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,

Fortinet, Inc. (FTNT) claims the top spot on the High-Growth Investments Buy List this month. Fortinet provides unified security solutions that can be deployed over digital networks to protect users against malware, spam and network intrusions. The company provides its security solutions to data centers, enterprises, carriers and distributed offices around the globe. Fortinet currently boasts a portfolio of over 530 patents worldwide.

Since its founding back in November 2000, the company has had a meteoric rise. Over the past 18 years, it has shipped more than four million units of its security solutions. It has built up a base of over 360,000 customers. And since 2002, its revenues have surged from just $2 million to nearly $1.5 billion. Clearly, the company’s products are in high demand.

And FTNT is looking great going forward. For the third quarter, analysts are calling for earnings of $0.42 per share on $450.8 million in revenue. This represents 50% annual earnings growth and 20.5% annual sales growth. Then again, the consensus EPS estimate has jumped 7.1% over the past 90 days. Upward revisions like this are strong predictors of a potential earnings surprise. So, I’m looking forward to Fortinet’s earnings report on November 1.

A few weeks ago, FTNT shareholders got welcome news: It has been added to the S&P 500. Now that FTNT has been added to the S&P 500, funds that track the benchmark index—of which there are many—are forced to buy shares of FTNT. As a Top 5 Stock, FTNT already has strong institutional buying pressure, and this will only help.

 I recommend that you buy this Moderately Aggressive stock up to $85 per share.

SOM Technicals:

9-29-18: Closed at 92.27. Trade pressures are up. Volumes are bullish. The next target up is 99.90.

10-7-18: Closed at 86.10. Trade pressures are down into the neutral zone. Volumes are bearish. Support is at 83.83.

10-13-18: Closed at 79.95. Trade pressures are down. Volumes are bearish. The old upside target of 277.70 could hold support.

10-20-18: Closed at 81.20. Trade pressures are down but rising. Volumes are now bullish. 84.20 signals a new long entry.

10-28-18: Closed at 78.19. Trade pressures are down but showing some divergence. Volumes are neutral. The next target down is 76.14.

11-3-18: Closed at 72.56. Trade pressures are up into the neutral zone. Volumes are bearish. The 200 day is the next support at 65.28.

11-10-18: Closed at 74.73. Trade pressures are neutral. Volumes are neutral to bearish. Need a close above 79.15 to get going again.

11-17-18: closed at 73.45. Trade pressures are in the neutral zone. Volumes are bearish. At support/ Need the close above 79.16 to resume the move up.

11-24-18: Closed at 67.96. Trade pressures are now down. Volumes are mixed bullish to neutral. At the 200 day MA. Need a  close above 72.11 to resume any move up.

 

Lululemon Athletica, Inc. (LULU) returns to the Top 5 list in anticipation of its upcoming third-quarter earnings report. Over the past two decades, Lululemon has led the athleisure fashion movement. Lululemon has more than 400 stores across four continents. And for workout buffs who are too busy to drive to their nearest store, there are multiple Lululemon e-commerce sites and mobile apps.

Even as it has grown its global footprint and customer base, Lululemon has kept true to its founding values. It differentiates itself by making some of the highest quality and most comfortable workout clothing that money can buy. Meanwhile, it maintains a strong presence in its local communities, offering free workshops and yoga classes in its stores.

Now is a good time to buy LULU on the dip because we’re just weeks away from its next earnings announcement. And it’s shaping up to be an excellent report. The company expects between 16.1% and 19.6% annual earnings growth and between 16.3% and 17.9% annual sales growth. Analysts are even more bullish about the company, forecasting 23.2% annual earnings growth and 18.8% annual sales growth. Given that the consensus estimate has jumped 9.5% in the past sixty days, it’ll likely do even better.

I must also mention that LULU has had a lot of positive analyst attention lately. On Wednesday, Canaccord Genuity upgraded it from “Hold” to “Buy” and raised their price target from $152 to $160. A few weeks ago, Wedbush upgraded LULU from “Neutral” to “Outperform” and reiterated their $176 price target. That represents nearly 30% upside from current prices.

So while LULU has pulled back on general market volatility, I consider it an excellent buy on the dip. Buy this Moderately Aggressive stock up to $147 per share.

SOM Technicals:

7-30-18: Closed at 120.00. Trade pressures are down. Volumes are bearish. Consolidating at the prior 119.00 target level.

8-4-18: Closed at 126.08. Trade pressures are rising into the neutral zone. Volumes are bullish. Still in the consolidation zone. Need a close above 130.05 to start a new move up.

8-10-18: Closed at 130.52. Trade pressures are up. Volumes are bullish. The next target up is 150.12.

8-18-18: Closed at 130.19. Trade pressures are up. Volumes are neutral. One of the few with an upward bias in August.

8-26-18: Closed at 138.76. Trade pressures are up. Volumes are bullish. The next target up is 150.12.

9-1-18: Closed at 154.93. Trade pressures are up. Volumes are neutral. Big earnings surprise puts LULU above the 150.12 target. The next target up is 170.18.

9-8-18: Closed at 150.82. Trade pressures are up. Volumes are neutral. The next target up is 170.18. 

9-15-18: Closed at 153.71. Trade pressures are up and trending. Volumes are neutral. The next target up is 170.18.

9-23-18: Closed at 156.99. Trade pressures are up and trending. Volumes are bullish. The next target up is 170.18.

9-29-18: Closed at 162.49. Trade pressures up and trending. Volumes are bullish. The next target up is 170.18.

10-7-18: Closed at 153.84. Trade pressures are up but turning down. Volumes are bearish. The next target down is the 25×5 moving average at 148.50.

10-13-18: Closed at 143.71. Trade pressures are down. Volumes are bearish. The initial long entry at 130.05 is the the next support.

10-20-18: closed at 136.77. Trade pressures are down. Volumes are bearish. the prior long entry at 130.05 is support.

10-28-18: Closed at 134.82. Trade pressures are down. volumes are bearish. the next target down is 131.02.

11-3-18: Closed at 142.02. Trade pressures are down but rising. Volumes are bullish.  144.25 is the new long entry.

11-10-18: Closed at 137.56. Trade pressures are neutral. Volumes are bearish. support at the 133.13 low pivot.

11-17-18: Close at 139.02. Trade pressures are in the neutral zone. Volumes are mixed, bullish to bearish. At support need a close above the 144.35 level to resume the move up.

11-24-18: Closed at 120.86. Trade pressures are down. Volumes are neutral. At the 200 day MA. Need a close above 129.64 to start a new move up.

 

Ecopetrol SA (EC) is one of my favorite energy plays right now. Thanks to a series of strategic acquisitions and oilfield discoveries, Ecopetrol is Colombia’s largest oil company and Latin America’s fourth-largest oil company. With operations in Brazil, Colombia, Peru and the U.S. Gulf Coast, Ecopetrol accounts for 60% of oil production in Colombia.

Last quarter, Ecopetrol achieved “significant operational and financial achievements.” Part of the company’s success was due to its highest production levels in seven quarters. Ecopetrol produced 721,000 barrels of petroleum equivalent per day during the second quarter.

Ecopetrol reported that second-quarter sales increased 29.2% year-over-year to 16.99 trillion Colombian pesos. Net income surged 169.7% year-over-year to 3.52 trillion Colombian pesos (or $1.17 billion). In U.S. dollar terms, earnings came in at $0.60 per ADS. This beat the $0.57 per ADS consensus estimate by 5.3%.

Looking ahead, the company is on track to meet its 2018 production goal of 715,000 to 725,000 barrels per day. So, I’m looking forward to Ecopetrol’s third-quarter announcement, which will be released around November 13. The consensus estimate calls for $0.60 EPS on $6.04 billion in revenue. This represents a whopping 172.7% annual earnings growth and 35.5% annual sales growth.

Then again, Ecopetrol has a history of beating estimates. It has trounced analysts’ expectations for three of the past four quarters. This, plus the fact that the consensus EPS estimate has jumped 7.1% in recent weeks, suggests that Ecopetrol will blow estimates out of the water again.

In the meantime, buy this Aggressive stock up to $26 per share.

SOM Technicals:

6-30-18: Closed at 20.55. Trade pressures are rising into the neutral zone. Volumes are bullish. Meeting the 25×5 moving average resistance at the 21.03 level. 

7-6-18: Closed at 20.49. Trade pressures are up into the neutral zone. Volumes are now bullish. A close above 20.44 would signal higher.

7-14-18: Closed at 20.72. Trade pressures are in the neutral zone. Volumes are mixed neutral and bullish. The next target up is 23.28.

7-20-18: Closed at 20.85. Trade pressures are in the neutral zone. Volumes are now bullish. The next target up is 23.28.

7-29-18: Closed at 20.68. Trade pressures are still in the neutral zone. Volumes are bearish. Consolidating after a new buy signal.

8-4-18: Closed at 21.32. Trade pressures are up. Volumes are now bearish. In the move up off the June lows. The next target up is 23.28.

8-10-18: Closed at 20.90. Trade pressures are down into the neutral zone. Volumes are bearish. Now sitting on support.

8-18-18: Closed at 20.49. Trade pressures are down. Volumes are bearish.The prior low is 18.68.

8-26-18: Closed at 22.10. Trade pressures are up. Volumes are neutral. The next target up is 23.28.

9-1-18: Closed at 22.60. Trade pressures are up. Volumes are bullish. The next target up is 23.28.

9-8-18: Closed at 22.32. Trade pressures are up but turning down. Volumes are mixed, bearish to bullish. The next target up is 23.28.

9-15-18: Closed at 25.14. Trade pressures are up. Volumes are neutral. The next target up is 26.12.

9-23-18: Closed at 24.78. Trade pressures are up. Volumes are neutral. Consolidating at the 26.12 target.

9-29-18: Closed at 26.94. Trade pressures are up and trending. Volumes are bullish. the next target up is 30.72.

10-7-18: Closed at 26.66. Trade pressures are up and trending. Volumes are bearish. The next target down is 25.08.

10-13-18: Closed at 25.50. Trade pressures are down into the neutral zone. The 25×5 at 24.40 is support.

10-20-18: Closed at 25.59. Trade pressures are down slightly. Volumes are bearish. The 25×5 support is holding at 24.74.

10-28-18: Closed at 23.59. Trade pressures are down. Volumes are neutral. The next target down is 20.42.

11-3-18: Closed at 21.57. Trade pressures are down. Volumes are bearish. the next target down is 20.42.

11-10-18: closed at 21.29, Trade pressures are down. Volumes are bearish. At the 25×5 moving average support.

11-17-18: Closed at 20.62. Trade pressures are down. Volumes are bearish. At the 20.42 downside target and the 200 day moving average.

11-24-18: Closed at 18.69. Trade pressures are down. Volumes are bearish. Following crude down. Testing the June low 

 

Burlington Stores, Inc. (BURL) is another familiar name on the Top 5 list. Burlington is a fixture in shopping centers across the country. Stepping through one of its 630 Burlington Coat Factory locations is an experience. There are racks of apparel, footwear, accessories, household products and beauty products as far as the eye can see. Everything is neatly laid out, including women’s, men’s, youth and baby departments.

While many department stores are downsizing and cost cutting, Burlington Stores is thriving. That’s because it offers shoppers high-quality, name-brand merchandise at unbeatable prices. Of course, every store claims to do that, but Burlington Stores actually delivers through its off-price model.

So Burlington is doing better than ever, as demonstrated by Burlington’s outlook for FY 2018. Burlington expects total sales will grow between 10.1% and 10.6%. It expects adjusted earnings in a range of $6.13 to $6.20 per share, or between 40.3% and 41.9% annual earnings growth. There aren’t too many retailers that can claim double-digit sales and earnings growth.

In the meantime, Burlington Stores is expected to report third-quarter sales and earnings in late November. Analysts are calling for earnings of $1.06 per share on $1.61 billion in revenue. This represents 51.4% annual earnings growth and 11.7% annual sales growth. Burlington Stores also has a strong track record of earnings surprises.

I expect big things from Burlington this earnings season. Buy this Conservative stock up to $182 per share.

SOM Technicals:

9-29-18: Closed at 162.93. Trade pressures are down but rising into the neutral zone. Volumes are neutral. Need a close above 168.90 to signal higher.

10-7-18: Closed at 152.34. Trade pressures are down. Volumes are bearish. The next target down is 145.70.

10-13-18: Closed at 155.48. Trade pressures are up into the neutral zone. Volumes are now bullish. The next target up is the 25×5 resistance at 162.62.

10-20-18: Closed at 155.35. Trade pressures are up into the neutral zone. Volumes are bullish. 162.62 is now the new long entry.

10-28-18: Closed at 170.82. Trade pressures are up. Volumes are bullish. Ripped thru the new long entry; the next target up is 175.48.

11-3-18: Closed at 173.19. Trade pressures are up. Volumes are bullish. the next target up is 180.99.

11-10-18: Closed at 172.12. Trade pressures are up and rolling over. Volumes are bullish. The next target up is 180.99.

11-17-18: Closed at 161.75. Trade pressures are up but have turned down. Volumes are Bearish. At the 25×5 moving average support line and the 162.62 long entry level.

11-24-18: Closed at 148.32. Trade pressures are now down. Volumes are bearish. At the 200 Day MA. The next target down is 135.90.

 

The Progressive Corp. (PGR) joins the Top 5 list after just one month on the Buy List. That’s because this insurance stock has shown remarkable strength amidst the market volatility. Progressive is one the largest providers of auto insurance in the U.S. Founded in 1937, Progressive has always taken an innovative approach to auto insurance. It offered drive-in claims service before anyone else. And it also allowed its customers to pay their premiums in installments before anyone else.

Along with cars, Progressive also provides insurance for motorcycles, boats, RVs, commercial vehicles, Segways and homes. It has been hugely successful with “Flo” and its advertising campaign, building goodwill with its customers and expanding into other lucrative insurance categories.

Last Tuesday, PGR rallied after it beat expectations for the third quarter. Last quarter, net premiums written jumped 20% year-on-year to $8.6 billion. Analysts were expecting $8.41 billion in net premiums written, so Progressive posted a 2.3% surprise. Over the same period, earnings per share surged 311% to $1.57. This smashed the $1.12 consensus EPS estimate by 40.2%.

Investors cheered these results, so PGR rallied after the announcement. With its top-notch fundamentals and 1.7% dividend yield, PGR rounds out our Top 5 list for the month. Buy this Conservative stock up to $73 per share.

SOM Technicals:

10-28-18: Closed at 68.10 Trade pressures are in the neutral zone. Volumes are bearish. The next target down is the 66.64 support line.

11-3-18: Closed at 69.58. Trade pressures are in the neutral zone. Volumes are neutral. Support seems to hold at 66.64.

11-10-18: Closed at 73.18. Trade pressures are up. Volumes are bullish. At the 73.85 upside target.

11-17-18: Closed at 66.33. Trade pressures are down into the neutral zone. Volumes are neutral, buyers equal sellers. Support is at the 200 day moving average at 63.08.

11-24-18: Closed at 62.95. Trade pressures are down. Volumes are bearish. At the 200 Day MA. Need a close above 66.56 to start anew move up.