Below is a list of several stocks to watch this week. Each week I publish stocks to watch for the upcoming week as potential momentum trades or longer-term investments. The stocks below all have a 50k minimum average daily share volume and traded at a 52-week high on strong volume, with a minimum of two times relative volume on Friday, July 22nd. In addition, stocks were required to close Friday higher than the open price.
The full list with weekly performance is tracked on a spreadsheet on the right-hand side of Scott’s Investments. This week should be interesting as the debt ceiling debate continues. I typically try to ignore the news and macro events. However, as with last week, it will be important to follow the debt ceiling debate this week as it will impact the markets and any of the stocks mentioned in this list.
Metropolitan Health Networks (MDF)
Metropolitan Health Networks operates provider services network (PSN) in the United States. Its PSN provides and arranges for medical care primarily to medicare advantage beneficiaries who participate in a medicare advantage program, as well as offers primary care physician services to non-Humana participating customers. The company has been featured several times on Scott’s Investments, most recently in June as a low PEG, high momentum stock.
The company has a $232 million market cap and currently trades at a forward P/E of 7.86 and a Price to Earnings Growth ratio of .90 and has no long-term debt. It has a return on equity, assets, and investments all above 35%, which is rare for a company in any industry, and a 5 year average for the three ratios all above 20%.
In June the company announced it was acquiring Continucare for cash and stock, and MDF plans to issue 2.7 million shares in connection with the transaction. The market initially reacted lukewarm to the deal but since then the stock is up 17.92% for the month. The company announces earnings August 1st, so as it reaches a 52 week high it will be interesting to hear managements comments on the CNU acquisition and see the market’s reaction to earnings:
Dailly Chart courtesy of Finviz
Triumph Group (TGI)
Triumph Group engages in the design, engineering, manufacture, repair, overhaul, and distribution of aircraft components. The company operates in two segments, Aerospace Systems and Aftermarket Services. It announced earnings on July 29th, soundly beating estimates. It reported quarterly revenue of $845.1 million (vs. expectations of $805.4 million) and quarterly earnings of $.99/share (vs. expectations of $.85/share).
It projects 2012 earnings per share at $4.35 per diluted share. With earnings having been reported and no near-term catalyst, the stock could still be one to continue to watch in coming weeks and months depending on the overall equity market sentiment.
|Ticker||Company||Market Update||Performance (Month)||Performance (Year)|
|BMRN||BioMarin Pharmaceutical Inc.||Here||16.49%||42.93%|
|BND||Vanguard Total Bond Market ETF||Here||1.42%||4.34%|
|CPSI||Computer Programs & Systems Inc.||Here||18.48%||68.03%|
|DECK||Deckers Outdoor Corp.||Here||13.51%||95.03%|
|EVEP||EV Energy Partners LP||Here||32.95%||103.67%|
|FXF||CurrencyShares Swiss Franc Trust||Here||6.14%||31.88%|
|FXY||CurrencyShares Japanese Yen Trust||Here||5.01%||11.82%|
|GIFI||Gulf Island Fabrication Inc.||Here||9.60%||93.62%|
|JAZZ||Jazz Pharmaceuticals, Inc.||Here||23.72%||365.17%|
|MDF||Metropolitan Health Networks Inc.||Here||17.92%||49.34%|
|NBL||Noble Energy, Inc.||Here||11.56%||49.96%|
|TGI||Triumph Group, Inc.||Here||9.59%||38.69%|
|THD||iShares MSCI Thailand Invest Mkt Index||Here||14.55%||46.30%|
|TRLG||True Religion Apparel Inc.||Here||17.59%||37.06%|
|WIW||Western Asset/Claymore Inflation- Linked Opportunities & Income Fund||Here||2.08%||5.99%|
|ZOLL||ZOLL Medical Corp.||Here||24.55%||163.27%|
No Current Positions