January 7, 2022
Stock Wealth Safely selects the manufacturing company HON.
HON (Honeywell) is a diversified manufacturer offering products to improve performance in a variety of industries, especially aerospace, defense, energy and building technology. HON has a strong record of product innovation such an indoor air quality monitor that will warn of virus risks. HON’s balance sheet is strong and allows the necessary ongoing investment.
HON has exceeded estimates for the last four quarters and estimates have been essentially stable for the past 60 days.
The 20 day simple moving average = 206.96, 50 day = 212.39, 100 day = 217.10 and 200 day = 221.18
PAR has been buy since January 4. The 4 day SMA is 210.82 with the 9 day 208.26. ADX (14) is 25.9 and falling with A(+) 25.4 and rising, and A(-) 22.0 and falling. M12 is – 0.38 and M9 is – 1.45 and both are climbing. OBV is rising.
The stock price has suffered since the summer because of worries that COVID will disrupt the industries that are supplied by HON. This appears to be an overreaction and there are technical signs that the stock price is recovering. HON closed on January 7 at 210.82 and should increase towards its 236.18 consensus target.
January 2, 2022
EMR (Emerson Electric) is a large global designer and manufacturer of process technology focusing on automation solutions for industrial, commercial and consumer markets. Demand has been strong and its backlog at the end of 2021 is higher than one year ago, a sign of persisting demand. EMR has a leading position in many product categories, but as these markets are often fragmented, there is ample room for growth. It has the largest installed base and strong customer loyalty. Dividend is good at 2.2%
EMR has exceeded estimates for the last four quarters and estimates have been stable or rising for the past 60 days.
The 20 day simple moving average = 91.84, 50 day = 93.88, 100 day = 96.52 and 200 day = 95.71
PAR has been sell since December 20. The 4 day SMA is 92.87 with the 9 day 91.70. ADX (14) is 20.3 and flat with A(+) 20.9 and rising, and A(-) 24.7 and falling. M12 is 0.50 and M9 is 0.32 and both are climbing. OBV is rising.
EMR’s price had fallen since early September, likely because of concern over the general industrial outlook rather than negative performance by the company. Technical indicators are turning positive. The closing price of 92.97 on December 31 provides an attractive entry point for a stock with a 52 week high of 105.99.
Dec 29, 2021
Stock Wealth Safely selects the home furnishings company ETD.
ETD (Ethan Allen) is a leading company in the manufacture and retailing of home furnishings. It has performed well this year through a combination of price increases and cost controls and has benefitted from the demand in the housing market and home improvement. It has a large backlog of written orders and is increasing capacity as a result. Strong demand for its products is likely to continue. The dividend is extremely attractive at 4.4%.
ETD beat expectations in the last quarter after meeting them in the previous three quarters. Estimates have been stable in the last 30 days.
The 20 day simple moving average = 24.90, 50 day = 24.47, 100 day = 24.38 and 200 day = 26.08
PAR has been buy since December 27. The 4 day SMA is 26.11 with the 9 day 25.45. ADX (14) is 16.9 and flat with A(+) 33.6 and climbing, and A(-) 16.8 and falling. M12 is 0.50 and M9 is 0.32. OBV is rising.
ETD’s stock price has not kept up with its growth since the summer the technical indicators are now showing evidence that the price is rising. ETD closed at 26.76 on December 29 and should continue to climb towards its 52 weeks high of 32.15.
Dec 28, 2021
Stock Wealth Safely selects the machinery company CAT.
CAT (Caterpillar) is the largest producer of earthmoving equipment and engines. Customer demand is strong and is likely to continue to grow, especially in the construction and energy industries. Its brand strength is exceptionally strong because of its reputation for providing value added services to customers.
CAT has exceeded expectation in the last 4 quarters and estimates have been stable for the last 30 days.
The 20 day simple moving average = 201.25, 50 day = 202.78, 100 day = 203.21 and 200 day = 214.38
PAR has been buy since December 28. The 4 day SMA is 205.34 with the 9 day 202.80. ADX (14) is 10.7 and flat with A(+) 30.8 and climbing, and A(-) 24.7 and falling. M12 is 0.71 and M9 is 0.07. OBV is rising sharply.
Caterpillar closed at 206.62 on December 28. Technical factors suggest that its current price increase should continue toward its 226.54 target.
Dec 27, 2021
Stock Wealth Safely selects the education publishing company JW.A
JW.A (John Wiley) publishes titles that are essential to its customers and have little competition, creating strong relationships. Demand for its products should continue to grow in the academic and corporate markets, especially in areas such as management of online degree programs. More than 80% of its revenue now comes from digital and technology services. Dividend is good at 2.5%.
JW.A has exceeded expectations the last four quarters. Estimates have been increasing over the past 30 days.
The 20 day simple moving average = 54.41, 50 day = 54.14, 100 day = 55.11 and 200 day = 56.67
PAR has been buy since December 27. The 4 day SMA is 55.01 with the 9 day 54.31. ADX (14) is 12.0 and flat with A(+) 22.9 and rising, and A(-) 18.9 and falling. M12 is 0.18 and M9 is 0.09. OBV is climbing.
JW.A is an undervalued company that is showing positive technical signs. It closed at 55.99 on December 27 and should increase towards its 66.04 52 week high.
Stock Wealth Safely selects the insurance company ALL
ALL (Allstate) is the second largest property/casualty insurance company and is also one of the largest life insurers. ALL has successfully lowered its risk profile and has been able to raise prices and improve profitability.
ALL missed expectations last quarter after having exceeded the previous three quarters. Estimates have been stable for the past 30 days.
The 20 day simple moving average = 111.17, 50 day = 116.59, 100 day = 124.18 and 200 day = 125.96
PAR has been buy since December 14. The 4 day SMA is 114.24 with the 9 day 113.72. ADX (14) is 28.4 and dropping with A(+) 25.7 and flat, and A(-) 23.2 and falling. M12 is – 0.29 and M9 is – 1.28. OBV is climbing.
ALL shares have pulled back in response to third quarter results and are now at an attractive entry point. It closed at 116.08 on December 27 and should grow towards its 130.79 consensus target.
Stock Wealth Safely selects the packaging company PKG
PKG (Packaging Corporation of America) is the third largest producer of containerboard and corrugated products. Demand for its products has been strong and it has been able to pass along price increases. Its operating efficiency outperforms its competitors. Dividend is attractive at 3.1%.
PKG has exceeded expectations for the last three quarters and estimates have been stable for the past 30 days.
Dec 22, 2021
Stock Wealth Safely selects the fast service restaurant company QSR.
QSR (Restaurant Brands International) owns three large chains: Burger King, Popeye’s and Tim Horton’s. All brands hold dominant positions and are well placed for international growth. Domestic growth should return as the pandemic recedes. Management has a proven ability to enhance profitability and the 3.6% dividend is exceptional.
QSR has exceeded expectations in the last three quarters and estimates have been stable the last 30 days.
The 20 day simple moving average = 57.83, 50 day = 58.35, 100 day = 60.92 and 200 day = 63.65
PAR has been buy since December 7. The 4 day SMA is 58.01 with the 9 day 58.14. ADX (14) is 16.4 with A(+) 23.9 and A(-) 28.8. M12 is – 0.01 and M9 is – 0.11. OBV is flat after falling.
QSR closed December 22 at 58.85. This is an attractive price for a strong brand that should grow over the next few months towards its 69.92 target.
Dec 7, 2021
Stock Wealth Safely selects the homebuilder PHM.
PHM (PulteGroup) is one of the largest homebuilders in the United States. The demand for homes remains extremely strong in all buyer groups and regions. New orders and backlog continue to grow along with average contract value. PHM has a strong balance sheet that allows it to buy both land for development and also repurchase its shares to enhance value.
PHM has beaten expectation in three of the last four quarters and estimates have been stable for the last 30 days.
The 20 day simple moving average = 51.87, 50 day = 49.74, 100 day = 50.87 and 200 day = 52.24
PAR has been buy since December 6. The 4 day SMA is 53.31 with the 9 day 52.12. ADX (14) is 27.4 with A(+) 26.8 and A(-) 11.9. M12 is 0.99 and M9 is 1.17. OBV is rising.
PHM closed December 7 at 54.67 and technical indicators predict a price climb towards the 65.50 consensus target.
Stock Wealth Safely selects the delivery company FDX.
FDX (FedEx) is one of the largest providers of small-parcel delivery using its own air and ground fleets, both in the US and globally. Demand should continue to grow because of the trends in e-commerce. Its massive presence in package sorting, air and delivery fleets make it a formidable competitor.
FDX beat expectations in three of the last four quarters. The miss by $0.54 in quarter 3 resulted in the price drop that now presents a buying opportunity. Estimates have been stable for the past 30 days.
The 20 day simple moving average = 244.31, 50 day = 235.76, 100 day = 252.34 and 200 day = 270.52
PAR has been buy since December 6. The 4 day SMA is 242.06 with the 9 day 238.74. ADX (14) is 23.3 with A(+) 25.1 and A(-) 21.9. M12 is – 3.13 and M9 is 0.80. OBV is starting to rise.
FDX has exceptional growth prospects with the economic recovery and is currently at an attractive price. It closed December 7 at 247.06 and should increase towards its 303.10 consensus target.