These 5 Stocks Are Giving A Strong Buy Signal - October 4, 2016

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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 features popular names like Amazon and Twitter.

Amazon (AMZN) | Ecommerce: Amazon maintains the top position after reaching all time highs each day last week. The average user rank of the retail giant improved to 2.96 from 3.87  over this time, indicating the stock’s significant upside. Amazon continues to disprove the naysayers as a pioneer for innovation and technology. Its next big bet is in India. The online retailer is spending $5 billion to capture significant market share in India’s projected $100 billion e-commerce market. Amazon is also ramping recruitment in its Alexa and Echo divisions. The Alexa platform has been one of the many devices that has made them a leader in the race to the future. Amazon clearly can’t do any wrong but investors should proceed with caution as shares approach overbought territory. In all likelihood shares will have to dip at some point before breaking to the next channel.

Twitter (TWTR) | Social Media: Twitter shares are up nearly 25% since takeover talks broke 10 days ago. This is the first week Twitter takes the top spot in the social media contest, dethroning Facebook in the process. Investors continue to pump this stock in hopes that an acquisition will be in the $30-40 per share range. The main frontrunners for the company still include Google, Salesforce, Microsoft and Disney. Seeing as there is no timetable in place for a sale, this is becoming a wait and see situation. If nothing comes of these recent talks in the upcoming weeks it is difficult to see this runup continuing.

CBS Corp (CBS) | Media: New rumors have emerged that a merger between CBS and Viacom is on the horizon. This would reunite the two companies that were torn apart nearly a decade ago. Viacom bought CBS in 2000, only for the companies to split 6 years later due to the belief that CBS was holding back Viacom’s potential. In reality, CBS has remained resilient through the rise of cord cutters while Viacom has struggled. The recent merger talks propelled both stocks  and pushed CBS to the second position in the media contest. Its technical chart also took a bullish turn on the news with on balance volume and MACD trending higher.

Bank of America (BAC) | Financials: After slumping for several weeks, Bank of America appears poised for a new rally. The bank capped off the week with a 3.5% gain on Friday and has started the week on a strong note. Bank of America has considerable upside given its low valuation, steadily improving dividend and high trading volume. High trading volume means shares are susceptible to swings both up and down. Given the recent turnaround, high trading volume appears to favor the upside. Bank of America is currently ranked in the second spot of the investment banking game just behind JPMorgan Chase. Average user rank improved significantly to 4.03 from 4.79 last week.

Yum Brands (YUM ) | Restaurants: Yum Brand is one of the few winners who is also reporting earnings this week. Analysts at Estimize are calling for earnings per share of $1.10 on $3.51 billion in revenue. Compared to a year earlier that represents a 10% increase on the bottom line and 2% on the top. Yum is expected to benefit on the back of strength in the Taco Bell, Pizza Hut and KFC brands. Taco Bell’s expanded line of breakfast items combined with frequent menu innovations across all its brands should drive comps. This will likely offset the slowdown the company is seeing in emerging markets, particularly China. Yum China sales have been adversely impacted by currency headwinds and several health related scares. Shares are up 24% year to date but historically don’t move following an earnings report.

Disclosure: Each week, Forcerank runs a variety of games covering different industries. What we have found, is that the highest ranked companies in their ...

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