Last week’s picks*:

VA: ARLP +7.51%
MR: AMD +4.48%
ST: MLNX -1.21%
SS: BREW +17.82%

Another good week for our stock picks as stock markets rallied back to new record highs last week. Meanwhile, further monetary stimulus from the Bank of Japan has sent Japanese markets into overdrive and USDJPY has moved to within a few pips of the 113.00 level overnight.

Our value pick Alliance Resource Partners pushed higher by 7.51% while the most popular pick from the poll (AMD) climbed 4.48%.

We stuck with BREW for our short pick this week and our patience was rewarded as this time the stock collapsed almost 18%.

Our StockTwits pick (MLNX) finished roughly flat and could be a good contender for the week ahead.

Here’s this week’s picks: (vote at the end!)

Value

American Railcar Industries Inc. $ARII

American Railcars Industries is a leading US railroad stock that designs and manufactures hoppers and tank railcars. The stock has been an extremely good performer since the financial crisis and shares are already up 46% year-to-date.

However, the stock has actually fallen 20% over recent weeks owing to new regulations affecting the railroad industry. This has put the stock into good value territory with an attractive set of financial ratios such as forward PE at 13.53, PEG at 0.95 and current ratio of 3.50.

As well, legendary investor Carl Icahn owns a substantial stake in the company.

ARII stock chart, this weeks picks

Mean reversion

Freeport McMoRan Inc. $FCX 

Freeport McMoRan is one of the largest copper producers in the world and boasts a broad portfolio of mineral assets and oil and gas resources. There are not many stocks that are oversold at the moment owing to last week’s broad market rally but FCX shares have been hit hard by the recent slide in oil, copper and gold prices. This has given the stock a daily RSI reading of 29 suggesting it is significantly oversold.

If the news out of Japan stokes demand for oil and copper this week, those assets might rise and FCX might rebound.

FCX stock chart

Short sellers

BJ’s Restaurants Inc. $BJRI

BJ’s owns and operates 154 casual dining restaurants in the US and is listed on the Nasdaq with a market cap of $1.24 billion. The diner mainly focusses on beers, pizzas, pastas and salads and was founded in California in 1978.

The restaurant industry appears to be overbought as a sector and BJ’s is overbought with a daily RSI reading of 72.12. The stock also has a hefty PE ratio of 64.74 and a PEG of 3.17.

BJs Restaurants stock chart

StockTwits

Expedia Inc. $EXPE

Online travel provider Expedia Inc. is currently the sixth most trending stock on StockTwits and the sentiment of StockTwits users is 98% bullish.

Expedia shares gapped higher on Friday after the company reported strong Q3 earnings to market. Shares climbed 5.25% and if post-earnings drift occurs we could see the stock move past the double top resistance to $90.

expedia stock chart

As always, let me know what your favourite pick is by completing the quick poll below and if you have any others you’re looking at, leave them in the comments below!

[poll id=”10″]

*Hypothetical results. Commissions and slippage not applied.

Disclosure: I am long ARII.

Additional disclaimer: Please be aware of the usual risks to trading in financial instruments. Please remember the importance of doing your own research and understand the cost to trade including trading commissions and the bid:ask spread.

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