Individual stocks on February 27, 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. Nvidia (NVDA)
  2. Nike (NKE)
  3. Oracle (ORCL)
  4. Pfizer (PFE)
  5. eBay (EBAY)

Nvidia (NVDA)

Nvidia is expected to see an earnings increase of 33.2% in 2018. This is more than the S&P’s forecasted earnings growth of 15% in 2018.
Nvidia 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 Nvidia right now with a stop loss at the 50 day moving average.

Nike (NKE)

Nike is expected to see an earnings decrease of -10% in 2018. This is much less than the S&P’s forecasted earnings growth of 15% in 2018.
Nike 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 Nike right now.

Oracle (ORCL)

Oracle is expected to see an earnings increase of 7.4% in 2018. This is less than the S&P’s forecasted earnings growth of 15% in 2018.
Oracle 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 Oracle right now.

Pfizer (PFE)

Pfizer is expected to see an earnings increase of 11.1% in 2018. This is less than the S&P’s forecasted earnings growth of 15% in 2018.
Pfizer 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 Pfizer right now.

eBay (EBAY)

eBay is expected to see an earnings increase of 12.9% in 2018. This is less than the S&P’s forecasted earnings growth of 15% in 2018.
eBay 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 eBay right now.

Read Individual stocks on February 26, 2018: strategy

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