Individual stocks on February 26, 2018: strategy


I stated that even a simple quantitative strategy can be used to successfully pick & trade individual stocks over the long run. Here are the simple strategy’s BUY and SELL signals in action.
The simple strategy says that in a bull market

  1. You should only go long stocks with above average earnings growth. The S&P 500’s projected earnings growth is 15.3% for 2018.
  2. You should only go long stocks that are above their 50 daily moving averages (CLOSE). This is essentially a momentum play for trend followers.

We’re looking at the following stocks today:

  1. Boeing (BA)
  2. Qualcomm (QCOM)
  3. Cisco (CSCO)
  4. McDonalds (MCD)
  5. Snap (SNAP)

Boeing (BA)

Boeing is expected to see an earnings increase of 16.7% in 2018. This is slightly more than the S&P’s forecasted earnings growth of 15% in 2018.
Boeing is above its 50 sma. Its earnings growth is superior to that of the S&P 500’s. Based on the simple strategy, trend followers and stock pickers should be long Boeing right now with a stop loss at the 50 day moving average.

Qualcomm (QCOM)

Qualcomm is expected to see an earnings decrease of -26% in 2018. This is much less than the S&P’s forecasted earnings growth of 15% in 2018.
Qualcomm is above its 50 sma. Its earnings growth is inferior to that of the S&P 500’s. Based on the simple strategy, trend followers and stock pickers should not go long Qualcomm right now.

Cisco (CSCO)

Cisco is expected to see an earnings increase of 8% in 2018. This is less than the S&P’s forecasted earnings growth of 15% in 2018.
Cisco is above its 50 sma. Its earnings growth is inferior to that of the S&P 500’s. Based on the simple strategy, trend followers and stock pickers should not go long Cisco right now.

McDonalds (MCD)

McDonalds is expected to see an earnings increase of 14.8% in 2018. This is slightly less than the S&P’s forecasted earnings growth of 15% in 2018.
McDonalds is below its 50 sma. Its earnings growth is slightly inferior to that of the S&P 500’s. Based on the simple strategy, trend followers and stock pickers should not be long McDonalds right now.

Snap (SNAP)

Snap is expected to see an earnings increase of 43.5% in 2018. This is much more than the S&P’s forecasted earnings growth of 15% in 2018.
Snap is above its 50 sma. Its earnings growth is superior to that of the S&P 500’s. Based on the simple strategy, trend followers and stock pickers should be long Snap right now with a stop loss at the 50 day moving average.

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