Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you prefer investing in stocks with strong trading momentum? We ran a screen with that idea in mind.

We began by screening the consumer goods sector for stocks with strong momentum, trading within 5% of their 52-week highs.

We then screened for stocks that may be undervalued, by comparing price trends to changes in EPS estimates over the last month.

Based on the assumption that P/E is equal to a constant k, increases in EPS should be matched by increases in price. When they don't match up, a mispricing may have occurred.

We screened for stocks with faster growth in EPS estimates than price over the last month, which may indicate that these names are being undervalued.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).

Do you think these stocks will break through to new highs? Use this list as a starting point for your own analysis.

List sorted by increase in EPS estimate over the last month.

1. British American Tobacco plc (NYSEMKT:BTI): Engages in the manufacture, distribution, and sale of tobacco products. Market cap at $106.04B, most recent closing price at $108.97. The stock is trading 1.17% below its 52-week high. The EPS estimate for the company's current year increased from 5.41 to 6.7 over the last 30 days, an increase of 23.84%. This increase came during a time when the stock price changed by 4.96% (from 104.12 to 109.28 over the last 30 days).

2. Under Armour, Inc. (NYSE:UA): Designs, develops, markets, and distributes a range of apparel and accessories using synthetic microfiber fabrications in the U. Market cap at $5.93B, most recent closing price at $56.76. The stock is trading 2.74% below its 52-week high. The EPS estimate for the company's current year increased from 1.18 to 1.46 over the last 30 days, an increase of 23.73%. This increase came during a time when the stock price changed by 19.54% (from 46.94 to 56.11 over the last 30 days).

3. Cott Corporation (NYSE:COT): Engages in the production and distribution of retailer brand beverages in North America and internationally. Market cap at $787.3M, most recent closing price at $8.27. The stock is trading 3.99% below its 52-week high. The EPS estimate for the company's current year increased from 0.61 to 0.66 over the last 30 days, an increase of 8.2%. This increase came during a time when the stock price changed by 0.59% (from 8.48 to 8.53 over the last 30 days).

*EPS data sourced from 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.

Source: 3 Consumer Goods Stocks Trading Near Highs Undervalued By EPS Trends