The following is provided by Navellier with technical comment from South Ocean Management – pls do your own due diligence.
Navellier says,
High-Growth Investments
AutoZone, Inc. (AZO) is making its fifth-straight appearance on the Top 5 Stocks list this month. The leading retailer of automotive parts and accessories continues to benefit from the “do-it-yourself” trend, as more Americans look to perform their own automotive maintenance. And I suspect this will be apparent in the company’s upcoming earnings report.
AutoZone will release earnings and sales results for its fourth quarter in fiscal year 2019 on September 24. The analyst community expects earnings of $21.79 per share on $3.93 billion in revenue, or 10.5% annual revenue growth and 17.5% annual earnings growth.
Now, earnings estimates have fluctuated a bit over the past three months. But AutoZone has posted a positive earnings surprise in each of the last four quarters, and I expect this trend to continue. AZO is a Conservative buy below $1,177.
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.
5-25-19: Closed at 1052. Trade pressures are up. Volumes are bullish. The next new long entry is 1057.58.
5-31-19: Closed at 1026.98. Trade pressures are down into the neutral zone. Volumes are bearish. The next target down is 1000.
6-15-19: Closed at 1119.64. Trade pressures are up. Volumes are bullish. The next target up is 1139.
6-22-19: Closed at 1118.47. Trade pressures are up. Volumes are bullish. The next target up is 1200.
6-28-19: Closed at 1097.83. Trade pressures are down into the neutral zone. Volumes are bullish. expect support at 1078, the 25×5 MA.
7-8-19: Closed at 1130.92. Trade pressures are up. Volumes are bullish. Held support. Next target up is 1200.
7-13-19: Closed at 1163.75. Trade pressures are up. Volumes are bullish. The next target up is 1198.
7-19-19: Closed at 1172.25. Trade pressures are up but turning down. Volumes are still bullish. The next target up is 1196.79.
7-28-19: Closed at 1146.18. Trade pressures are down into the neutral zone. Volumes are bearish. Support at 1133.
8-3-19: Closed at 1096.12. Trade pressures are down. Volumes are bearish. Next support is at the 1010 lower median line.
8-10-19: Closed at 1088.66. Trade pressures are down., Volumes are bearish. Lower median line support at 1016.
8-17-19: Closed at 1091.74. Trade pressures are down but rising. Volumes are bullish. resistance at 1122.
8-25-19: Closed at 1065.28. Trade pressures are up into the neutral zone. Volumes are bearish. Support at 1027.
8-31-19: Closed at 1101.69. Trade pressures are up in the neutral zone. Volumes are bearish. At the 25×5 MA resistance.
9-7-19: Closed at 1143.34. Trade pressures are up. Volumes are bullish. The next target up is 1198.
9-14-19: Closed at 1149.26. Trade pressures are up. Volumes are bullish. the next target up is 1198.79.
Euronet Worldwide, Inc. (EEFT) was a new addition to the High-Growth Investments Buy List in the August Growth Investor Issue. If you recall, Euronet Worldwide is a payment processor that provides secure, convenient and affordable payment and transaction processing for consumers, financial institutions, retailers and service providers around the world.
For the second quarter, Euronet Worldwide posted double-digit earnings and sales growth, and as a result, analysts’ have upped fiscal year estimates recently. First, for the second quarter, EEFT achieved revenue of $691.9 million and earnings of $1.69, or 11% annual sales growth and 28% annual earnings growth. The consensus estimate called for earnings of $1.69 per share on $690.24 million in sales.
Looking ahead, analysts are expecting 11.5% annual sales growth and 26.4% annual earnings growth in fiscal year 2019. EEFT is a Conservative buy below $164.
SOM Technicals:
8-31-19: Closed at 153.14. Trade pressures are up. Volumes are bearish. Needs to break above the 25×5 MA at 153.14
9-7-19: Closed at 152.34. Trade pressures are up but rolling over. Volumes are bearish. The next target down is 141.10.
9-14-19: Closed at 143.73. Trade pressures are down. Volumes are bearish. the next target down is the 200MA at 140.07.
NextEra Energy, Inc. (NEE) has been incredibly resilient during the market’s wild gyrations in August. The stock is up about 5% in the past five weeks. Clearly, the world’s largest utility company benefited from the extremely hot weather that plagued much of the U.S. and Europe this summer.
While these results won’t show up until the company’s third-quarter report, second-quarter earnings were also solid. During the second quarter, earnings increased 14.6% year-over-year to $1.33 billion, or $2.35 per share, topping estimates for $2.31 per share. For the third quarter, earnings are forecast to grow 4.1% year-over-year to $2.27 per share.
NextEra Energy is also a strong dividend play for us. The company recently upped its third-quarter dividend by 12.6%. NextEra Energy will pay a quarterly dividend of $1.25 per share on September 16 to all shareholders of record on August 29. The stock has a 2.2% dividend yield. NEE is a Conservative buy below $235.
SOM Technicals:
6-28-19: Closed at 204.86. Trade pressures are down into the neutral zone. Volumes are bearish. The support level is 201, the uptrend stop line.
7-8-19: Closed at 208.11. Trade pressures are in the neutral zone. Volumes are bullish. The next target up is 211. 41.
7-13-19: Closed at 209.42. Trade pressures are up. Volumes are bullish. Consolidating above the 203.88 target.
7-19-19: Closed at 209.73. Trade pressures are up. Volumes are bullish. The next target up is 215.71.
7-28-19: Closed at 209.17. Trade pressures are down into the neutral zone. Volumes are bearish. Support is at 203.72.
8-3-19: Closed at 211.41. Trade pressures are in the neutral zone. Volumes are bullish. Still in the move up and at the 25×5 MA as support.
8-10-19: Closed at 216.40. Trade pressures are neutral. Volumes are bullish. At the 215.71 upside target , expect some consolidation here.
8-17-19: Closed at 217.53. Trade pressures rising in the neutral zone. Volumes are bullish. The next target up is 228.04.
8-25-19: Closed at 221.90. Trade pressures are up. Volumes are bearish. Next target up is 228.04.
8-31-19: Closed at 219.08. Trade pressures are up but turning down. Volumes are bearish. Support at 216. 25.
9-7-19: Closed at 220.14. Trade pressures are down into the neutral zone. Volumes are neutral. support is at the 215.71 prior upside target .
9-14-19: closed at 216.19. Trade pressures are down. Volumes are bearish. At the 25x5MA support line now at 219.84.
Sun Communities, Inc. (SUI) also exhibited tremendous relative strength in August, climbing about 11% higher over the past five weeks. Sun Communities is a REIT that focuses on acquiring and managing manufactured homes and RV communities in the U.S. and Canada. The REIT owns and/or operates 379 communities, as well as has a portfolio of more than 132,000 developed sites.
Recently, Sun Communities announced its plans to acquire 31 manufactured housing communities for $343.6 million. The 31 communities are located in eight U.S. states and include 5,230 developed sites, as well as 460 expansion sites. The deal is part of the REIT’s merger with Jensen’s, Inc., which will become a subsidiary of Sun Communities when the acquisition is complete.
As a REIT, Sun Communities also has a long history of rewarding shareholders; it’s paid a quarterly dividend for 103-straight quarters. The REIT most recently paid $0.75 per share on July 15. The stock has a 2% dividend yield. SUI is a Conservative buy below $158.
SOM Technicals:
7-28-19: Closed at 133.16. Trade pressures are down into the neutral zone. Volumes are bullish. The next target up is 132.85.
8-3-19: Closed at 134.98. Trade pressures are in the neutral zone. Volumes are bullish. Orderly price movement above the upper median line.
8-10-19: closed at 141.23. Trade pressures are rising in the neutral zone. volumes are bullish. Near the 141.88 upside target.
8-17-19: closed at 146.03. Trade pressures are up. Volumes are bullish. The next target up is 149.12.
8-25-19: Closed at 147.82. Trade pressures are up. Volumes are bullish. Touched the 150 high and pulled back with this market.
8-31-19: Closed at 147.30. Trade pressures are up. Volumes are bullish. New highs in a choppy market.
9-7-19: Closed at 149.51. Trade pressures are up. Volumes are neutral. Support is now 144.55.
9-14-19: Closed at 145.66. Trade pressures are down into the neutral zone. Volumes are bearish. Off the lows for the week and above the 25×5 MA.
Ubiquiti, Inc. (UI), formerly Ubiquiti Networks (UBNT), rounds out the Top 5 Stocks list this month. As we discussed in the August 23 Weekly Update, Ubiquiti officially changed its name and symbol and started trading under them on the NYSE on August 20. The change was mentioned in the company’s recent earnings report and was likely due to a listing requirement for the NYSE. (The stock previously traded on the NASDAQ.)
Ubiquiti provides professional networking products around the world. In fact, the company ships about 85 million devices that are used to build network infrastructure in more than 200 countries and territories. So, it’s no wonder that Ubiquiti continues to grow its top and bottom lines.
In fiscal year 2019, Ubiquiti achieved earnings of $4.77 per share on $1.2 billion in revenue, or 29.3% annual earnings growth and 14.2% annual revenue growth. Looking forward to fiscal year 2020, analysts are forecasting 14% annual earnings growth and 9.8% annual revenue growth. UI is an Aggressive buy below $127.
SOM Technicals:
5-25-19: Closed at 126.88. Trade pressures are down. Volumes are bearish. The 200 day MA is below at 116.51.
5-31-19: Closed at 120.31. Trade pressures are down. Volumes are neutral. Support is at 117.35, the 200 day MA.
6-15-19: Closed at 128.24. Trade pressures are up into the neutral zone. Volumes are bearish. Then 25×5 MA is acting as resistance.
6-22-19: Closed at 128.42. Trade pressures are in the neutral zone. Volumes are bearish. Support is at 120.65, the 200 day MA.
6-28-19: Closed at 131.50. Trade pressures are in the neutral zone. Volumes are bullish. support remains at 121, the 200 day MA.
7-8-19: Closed at 133.03. Trade pressures are up. Volumes are bullish. A new long at 137.92.
7-13-19: Closed at 129.97. Trade pressures remain in the neutral zone. Volumes are bearish. 123.15 is support at the 200 day MA.
7-19-19: Closed at 133.44. Trade pressures are up. Volumes are bullish. 137.92 is new long entry.
7-28-19: Closed at 135.05. Trade pressures are up. Volumes are bullish. The next target up is 137.92.
8-3-19: Closed at 122.22. Trade pressures are down in the neutral zone. Volumes are now bullish. Support is the lower median line at 117.29.
8-10-19: Closed at 113.95. Trade pressures are down. Volumes are bullish. Price has broken down below the 200 day MA.
8-17-19: Closed at 110.39. Trade pressures are down hard. Volumes are bearish. The next target down is 102.19.
8-25-19: Closed at 108.75. Trade pressures are down hard. Volumes are bearish. Even the buybacks don’t help.
8-31-19: Closed at 110.51. Trade pressures are down but rising. Volumes are bullish. Consolidating at the weekly lows.
9-7-19: Closed at 114.47. Trade pressures are up into the neutral zone. Volumes are bullish. At the 25×5 MA now acting as first resistance.
9-14-19: Closed at 116.62. Trade pressures are in the neutral zone. Volumes are neutral. below the 200 day MA, but rising.
Elite Dividend Payers
Arbor Realty Trust(ABR) is a REIT that primarily deals with loans and services for senior housing, multifamily housing, healthcare and other commercial real estate assets. The REIT services a multibillion dollar portfolio that includes real estate loans for several investors like Fannie Mae. In fact, Arbor Realty Trust has been a Top 10 Fannie Mae DUS Multifamily lender for more than 10 years.
And, as a REIT, Arbor Realty Trust continues to rewards its shareholders quarter-after-quarter. It has paid a dividend for 29-consecutive quarters. The company will next pay a dividend of $0.29 per share on Tuesday, September 3. All shareholders of record on August 15 will receive the dividend. The stock has an 8.6% dividend yield. ABR is a Conservative buy below $14.
SOM Technicals:
8-31-19: Closed at 12.55. Trade pressures are up. Volumes are bullish. Testing the downward sloping upper median line.
9-7-19: Closed at 12.35. Trade pressures are in the neutral zone. Volumes are bearish. Moving sideways along the 200 day MA.
9-14-19: Closed at 12.84. Trade pressures rising in the neutral zone. Volumes are bullish. Has broken out above the upper median line.
Coca-Cola European Partners (CCEP) remains one of my favorite Elite Dividend Payers, as the company continues to increase its quarterly dividend and boast solid top- and bottom-line growth. The Coca-Cola products distributor has paid a dividend for an incredible 126-straight quarters. The company’s next quarterly dividend will be paid on December 3 to all shareholders of record on November 19.
During the first six months of 2019, CCEP reported that revenue grew 7% year-over-year to 5.8 billion euros and operating earnings increased 10.5% year-over-year to 770 million euros. Looking ahead to fiscal year 2019, the company expects low single-digit revenue growth and 10% to 11% annual earnings per share growth. CCEP is a Conservative buy below $59.
SOM Technicals:
7-28-19: Closed at 57.33. Trade pressures are in the neutral zone. Volumes are bullish. Consolidating at the 56.49 target. The next target up is 58.58.
8-3-19: Closed at 55.46. Trade pressure are down in the neutral zone. Volumes are bearish. Support at the lower median line at 54.70.
8-10-19: Closed at 55.57. Trade pressures are rising into the neutral zone. Volumes are bullish. The lower median line at 54.50 has acted as support.
8-17-19: Closed at 55.10. Trade pressures are rising in the neutral zone. Volumes are bearish. The next target down is the 200 day MA at 51.19.
8-25-19: Closed at 54.19. Trade pressures are up into the neutral zone. Volumes are bearish. Support at 51.42.
8-31-19: Closed at 56.34. Trade pressures are up. Volumes are bullish. Near a new uptrend breakout at 56.67.
9-7-19: Closed at 55.68. Trade pressures are up but turning down. Volumes are bearish. Testing the resistance at 56.72.
9-14-19: Closed at 55.78. Trade pressures are rising in the neutral zone. Volumes are bearish. testing the upside resistance at 56.72.
Capital Southwest Corporation (CSWC) exhibited incredible relative strength during the volatile month of August. In fact, over the last five weeks, the stock climbed about 3% higher. In comparison, the S&P 500 dropped about 3.3%. Clearly, CSWC was not susceptible to the market’s wild swings in August.
Part of the stock’s strength recently can be attributed to a stunning earnings report for its first quarter in fiscal year 2020. The asset management company achieved first-quarter earnings of $0.42 per share, which was up 44.8% year-over-year from $0.29 per share. The analyst community was expecting earnings of $0.40 per share, so CSWC posted a 5% earnings surprise.
Capital Southwest Corporation has also continued to increase its quarterly dividend over the past 15 quarters. The company will pay a dividend of $0.50 per share (a regular dividend of $0.40 per share and a supplemental dividend of $0.10 per share) on September 30 to all shareholders of record on September 16. CSWC is a Conservative buy below $22.
SOM Technicals:
8-31-19: Closed at 21.32. Trade pressures are down into the neutral zone. Volumes are neutral. At the 200 day MA support line.
9-7-19: Closed at 21.66. Trade pressures are down into the neutral zone. Volumes are bearish. the 21.12 200 day support has held.
9-14-19: Closed at 21.42. Trade pressures are neutral. Volumes are bearish. riding the rising 200 day MA.
