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Speculating on companies that have recently changed their ratings can be a good short-term strategy. Normally, companies will see increases in their prices after these changes. I assessed companies which were upgraded on September 14, and I chose the top three companies with a significant change on ratings. Here is a look at the three stocks:

1. Unilever PLC (UL) operates as a fast-moving consumer goods company in Asia, Africa, Europe, and the Americas. It offers personal care products, including skin care and hair care products, deodorants, and oral care products under the brand names of Axe, Brylcreem, Dove, Fissan, Lifebuoy, Lux, Pond's, Radox, Rexona, Signal & Close Up, Simple, St Ives, Sunsilk, TRESemmé, Vaseline, and VO5. The company also provides home care products comprising laundry tablets, powders and liquids, soap bars, and a range of cleaning products under the Cif, Comfort, Domestos, Omo, Radiant, Sunlight, and Surf brand names. Competitor: Procter & Gamble Co. (PG)

(click to enlarge)

- The MACD marks a change of upward trend. RSI is in a good position. The stock is in a bullish channel.

New Rating

UBS upgraded Unilever plc from Neutral to Buy.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 27 with the following highlights:

Revenue$25.39 Billion
Net Income$2.18 Billion
Cash$788 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20121,867,4191,009,9631.848997
8/15/20122,126,6162,417,0631.000000
7/31/20122,568,0981,144,8012.243270

My Analysis

The stock has a $43 price target from the Point and Figure chart. The short interest shows a decrease. The stock is trading at a forward P/E of 19.76.The MACD marks an upward trend and for this reason, I would purchase shares with a target price of $43.

2. The KEYW Holding Corporation (KEYW) through its subsidiaries, provides mission-critical cybersecurity and cyber superiority solutions to defense, intelligence, and national security agencies in the United States. Its solutions, services, and products support the collection, processing, analysis, and use of intelligence data and information in the domain of cyberspace. The company offers engineering services and solutions to solve discreet and complex cybersecurity, cyber superiority, and intelligence challenges; and specialized training, field support, and test and evaluation services. Competitor: CACI International Inc. (CACI)

(click to enlarge)

- The MACD marks an upward trend. The stock is in a bullish channel. RSI marks overbought.

New Rating

SunTrust Robinson Humphrey upgraded The KEYW Holding Corporation from Neutral to Buy with a price target of $16.00.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 31 with the following highlights:

Revenue$56.15 Million
Net Income$325k
Cash$234k

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20123,951,2721,166,6733.386786
8/15/20123,557,4211,062,3333.348687
7/31/20123,257,8961,986,8731.639710

My analysis

The stock has a $14 price target from the Point and Figure chart. There have been one insider selling transactions this year. The stock is trading at a forward P/E of 433.00. I do not recommend buying shares because the RSI marks overbought and the company have only $234k in cash.

3. HollyFrontier Corporation (HFC) operates as an independent petroleum refiner and marketer in the United States. It produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquefied petroleum gas, fuel oil, and specialty and modified asphalt. The company operates refineries in El Dorado, Kansas; Tulsa, Oklahoma; Artesia, New Mexico; Cheyenne, Wyoming; and Woods Cross, Utah. HollyFrontier operates 5 refineries with a combined crude oil processing capacity of 443,000 barrels per day. Its refineries serve markets in the Mid-Continent, Southwest, and Rocky Mountain regions of the United States. Competitor: Valero Energy Corporation (VLO)

(click to enlarge)

- The MACD marks a change of upward trend. The stock is in a bullish channel. RSI is in a good position.

New Rating

Wells Fargo upgraded HollyFrontier from Market Perform to Outperform and raised its valuation range from $43-45 to $47-50.

Analyst of Wells Fargo, said:

The crack spread increase was almost entirely due to larger crude differentials than in our prior estimates.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 27 with the following highlights:

Revenue$4.80 Billion
Net Income$493.50 Million
Cash($387.17) Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20126,364,3892,025,9743.141397
8/15/20124,817,3933,445,9371.397992
7/31/20124,612,2382,384,645

1.934140

My analysis

The stock has a $46 price target from the Point and Figure chart. Short interest has increased in a month. There have been two insider buy transactions this year. The stock is trading at a forward P/E of 5.92. I would buy a small speculative position because the stock is bullish and the recent "upgrade" recommendation will help overcome the $46 target price.

*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com and yahoo.com as well as the webs of the previously mentioned companies.

Source: Top 3 Stock Upgrades On September 14

Additional disclosure: Investors buy and/or sell at their own risk. I declare that I may day-trade any stock at any time mentioned in this article. For me "long" is until I sell and few tell you that. I do not "short" stocks and few tell you that too. I also get paid one penny per view from SA and other than being published by SA and my own private stock account, I have zero connection to Wall Street and few tell you that too.