Monday, January 26, 2015

3 Cheap Growth Stocks You Can Buy Right Now: Freeport-McMoRan (NYSE: FCX ), Silicon Motion Technology (NASDAQ: SIMO ), Alaska Air Group (NYSE: ALK )

With the stock market in nonstop rally mode over the past five years, an investor doesn't need to look far to uncover an abundance of growth stocks. But not all growth stocks are created equal. While some could still lead investors to extraordinary gains, others appear considerably overvalued and could wind up burdening investors with hefty losses.
What exactly is a growth stock? Though it's arbitrary, I'll define a growth stock as any company forecasted to grow profits by 10% per year or more over the next five years. To decide what's "cheap," I'll be using the PEG ratio, which compares a company's price-to-earnings ratio to its future growth rate. Any figure around or below one signals a cheap stock.
Here are three companies that fit the bill. (more)

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BP plc (NYSE: BP) A Severely Beaten-Down Dividend Stock

Wall Street wisdom tells us not to try to catch a falling knife. Stocks in strong downtrends are more likely to keep falling than suddenly turn around. However, unless a stock is heading to zero, it will eventually find its footing.

That time seems to be at hand for international oil giant BP plc (NYSE: BP). (more)

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NOW Inc. distributes energy and industrial products to upstream, midstream, downstream, and industrial markets in the United States, Canada, and internationally. The company’s products include pipes, valves and valve automations, fittings, mill and industrial supplies, tools, safety products, and artificial lift systems. It also provides supply chain management, project management, and e-commerce solutions. The company offers its products under the DistributionNOW and Wilson Export brand names. It serves oil and gas operators and drilling contractors, refineries, chemical companies, utilities, manufacturers, and engineering and construction companies.
Take a look at the 1-year chart of NOW (NYSE: DNOW) with the added notations:
1-year chart of NOW (NYSE: DNOW)
DNOW has been trending lower pretty much since the stock IPO’d last year. Over the last month or so, however, DNOW has been finding support at $22 (purple) whenever that price has been approached. Now that the stock is there again, traders should be able to expect some sort of bounce. However, if the $22 support were to break, much lower prices should follow.

The Tale of the Tape: DNOW has a key level of support at $22. A trader could enter a long position at $22 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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Ride This Niche Stock's Steep Uptrend to Double-Digit Gains: Whole Foods Market (NASDAQ: WFM)

With the S&P 500 oscillating around the psychologically important 2,000 level, I remain cautiously optimistic about the market's outlook. In this uncertain environment, I'm looking to go long growth stocks that are outperforming the broader market.

One stock that has grabbed my attention is Whole Foods Market (NASDAQ: WFM). Since their October low near $36, shares have surged about 45%. In comparison, the S&P 500 has advanced about 10% during this period. (more)

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Daily Chart Analysis of The Big Three: E-Mini, Gold, Crude Oil

I'm not talking about Ford, General Motors and Chrysler, but the commodity contract giants:  the S&P 500, Gold, and Crude Oil.   
As we begin 2015, there are plenty of opinions on this year's potential stock index futures  returns. The median forecast is for around a 15% gain this year. Well let's technically analyze this market on a daily basis and come up with an objective strategy!
The following is an update of the current technical condition for the big three.
Daily March E-Mini Futures
Gold futures have broken out to a five month high. From a technical point of view there appears to be more left on the upside.
Daily April Gold Futures 

It seems that almost every day the headlines read Crude Oil down another 5%. Futures are down a whopping 52% from the June highs.  Every talking head on this planet is plastering the headlines with downside predictions....$40, $30, $20, $10....Do I see $5 anyone? It appears that the lower prices go for crude the more bearish analysts become. Keep in mind that as a general rule commentary follows price. Forget all that nonsense and let's use some common sense!  Below we have a monthly chart of Crude Oil prices.
Daily March Crude Oil Futures

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US Weekly Economic Calendar

None scheduled
8:30 am Durable goods orders Dec. 0.2% -0.9%
9 am Case-Shiller home prices Nov. -- 4.6% y-o-y
10 am Consumer confidence index Jan. 96.0 92.6
10 am New home sales Dec. 453,000 438,000
2 pm FOMC announcement
8:30 am Weekly jobless claims Jan. 24
295,000 307,000
10 am Pending home sales Dec. -- 0.8%
8:30 am GDP Q4 3.2% 5.0%
8:30 am Employment cost index Q4 0.5% 0.8%
9:45 am Chicago PMI Jan. -- 58.3
9:55 am Consumer sentiment index Jan. 98.3 98.2
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