and a projected EPS growth rate of 3.87% for next year. PepsiCo is 6% below its 52 week high. These fundamentals are showing signs of froth. A PEG of 2 or more is considered expensive and PepsiCo's is right at 2, moreover, coupled with weak EPS growth next year of 3%, PepsiCo may be overvalued at this level. I would wait for a pullback to enter and take profits here if I owned it.

MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and traveler's check programs.

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Fundamentals

Fundamental Analysis - Buy

MasterCard has a PEG ratio of 1.06, a forward Price to Earnings ratio of 15.76, Price to Book ratio of 7.21 and a projected EPS growth rate of 16.71% for next year. MasterCard is 11% below its 52 week high. These fundamentals are strong. A PEG of less than 1 is extremely bullish and MasterCard's is close. This fact coupled with decent EPS growth and reasonable price performance confirms that MasterCard is properly valued, possibly slightly undervalued.

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home accessories stores under the Ross Dress for Less and dds DISCOUNTS brand names in the United States.

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Fundamentals

Fundamental Analysis - Sell

Ross has a PEG ratio of 1.58, a forward Price to Earnings ratio of 16, Price to Book ratio of 8.18 and a projected EPS growth rate of 13% for next year. Ross is trading at its 52 week high. These fundamentals are decent. A PEG of less than 1 is extremely bullish and Ross' is slightly over. Nevertheless, coupled with average EPS growth next year of 13% and a frothy price performance confirms that Ross may be slightly overvalued at this level. I would wait for a pullback to enter and take profits here if I owned it.

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States.

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Fundamentals

Fundamental Analysis - Buy

Buffalo Wild Wings has a PEG ratio of 1.21, a forward Price to Earnings ratio of 19.65, Price to Book ratio of 3.85 and a projected EPS growth rate of 21.43% for next year. Buffalo Wild Wings is 10% below its 52 week high. These fundamentals are strong. A PEG of less than 1 is extremely bullish and Buffalo's is close. This fact coupled with above average EPS growth and reasonable price performance confirms that Buffalo Wild Wings is undervalued.

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security and government information technology in the United States and internationally.

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Fundamentals

Fundamental Analysis - Sell

Lockheed Martin has a PEG ratio of 1.14 a forward Price to Earnings ratio of 10.31, Price to Book ratio of 8.99 and a projected EPS growth rate of 4.34% for next year. Lockheed Martin is 1.43% below its 52 week high. A PEG of less than 1 is extremely bullish and Lockheed Martin's is close. On the other hand, Lockheed's EPS growth rate for next year is weak and it's trading at its 52 week high. Lockheed Martin is slightly overvalued here. I would wait for a pullback to enter and take profits here if I owned it.

Please use this information as a starting point for your own due diligence and research methods before determining whether or not to buy or sell a security.

Source: 7 Stocks In Well Defined Uptrends: 4 To Buy And 3 To Sell