Skip to main content

5 profitable tech stocks with 50-DMA turning bullish

Stocks went on another wild on Thursday (window-dressing?) and in an interesting turn of events the Dow finished up over 1% while the NASDAQ 100 finished down 1%. This was surprising to me since tech has been trading in a much more positive way than most other sectors or indexes.

This could mean there is a buying opportunity coming up for the following stocks. These five companies are all profitable and their 50-day exponential moving averages are in the process of turning up. (Note that we found these stocks using a freely available preset for the Premium Stock Screener at TradingStockAlerts.com)

Here are the five stocks, all of which were trading above their 50-day EMA as of the close on Thursday. I have included a quick take on their financial status, current valuation and technical outlook.
  • CommVault Systems, Inc. (CVLT) -- This company has solid financials but is somewhat over-priced. Nevertheless, the stock is in an up-trend. It could be a buy on a pullback if you are comfortable with the elevated valuation. CommVault is a player in the virtualization space, which remains one of the hottest sectors within tech.
  • FactSet Research Systems Inc.(FDS) -- This company has solid financials and it is fairly priced. In terms of the chart, the stock is more or less going sideways. We consider it a BUY on a breakout and with the 50-DMA turning up, the breakout may be at hand. FactSet, a provider of financial information, recently released good earnings, has been buying back stock and continues to grow internationally.
  • Jabil Circuit, Inc.(JBL) -- This company also has solid financials and it is considered to be deep value. In terms of the chart, it has been more or less going sideways for the last month. We consider it a BUY on a breakout and with the 50-DMA turning up and a big up-day on Wednesday, the breakout looks to be happening right now. There is a risk a market downturn could drag it back into its channel which wouldn't be altogether bad news as it would provide a cheaper entry point. Jabil recently beat earnings expectations and delivered positive forward guidance and that is the primary reason behind the excellent action this week.
  • Oracle Corporation (ORCL) -- This company also has solid financials and it is considered to be reasonable value. This stock has also been more or less going sideways but has shown much more positive behavior in the last few weeks. Unfortunately it was just rejected at its 200-day EMA. Oracle just came out with a great earnings report so the stock is getting some favorable attention lately. We consider it a BUY on a breakout and with the 50-DMA turning up, the breakout would be confirmed if it eventually moves above that 200-EMA.
  • Teradata Corporation (TDC) -- This company has solid financials and it is fairly priced. In terms of the chart, the stock has started a nice up-trend. We consider it a BUY on a pullback and with tech weakening perhaps the pullback looks to be here sooner rather than later. Teradata is a major player in "big data", another hot tech sector, and provides one of the database platforms often used in enterprises for data warehousing and analytics.
Another note: the ratings on financial status, current valuation and technical outlook were all obtained by using the Stock Search function found at the top of every page on TradingStockAlerts.com, our sister site. Try it out by clicking on any of the stock symbols of the five stocks above.

Disclosure: no positions in any stocks mentioned in this post

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.