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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 14
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Stock market rallies strongly. It is now in a near up-trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - TXRH - ABOVE AVERAGE
TXRH, based in Louisville, Ky., operates full-service restaurants featuring steaks and chicken dinners. Annual revenues: $1.8 billion. TXRH's stock breaks out Tuesday from a seven-week base. The move carries TXRH to a new all-time high. That is bullish.
So far, today, TXRH is trading 661,825 shares. Its average daily volume is 830,000 shares.
TTD featured TXRH as a stock to accumulate recently in anticipation of a breakout.
TXRH's stock trended sideways through the morning. Then around midsession the stock rose just enough for it to get over its breakpoint line (see 10-minute chart)
The stock then trended mostly sideways until late in the day.
Then in trading after the NYSE close TXRH shot higher with a gap move.
The enabled the stock to clear the breakpoint with room to spare.
TXRH's tape action shows the recent block trades.
One can see the price for the blocks climbing from $44.40 in the morning to as high as $45.89 Tuesday.
A key block trade came in the morning when a block of 2,000 shares crossed the tape at $44.76.
That was up from the prior block trade at $44.58 on 3,200 shares.
After the close on the NYSE, several small trades crossed the tape.
The last was a block of 100 shares crossing at $45.05.
That was up from the prior trade at $45.89 on 200 shares.
So, the push higher in TXRH reflected just light buying after the NYSE close.
TXRH runs the Texas Roadhouse restaurants.
It also provides supervisory and administrative services for other franchise
The company operates 450 restaurants in 49 states, as well as in 4 countries. The restaurants feature informal steak and chicken dishes.
TXRH's 12-month performance chart shows the stock appreciating 30% versus a 2% decline for the S&P 500 index.
The stock was under heavy insider buying in February. (See green bars on performance chart._
TXRH's long-term chart shows the stock climbing to $16.05 in 2007. However, the stock got burned during the bear market falling down to $4.09 by late 2008.
However, the stock turned and rallied steadily the past several years participating well in the bull market getting to the low-40s.
The stock's breakout Tuesday pushing it to a new high could bring in more buying on Wednesday.
TXRH's daily chart shows the stock gapping higher in February. The stock eventually climbed to a peak near 44.
It then pulled back and formed a base and today pushes over the breakpoint to achieve a breakout.
The stock's CCI momentum indicator is solidly bullish.(see bottom of chart)
The accumulation - distribution line, has broken out to the upside.
That is a good bullish indicator confirming good buying to support the breakout.
This year, analysts are forecasting a 27% increase in net to $1.74 a share from $1.37 in 2015.
The stock sells with a price-earnings ratio of 24. TTD sees that as reasonable.
Going out to 2017, the Street expects a 15% increase in net to $1.99 a share from the anticipated $1.74 this year.
Net for the second quarter is expected to leap 49% to 45 cents a share from 30 cents the prior year.
The highest estimate is at 47 cents a share.
Net for the third quarter should climb 27% to 37 cents a share from 29 cents a year before.
TXRH topped the consensus quarterly estimates by a small amount the past two quarters.
Strategy Opinion: TTD is targeting TXRH for a move to 56..
A protective stop can be placed near 43 after a breakout.
TTD rates TXRH an average intermediate-term play.
Sponsorship: Very Good. The largest fund holder is the 4-star rated VA CollegeAmerica Amcap 529F Fund with a big 6.5% stake. It has held its position steady.
A key fund buyer recently was RI CBF AllianceBern Discovery Gr RA Fund which purchased 427,420 shares as a new position. The 2-star rated fund has a 0.6 stake.
TXRH has 70.3 million shares outstanding. Institutions hold 88% of the stock and insiders have 10%.
Insider Activity: Neutral. Some light selling recently around $41.
Currently, 22 analysts follow the stock, 8 have a buy, the same as three months ago.
TXRH has a book value of $9.55 a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Texas Roadhouse Inc. - (TXRH)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - AMZN - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - COT - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - HDSN - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - TDG - 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 - 12
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Large list of shorts with many stocks getting knocked down to weak earnings or losses. Stock market now in rally phase. Bears be selective.
ZBRA, based in Lincolnshire, Il., makes direct thermal and thermal transfer label printers and radio frequency identification printer/encoders. The stock falls sharply Tuesday after the company reported disappointing earnings.
TTD highlighted ZBRA as a short at our midsession video show on the Web.
So far today, ZBRA is trading 5.3 million shares, eight times its average daily volume of 620,000 shares.
ZBRA reported a profit - including special items - of $1.01 a share. That was below the $1.23 expected by the Street.
Excluding special items, ZBRA had a loss of 56 cents a share. The results disappointed the Street.
ZBRA's stock fell sharply in the morning and then drifted steadily lower the rest of the day. It closed near its low for the session.
ZBRA's tape action shows the recent block trades.
One can see the price for the blocks falling from $62.58 in the prior sessions to as low as $53.95.
A key bearish trade came in the morning when a block of 23,095 shares (duplicated) crossed the tape at $55.01.
That was down sharply from the prior block at $62.58 on 32,110 shares (duplicated)
ZBRA products are used in automatic identification, data collection, and personal identification applications.
The company also provides mobile computing and advanced data capture technologies and services, which include rugged and enterprise-grade mobile computers; laser, imaging, and radio frequency identification based data capture products.
This year, analysts have been forecasting a 15% increase in net to $5.53 a share from $4.80 a year before. However, that forecast should come down after the first quarter report.
ZBRA's daily chart shows the stock gapping lower on big volume on the earnings report. The stock's accumulation - distribution line (bottom of chart) is bearish.
Strategy Opinion: TTD is targeting ZBRA for a decline to 45 within the next few months or sooner. A protective stop can be placed near 53.50.
|TTD's Quality Rating of Stock - ZBRA - BELOW AVERAGE|
TTD columnist Leo Fasciocco has covered the stock market for over 20 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.)