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20 growth stocks with improving moving averages

The market is firming these days and what was out of favor is now meeting demand.

Growth stocks had certainly been weak while investors fled to defensive sectors. That is beginning to change now. Using the Premium Stock Screener at out sister site TradingStockAlerts.com, we have identified a list of growth stocks whose 50-day exponential moving average (EMA) has, within the last few days, started to turn up in a bullish direction.

SymbolNameSectorIndustry
ACN Accenture plc. Miscellaneous Business Services
AGP AMERIGROUP Corporation Health Care Hospital And Medical Service Plans
ALV Autoliv, Inc. Capital Goods Auto Parts:O.E.M.
BKI Buckeye Technologies, Inc. Basic Industries Paper
CPSI Computer Programs and Systems, Inc. Technology EDP Services
CYOU Changyou.com Limited Technology Computer Software: Prepackaged Software
DCI Donaldson Company, Inc. Capital Goods Pollution Control Equipment
ENTR Entropic Communications, Inc. Technology Semiconductors
FN Fabrinet Public Utilities Telecommunications Equipment
IPGP IPG Photonics Corporation Technology Semiconductors
KRO Kronos Worldwide Inc Basic Industries Major Chemicals
LEA Lear Corporation Capital Goods Auto Parts:O.E.M.
MA Mastercard Incorporated Miscellaneous Business Services
MMS Maximus, Inc. Miscellaneous Business Services
NDSN Nordson Corporation Capital Goods Industrial Machinery/Components
NEU NewMarket Corporation Basic Industries Major Chemicals
NEWP Newport Corporation Capital Goods Medical Specialities
SNHY Sun Hydraulics Corporation Capital Goods Metal Fabrications
TRW TRW Automotive Holdings Corporation Capital Goods Auto Parts:O.E.M.
XLNX Xilinx, Inc. Technology Semiconductors

Our criteria for growth stocks is as follows:
  • Company must be profitable
  • Year-over-year quarterly revenue increase 
  • Year-over-year quarterly earnings increase
  • ROE over 20%
  • Debt-to-Equity less than 1
Five out of the twenty stocks are Technology stocks and that's a good sign for the recent rally -- tech often leads the stock market out of bottoms and into a bullish trend. Seven of the twenty are Capital Goods stocks -- these stocks tend to follow the economic cycle and this suggests investors are much more comfortable with global growth picking up as we enter the second half of the year. I might also note that one of the stocks is Mastercard -- that's a vote for the consumer.

With earnings season coming up soon, we could see a real resurgence in those growth stocks that manage to put up decent numbers despite the last few months of economic softness. There's a good chance that today's list contains some of those future growth leaders.


Disclosure: no positions in any stocks mentioned in this post

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