CURRENT SELECTIONS

             May 26, 2022

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Stock Wealth Safely selects the building products company MAS.

MAS (Masco) is a manufacturer of plumbing and decorative architectural products and is the leader in most of its markets. Most of its customers are in the repair and remodeling market where demand should remain high in view of aging housing stock and good demographics. It has improved its margins be selling off lower performing areas to concentrate on its premier products where it has developed growth initiatives for the next several years.

SSNC  exceeded expectations for the three of the last four quarters, including an 8% positive surprise last quarter. Estimates have been mostly increasing over the past 90 days.

The 20 day simple moving average = 54.40, 50 day = 53.20, 100 day = 56.80 and 200 day = 59.83

PAR has been buy since May 13, The 4 day SMA is 55.55 with the 9 day 55.14. ADX (14) is 12.0, A(+) 29.1 and A(-) 22.1. M12 is 0.81 and M9  is 1.o2.  OBV is flat.

After a steep drop from the beginning of the year, MAS price has been increasing since it reported good frit quarter results.  Short term technical indicators are turning positive and this appears to be a good entry point. MAS closed at 57.11 on May 26 and the price should continue to increase towards its 67.13 consensus target.​

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June 23, 2022

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Stock Wealth Safely selects the food company SJM.

SJM (JM Smucker) manufactures a wide range of well known human and pet food products. It is focusing on core brands and had a positive earnings surprise in the last quarter and their forecast is for better than expected growth over the next year. These major areas of pet food and coffee should grow faster than the overall at home food and beverage industry. The dividend is very attractive at 3.2%.

SJM has exceeded earnings expectations in the last four quarters, including at 18.6% surprise in April.

The 20 day simple moving average = 125.42, 50 day = 133.25, 100 day = 133.89 and 200 day = 131.49.

PSAR has been sell since June 17, the 4 day SMA is 124.09, 9 day SMA 125.11, ADX 27.3, ADX(+) 14.9 and ADX(-) 22.8. M12 is -0.24 and M9 -3.37. OBV is flat.

SJM is a conservative stock with a strong dividend record and predictable earnings. It appears to have reached a double bottom and the outlook is good for a price increase going forward. SJM closed June 23 at 125.94 and should climb towards its consensus target of 131.20.

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May 25, 2022

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Stock Wealth Safely selects the financial services company SSNC.

SSNC (SS&C Technologies)  provides software to the financial and healthcare industries. It has exhibited steady growth through new products, strong renewals and acquisitions where it typically improves operating performance and margins. The trend to outsourcing in health care provides a large opportunity for growth.

SSNC missed expectations for the past two quarters, resulting in a price drop. Estimates have dropped slightly over the past 90 days.

The 20 day simple moving average = 62.20, 50 day = 69.24, 100 day = 73.80 and 200 day = 74.75

PAR has been buy since May 19, The 4 day SMA is 62.11 with the 9 day 60.97. ADX (14) is 41.6, A(+) 19,1 and A(-) 31.5. M12 is – 3.21 and M9  is – 4.09.  OBV is up.

SSNC appears to be oversold in light of its strong prospects in the months ahead. Some short term technical indicators have turned positive suggesting that the price will start to rise. SSNC closed at 62.37 on May 25 and we expect it to climb back toward its 52 week high of 84.85.​

             May 4, 2022

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Stock Wealth Safely selects the regional bank WFC.

WFC (Wells Fargo) is probably the largest regional bank in the country based on network of branches and the size of its deposit base. It has a very strong presence in dealing with small and medium sized countries which is a growth opportunity. It has a high sensitivity to interest rates and its earnings should grow as interest rates are expected to continue to rise.

WFC has exceeded expectations over the past four quarters and estimates have been rising for past 90 days.

The 20 day simple moving average = 46.62, 50 day = 48.98, 100 day = 51.24 and 200 day = 49.68.

PAR has been sell since April 25, The 4 day SMA is 44.36 with the 9 day 44.88. ADX (14) is 28.7, A(+) 21.0 and rising and A(-) 32.7 and falling. M12 is – 1.54 and M9  is – 1.59.  OBV is starting to rise.

The outlook for WFC is good with its restructuring efforts, strong base, and ability to profit from increasing interest rates. WFC closed at 45.98 on May 4 and should grow towards the 60.30 consensus target. ​

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May 3, 2022

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Stock Wealth Safely selects the drug company PFE.

PFE (Pfizer) is a global pharmaceutical company making products for a wide variety of health conditions. Although it has become widely known to the public because of its COVID vaccine and more recently COVID antiviral pill, it has a number of other profitable drug franchises, especially in cancer and heart disease.

PFE has exceeded expectations in the past 4 quarters, including a 27% positive surprise in the just released figures. Estimates have been stable or climbing. Dividend is very good at 3.3%.

The 20 day simple moving average = 51.08, 50 day = 50.68, 100 day = 52.67 and 200 day = 49.35

PAR has been sell since April 18, The 4 day SMA is 49.30 and rising with the 9 day 49.13. ADX (14) is 21.3, A(+) 22.5 and A(-) 31.2. M12 is – 1.83 and M9  is – 0.97.  OBV is fairly flat.

The demand for PFE products should continue to grow, including COVID vaccines and treatments as the virus moves to an endemic phase. PFE closed at 49.29 on May 3 and is likely to increase toward the 52 week high of 60.29​.

             April 17, 2022

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Stock Wealth Safely selects the airline LUV.

LUV (Southwest Airlines) is the largest domestic air carrier. It focuses on low-cost fairs to leisure travelers that creates brand loyalty unusual in the airline industry. Leisure travel is expected to rebound faster than business as the pandemic recedes which should benefit LUV. LUV may also attract business travelers focusing on costs in the current environment.

 

LUV has exceeded expectations in three of the last four quarters and estimates have been stable or increasing over the past 60 days.

The 20 day simple moving average = 44.20, 50 day = 43.78, 100 day = 43.72 and 200 day = 47.02

PAR has been buy since April 13, The 4 day SMA is 44.56 and rising with the 9 day 44.08. ADX (14) is 19.3, A(+) 31.5 and rising, and A(-) 21.1 and falling. M12 is 0.91 and M9  is 1.51.  OBV is climbing after a brief dip.

Airline stocks are poised to rebound after the pandemic induced recession and LUV, with its focus on leisure customers that should return first, is well positioned in the industry. With technical factors turning positive, the 46.76 closing price of LUV on April 14 is a good entry point. The stock price should increase towards its 52.82 target.

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April 11, 2022

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Stock Wealth Safely selects the sporting goods retailer DKS.

DKS (Dick’ Sporting Goods) is the largest athletic retailer in the United States with sales of sporting goods, apparel and footwear. It reported extremely good results for 2021, including many new customers. While earnings will likely drop as the pandemic recedes, spending should continue in the sporting goods market as consumers focus on healthy lifestyles and the resumption of team sports.

DKS has exceeded expectations for the past four quarters and estimates have been increasing over the past 90 days.

The 20 day simple moving average = 106.16, 50 day = 107.75, 100 day = 110.93 and 200 day = 114.69

PAR has been buy since April 8, The 4 day SMA is 101.61 and rising with the 9 day 101.63. ADX (14) is 12.0, A(+) 23.3 and rising, and A(-) 20.4 and falling. M12 is -2.54 and M9  is -0.99.  OBV is rising.

DKS stock price has been falling this year even though fundamentals are strong and the company is now undervalued. There are signs of a double bottom April 7 and technical indicators are now improving. DKS closed April 11 at 105.58 which is a good entry point. The price should increase towards its consensus 143.39 target.

             April 10, 2022

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Stock Wealth Safely selects the home improvement retailer LOW.

LOW (Lowe’s) is one of the two dominant hardware and home improvement retailers in North America. While growth in this sector will not be a fast as during the pandemic, LOW continues to report positive results and is predicting margin expansion for the next year, impressive in a time of inflation and supply chain cost pressures.

LOW has exceeded expectations for the past four quarters and estimates have been increasing over the past 60 days.

The 20 day simple moving average = 216.72, 50 day = 222.45, 100 day = 235.37 and 200 day = 221.13

PAR has been sell since March 23, The 4 day SMA is 203.71 with the 9 day 205.84. ADX (14) is 23.2, A(+) 20.1 and flat, and A(-) 31.9 and falling. M12 is -10.11 and M9  is -4.70.  OBV is increasing.

The stock price of LOW has been dropping since mid-December, greater than the overall market. Some of this may be profit taking from pandemic winning stocks. It is now undervalued by fundamental measures and growth prospects. Although technical indicators remain bearish, the current stock price is an attractive entry point. LOW closed at 206.66 on April 8 and should climb towards its 52 week high of 263.31. ​

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April 3, 2022

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Stock Wealth Safely selects the medical device maker MDT.

MDT (Medtronic) is the largest manufacturer of implantable medical devices in the world. Leading areas include cardiovascular, spinal and neuromodulation for chronic pain and diabetes. Its major focus is on innovation and new products and has several in late stage trials that could be dominating products in cardiac disease and hypertension.

The 20 day simple moving average = 107.72, 50 day = 105.46, 100 day = 107.46 and 200 day = 117.40.

PAR has been buy since March 29, The 4 day SMA is 111.85 with the 9 day 109.70. ADX (14) is 14.9, A(+) 31.4 and increasing, and A(-) 18.8 and falling. M12 is 2.31 and M9  is 1.57.  OBV is slowly increasing.

MDT stock price dropped in the fourth quarter last year, mainly because of reduced demand for its products, many of which are elective and therefore postponed during the pandemic. Demand should pick up as COVID recedes and procedures that were delayed are now going ahead.  After a period of price consolidation, technical factors look positive for price growth. MDT closed at 112.52 on April first and should rise towards the 124.53 consensus target.

             March 29, 2022

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Stock Wealth Safely selects the medical supply company ABT.

ABT (Abbott Labs) is an international producer of diagnostic products, medical devices, nutritional products and pharmaceuticals. Although demand for its COVID related products should decline next year, the company has strong products with its Freestyle Libre glucose sensor, cardiac devices and generic drug products.

ABT has exceeded expectations for the past three quarters and estimates have been stable over the past 60 days.

The 20 day simple moving average = 119.04, 50 day = 122.09, 100 day = 127.16 and 200 day = 124.25.

PAR has been buy since March 18, The 4 day SMA is 119.24 with the 9 day 120.13. ADX (14) is 28.0, A(+) 24.4 and increasing, and A(-) 25.7 and falling. M12 is 0.42 and M9  is -0.71.  OBV is rising.

ABT’s stock price has been falling with the market since the beginning of the year. It is now undervalued and some technical indicators are turning positive which suggests a good entry point. ABT closed at 120.19 on March 29 and should increase toward the 142.88 consensus target.

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Stock Wealth Safely selects the technology company ADI.

ADI (Analog Devices) is a large analog chip producer. Analog chips convert measurements of quantities such as sound and temperature into digital signals that are processed. It has a dominant share in analog signal processing chips which should be in high demand in growing fields such as automobiles, industrial and communications applications.

ADI has exceeded expectations for the past four quarters and estimates have been increasing over the past 90 days.

The 20 day simple moving average = 157.86, 50 day = 159.72, 100 day = 169.26 and 200 day = 168.96.

PAR has been buy since March 16, The 4 day SMA is 167.01 with the 9 day 164.40. ADX (14) is 15.1 and falling, A(+) 20.0 and increasing, and A(-) 20.3 and falling. M12 is 3.00 and M9  is -1.24.  OBV is climbing.

The stock price of ADI has been dropping since November without any obvious fundamental problems. It is now recovering but should be able to rise more. Technical indicators are strong. ADI closed at 170.18 on March 29 and should mover towards its 52 week high of 191.95.

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Stock Wealth Safely selects the pharmaceutical company MRK.

MRK (Merck) is a global leader in health care products, primarily pharmaceuticals. It has leading drugs in cancer and immunology which should continue to grow and have good patent protection.

MRK has rebounded and exceeded expectations for the past two quarters and estimates have been increasing over the past 90 days.

The 20 day simple moving average = 78.77, 50 day = 78.48, 100 day = 78.51 and 200 day = 78.04

PAR has been buy since March 1, The 4 day SMA is 81.13 with the 9 day 80.07. ADX (14) is 20.4 and rising, A(+) 25.1 and increasing, and A(-) 11.3 and falling. M12 is 1.52 and M9  is 1.14.  OBV is climbing.

MRK’s stock price dropped since its poor second quarter earnings report and is now climbing after the recent results. The dividend is very attractive at 3.4%. All technical factors point towards a continued rise. MRK closed at 81.57 on March 29 and has room to grow towards the consensus target of 92.38.