4 Large-Cap Momentum Plays With High Profitability

Includes: ADI, AFL, DE, MDT
by: Kapitall

Interested in investing based on stock momentum trends? For ideas on how to get started, here's a list you might be interested in.

We ran a screen on large-cap stocks (with market caps above $10 billion) for those exhibiting the technical signal "golden cross," in which the stock's 50-day MA has crossed above its 200-day MA, indicating upside momentum that may persist.

We then screened these stocks for those with high profitability, with higher gross, operating, and pretax margins than their industry averages.

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.‬

Do you think these stocks will continue rising? Use this list as a starting point for your own analysis.

List sorted alphabetically.

1. Analog Devices Inc. (NASDAQ:ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. SMA50 at $36.17 and SMA200 at $35.79 (current price at $40.10). TTM gross margin at 70.32% vs. industry average at 59.68%. TTM operating margin at 35.9% vs. industry average at 23.93%. TTM pretax margin at 35.46% vs. industry average at 22.91%.

2. AFLAC Inc. (NYSE:AFL): Provides supplemental health and life insurance. SMA50 at $44.01 and SMA200 at $43.23 (current price at $50.29). TTM gross margin at 14.02% vs. industry average at 14.%. TTM operating margin at 14.02% vs. industry average at 11.11%. TTM pretax margin at 13.15% vs. industry average at 9.74%.

3. Deere & Company (NYSE:DE): Provides products and services primarily for agriculture and forestry worldwide. SMA50 at $80.05 and SMA200 at $78.56 (current price at $88.49). TTM gross margin at 32.15% vs. industry average at 32.09%. TTM operating margin at 15.56% vs. industry average at 12.95%. TTM pretax margin at 13.22% vs. industry average at 11.01%.

4. Medtronic, Inc. (NYSE:MDT): Manufactures and sells device-based medical therapies worldwide. SMA50 at $37.19 and SMA200 at $36.18 (current price at $40.08). TTM gross margin at 79.31% vs. industry average at 65.4%. TTM operating margin at 30.47% vs. industry average at 15.38%. TTM pretax margin at 24.37% vs. industry average at 12.23%.

*Profitability data sourced from Fidelity, 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.