Buy These 5 Stocks Now Before It’s Too Late - Wednesday, Dec. 14

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Photo Credit: Yasunobu Ikeda

Each week Forcerank runs a variety of games covering different industries. What we have found, is that the top three ranked companies in their respective games deliver the biggest positive price movement for that week. This week the winners feature popular names like McDonald’s (MCD) and Lululemon (LULU). To receive the rest of the rankings, visit the Forcerank Blog or sign up for next week’s contests and we will send you the consensus data Monday morning.

Lululemon (LULU) | Apparel: Lululemon moved higher last week after reporting better than expected third quarter results and raising fourth quarter guidance The retailer received a number of upgrades following the report so it’s not surprising that Forcerank users also upgraded the apparel company. LULU now sits atop this week’s apparel contest ahead of athleisure giants Nike and Under Armour. From a technical standpoint the case can be made that shares could climb or fall in the coming week. Investors that partake in gap trading may see the gap at $75 as an opportunity for shares to edge higher. Meanwhile, steadily improving On Balance Volume and newly positive MACD both indicate positive price action.

eBay (EBAY) | Ecommerce: Ebay made one of the biggest jumps this week moving to second  from fifth place. In the process, the online retailer surpassed popular names like Netflix and Priceline. The jump doesn’t appear to be driven by any specific news event but rather a bullish reversal following its dismal third quarter results. Shares are on the verge of closing a gap at $32, reflecting a 7% upside from its current trading price. In doing so the stock will take out its second resistance level in the month of December.     

McDonald’s (MCD) | Fast Food: Shares are trading higher after Nomura turned bullish on the golden arches last week, upgrading the stock to buy from neutral, citing optimism that same store sales can continue to improve from ongoing menu updates. The McPick 2 and all day breakfast had been met with optimism from investors that hoped financial performance was on the road to recovery. Lately, however, that hasn’t been the case, as earnings growth and stock performance continue to struggle. The stock is nearly flat in 2016 and from a year earlier but the recent upgrade could mark the start of a reversal. Shares have closed higher in each of the past 4 days and are now looking at a technical breakout. The 20 day moving average recently crossed over the 50 day average in a bullish manner and looks to be taking over the 200 day in the near future. Furthermore the MACD just made a bullish crossover this morning, signaling increasing positive momentum.

Apple (AAPL) | Hardware: Similar to eBay, Apple finds themselves in the top three of this week’s hardware contest, but not for anything news-related. On balance volume and the MACD both pushed into positive territory as the stock looks to take over the gap at $117 per share. This continued upside is largely indicative of the perceived success of the iPhone 7. Between that and a typically robust holiday season, Apple appears well on its way to fortifying its underlying fundamentals.  Investors would be wise to approach the stock with skepticism given Apple’s overreliance on the iPhone and overall weakness in its other products.

Tesla (TSLA) | Most Heavily Shorted: Tesla’s days of being a short candidate may be numbered. The electric car maker is coming off an impressive third quarter which turned a 71 cent profit and nearly $2.3 billion in revenue, both records for the historically flawed company. Shares have shockingly traded lower since then but now appear on route for a bullish run. The stock has closed higher in each of the 5 days following a bullish crossover in the MACD. At the same time the MACD is about to push into positive territory which typically translates to positive price action. Investors may never see $280 per share but given the improving underlying fundamentals and technicals, the stock should easily hit low $200’s in the near future.

Disclosure: None. 

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