Last Week’s Picks:
Some good results from last week’s picks with all four ideas finishing in positive territory. Hopefully that from will continue. However, traders will face some uncertainty in Europe where attention has turned back to Greek debt woes.
The ECB will announce more asset purchases on Monday before GDP reports out of the UK and US later in the week. On top of that, investors will need to keep a watchful eye on earnings releases.
The big event though will be Wednesday’s FOMC meeting. The latest meeting from the world’s largest central bank will likely set the tone for the remainder of the week. Analysts are not expecting any change to policy so the key will be in the details of the policy statement.
Here’s what analysts from BNP Paribas have to say:
“The FOMC looks unlikely to tee-up the first rate hike in their policy statement next week, with no significant changes expected in the policy language. We expect the economic soft-patch in Q1 to be discounted. We still see September as most likely for lift-off, albeit dependent on a rebound in activity.”
Here are some stock ideas I’m looking at this week:
Sanmina Corporation $SANM
The Extreme Discount system looks for medium-long term value plays where a stock is trading at significant discount to the rest of the market.
This week’s pick goes to Sanmina Corporation, a technology company that provides complex, innovative products in a host of industries including communications, storage, medical, defence and aerospace.
The stock dropped sharply last week on earnings but managed to finish well off it’s lows and could be poised to fill the gap this week.
Lear Corp $LEA
The Trend Following For Stocks system finds stocks breaking out to new highs and is currently up 15% year-to-date. This week’s pick goes to Lear Corp, a leading auto parts manufacturer with a market cap of $9 billion. I am still bullish on the auto industry this year and LEA trades at only 11x future earnings with a PEG under 1.
Quantum Corporation $QTM
This week’s small cap pick goes to Quantum Corp. Quantum shares have been on a tear of late and are up over 90% over the last 6 months. The company is involved in a number of cloud computing, archiving and storage solutions and is scheduled to release Q1 results next week.
Prospect Capital Corp. $PSEC
I am holding on to Prospect Capital Corp. this week. The asset management firm is slowly moving higher and remains on my watch-list as one to keep an eye on. I am still looking for a move to the upper channel line, as shown in the chart.
Intuitive Surgical Inc. $ISRG
Intuitive Surgical lost ground last week after reporting disappointing earnings numbers to market. The stock ranks high on my list of most volatile US stocks and could see more pain ahead. Particularly if shares fall through the supporting trend line.
*Nothing on this site should be taken as investment advice, please read the disclaimer.