Top 5 Stocks for September
(Courtesy Navellier Blue Chip Growth
– These are his recommendations, pls do your own due diligence)
The Chemours Company
The Chemours Company (CC) was added to the Buy List in June, and made its first appearance on the Top 5 Stocks list in September. This month, the stock holds on to the number-one spot on the Top 5 Stocks list. You may recall that Chemours is the specialty chemicals company behind household brands like Teflon, Opteon and Freon, and boasts more than 200 years of experience as a spinoff from DuPont’s chemicals business.
While it’s not a name that everyone is aware of, Chemours has a decent global footprint, with 35 production facilities located in 11 countries and several thousand customers in more than 130 countries. Interestingly, the name Chemours is an expression of their idea that chemistry belongs to all of us.
Following excellent second-quarter earnings, Chemours increased its full-year 2017 outlook. The company expects higher volume growth across several lines of their business and plans to expand its customer base in the emerging markets of Asia, Eastern Europe and Latin America. So it’s not surprising that third-quarter earnings estimates have been revised nearly 10% higher in the past three months. Analysts are expecting 67.2% annual earnings growth and 13.4% annual sales growth.
Known for rewarding shareholders consistently, the next dividend ($0.03 per share) will be paid today, September 15, to shareholders of record on August 17. If you haven’t already, I recommend that you add this Aggressive stock up to $59 per share.
SOM Technicals:
9-30-17: In the move up from 44.89 with a secondary entry of 48.00. Trade pressures are down into the neutral zone. Volumes are now bearish. The next target up is 54.57. The stop is at the low pivot of 34.87.
10/8/17: Now at the 54.37 target. Trade pressures are up. Volumes remain bullish. The next target up is 60.74. Raise the stop to 44.07.
10-16-17: At 56.69. Trade pressures are up. Volumes remain bullish. Support at the 25×5 moving average, currently 52.46.
Ferrari NV
Ferrari NV (RACE) secured its second place role in the Top 5 Stocks list for the third-consecutive month. Ferrari was added to the Buy List in June and reported healthy second-quarter results that beat analyst estimates. The Italian sports car maker, which recently celebrated its 70th anniversary, sold more than 8,000 cars in over 60 markets worldwide last year.
The new Ferrari Portofino that I’ve mentioned before is expected to generate sales from buyers just getting into the brand and not necessarily ready to buy a more expensive limited edition car. It will be the least expensive model starting at approximately $240,000. Also, as I noted in the September Monthly Issue, Ferrari expects to ship 8,400 vehicles this year and to achieve net revenues of 3.3 billion euros.
For the current quarter, the analyst community is forecasting 7.8% annual sales growth and 12.7% annual earnings growth. Earnings per share estimates have also been revised slightly higher in the past three months. I recommend that you add this Conservative Top 5 Stock up to $118 per share.
SOM Technicals:
9-30-17: In the move up from the 89.42 entry. Trade pressures are down into the neutral zone. Volumes are neutral. Now at the upside target of 119.28. Expect consolidation and possible retracement. Would look to add near the previous target of 105-106.
10-8-17: Still in consolidation above the 105 target. Trade pressures have moved up out of the neutral zone. Volumes remain neutral. Would look to add near the support area of 109-110.
10-16-17: At 116.87. Trading between the 105 level and the 119.28 target. Trade pressures are up. Volumes remain neutral.
IPG Photonics Corp.
IPG Photonics Corp. (IPGP) joined the Blue Chip Growth Buy List in August and takes third place in the Top 5 Stocks list for the second month in a row. Founded in 1991 in Russia, IPG Photonics established headquarters in Oxford, Massachusetts in 1998. The provider of high-performance fiber lasers reported stellar second-quarter results, and recently announced its partnership with MC Machinery (MCM), a subsidiary of Mitsubishi Corporation. This partnership will enable IPG Photonics to expand their sales network and continue to successfully provide laser solutions to their customer base.
The company’s products span dozens of industries across the globe, including automotive, telecommunications, aerospace and oil and gas. And with its track record of beating earnings estimates, it’s easy to see why they’re still on top.
IPG Photonics has been transparent by letting investors know that they do expect third-quarter revenue to be in-line or higher than second-quarter revenue. However, it would be safe to assume a lower growth rate for fourth-quarter, given more challenging comparisons and an expected slowdown related to typical seasonality in China and the consumer electronics investment cycle. In spite of this, analysts have continued to revise their third-quarter and fourth-quarter earnings estimates higher in the past two months. I recommend that you buy this Conservative stock up to $193 per share.
SOM Technicals:
9-30-17: In the move up from May’s 128.21. Trade pressures are up. Volumes are neutral. The next target up is 194.61. Support is at the 25×5 moving average, 178.17.
10-8-17: closed at 192.83 just shy of the 194.81 target. A 70 point run since May. Support is at 183.91.
10-16-17: Moved well past the 194.61 target to 198.71. Trade pressure are up. Volumes are bullish. The next target up is 210.71. Support at 187.15.
STMicroelectronics
STMicroelectronics (STM) makes its sixth-straight appearance on the Top 5 Stocks list this month. We added the French-Italian multinational company to the Buy List in March. The semiconductor designer’s business continues to thrive, and they have proven themselves to be a worthy innovator. STMicroelectronics will be demonstrating its newest Smart Driving and Internet of Things (IoT) solutions at electronica India’s September 14-16 conference.
In the current quarter, the consensus estimate is for revenues to grow 15.8% year-over-year to $2.08 billion, up from $1.08 billion in the same quarter a year ago. Earnings per share are forecast to surge 118.2% year-over-year to $0.24—and estimates have been revised 9% higher in the past three months.
As a reminder, STMicroelectronics recently declared a quarterly dividend. The company will pay $0.05 per share on September 26 to all shareholders of record on September 18. The stock has a current dividend yield of 1.1%. I recommend that you add this Moderately Aggressive stock up to $21 per share.
SOM Technicals:
9-30-17: In the move up from 17.09. Trade pressures are up, but declining to near the neutral zone. Volumes are neutral. The next target up is 20.12. Support is at the 25×5 moving average, 18.56.
10-8-17: A new long entry is signaled at 19.80. Trade pressures are up. Volumes are bullish. The next target up is 22.02. Stops at 18.42.
10-16-17: At 20.07. Trade pressures are up. Volumes are bullish. the next target up is 20.12. Support is at 19.41.
Take-Two Interactive Software
Take-Two Interactive Software (TTWO) is making its first appearance on the Top 5 Stocks list this month. I introduced the leading developer of video games to the Blue Chip Growth Buy List in August, reporting on their attractive 180% earnings surprise for their first-quarter fiscal 2018 results.
The New York-based company provides millions of avid video game players with popular and addictive games, such as the Grand Theft Auto series and WWE SuperCard. According to Forbes, Grand Theft Auto V is one of the top five best-selling video games of all time, to give you a sense of the deep reach Take-Two has in the gaming market. Take-Two’s games can be played on personal computers, smartphones, tablets and game consoles such as PlayStation and Xbox. Over the past three months, earnings estimates for the current quarter have been revised higher by an average of 15.8%. And one analyst initiated a new Buy rating with an earnings estimate 18% higher than the existing average estimate. I recommend that you add this Moderately Aggressive stock up to $108 per share.
SOM Technicals:
9-30-17: In the move up from the 75.88 entry. Trade pressures are in the neutral. Volumes are neutral. The next target up is 107.90. The support at 99.08, the 25×5 moving average has held.
10-8-17: At 107.23 and up against the 107.90 target. Both Trade pressures and Volume are signaling more upside. The next target up is 116.54. Usually expect some consolidation at these targets.
10-16-17: The 107.90 has acted as resistance. 103.81 is a new long entry, formed after the pullback. Trade pressures are up. Volumes remain bullish. The next target up is 116.54.