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Quant picks: A trio of ' best buys'

"With high-quality stocks on sale, now seems an opportune time to look for bargains among small and midcap blue chips," suggests Richard Moroney.

In his Upside Stocks advisory, which uses the quantitative-based Quadrix ratings system, he says, "We've found several 'Best Buys' with superior year-ahead potential."

Here, the analyst looks at Aeropostale (NYSE: ARO), Catalyst Health (NASDAQ: CHSI) and Hornbeck Offshore (NYSE: HOS).

Continue reading Quant picks: A trio of ' best buys'

Technicians bet on Buffalo Wild Wings (BWLD)

Two leading advisors -- both known for an expertise in technical analysts -- are bullish on the prospects for Buffalo Wild Wings (NASDAQ: BWLD), which operates and franchises casual food restaurants in 38 states.

Here's an overview of the stock from Joseph Hargett, an analyst with Schaeffer Investment Research, and Richard Schmidt, editor of The Stellar Stock Alert.

Schmidt explains, "You've got to love the action of Buffalo Wild Wings. Last month, the stock jumped up nearly 25% in one day and continued to move up.

Continue reading Technicians bet on Buffalo Wild Wings (BWLD)

Apollo (APOL) and Devry (DV): Top of the class in adult education

Few stocks are poised to benefit from economic woes and rising unemployment. One group, however, that appears to be an exception is for-profit adult education stocks.

These companies, which operate school campuses and online education programs, are viewed by some as beneficiaries of a growing need for worker retraining and the rising demand for education by those changing careers or re-entering the work force as adults.

Leo Fasciocco is a technical expert, specializing in finding stocks that are "breaking out" -- those moving above previous technical resistance levels or poised to do so.

His two of the latest breakout stocks featured in his The Ticker Tape Digest are both in the for-profit education field: Apollo Group (NASDAQ: APOL) and Devry Inc. (NYSE: DV). Here's his assessment.

"Apollo, based in Phoenix, is the largest for-profit education company, with more than 300,000 students. APOL focuses on working adults and operates 259 campuses and learning centers in 40 states, as well as various international locations.

"Programs range from associate to doctorate degrees in areas such as business, education, health care, technology. The company said it is showing solid enrollment growth. Annual revenues are $3 billion.

"The company recently reported that net for the fiscal fourth quarter excluding special items increased 20% to 75 cents a share from 62 cents a year ago. Revenues for the quarter rose 17%. Analysts had expected net of just 64 cents a share. So, results were a positive surprise.

"For fiscal 2009 ending August 31, analysts predict a 17% increase in net to $3.31 a share from $2.84 a year ago. The stock sells with a price-earnings ratio of 20, which is reasonable.

"Institutional sponsorship is very good. Five-star rated Janus Mid Cap Value Fund was a recent buyer of 550,000 shares. Also, 4-star rated GMO US Quality Equity III Fund recently picked up 779,000 shares.

"Devry, based in Oakbrook Terrace, Il., is one of the largest for-profit education companies, with annual revenues of $1.1 billion. DeVry University offers undergraduate and graduate programs in business and technology fields. They account for 77% of revenue.

"Under its health-care segment, Ross University offers medical and veterinarian programs, and Chamberlain College offers nursing degrees.

"Recently acquired schools add allied health programs. Its professional segment offers review courses through its Becker CPA review and Stalla CFA review programs.

"DV's technicals set up surprisingly well. The momentum indicator is strongly bullish. Recent price action shows good institutional buying interest. However, investors should be patient with this stock; we are looking for a key breakout over 58.50 before entering.

"The company tends to show consistently good earnings growth. This fiscal year ending June 30, analysts predict a 22% increase in net to $2.18 a share from $1.78 a year ago.

"The stock sells with a price-earnings ratio of 23, which is reasonable given the earnings growth rate. Looking out to fiscal 2010, the Street projects a 24% gain in net to $2.69 a share.

"The largest fund holder is 5-star rated Baron Growth Fund with a big 5.2% stake. It has held its position steady. A recent large buyer was 5-star rated Hartford Midcap Fund, which purchased 385,000 shares.

"Over the past 2 years shows, DV's stock has appreciated 120%. That easily outperformed the S&P 500 index which declined 25% over the same time. Recent price action shows good institutional buying interest.

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Abbott Labs (ABT): A technical breakout?

Leo Fasciocco, who specializes in stocks that have shown technical "breakouts," turns to Abbott Labs (NYSE: ABT) as the latest featured stock in his top notch Ticker Tape Digest.

"Abbott has been acting strong depite market weakness, indicating that money moving into ABT, perhaps as a defensive play.

"ABT has a low beta of 0.14 versus the S&P 500's 1.00. That would indicate that ABT is a low risk play. In any case, the stock is set up nicely for a breakout from an eight-week flat base. With good earnings coming this year, we suggest accumulation of the shares.

"Abbott's products include prescription drugs, coronary and carotid stents, and nutritional liquids for infants and adults.

"The stock's long-term chart shows ABT 'knocking on the door' of a new high. It just needs to get over 61.09. If it can do that it could well draw in more buying.

"ABT is acting strong and is a good spot for institutional money to move into in a difficult market. We suggest accumulation of a partial stake in ABT with further buying to be done on a move over 60.

"Overall, we see ABT as a conservative play with low downside risk. We are targeting the stock for a move to 70 within the next few months."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Symbol Lookup
IndexesChangePrice
DJIA+32.1210,465.83
NASDAQ+7.802,176.98
S&P 500+4.701,110.35

Last updated: November 25, 2009: 03:30 PM

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