CURRENT SELECTIONS

             March 28, 2021

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Stock Wealth Safely selects BDX for its growth prospects at a good entry price.

BDX (Becton, Dickinson) is a large medical supply company with a wide range of diagnostic and therapeutic products. It has had strong recent results with its COVID diagnostics. As the pandemic slows, the depressed hospital supply products should recover as hospitals resume normal activity. Growth prospects are good over the next several years.

BDX beat  expectation the last 4 quarters and earnings estimates have been stable for the past 30 days.

The 20 day moving average is 241.57, 50 day – 249. 87, 100 day – 246.33, and 200 day – 236.20. RSI is 52.72 and OBV essentially flat. ADX is 26. PAR turned to buy on March 26 and MACD crossed its signal line March 22.

BDX closed March 26 at 245.12. It should move towards its consensus target of 281.57 which is close to the 52 week high of 284.97. ​

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March 22, 2021

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Stock Wealth Safely selects PKI as a company with good prospects that is starting to show some price momentum

PKI (Perkinelmer) provides diagnostic products and services to the life sciences. It has a leading position in the newborn and maternal areas and is growing its presence in  other diagnostics and analytical areas. International growth holds great potential.

PKI has beaten expectations in the last 4 quarters by increasing amounts. Earnings estimates have climbed over the past 90 days.The 20 day moving average is 126.15, 50 day – 138.86, 100 day – 138.19,  and 200 day – 126.04. RSI is 52.82. ADX is 23. PAR turned to sell March 16 and the 4 day SMA crossed the 9 day. MACD turned up March 15. OBV is slightly up.

 

PKI closed at 128.13 on March 12, appears to be climbing, and remains well below the 161.64 consensus target.

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Stock Wealth Safely selects TAP as an undervalued company with a good strategy for growth.

TAP (Molson Coors Beverage) is one of the largest brewing companies in the world. It has many established brands and is aggressively growing through acquisitions in markets such as craft beer and seltzers.

TAP beat expectations in 3 of the last 4 quarters and the miss last quarter caused a drop in the stock price which should be a buying opportunity.

The 20 day moving average is 46.85, 50 day – 48.35, 100 day – 46.14, and 200 day – 41.22. RSI is 63.35 and ADX is 17. PAR has been a buy since February 23 and MACD since March 5. OBV is strongly up.

TAP closed at 49.85 on March 22 and appears underpriced compared with its prospects. The price should increase toward the 52 weeks high of 56.11.

             March 15, 2021

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Stock Wealth Safely selects QCOM as an undervalued market leader.

QCOM (Qualcomm) is a wireless technology company that is the leader in wireless chips. It gets royalties from licensing 3G, 4G and 5G products in phones and should experience further growth in the rapidly expanding 5G market.

QCOM has beaten earnings expectations in the last 4 quarters and future estimates are stable. Dividend is good at 2% for a company with strong growth prospects.

The 20 day moving average is 135.47, 50 day – 147.50, 100 day – 145.21,  and 200 day – 124.94. RSI is 42.36. PSAR turned to a buy on March 10 with ADX 28 and OBV flat.  

QCOM closed at 131.64 on March 15 which represents a good entry point. Consensus target is 172.16.

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Stock Wealth Safely selects MRK as a leading company with good prospects and an attractive yield.

MRK (Merck) is a global health company operating in multiple segments. It has a strong portfolio in oncology and immunology which are growth areas with little competition. It also has stakes in vaccines, including the Moderna COVID product.

MRK has beaten earnings expectations in 3 of the last 4 quarters and only missed last quarter by 6 cents. This may have provided an price entry point. Dividend is well above average at 3.5%.

The 20 day moving average is 74.16, 50 day – 77.45, 100 day – 78.77,  and 200 day – 79.89. RSI is 56.8. PSAR turned to a buy on March 8 with ADX 30 and OBV flat.  

MRK closed at 76.23 on March 15 and should increase toward its 52 week high of 87.80.

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Stock Wealth Safely selects MRCY which has strong growth potential and a good price.

MRCY (Mercury Systems) develops software for the military and commercial aerospace and defense markets. It targets the fastest growing microelectronics segment and the fact that it designs and manufactures in the United States is currently an attractive feature. MRCY should grow faster than overall defense spending in the next few years.

MRCY has exceeded earnings predictions in the last 4 quarters and estimates are stable.

The 20 day moving average is 67.28, 50 day – 73.57, 100 day – 74.50,  and 200 day – 75.97. RSI is 52.82. PSAR turned to a buy on March 10 with ADX 33 and OBV rising.

MRCY closed at 69.86 on March 10 and is expected to climb toward its consensus target of 97.13.

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Stock Wealth Safely selects INCY because of a strong product line and an undervalued price.

INCY (Incyte) is a drug discovery company focusing on the oncology and immunology markets, with the likelihood of expanding into dermatology. Its research portfolio appears very strong and it has little competition in the areas on which it is focusing.

The 20 day moving average is 79.55, 50 day – 86.62, 100 day – 85.83,  and 200 day – 91.16. RSI is 47.33. PSAR turned to a buy on March 5 with ADX 26 and OBV flat.

INCY closed at 80.65 on March 15, well below the 200 day SMA and the target of 105.38. It should move up towards these levels.

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March 10, 2021

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Stock Wealth Safely selects WEN as an undervalued company with a recent turnaround in earnings.

WEN (Wendys) operates a large chain of quick service restaurants. Sales and earnings are growing and should continue to improve as the pandemic resolves and dining out becomes more popular. The recent improvement in earnings supports this view.

WEN has been within 1 cent of expectations over the last 4 quarters and estimates are stable.

The 20 day moving average is 20.50, 50 day – 20.92, 100 day – 21.79,  and 200 day – 21.96. RSI is 48.96 with ADX weak at 13. However, PSAR just turned to buy on March 9 and OBV is now pointing up.

WEN closed at 20.47 on March 10 and looks to move toward the 24.69 target.

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Stock Wealth Safely selects COST as a strong company that has had an excessive drop in price that should correct.

COST (COSTCO) is a major retailer with loyal customer base and strong growth prospects. Its advantages with size and efficiency should allow it to continue to grow in the competitive retail market.

COST missed earnings expectations last quarter after exceeding in the previous 2 quarters and this appears to have produced a marked drop in price which we believe to be an overshoot. Estimates for future earnings are stable.

The 20 day moving average is 337.87, 50 day – 353.22, 100 day – 364.15,  and 200 day – 347.29. RSI is 34.88 with ADX 38. However, PSAR became a buy signal on March 10 and OBV turned up.

The closing price for COST on March 10 was 323.83 which represents an attractive entry point. The stock should climb back towards a target of 384.53.

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Stock Wealth Safely selects CHKP as a growth company at a good price.

CHKP (Check Point Software) produces a variety of information technology products to a range of customers, focusing on security solutions. Its move into mobile and cloud-based areas should provide room for growth and its strong operating margins result in good profits.

CHKP has beaten expectations in the last 4 quarters and earnings estimates have been stable for the past 30 days.

The 20 day moving average is 114.58, 50 day – 123.10, 100 day – 122.03,  and 200 day – 120.24. RSI is 44.86. PSAR turned to a buy on March 5 with the 4 day SMA crossing the 9 day on March 8. OBV is trending up and ADX is 23.  

CHKP closed at 114.43 on March 10. This undervalued price should grow in the direction of the 52 week high of 139.26.

             March 1, 2021

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Stock Wealth Safely selects AMGN (Amgen) as an undervalued company that should grow in value.

AMGN is a large biotechnical company with strong track record for successful product development. It has a number of new drugs that should offset competition from biosimilars for its older drugs. AMGN has good cash flow because of cost cutting and improved manufacturing and this should help its pricing for its own biosimilars. The dividend has recently been increased and is now a very attractive 3.1%.

AMGN has exceeded expected earnings in each of the last 4 quarters.

PSAR is sell, ADX 21, RSI 37.05 and OBV dropping. There should be resistance at 220.00. The 20 day moving average is 234.13, 50 day – 235.88, 100 day – 233.03 and 200 day – 237.23.

AMGN closed at 227.04 on March 1 and we anticipate the price is headed for the consensus target of 254.47.

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Stock Wealth Safely selects CVS (CVS Health Corp) because of strong prospects and a reasonable price.

CVS is becoming the predominant integrated provider of health services combing the largest pharmacy benefit manager with the largest retail pharmacy chain. It is also involved in health insurance since the purchase of Aetna.  CVS is further expanding its services by including medical clinics in its stores with the aim of improving health as well as being synergistic with its other divisions. This unique structure should become increasingly profitable.

CVS has beaten estimates in the last 4 quarters.

The 20 day moving average is 71.61, 50 day – 71.76, 100 day – 68.24 and 200 day – 65.63. PSAR has been a sell since February 16 with ADX relatively weak at 23. RSI is 41.69 and OBV has been dropping. There may be a resistance around 68.00.

CVS closed at 69.28 on March 1 and should climb towards its consensus 85.72 target.​

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February 23, 2021

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Stock Wealth Safely selects CAG (Conagra Brands) as an attractive company in the consumer staples sector that should continue to profit even as the pandemic recedes.

CAG is a packaged food company servicing consumers and commercial providers. It has many market leading brands benefitted from increased food consumption at home as a result of the pandemic and it is likely that some of the gains will be retained going forward. CAG is focusing operations on higher profit areas such as the refrigerated and frozen food segment where demand looks promising.

CAG has beaten earnings expectations in the last three quarters and estimates have been stable or increasing in the last 90 days. Dividend is attractive at 3.2% and well covered by cash flow.

The 20 day moving average is 34.66, 50 day – 34.93, 100 day – 35.63 and 200 day – 35.58. PAR has sell since February 11 with ADX at 9.6, RSI 53.33 and OBV starting to climb.

CAG closed at 34.97 on February 23  and the price should increase towards its 52 week high of 39.34.

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Stock Wealth Safely selects LEN (Lennar Corp) as a company with excellent growth potential at a good price point.

LEN, the largest homebuilder by revenue,  has done extremely well during the pandemic during which homebuilding has risen to record levels. Its size allows it to control costs and maintain margins. The fundamentals in the housing market remain strong with low interest rates and continued demand. LEN is well positioned to capture key first time buyers with its product mix over the next several years.

LEN has exceeded earnings expectations in all of the last four quarters and future estimates have been steadily increasing over the past 90 days.

The 20 day moving average is 88.00, 50 day – 81.69, 100 day – 79.60 and 200 day – 73.83. PAR has sell since February 16 with ADX 24.3, RSI 49.12 and OBV flat after falling.

LEN closed at 85.60 on February 23, a significant drop from its February 9 high. We think this pullback is excessive and believe the stock will start climbing towards its consensus target of 95.47