Interested in stocks with upward momentum and bullish investor sentiment? If so, the following list will likely be of interest to you.
For this list, we created a universe of stocks that meet the following requirements:
- Rallying above their 20, 50, and 200-day moving averages (MA)
- Experiencing significant levels of insider buying over the past six months
- Market cap above $300 million.
Interested in exploring the implications of these criteria? Let's review:
Momentum investing aims to capitalize on the continuance of existing trends and the strength behind it.
Rallying: When a stock is rallying, that means it is performing above its moving average for a given time period. It is presented as a % of performance relative to the average. When a stock is performing above its 20-day moving average (MA) as well as its 50 and 200 day moving averages, it signals bullish momentum. All the stocks in this list are rallying above their 20, 50, and 200-day MA.
Insider buying: Many analysts follow insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading.
Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.
Market capitalization (market cap): Market capitalization, commonly referred to as market cap, is the total market value of a company's outstanding shares. It can be thought of as a measure of company's size. It can be calculated by multiplying the number of shares by the current price of the shares. Companies with higher market cap are considered to have more trustworthy information because they have greater histories of profitability and data.
Investors seem to think these names have more value to price in -- do you agree? Use this list as a starting off point for your own analysis.
List sorted by distance from SMA200. (Click here to access free, interactive tools to analyze these ideas.)
1. Midway Gold
2. MAKO Surgical
4. Ladenburg Thalmann Financial Services
5. Diamond Foods
6. Merge Healthcare
7. Regeneron Pharmaceuticals
8. APAC Customer Services
9. Vista Gold
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman and Eben Esterhuizen do not own any of the shares mentioned above.
Motley Fool newsletter services have recommended buying shares of MAKO Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.