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Short-Hand Approach To Uncovering Potentially 5 Of The Best Stocks From The Best 29

|Includes: BURL, FB, FITB, JetBlue Airways Corporation (JBLU), MPW

We have developed a process that ranks stocks according to various fundamental metrics. In our latest report, "The Best 29 Stocks for 2017." These 29 ideas already appear very attractive on a fundamental basis.

To narrow our selection further to just 5 stock ideas, in a time efficient manner, we looked for fundamentally attractive stocks that were trading near their 50-day or 200-day moving averages.

These moving average price levels are a form of "resistance" that retail traders, institutional traders, and quantitative trading programs use to help execute buy and sell strategies.

Because the entire market is focused on these moving averages, they in of themselves become useful tells of the possible follow-through price direction of a stock.

If a stock price tests a resistance level and "bounces off" of it or "falls through", that may be continue to be the price direction of the stock, at least in the short term.

We already have a positive fundamental bias in the above recommended stocks. For these 5 particular stocks, we think they also have a good chance of testing resistance and moving higher again.

The price targets here follow the methodology of the model we have posted on Seeking Alpha, which simply adjusts one-month targets on a daily basis.

We spent 2 hours reviewing charts, developing price targets, and this report. This is opposed to the 20-80 hours I require to develop a fundamental-based, one-year price target for only one stock.

When I'm finished with a current project I'm on -- in Feb or March -- I will explore the possibility of developing 5 detailed research pieces for paying subscribers each month. It's something I'd like to do if there is time and demand for it. If there is any interest please let me know.

Medical Properties Trust (NYSE:MPW)
Recent breakout above 50-day moving average, decent buying opportuntity.

Since we have a positive fundamental bias, we think this is a good buying opportunity.

Reassess if it closes below 50-day moving average, currently at $12.27.

Burlington Stores (NYSE:BURL)
Stock is consolidating after a breakout on November 22.

Now testing resistance at the 50-day moving average.

A close above $84.14 is a good sign, and a close below is not a good sign.

Since our fundamental view is positive, we suggest establishing a position at the current level.

Reassess if it falls below $84.14.

Fifth Third Bancorp (NASDAQ:FITB)
Stock seems to have successfully tested the 50-day moving average.

Since our fundamental view is positive, we suggest establishing a position at the current level.

Reassess if it falls below $26.11

JetBlue (NASDAQ:JBLU)
After breaking out on November 7, the stock appears to have recently successfully tested the 50-day moving average.

Since we have a positive fundamental bias on the stock, this looks like a good buying opportunity.

Reassess if it closes below the 50-day moving average, currently at $21.31.

Potential Near-term Buying Opportunities

Facebook (NASDAQ:FB)
FB recently broke out above its 50-day and 200-day moving average.

The stock recently hit a short-term price target in our model portfolio strategy.

FB can be volatile. A buy may be ok at the current level.

However, I would prefer waiting to see if it tests the moving averages again.

Supporting Documents

  1. Trading_ideas-2017-01-19.pdf

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in OR SHORT POSITION IN ANY STOCK over the next 72 hours.

Additional disclosure: There are limitations inherent in our theoretical model results, particularly with the fact that such results do not represent actual trading and they may not reflect the impact material economic and market factors might have had on our decision making if we were actually managing client money.