High-Growth Investments

AutoZone, Inc. (AZO) has secured a spot on the Top 5 Stocks list for four-consecutive months. As you know, AutoZone is a leading retailer and provider of automotive parts and accessories in the U.S. The company operates more than 6,000 retail stores in the U.S., as well as in Washington, D.C., Puerto Rico, Mexico and Brazil.

AutoZone has earned a spot on the Top 5 Stocks list again given its ability to expand its top and bottom lines, as well as consistently top analysts’ earnings expectations. The company has posted a positive earnings surprise in each of the last four quarters.

Now, AutoZone is expected to release results from its fourth quarter in fiscal year 2019 in mid- to late-August. The analyst community is looking for earnings of $21.80 per share and revenue of $3.93 billion, which represents 10.5% annual revenue growth and 17.6% annual earnings growth. And analysts have increased earnings estimates in the past week alone—and that bodes well for another quarterly earnings surprise. AZO is a Conservative buy below $1,228.

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.

 

Cadence Design Systems, Inc. (CDNS), our provider of electronic design automation software and hardware, pulled back early this week in the wake of its second-quarter report. However, the dip was merely profit taking and I view this dip as a great buying opportunity. Consider this…

Cadence Design Systems reported that second-quarter revenue rose 11.9% year-over-year to $580 million, which topped expectations for $579.48 million. Earnings increased 27.8% year-over-year to $161 million, or $0.57 per share, beating analysts’ forecasts for $0.53 per share by 7.5%.

Given the strong second-quarter results, Cadence Design Systems increased their revenue and earnings outlook for fiscal year 2019. Total revenue is now forecast to be between $2.32 billion and $2.34 billion, and earnings per share are expected to be between $2.11 and $2.17. That’s nicely higher than current forecasts for earnings of $2.10 per share and revenue of $2.32 billion. CDNS is a Conservative buy below $82.

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.

5-25-19: Closed at 63.99. Trade pressures are down. Volumes are bearish. The next target down is the 62.82 prior low.

5-31-19: Closed at 63.57. Trade pressures are down, Volumes are bearish. 62.58 is support.

6-15-29: Closed at 67.72. Trade pressures are up. Volumes are bullish. The next target up is 79.97.

6-22-19: Closed at 71.37.  Trade pressures are up. Volumes are up. The next target up is 76.41.

6-28-19: Closed at 70.81. Trade pressures are up but turning down. Volumes are neutral. The next target up is 76.41.

7-8-19: Closed at 74.41. Trade pressures are up. Volumes are bullish. Next target up is 76.41.

7-13-19: Closed at 75.02. Trade pressures are up. Volumes are bullish. The next target up is 80.

7-19-19: Closed at 72.92. Trade pressure are up but turning down. Volumes are now bearish. Support is at 71.76.

7-28-19: Closed at 75.91. Trade pressures are in the neutral zone. Volumes are bearish. Support is at 72.39.

8-3-19: Closed at 71.27. Trade pressures are down in the neutral zone. Volumes are bearish. The next support is 68.04.

8-10-19: Closed at 70.24. Trade pressures are down and starting to rise. Volumes are bearish. At the downside target of 68.04.

8-17-19: Closed at 69.32. Trade pressure are down but rising. Volumes are bearish. Consolidating at the 68.04 downside target.

8-25-19:, Closed at 66.81. Trade pressures are up into the neutral zone. Volumes are bearish. Breaks below the 68.04 target.

 

NextEra Energy, Inc. (NEE) is a leading provider of wind and solar energy in North America. The company plans to invest $40 billion in clean energy infrastructure through 2020. In addition, NextEra Energy operates more than 140 megawatts of battery energy storage systems in the U.S. So, it’s not surprising that the company beat the consensus earnings estimate for its second quarter on Wednesday.

NextEra Energy reported second-quarter earnings of $1.33 billion, or $2.35 per share, which represented 14.6% annual earnings growth. The analyst community was expecting earnings of $2.31 per share, so NEE posted a 1.7% earnings surprise.

NextEra Energy also noted that it increased its backlog by more than 1,850 megawatts. Company management stated, “NextEra Energy is as well-positioned as it has ever been to deliver on our financial expectations.” The company expects to achieve 6% to 8% compound annual growth through 2022. NEE is a Conservative buy below $224.

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. 

 

Sun Communities, Inc. (SUI) was our new addition to the High-Growth Investments Buy List in the July Monthly Issue. If you recall, Sun Communities is a North American real estate investment trust (REIT) that’s focused on manufactured homes and RV communities in the U.S. and Canada. The REIT operates about 379 communities.

On Wednesday, Sun Communities smashed analysts’ earnings and sales estimates for its second quarter in fiscal year 2019. The REIT reported earnings of $40.4 million, or $0.46 per share, and revenue of $312.4 million, which represented 15.1% annual revenue growth and 98% annual earnings growth. The analyst community was looking for earnings of $0.31 per share on $238.75 million in revenue, so SUI posted a whopping 48.4% earnings surprise and a 30.8% revenue surprise.

Looking forward to fiscal year 2019, Sun Communities expects earnings per share between $1.81 and $1.87, which is up from previous guidance for earnings per share between $1.61 and $1.71. The REIT also upped its core FFO expectations to $4.84 per share to $4.90 per share. SUI is a Conservative buy below $142.

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.

 

Ubiquiti Networks, Inc. (UI) is a New York-based company that provides network technology products around the world. In fact, the company ships about 85 million devices to more than 200 countries and territories. Ubiquiti Networks products are based on the company’s UNMS and UniFi software platforms.

Ubiquiti Networks hasn’t announced the date of its earnings release for its fourth quarter in fiscal year 2019. But the company is expected to report results in mid-August—and analysts are expecting another solid quarter of double-digit earnings and sales growth.

The analyst community is currently forecasting earnings of $1.16 per share, or 14.9% annual earnings growth. Sales are forecast to come in at $303.58 million, up 12.5% from the $269.78 million reported in the fourth quarter of 2018. UI is a Moderately Aggressive buy below $155.

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.

 

Elite Dividend Payers

Coca-Cola European Partners plc (CCEP) was added to the Elite Dividend Payers Buy List back in the June Monthly Issue. The company is the largest independent Coca-Cola bottler in the world, as it sells and distributes the soft drink brand in 13 countries. CCEP sells about 2.5 billion cases each year.

The company is scheduled to announce earnings and sales from the most-recent quarter on August 7. The consensus estimate currently calls for earnings of $0.86 per share and revenue of $3.6 billion. That translates to 2.9% annual revenue growth and 11.7% annual earnings growth. Earnings per share estimates have also been revised higher in the past three months, which means a quarterly earnings surprise is likely.

Coca-Cola European Partners also has a long history of rewarding its shareholders. The company has paid a dividend for 126-straight quarters, or for more than 31 years. CCEP last paid a quarterly dividend of $0.69 per share on June 6—and that dividend represented a 122.5% increase over the dividend paid in the same quarter a year ago. The stock has a 4.9% dividend yield. CCEP is a Conservative buy below $60.

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.

 

Ingersoll-Rand Plc (IR) has developed new tools and equipment over the past 148 years, including the steam-powered rock drill and the Jackhammer drill. Today, the company’s products are used to improve the quality of air in buildings, enhance security at homes and businesses, protect perishable items and boost industrial productivity.

Ingersoll-Rand will report second-quarter earnings before the stock market opens on Tuesday, July 30. Analysts are expecting earnings to grow 10.8% year-over-year to $2.05 per share, up from $1.85 per share in the same quarter a year ago. Earnings estimates have remained steady over the past three months, but IR has a history of topping expectations. Sales are forecast to rise 5% year-over-year to $4.58 billion.

Like CCEP, Ingersoll-Rand has rewarded its shareholders quarter after quarter. The company has paid a dividend of 86-consecutive quarters. The next quarterly dividend of $0.53 per share will be paid on September 30 to all shareholders of record on September 6. The stock has a 1.7% dividend yield. IR is a Conservative buy below $131.

SOM Technicals:

5-25-19: Closed at 120.20. Trade pressures are down. Volumes are neutral to bearish. The median line is support at 116.

5-31-19. Closed at 118.34. Trade pressures are down. Volumes are bearish. In a new downtrend with support at 116.

6-15-19: Closed at 124.68. Trade pressures are up. Volumes are neutral. The next target up is 130.42.

6-22-19: Closed at 125.19. Trade pressures are down into the neutral zone. Volumes are bullish.

6-28-19: Closed at 126.64. Trade pressures are down into the neutral zone. Volumes are bullish. In consolidation at the 126.17 upside target.

7-8-19: Closed at 124.81. Trade pressures are in the neutral zone. Volumes are bullish. Consolidating at the 126.17  upside target.

7-13-19: Closed at 126.62. Trade pressures are in the neutral zone. Volumes are now bullish. The next target up is 133.39.

7-19-19: Closed at 124.70. Trade pressures are down in the neutral zone. Volumes are bearish. Sitting on the 200 day MA.

7-28-19: Closed at 122.58. Trade pressures are down. Volumes are bearish. The support level is 111.18.

8-3-19: Closed at 120.88. Trade pressures are up in the neutral zone. Volumes are neutral. The next target down is 116.44.

8-10-19: Closed at 119.36. Trade pressures are in the neutral zone. Volumes are bearish. The next target down is 116.44.

8-17-19: Closed at 117.88. Trade pressures are down in the neutral zone. Volumes are bearish. The next target down is the 115.44 target.

8-25-19: Closed at 114.96. Trade pressures are flat in the neutral zone. Volumes are bearish. At the lower median line support.

 

Insperity, Inc. (NSP) offers a variety of human resources and services in order to boost businesses performance. Currently, the company’s solutions support more than 100,000 businesses, which includes more than two million employees.

Insperity is scheduled to post second-quarter results prior to the opening bell on Monday, July 29. The analyst community is expecting earnings of $0.83 per share on $1.04 billion in revenue, or 12.3% annual revenue growth and 22.1% annual earnings growth. Analysts have upped earnings estimates slightly in the past three months, so another quarterly earnings surprise is likely.

The company has also consistently increased its quarterly dividend over the years. In fact, in the past year alone, Insperity has upped its quarterly dividend by a stunning 50%. Most recently, the company paid $0.30 per share on June 24. The stock has a 0.8% dividend yield. NSP is a Moderately Aggressive buy below $160.

SOM Technicals:

7-28-19: Closed at 144.63. Trade pressures are up. Volumes are bullish. The next target up is 157.24.

8-3-19: Closed at 102.61. Missed guidance! Trade pressures are down. Volumes are bearish. The next target down is 86.63.

8-10-19: Closed at 94.90. Now down 50 points from the highs! Trade pressures are down hard. Volumes remain bearish. The December lows are at 86.63.

8-17-19: Closed at 93.41. Trade pressures are down hard. Volumes remain bearish. The next target down is the prior low at 86.63.

8-25-19: Closed at 93/90. Trade pressures are down but rising. Volumes are bearish. the December 2018 lows are the next target  down as well as support.