Navellier Top Stocks for May

The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.

https://navelliergrowth.investorplace.com/

Navellier says,

High-Growth Investments

AutoZone, Inc. (AZO) was added to the High-Growth Investments Buy List in the April Monthly Issue, so it’s making its first appearance on the Top Stocks list this month. If you recall, AutoZone is a leading retailer and provider of automotive parts and accessories in the U.S. The company has more than 6,000 retail stores in the U.S., as well as in Washington, D.C., Puerto Rico, Mexico and Brazil.

AutoZone is expected to announce earnings and sales results for its third quarter in fiscal year 2019 in late May. And considering that the company has posted positive earnings surprises in each of the last four quarters, analysts have been scrambling to update their third-quarter estimates. Earnings forecasts have been upped by $0.39 per share in the past three months.

For the third quarter, AutoZone is expected to report earnings of $15.12 per share and revenue of $2.77 billion. That translates to 4.1% annual revenue growth and 12.7% annual earnings growth. AZO is a Conservative buy below $1,108.

SOM Technicals:

4-27-19: Closed at 1033.97. Trade pressures are down. Volumes are bearish. At support after reaching the 1024 target. Now in consolidation with a possible retracement.

5-4-19: Closed at 1033.36. Trade pressures are down but rising. Volumes are bearish. Riding the 25×5 MA as support.

5-11-19: Closed at 1001.03. Trade pressures are down. Volumes are bullish. In a retracement after reaching the target at 1024. The next target down is 975.

5-18-19: Closed at 984.09. Trade pressures are down. Volumes are bearish.In the move down. the next target down is 950.

 

Cadence Design Systems, Inc. (CDNS) was the second stock that we added to the High-Growth Investments Buy List in the April Monthly Issue. The company offers electronic design automation (EDA) software and hardware, which play an integral role in the electronics design chain.

On Monday, April 22, Cadence Design Systems posted better-than-expected earnings and sales results for its first quarter. Revenue increased 11.6% year-over-year to $577 million, topping analysts’ expectations for $569.24 million by 1.4%. First-quarter earnings jumped 34.5% year-over-year to $152 million, or $0.54 per share, which beat estimates for $0.49 per share by 10.2%.

Looking ahead, Cadence Design Systems anticipates double-digit top- and bottom-line growth. The company expects second-quarter revenue between $575 million and $585 million and earnings per share between $0.52 and $0.54. That represents 10.9% to 12.8% annual revenue growth and 15.6% to 20% annual earnings growth. The stock is up more than 6% this week, thanks to the earnings beat. CDNS is a Conservative buy below $73.

SOM Technicals:

4-27-19: Closed at 68.22. Trade pressures are up. Volumes are neutral. At the highs with a new long entry at 69.21 above.

5-4-19: Closed at 70.27. Trade pressures are up. Volumes are bullish. In a new move up from the 68.45 level.

5-11-19: Closed at 69.36. Trade pressures are up but declining. Volumes are bullish. At the new long entry of 68.45.

5-18-19. Closed at 68.66. Trade pressures are up. Volumes are neutral. In the move up from the 68.45 long entry.

 

Keysight Technologies, Inc. (KEYS) is a spinoff of Hewlett-Packard’s independent measurement company, Agilent Technologies. Keysight Technologies enables its engineering, enterprise and service provider customers to accelerate innovation to connect and secure the world. And its solutions help bring electronic products to market faster at a lower cost.

Keysight Technologies kicked its fiscal year 2019 off on the right foot back in late February. The company reported first-quarter revenue of $1.1 billion and earnings of $176 million, or $0.93 per share, which represented 18% annual revenue growth and 81.4% annual earnings growth. Keysight Technologies also provided strong forward-looking guidance that had analysts increasing their second-quarter estimates.

The company is expected to announce results from its second quarter in fiscal year 2019 in late May. The current consensus estimate calls for earnings per share of $0.98 on revenue of $1.07 billion, or 7.4% annual revenue growth and 18.1% annual earnings growth.

Keysight Technologies has posted a positive earnings surprise in each of the last three quarters. Considering this and the fact that analysts have upped earnings estimates by 6.5% in the past two months, I’m looking for another quarterly earnings surprise. KEYS is a Conservative buy below $93.

SOM Technicals:

2-22-19: Closed at 82.46. Trade pressures are up. Volumes are now bearish. At the up side target, expect consolidation.

3-1-19: Closed at 85.90. Trade pressures are up and extended. Volumes are bullish. Stops at 81.83.

3-8-19: Closed at 83.99. Trade pressures are up but turning down. Volumes are bearish. Support at 80.64.

3-15-19: Closed at 85.99. Trade pressures are up but down near the neutral zone. Volumes are bullish. In consolidation after the very big run-up from the 61 level.

3-23-19: Closed at 84.76. Trade pressures are down into the neutral zone. Volumes are bearish. A close below 82.32 would signal a new down trend.

3-31-19: Closed at 87.20. Trade pressures are up into the neutral zone. Volumes are now bullish. In consolidation at the 25×5 MA.

4-5-19: Closed at 89.45. Trade pressures are up. Volumes are neutral. Uptrend support is at 86.26.

4-13-19:Closed at 91.84. Trade pressures are up. Volumes are bullish. Support at the 25×5 MA at 87.44.

4-19-19: Closed at 90.31. Trade pressures are down into the neutral zone. Volumes are bearish. Support at 88.27.

4-27-19: Closed at 85.99. Trade pressures are down. Volumes are bullish. broke the support level at 88.97. In a new move down. the next target down is 88.15.

5-4-19: Closed at 88.18. Trade pressures are down but rising. Volumes are bullish. Still in the move down with an 83.15 target.

5-11-19: Closed at 85.83. Trade pressures are down. Volumes are bearish. The next target down is 83.15.

5-18-19: Closed at 81.84. Trade pressures are down but rising. Volumes are bearish. The next target down is 76.58.

 

VMWare, Inc. (VMW) is one of our longer-held positions, as we added to the High-Growth Investments Buy List back on January 27, 2017. During this time, the company has experienced strong demand for its cloud, mobility, networking and security infrastructure software. In fact, VMWare has continued to post double-digit earnings and sales growth.

In the fourth quarter, which was released on March 1, VMWare posted 16% annual revenue growth and 25.3% annual earnings growth. Its fourth-quarter earnings of $1.98 per share also beat analysts’ estimates for $1.88 per share by 5.3%. And the good news is that VMWare shows no signs of slowing down.

For the first quarter, which is expected to be announced in late May, the analyst community is looking for revenue to grow 11.6% year-over-year to $2.24 billion. Earnings per share are forecast to rise slightly to $1.28 per share, up from $1.26 per share in the same quarter a year ago. VMWare, though, has topped analysts’ earnings estimates in each of the last four quarters. So, I wouldn’t be surprised if the company posts even stronger first-quarter results. VMW is a Conservative buy below $214.

SOM Technicals:

3-31-19: Closed at 180.51. Trade pressures are down. Volumes are bearish. The next target down is 169.77.

4-5-19: Closed at 185.73. Trade pressures are down into the neutral zone. Volumes are bullish. Uptrend support is at 179.29.

4-13-19: Closed at 192.81. Trade pressures are up. Volumes are up. The next target up is 204.

4-19-19: Closed at 188.17. Trade pressures are down into the neutral.zone. Volumes are bearish. Support is at 185.23.

4-27-19: Closed at 199,67. Trade pressures are up. Volumes are bearish. In the move up fro the 181.55 new long entry. The next target up is 207.66.

5-4-19: Closed at  203.28. Trade pressures are up but declining. Volumes are bullish. The next target up is 207.65.

5-11-19: Closed at 200.09. Trade pressures are down. Volumes are neutral. The next target down is 189.20.

5-18-19: Closed at 203.64. Trade pressures are up. Volumes are bullish. The next target up is 207.65.

 

Xilinx, Inc. (XLNX) rounds out the Top 5 Stocks list this month, with its second-straight appearance on the list. You may remember that Xilinx is a semiconductor company that developed the first FPGA, or Field Programmable Gate Array, which enables an integrated circuit to be configured after the manufacturing process. The company also developed the System-on-a-Chip, or SoC.

On Wednesday, Xilinx posted record revenues for its fiscal year 2019. First, the company reported total fourth-quarter revenues of $828 million, a 30% year-over-year increase. That topped analysts’ forecasts for revenues of $824.55 million. Xilinx also reported earnings of $242 million, or $0.94 per share. That represented 25.3% annual earnings growth and beat estimates for $0.93 per share by 1.1%.

So, total fiscal year 2019 revenues jumped 24% year-over-year to $3.06 billion. And thanks to rising 5G demand, communications revenue increased 34% year-over-year. Company management noted that its “fiscal year 2019 was truly an exceptional year.”

Xilinx also provided its outlook for the first quarter in fiscal year 2020. The company expects revenue between $835 million and $865 million, which represents 22% to 26.4% annual revenue growth. XLNX’s forecast is also nicely higher than the current consensus estimate for $832.02 million.

Despite the strong earnings report and outlook, XLNX pulled back about 10% on Thursday. XLNX is my purest 5G play and should benefit from rising demand as 5G is launched around the world. So, I expect XLNX to bounce back and view this week’s dip as a great buying opportunity.  XLNX is a Moderately Aggressive buy below $131.

SOM Technicals:

3-31-19: Closed at 126.79. Trade pressures are down but rising. Volumes are beaerish. 128.01 is a new long entry price.

4-5-19: Closed at 129.08. Trade pressures are in the neutral zone. Volumes are bullish. Uptrend support is at 125.15.

4-13-19: Closed at 134.41. Trade pressures are up. Volumes are bullish. The next target up is 146.53.

4-19-19: Closed at 134.95. Trade pressures are up. Volumes are bullish. The next target up is 146.53.

4-27-19: Closed at 118.93. Trade pressures are down. Volumes are neutral. After the sharp move down on the forward guidance, price is now at the 115.78 downside target. Expect some consolidation here.

5-4-19: Closed at 119.02. Trade pressures are down . Volumes are neutral. Sitting on support. Next target down is 105.00.

5-11-19: Closed at 116.92. Trade pressures are down and trending. Volumes are bearish. The next target down is the 110 lows.

5-18-19: Closed at 104.67. Trade pressures are down and trending. Volumes are bearish. the next target down is 99.54.

 

Elite Dividend Payers

Arbor Realty Trust (ABR) is one of our Elite Dividend Payers that continues to earn an AA-rating. Or in other words, it receives top marks in both Dividend Grader and Portfolio Grader. The REIT focuses primarily on providing structured finance assets in the multifamily and real estate markets. And as such, Arbor Realty Trust continues to grow its bottom line—and reward shareholders handsomely.

Arbor Realty Trust has paid a dividend for 27-straight quarters, and has consistently increased its dividend over the years. In fact, Arbor Realty Trust has upped its quarterly dividend by 125% in the past five years alone. Most recently, the REIT paid a dividend of $0.27 per share on March 20. The stock has a 7.8% dividend yield.

Arbor Realty Trust is expected to release first-quarter earnings results in early May. Currently, analysts are looking for earnings per share to drop 33.3% year-over-year to $0.28. Estimates have remained steady over the past three months. ABR is a Conservative buy below $15.

SOM Technicals:

2-22-19: Closed at 12.96. Trade pressures are up. Volumes are bullish. The next target up is 14.37.

3-1-19: Closed at 12.89. Trade pressures are up. Volumes are neutral. The next target up is 14.37.

3-8-19: Closed at 12.67. Trade pressures are down into the neutral zone. Volumes are bearish, the 25×5 MA is at 12.48.

3-15-19: Closed at 12.86. Trade pressures are in the neutral zone. Volumes are neutral. ABR goes ex dividend this next week.

3-23-19: Closed at 12.83. Trade pressures are down into the neutral zone. Volumes are bearish.  Sitting on the old target of 12.58 and the 25×5 moving average.

3-31-19: Closed at 12.97. Trade pressures are up. Volumes are bearish. In consolidation at the 25×5 MA.

4-5-19: Closed at 13.54.  Trade pressures are up. Volumes are bearish. Uptrend support is at 12.96.

4-13-19: Closed at 13.74. Trade pressures are up and extended. Volumes are bullish. The next target up is 14.37.

4-19-19: Closed at 13.67. Trade pressures are up and turning down. Volumes are bullish. Support at 13.24.

4-27-19: Closed at 13.79. Trade pressures are up but in decline. Volumes are bullish. The next target up is 14.37.

5-4-19: Closed at 13.80. Trade pressures are down. Volumes are bullish. support at 13.58.

5-11-19: Closed at 13.05. Trade pressures are down. Volumes are bullish. At the prior high of 12.60.

5-18-19: Closed at 13.10. Trade pressures are up into the neutral zone. Volumes are neutral. Support at 12.50.

 

 

Capital Southwest Corporation (CSWC) is making its second-straight appearance on the Top Stocks list this month. As a business development company (BDC), Capital Southwest Corporation helps middle-market companies develop and expand their businesses. The company has supported 285 companies over the last 57 years.

Capital Southwest Corporation also continues to reward its shareholders. The company has paid a quarterly dividend of 12-consecutive quarters. Most recently, CSWC paid a quarterly dividend of $0.38 per share and a special dividend of $0.10 per share on March 29. That quarterly dividend represented a 38% increase over the dividend paid in the same quarter a year ago. The stock has a 7.1% dividend yield.

The company is expected to announce earnings and sales for its fourth quarter in fiscal year 2019 in early May. The analyst community is looking for earnings of $0.40 per share on $14.32 million in revenue, or 45% annual revenue growth and 42.9% annual earnings growth. Analysts have also upped earnings estimates slightly in the past three months. CSWC is a Conservative buy below $22.

SOM Technicals:

3-31-19: Closed at 21.04. Trade pressures are up into the neutral zone. Volumes are bearish. The next support is at 19.49.

4-5-19: Closed at 21.48. Trade pressures are up but turning down. Volumes are bullish. Sitting on the support line at 21.34.

4-13-19: Closed at 21.31. Trade pressures are down. Volumes are bearish. Support is at 19.66, the 200 day MA.

4-19-19: Closed at 21.59. Trade pressures are up. Volumes are bullish. Near the 21.66 target, expect more consolidation.

4-27-19: Closed at 21.40. Trade pressures are down. Volumes are bearish. Sitting on support at 21.39.

5-4-19: Closed at 21.80. Trade pressures are up into the neutral zone. Volumes are bullish. Side ways move.

5-11-19: Closed at 22.37. Trade pressures are up. Volumes are bullish. Met the 22.07 target and consolidating. Up in a down market.

5-18-19: Closed at 22.26. Trade pressures are up and declining. Volumes are bullish. At the 22.50 first target up. The next target up is 23.42. 

 

Haverty Furniture Companies, Inc. (HVT) is the newest addition to the Elite Dividend Payers Buy List, as we added the stock in the April Monthly Issue. If you recall, Haverty Furniture Companies offers high-quality furniture, home furnishings and accessories at affordable prices through its more than 100 locations in the U.S.

The company maintains an AA-rating this month, as Haverty Furniture Companies offers a nice blend of dividend growth and strong fundamentals. HVT has paid a dividend for 27-straight quarters, with steady increases over this time. In the past two years, the company has increased its quarterly dividend by 20%. Most recently, HVT paid a regular quarterly dividend of $0.18 and a special dividend of $1.00 on March 28. The stock has a 3% dividend yield.

Haverty Furniture Companies will report first-quarter earnings and sales after the stock market closes on Tuesday, April 30. First-quarter sales are forecast to dip 0.3% year-over-year to $198.82 million, and earnings are expected to drop 6.9% year-over-year to $0.27 per share. Analysts have increased earnings estimates slightly in the past two months, so HVT may post even stronger results. HVT is a Moderately Aggressive buy below $26.

SOM Technicals:

4-27-19: Closed at 23.70. Trade pressures are  down. Volumes are bearish. Support is at 23.29.

5-4-19: Closed at 19.27. Trade pressures are down hard. Volumes are neutral. Earnings disaster, wait for selling to subside, then look for an exit point on a bounce.

5-11-19: Closed at 18.55. Trade pressures are down. Volumes remain bearish. Looking for an exit. May have to wait for the next earnings report.

5-18-19: Closed at 17.67. Trade pressures are down. Volumes are bearish. The next target down is the old 2018 low at 16.71.

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