Do you like to invest with stock momentum trends? For ideas on where to start, we ran a screen.
We screened for large-cap stocks exhibiting the bullish technical signal "golden cross," in which the stocks' 50-day moving average crosses above its 200-day moving average.
We then screened for those with positive trends in revenue compared to inventory: increases in revenue outpacing increases in inventory year-over-year, as well as inventory decreasing as a percent of current assets over the same time period.
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 companies have strong sales trends? Use this list as a starting point for your own analysis.
1. CompanhiaBrasileira de Distribuicao (CBD): Operates as a retailer of food products, clothing, home appliances and other products through its chain of hypermarkets, supermarkets, specialized and department stores, convenience stores and the Internet in Brazil. Market cap at $12.17B.SMA50 at $40.99 vs. SMA200 at $39.36 (current price at $47.14). Revenue grew by 21.18% during the most recent quarter ($13,371M vs. $11,034M y/y). Inventory grew by 15.11% during the same time period ($5,553M vs. $4,824M y/y). Inventory, as a percentage of current assets, decreased from 32.88% to 32.14% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).
2. Valero Energy Corp. (VLO): Operates as an independent petroleum refining and marketing company. Market cap at $13.71B.SMA50 at $22.88 vs. SMA200 at $22.85 (current price at $25.43). Revenue grew by 60.42% during the most recent quarter ($33,713M vs. $21,015M y/y). Inventory grew by 7.49% during the same time period ($5,164M vs. $4,804M y/y). Inventory, as a percentage of current assets, decreased from 40.45% to 32.54% during the most recent quarter (comparing three months ending 2011-09-30 to 3 months ending 2010-09-30).
3. Zimmer Holdings, Inc. (ZMH): Engages in the design, development, manufacture and marketing of orthopaedic reconstructive implants, spinal and trauma devices, dental implants, and related surgical products. Market cap at $10.89B.SMA50 at $57.49 vs. SMA200 at $57.05 (current price at $60.42). Revenue grew by 2.87% during the most recent quarter ($1,167.3M vs. $1,134.7M y/y). Inventory grew by -0.7% during the same time period ($929.8M vs. $936.4M y/y). Inventory, as a percentage of current assets, decreased from 31.11% to 28.38% during the most recent quarter (comparing three months ending 2011-12-31 to 3 months ending 2010-12-31).
*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.