09 Sep
Blog

Apple – Sell The Rumor, Buy The News?

Join FindLeadingStocks.com &
Get Exact Entry And Exit Signals in Leading Stocks
Starting At Only $19/Month

Our longstanding readers know that we focus on leading stocks. Why? Because by definition, those are the stocks that are moving higher and leading the market. Our definition of leadership is simple – we always ask: Is the stock outperforming the market and its peers? Then we run additional screens to focus on the creme dela creme.
Every once in a while something shows up on our radar that jumps out at us and today it’s all about the Big Apple. No, not our beloved hometown of NYC, but Apple Inc ($AAPL). Apple is one of the most attractive undervalued growth stocks in the market right now. As a quick refresher – typically growth investors look for stocks that exhibit strong sales and earnings growth and value investors look for stocks that are undervalued.
Undervalued stocks do not typically sport strong sales and earnings growth and growth stocks typically come with a high multiple (a.k.a P/E ratio). But every once in a while, for various reasons (mainly because we believe prices on Wall Street are based on perception – emotions – and are not always rational) we find undervalued growth stocks. Apple fits the definition perfectly. Over the past few years, Apple continues to enjoy very strong sales and earnings growth (both on a quarterly and annual basis), has a ton of cash, virtually no debt, and a P/E ratio of 13! Meanwhile the P/E ratio for the S&P 500 is in the mid teens…which makes Apple a real bargain for those that like undervalued stocks.
Later today, Apple will hold its September “event” and announce a lot of new products and upgrades. In recent years, AAPL would rally all summer than fall after the September event (buy the rumor, sell the news). This year we are seeing the exact opposite occur, Apple is trading -16% below its all-time high and has fallen hard ahead of their event. Apple’s eco system is second to none and a few new “products” will definitely help fuel their very strong sales and earnings growth. This may be a classic case of buy the rumor and sell the news in reverse – sell the rumor and buy the news. Just some food for thought ahead of the event. We prefer to buy stocks in uptrends and will be interested once AAPL trades above 118. But for now, based on our discipline, patience is king.

16 Aug
Blog

Professional Watchlist: 5 New Setups For Your Review

Get Exact Buy & Sell Signals Directly To Your Inbox

Single Stock Ideas… Starting at Only $19/month
Advanced Report…. Starting at Only $97/Month

There were 16 New Setups In Last Week’s Report

What You Get:

1. Sarhan’s Conviction Leaders List
2. Weekly Leading Stocks Report
3. With Intra-Week Updates
4. Model Portfolio With Exact Entry And Exit Points
5. Professional Watchlist with Annotated Charts And Early Entry Points
6. Strongest Stocks Of The Year (Updated Weekly) So You ALWAYS Know What Stocks Are Leading The Market
7. Special Reports And A Lot More!

Here Are 5 Samples For Your Review

AMBA CELG CI CNC
AET

Why Don’t You Give It A Try?

06 Aug
Blog

Market Looks Toppy & A Closer Look At The Dow…

By Adam Sarhan, SarhanCapital
Market Looks Toppy and A Closer Look At The Dow
The market is getting weaker, not stronger. We are continuing to see more and more deterioration occurring as the major indices look toppy up here. The tape continues to break down. The bull market is over 6.5 years old and that is considered an aging bull by normal historical measures. Notwithstanding more easy money from the Fed and other central banks, a break of support will add to the misery.
A Look At The Dow
The Dow Jones Industrial Average is comprised of 30 blue chip stocks. The Dow is down for the year and continues to under-perform its peers. The reason is simple: Most stocks in the Dow are not acting well and more continue to roll over. Right now, there are only 7 strong acting stocks in the Dow and 23 that are either range bound or are in a clear downtrend. That’s not a bullish equation.
There Are Only 7 stocks in the Dow That Are In Good Technical Shape

  1. HD- Remains perched below 52-week highs
  2. JPM – Needs to breakout
  3. MCD – At the higher end of range- needs to breakout above $101.10
  4. NKE – Extended remains a very strong stock
  5. PFE – Negating latest breakout but remains strong on a relative basis
  6. UNH – Looks good as it trades just below resistance of its multi-month trading range
  7. V- Very strong and remains extended

23 Stocks Are Either Range Bound Or Not Acting Well:

  1. AAPL
  2. AXP
  3. BA
  4. CAT
  5. CSCO
  6. CVX
  7. DD
  8. DIS
  9. GE
  10. GS
  11. KO
  12. IBM
  13. INTC
  14.  JNJ
  15. MMM
  16. MRK
  17. MSFT
  18. NKE
  19. PG
  20. UTX
  21. VZ
  22. WMT
  23. XOM

Bottom Line:

The writing is on the wall for a classic topping process. If support breaks, odds favor lower prices will follow. Conversely, if the bulls show up (enter bullish catalyst that emerges) we are only a few percentage points below record highs and could easily breakout of this year-long trading range. We remain open for any outcome but the evidence is suggesting the market is getting weaker, not stronger.

Want More?
Join FindLeadingStocks.com

05 Aug
Blog

A Closer Look At The Fed – The Boy Who Cried Wolf

111spx

The Following Is An Excerpt from FindLeadingStocks.com’s Tuesday Intra-Week Update… Join Here​​​

Market Update:​
 The major indices continue moving sideways as the tape remains very split. Earnings roulette (Thank you Gary Kaltbaum/GaryK.com) continues in spades as we continue to see a handful of stocks gap up and gap down after reporting earnings. Apple broke below a key level of support on Monday and continued lower on Tuesday. The chart of Apple looks like a mirror image of the major indices, specifically the S&P 500. It raises the question: Does Apple’s big break of support mean the market will break below support (attached)? Only time will tell. We continue to tread lightly as the market remains range-bound and are waiting for a bullish catalyst to emerge and/or would like to see the market move out of range before adding more stocks to our portfolio.
 
The Boy Who Cried Wolf
The Fed sounds like the boy who cried wolf. ATL Fed President Dennis Lockhart came out today and said the Fed is “close” to raising rates in September. This appears to be nothing more than the usual Fed “rhetoric” we have seen many times in recent quarters. We do not believe the Fed will raise rates until the data forces their hand. Remember the Fed has a dual mandate: help the economy/jobs AND keep inflation near its 2% Target. GDP missed estimates in the first half of the year and we are hard pressed to find one area of the economy that is firing on all cylinders. Separately, deflation remains more of a threat than inflation (imploding commodity prices anyone?). So why would the Fed raise rates if neither one of their mandates are being met right now? Put simply, we’ll believe the Fed when we see them actually raise rates. Until then, we’ll write it off as more rhetoric. In fact, if the data doesn’t improve, we wouldn’t be surprised to see the Fed print more money (QE4) to “reflate” asset prices.

Positions:

A. The service owns:  TSLA +30.17%, XLF +1.21%, AMZN +21.85%, REGN +12.52%, UA +14.02%

B. The service will exit:  TSLA @ 245.77, XLF @24.03, AMZN @482, REGN @ 521, UA @ 92.77

Join Now & Save 10%
Use Promo Code:
WIN10

30 Jul
Blog

A Closer Look At 5 Airline Stocks

By, Adam Sarhan SarhanCapital.com
The Airline Industry Has Evolved:
The airline industry has consolidated significantly over the past decade. In addition to the massive and much needed consolidation, airlines have cut costs, become leaner, and created a new set of fees that generate billions of dollars per year in new revenue (bag fees, change ticket fees, misc fees, charging for food, etc, etc) in the past.
Lower Fuel Prices Help Earnings:
Oil prices plunged -54% from June 2014 high to today. Unless the airline is hedging, airline companies benefit when oil prices decline because lower fuel prices bode well for margins. While other airline stocks are acting poorly, here are a few that are acting well:
A Closer Look At 5 Airline Stocks
Alaska Air Group, Inc. is a holding company and has two principal subsidiaries: Alaska Airlines, Inc. and Horizon Air Industries, Inc. Both subsidiaries operate as airlines. However, each subsidiary’s business plan, competition and economic risks differ substantially. Alaska is a major airline, operates an all jet fleet, and its average passenger trip length is 833 miles. Horizon is a regional airline, operates jet and turboprop aircraft, and its average passenger trip is 231 miles. The stock is a leader in the group and is currently forming a bullish three weeks tight base on base pattern.  ALK just broke out above a $70.96 buy point. As long as this level holds, the stock is in good shape.
1111alk
JetBlue Airways Corporation, a passenger carrier company, provides air transportation services. As of December 31, 2014, the company operated a fleet of 13 Airbus A321 aircrafts, 130 Airbus A320 aircrafts, and 60 EMBRAER 190 aircrafts. It also served 87 destinations in 27 states in the United States (the U.S.), the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 17 countries in the Caribbean and Latin America. JetBlue Airways Corporation was founded in 1998 and is based in Long Island City, New York. The stock continues acting well as it sits just above its 50 DMA line.
111JBLU
Virgin America Inc. is a premium airline providing scheduled air travel services in the continental United States and Mexico. The Company offers a wide range of services such as transporting passengers between cities in the United States, providing in-flight food, beverages, and entertainment, and assisting customers with scheduling flights. The Company’s services feature mood-lit cabins with fleetwide WiFi, custom-designed leather seats, power outlets, and a video touch-screen at every seatback offering guests on-demand menus and countless entertainment options. Virgin America Inc. is headquartered in Burlingame, California. The stock gapped up today after reporting their latest quarterly result indicating strong institutional buying.
 111VA
Ryanair Holdings plc, together with its subsidiaries, provides scheduled-passenger airline services in Ireland, the United Kingdom, continental Europe, and Morocco. It also offers various ancillary services, such as non-flight scheduled services and Internet-related services; and markets accommodation services and travel insurance through its Website, as well as is engaged in the in-flight sale of beverages, food, and merchandise. In addition, the company sells bus and rail tickets onboard its aircraft and through its Website; and markets car parking, attractions, and activities, as well as gift vouchers through its Website. As of June 30, 2014, it had a fleet of 297 Boeing 737-800 aircraft and 5 leased aircraft; and offered approximately 1,600 scheduled short-haul flights per day serving approximately 186 airports primarily in Europe. The company was founded in 1985 and is headquartered in Swords, Ireland. Ryanair is the Jetblue of Europe and is forming a bullish 4-week handle as it pulls into its 50 DMA line.
 
111Ryaay
Allegiant Travel Company, a leisure travel company, focuses on the provision of travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited frequency nonstop flights between under-served cities and leisure destinations. As of February 2, 2015, it operated a fleet of 53 MD-80 aircraft, 4 Airbus A319 aircraft, 9 Airbus 320 aircraft and 6 Boeing 757-200 aircraft provided services on 229 routes to 94 cities. The company also provides air-related services and products in conjunction with air transportation, including use of its call center for purchases, baggage fees, advance seat assignments, travel protection products, change fees, priority boarding, food and beverage purchases on board, and other air-related services. In addition, it offers third party travel products, such as hotel rooms, ground transportation, and attractions; and air transportation services through fixed fee agreements and charter service on a seasonal and ad-hoc basis. The company was founded in 1997 and is headquartered in Las Vegas, Nevada. In the short term the stock is clearly extended but continues to be a leader in this space.
Positions None

25 Jul
Blog

Professional Watchlist: 5 Stocks From This Week's Report

Get Exact Buy & Sell Signals Directly To Your Inbox

Single Stock Ideas… Starting at Only $19/month
Advanced Report…. Starting at Only $97/Month

There were 15 New Setups In Last Week’s Report

 

What You Get:

1. Sarhan Capital’s Conviction Leaders List
2. Weekly Leading Stocks Report
3. With Intra-Week Updates
4. Model Portfolio With Exact Entry And Exit Points
5. Professional Watchlist with Annotated Charts And Early Entry Points
6. Strongest Stocks Of The Year (Updated Weekly) So You ALWAYS Know What Stocks Are Leading The Market
7. Special Reports And A Lot More!

Here Are 5 Samples For Your Review

 

ATHN CMG N TJX WWAV

Why Don’t You Give It A Try?

24 Jul
Blog

Good & Bad For The Week

Good:

  1. Initial jobless claims plunged to 255k, easily beating estimates for 279k and hit the lowest level in decades
  2. Leading Indicators rose by +0.6% in June, beating estimates for +0.2% gain
  3. The Manufacturing PMI Flash index rose to 53.8, beating estimates for 53.7
  4. The Chicago Fed National Activity Index rose to 0.08, beating estimates for -0.05
  5. The FHFA house price index rose +0.4%, matching estimates
  6. Existing homes sales rose 3.2% to 5.49M, beating estimates for 5.4M

 

Bad:

  1. The major indices fell last week as earnings fail to impress investors (so far)
  2. The Transports and a slew of Commodities fell hard and that bodes poorly for the broader economy
  3. New home sales plunged -6.8% to 482k, missing estimates for 550k and erased the past two months of gains
  4. Kansas City Fed Manufacturing Index remains in negative territory and contracted to -7
23 Jul
Blog

A Closer Look At Cyber Security Stocks

FindLeadingStocks.com

Single Stock Ideas… Starting at Only $19/month
Advanced Report…. Starting at Only $97/Month

Stock quotes in this article: $HACK, $CYBR, $FEYE, $FTNT, $BLOX, $JNPR, $PANW
Our long-standing readers know that we are bullish on cyber security stocks and have been for a while. Most recently in May 2015 we wrote an article for Jim Cramer’s RealMoney.com outlining our bullish fundamental and technical thesis for cyber security stocks.
Our Bullish Thesis:
Our bullish thesis has not changed – we still believe the fundamental and technical case for investing in this space remains very strong. One of the byproducts of the online, inter-dependent, and very “connected” world we live in is that cyber-security threats are a massive issue. Moreover, cyber threats are growing exponentially and will continue to do so for many years to come.
Cyber Security Threats:
We’ve seen a huge spike in data breaches over the past few years, including major incidents at the White House, Office of Personal Management, Neiman Marcus, Target and Home Depot. It reminds me of the computer-virus problems of the 1980s and ’90s. There was lots of money to be made then, and there’s lots of money to be made now.
Cyber Security Stocks:

As a refresher – A handful of cyber-security companies have gone public in recent years and are now emerging as a leading group on Wall Street. An easy way to play the sector is to buy the PureFunds ISE Cyber Security ETF (HACK). As for individual stocks, some of my favorites, in alphabetical order, Cyberark Software(CYBR), FireEye (FEYE), Fortinet (FTNT), Infoblox (BLOX), Juniper Networks (JNPR) and Palo Alto Networks (PANW).
Fundamental Case:
The fundamental case to invest in this nascent and growing space is strong. According to Forbes, Target’s 2013 data breach cost the retailing giant approximately $150 million, while Home Depot’s incident set the home-improvement chain back $62 million. A separate study showed that total worldwide costs for data breaches topped several-hundred-million dollars in 2014 and are growing at an astronomical rate.
Big Demand Translates Into Big Earnings:
This all translates into a huge opportunity for cyber-security firms. After all, the threat is worldwide rather than limited to one country, and most cyber-security companies offer subscription services that generate recurring revenue rather than one-time payments. So, the market for their services is virtually endless. Cyber-security threats are also here to stay regardless of what happens with the Fed, the broader economy or almost any other factor that can adversely affect stocks.
Ripe For Consolidation:
Furthermore, the sector is fragmented and ripe for consolidation — think of airlines 10 years ago — which should bode well for the future. Naturally, some of the older and larger tech names could easily come into the space and buy a few of the emerging players. Or, a few small players might want to merge for strategic reasons.
Strong Technicals
The technical case for the sector is also strong, as many stocks are trading near their respective 52-week highs and above important moving averages. Watch out for earnings and FTNT gapped up on Thursday after reporting earnings.
The bottom line: It behooves each of us to protect our data — and these stocks are well-positioned to profit from this basic need.
Position in HACK

16 Jul
Blog

Retail Stocks About To Breakout?

FindLeadingStocks.com

Single Stock Ideas… Starting at Only $19/month
Advanced Report…. Starting at Only $97/Month

On Thursday the tech heavy Nasdaq 100 broke out of its year long range and hit a fresh 15-year high as we enter the heart of earnings season. This very strong action is typically bullish for the broader market and leading stocks. Three of the market’s leading groups right now include: Financials, technology, and the very strong biotech group. Underneath the surface, we always like to look for new emerging groups that are on the verge of breaking out. In that vein, the retail group remains perched below resistance of a new and bullish 5-month flat base.  The $XRT is a popular exchange traded fund that tracks the retail group and serves as a good proxy for investors who want exposure to retail stocks. 

On Tuesday, we saw retail sales contract by -0.3% and miss estimates for a gain of +0.3%. So, how can retail stocks rally if retail sales missed estimates you may be asking yourself? The answer is simple: the market is a forward looking mechanism and “data” (economic and earnings data), by definition, is a rear-review mirror phenomenon. It is important to note that we are still in a very strong bull market for stocks which means the path of least resistance is higher…for now.
Here are a few other retail stocks that are on our radar for your review:
Macy’s is a strong stock that caught a nice bid on Wednesday following positive comments from activist investors at the Delivering Alpha conference. The company is well positioned to continue to grow if the economy follows the Fed’s forecast and expands in the near future. According to Reuters Eikon, institutional sponsorship remains healthy with over 1,025 high ranked funds that currently own the stock. Macy’s is slated to report their earnings on Aug 12, 2015. The company is expected to earn 0.78 cents on $6.28 billion in revenue.
M
American Eagle Outfitters is one of the strongest stocks in the retail group. Our long-standing readers know that we like focusing on leading stocks because, by definition, they are the strongest stocks in a group. AEO fits the definition and is acting very well. The fact that it already broke out even as the XRT continues suggests big institutions are accumulating stock.  AEO is slated to report earnings on Aug 19 and they are expected to earn 14 cents/share on $767.25 million in revenue.
AEO
Nordstrom (JWN) is forming a bullish cup-shaped base and continues acting very well as it pauses to digest its latest and very strong rally. The company is scheduled to report their earnings on Aug 13 and is expected to earn $0.90/share on $3.68B in revenue. JWN serves the affluent consumer which continues to benefit from record equity prices and the easy money that is sloshing around the world from global central banks.
JWN

 

«‹23456›»