this week's stock picks

The stock picks return this week and it promises to be a busy one for traders once they get back from the Martin Luther King holiday on Monday.

Traders will still be getting their heads round the recent shock move from the SNB. They will also be watching the price of crude oil and a number of corporate earnings numbers.

As well, there will be a raft of economic data out, and close attention will be paid to Chinese GDP and retails sales on Tuesday. Traders will also be watching the latest central bank meetings from the Bank of Japan, ECB, and Bank of Canada.

Europe’s ZEW number on Tuesday will also be widely watched. I will be looking at the VIX once more, though I have a feeling we will see some gains this week.

This week’s stock picks:

(vote for your favourite at the end)


LyondellBasel Industries NV $LYB

Are we about to witness a rapid short-squeeze in the energy space? Crude oil futures rebounded on Friday and shares in LYB drove higher by over 6%.

$LYB is a plastics producer and one of my favourite picks in the energy sector. The stock trades at a forward PE of 9.60 with a PEG ratio of 0.86 and ROE of over 40%.

lydonbasell stock chart

Trend following

American Axle & Manufacturing Holdings Inc. $AXL

The HTBWS trading strategy Trend Following With A Twist has identified a new position this week in American Axle & Manufacturing Holdings Inc.

$AXL is a Tier-one automotive supplier of driveline and drivetrain systems for a broad range of auto vehicles.

My research on oil suggests the auto sector could do well this year and $AXL just hit a new 52 week high. However, the stock is still cheap according to it’s financial ratios with a PEG under 1 and a PE of 11.31.

axl stock chart

Short Sellers

Blackbaud Inc. $BLKB

Technology company Blackbaud Inc. jumped last week giving short sellers a potential opportunity to sell the stock.

Looking at the chart, $BLKB is struggling to make any headway past the $45 level and has formed a multiple top pattern. The company looks expensive too, trading at a PE of 58, PEG of 3.04 and price-to-book of over 10.

blackbaud stock chart

Unusual Volume

Zioppharm Oncology Inc. $ZIOP

The Unusual Volume trading strategy has identified a new position in Ziopharm Oncology Inc. this week, a cancer treatment company that jumped on heavy volume after a new deal with the University of Texas Anderson Cancer Center.

The stock saw a large increase in volume and has an 89% bullish rating on StockTwits.

ziopharm stock chart ziop

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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. Please remember to read the disclaimer. Stock picks are not to be construed as investment advice and no responsibility will be taken for any losses, risk or distress.

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