Equifax (EFX)
Equifax is a data acquisition and management company known for its credit 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: 82/100
- % Above 52-wk low: 77.9%
- MFI reading: 64
- Sales growth: +24%
- Triple momentum: YES
Equifax is the information solutions firm that handles employment, income, and social security number verification.
They’re the ones who compress your entire financial life into a single number that tells banks whether or not to lend you money.
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.
The trigger to enter this trade will be a move above $243.00 per share.
I will work a stop loss order at $230.00 to risk 5.3% on the trade.
Entegris (ENTG)
Entergris provides management of materials for the electronics industry including assemblers and manufacturers. Revenue is up by 16.90% over the past year and the company maintains good operating margins for an attractive return on shareholders’ equity.
- Surge score: 82/100
- % Above 52-wk low: 111%
- MFI reading: 51
- Sales growth: +24%
- Triple momentum: YES
Entegris is a specialty materials manufacturer for the microelectronics industry.
The stock has been steadily trending higher since 2016.
Shares are up 10-fold over the period.
After a 25% surge in late March, ENTG began forming a cup-and-handle pattern that is about to complete.
I want to see a break above $123.00 to get me in this trade.
If it triggers, I will place a stop at $113.50 for a risk of 7.7%.
Keysight Technologies (KEYS)
Keysight Technologies is in the business of measurements using precision instruments for a variety of businesses and industries. Revenue has just surged by 36.43% for the recent quarter that is grabbing market attention. Operating margin is good and in turn feeds a positive return on shareholders’ equity.
- Surge score: 70/100
- % Above 52-wk low: 70.2%
- MFI reading: 68
- Sales growth: +36%
- Triple momentum: YES
Keysight’s surge score barely made the cut of 70 or better.
But this could still be a big performer.
The stock has been consolidating for 6 months, so I’m not surprised to see a score of 70/100.
Unlike the other names on my list, this is one I’d be comfortable buying right now.
We got confirmation at the end of last week as shares blew through the $150 level.
The thick black line on the chart shows a textbook tightening pattern as pullbacks became more and more shallow toward the right side of the chart.
Traders can get away with a tight stop at $146.00 to see if KEYS makes a quick move.
Those looking for a longer-term move in the 30-50% range will need to give the stock a little more room to move with a stop at $139.00.
