Equifax (EFX)
I start with a stock that I left off from the last of the first half with Equifax (EFX) as it is a great stock that needs a bit more time to get off on its projected surge in the stock market.
Equifax is a data acquisition and management company known for its credit reporting and scoring system. Revenue is up nicely over the prior year by 17.70% and it maintains ample operating margin for positive returns on shareholders’ equity.
And insiders have been adding to their holdings of the stock by 14.28% recently.
- Surge score: 79/100
- % Above 52-wk low: 78.3%
- MFI reading: 65
- Sales growth: +27%
- Triple momentum: YES
The stock gapped up big in April following better-than-expected earnings.
Shares have been in a tight consolidation range since then but are now trying to break out.
The fundamentals are strong.
Sales and earnings have experienced double digit growth for each of the last four quarters.
From a technical perspective, the trend is clearly long.
Our moving averages are properly stacked and EFX is within pennies of new high ground.
I’m looking for a strong move above $243.00 per share to get me in the stock.
If triggered, I will work a stop loss order at $230.00 to risk 5.3% on the trade.
Gildan Activewear (GIL)
Gildan Activewear (GIL) is a Montreal-based manufacturer of clothing that runs the gambit from business and casual wear to the now very-in-demand “activewear” that has gripped the world during the stay-at-home times.
GoldToe socks have been ubiquitous for decades. Men have worn GoldToe socks under their suits since the Mad Men era and beyond. And it makes women’s hosiery from the past era to now. And it also provides its products for more identifiable brands such as UnderArmor (UAA).
And with its acquisitions including the brand, American Apparel – it has expanded into t-shirts and golf wear. And it makes its products in the lower-cost usual suspect countries in the Caribbean and Bangladesh.
Insiders now own 2.00% of the outstanding shares that has been a constant for a while now.
- Surge score: 89/100
- % Above 52-wk low: +163%
- MFI reading: 51
- Sales growth: +28%
- Triple momentum: YES
Gildan has been forming a nice base for the last eight weeks.
The stock began surging last Tuesday on a big spike in volume.
But I want to see the price get above $38.00 to confirm the move has legs.
Sales climbed 28% last quarter and earnings increased 7-fold, so the fundamentals are there to support a decent move in the stock.
Once in, I will work a stop at $35.50 to risk 6.5% on the trade.
B. Riley Financial (RILY)
Bryant Riley is the CEO and founder of his eponymous company B. Riley Financial (RILY). The company owns a collection of independent financial units that, combined, cover much of the specialty sectors of financial transactions that are run out of Los Angeles.
And the company is a poster child of insider buying and ownership with Bryant Riley owning 21.11% of outstanding shares.
- Surge score: 97/100
- % Above 52-wk low: +289%
- MFI reading: 55
- Sales growth: +198%
- Triple momentum: YES
B. Riley Financial is one of the great turnaround stories of the last decade.
Following the 2008 meltdown, shares fell from $196 to $2 – a 99% drop.
Slowly but surely, the stock worked its way back up.
Over the last decade, RILY is up more than 3,700%.
But the latest run didn’t start until late last year.
The stock entered an uptrend in October 2020.
It began forming a new base in late April, and I’m looking for a breakout higher to continue the uptrend.
Sales and earnings are both growing at recent triple digit rates.
And the technical setup looks very clean.
I’m looking for a move above $79.00 – preferably on a volume of 1 million shares or more for the day.
