Daily - Go to TTD's Chart scroller of Breakout Stocks - Friday, February 24, 2017 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 21, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
Ticker Tape Digest's Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
TTD's Bargain Buy Trades - Long - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.
TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).
TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time high in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
TTD also has special feature sections on Educational Tips on Investing.
To email Mr. Leo Fasciocco leo@tickertapedigest.com. For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 12
Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list showing some good plays that benefited from favorable earnings. Stock market may consolidate now.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - WAGE - ABOVE AVERAGE |
WAGE, based in San Mateo, Ca., administers consumer-directed benefits. Annual revenues: $347 million. WAGE's stock breaks out Friday from a 15-week flat base. The move carries the stock to a new all-time high. The stock came public back in 2012.
TTD highlighted WAGE as a breakout at our midsession video show on the Web Friday. The breakout was triggered by favorable quarterly earnings.
So far today, WAGE is trading a heavy 591,721 shares, triple its average daily volume of 140,000 shares.
WAGE's 10-minute chart shows the stock gapping higher in the morning and clearing its breakpoint line.
The stock then continued to work through the session closing near its high for the day. That is bullish.
WAGE reported net for the fourth quarter of 36 cents a share. That topped the consensus estimate of 35 cents a share.
Tape Action
WAGE's tape action shows the recent block trades.
One can see the price for the blocks climbing from $72.90 in the prior session to as high as $79.65.
A key bullish trade came in the morning when a block of 6,000 shares crossed the tape at $75.65.
That was up sharply from the prior block at $72.90 on 6,452 shares.
Business
WAGE administers CBDs, including pre-tax spending accounts, such as Health Savings Accounts , health and dependent care Flexible Spending Accounts and Health Reimbursement Arrangements.
It also takes care of Commuter Benefit Services, including transit and parking programs, wellness programs, consolidated omnibus budget reconciliation act and other employee benefits.
Its CDB programs assist employees and their families in saving money by using pre-tax dollars to pay for certain of their healthcare, dependent care and commuter expenses.
Employers financially benefit from its programs through reduced payroll taxes.
Charts
WAGE's 12-month performance chart shows the stock surging 68% versus a gain of 20% for the stock market.
Insiders were heavy sellers late last year. The key sellers was CEO Joseph Jackson who sold 87,000 shares at $71.90. The same day he was a buyer using stock options for the same amount at $5.32 a share. In all, he made about $6 million on the trade.
There has been no clear buying of the stock only purchases using stock options at a low price.
WAGE's long-term chart shows the stock coming public back in 2012 at $10.69 a share. The stock rose to a peak of $68.31 in early 2014.
The stock then pulled back and went into a long-term basing pattern. It has since broken out and is at a new high.
WAGE's daily chart shows the stock climbing from $56 back in late October to a peak near $75.
The stock then formed a tight flat base above its 50-day moving average line.
The breakout Friday is impressive and comes with expanding volume.
The stock's CCI momentum indicator (bottom of chart) is strongly bullish.
Earnings Outlook
This year, analysts are forecasting a 39% jump in net to $1.25 a share from 90 cents a year ago.
The stock sells with a price-earnings ratio of 62. That is high. So, the stock is most suitable for aggressive investors.
Going out to 2018, the Street is projecting a 21% gain in net to $1.50 a share from the anticipated $1.25 this year.
Net for the first quarter is expected to leap 36% to 30 cents a share from 22 cents the year before.
The company tends to come in close to the consensus estimate.
Profits for the second quarter should rise 23% to 27 cents a share from the 22 cents the year before.
Strategy Opinion: TTD is targeting WAGE for a move to $92 off this breakout. A protective stop can be placed near $73.
TTD rates WAGE an average intermediate-term play with a lot depending on earnings.
Suitability: Aggressive Bulls.
TTD's special research of WAGE's Prior Performance after a Breakout:
TTD's research shows that recently (see table) WAGE has scored some very good gains off breakouts. Although the stock has a high p/e, it remains in a strong long-term up trend.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
15% |
11/9/2016 | 64.50 | 74.50 | 12/5/2016 |
5% |
6/7/2016 | 58.40 | 61.81 | 7/29/2016 |
23% |
3/29/2016 | 49.88 | 61.81 | 7/29/2016 |
31% |
2/25/2016 |
47.05 |
61.81 |
7/29/2016 |
29% |
10/23/2014 | 49.90 | 64.51 |
12/23/2014 |
15% |
11/22/2013 | 56.05 | 64.91 | 1/15/2014 |
(In actual trading, entry and exit points could vary depending on broker execution.
Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)
Stock's Long-term Chart
Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
Stock's Monthly Seasonal Performance Chart - Past 5 Years
Showing % Months UP and % Change
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock -FNGN - ABOVE AVERAGE |
TTD's Quality Rating of Stock - CRTO - ABOVE AVERAGE |
TTD's Quality Rating of Stock - INTU - AVERAGE |
TTD's Quality Rating of Stock - FIX - AVERAGE |
Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.
Shorts from tape action so far today - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdowns stocks Friday with losses knocking some down. Stock market appears near a top. Bears should be alert for breakdowns now.
ZOES, based in Plano, Tex., operates casual restaurants selling Mediterranean dishes. Annual revenues: $267 million. ZOES's stock falls sharply Friday undercutting key technical support. TTD sees more on the downside.
TTD highlighted ZOES as a short at our midsession video show on the Web Friday.
So far today, ZOES is trading a heavy 3.3 million shares, eight times its average daily volume of 404,000 shares.
The company reported a loss for the fourth quarter of seven cents a share.
That was more than the loss of 6 cents a share expected by analysts.
Also, same store sales growth for the fourth quarter slowed to 0.7% versus 7.7% the year before.
ZOES's stock fell sharply in the morning touching an intraday low of $19.22 in the morning.
The stock rose later in the morning to trim its deficit. It then trended mostly sideways in the afternoon.
Tape Action
ZOES tape action shows the recent block trades.
One can see the price for the blocks falling from $22.46 in the prior session to as low as $19.27.
A key bearish trade came in the morning when a block of 13,865 shares crossed the tape at $21.
That was down sharply from the prior block at $22.46 on 12,918 shares.
Business
ZOES has about 170 restaurants in 20 states. It also has three franchised locations.
The company's menu offers meals made from ingredients that are mostly preservative and additive-free, including its appetizers, soups, salads and kabobs.
The Company's menu ranges from its hummus varieties, made fresh daily and served with warm pita bread, to its salads and kabobs. It also serves chicken, steak and salmon kabobs, and chicken and spinach roll-ups.
Earnings
This year, analysts have been forecasting a 25% increase in ZOES' net to 10 cents a share from 8 cents a year ago.
However, the company does expect lower sales for 2017. So, earnings estimates could come down. For the first quarter of 2017, the Street expects a 50% decline in net to 3 cents a share from 6 cents the year before.
Charts
ZOES's daily chart shows the stock gapping lower with big volume. The stock has been trending lower in recent weeks. The CCI momentum indicator (bottom of chart) is strongly bearish.
ZOES 12-month performance chart shows the stock falling 23% compared with a 21% rise in the stock market.
Insiders have been sellers of the stock, first in June around $37 after exercising stock options at $15 a share and in early 2016 at $35 to $40 a share.
Strategy Opinion: TTD is targeting ZOES for a decline to $15.70 within the next few months, or sooner. A protective stop buy can be placed near $21.
Including today, ZOES's stock has declined four out the past five quarters with one being unchanged after reporting quarterly earnings.
Suitability: Aggressive Bears.
TTD's Quality Rating of Stock -ZOES - BELOW AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He is also a speaker at the Intershow conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”
For information to subscribe to the Ticker Tape Digest Services call: Beverly Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)