Stock markets gained on Monday with the Dow Jones Industrial Average advancing by 0.32% and the S&P 500 moving up 0.32%. Technology stocks continued to struggle, however, and the Nasdaq dropped by -0.03% by the close of play. With markets not quite over the recent volatility caused by falls in high growth Internet and momentum stocks, this week’s stock picks looks at a couple of companies with solid financials and reporting earnings this week.
Seagate Technology Plc ($STX)
My favourite pick this week belongs to data storage company Seagate which reports earnings after the close on Tuesday. Data storage surely has a massive future and Seagate is a company I have previously written about here in a Seeking Alpha article. Seagate still looks very attractive with a PE of just 11.77, PEG of 0.94 and current ratio of 2.20.
Although it is impossible to predict earnings in the short term, I would not be surprised to see a good quarter’s results and that could see Seagate jump on the open on Wednesday. For that reason, I plan to buy Seagate shortly before the close on Tuesday. Stops can be kept tight as this is a short term trade.
Big 5 Sporting Goods Corp ($BGFV)
Big 5 Sporting Goods is another company that I like the look of and like Seagate I also wrote about the company in an article, this time for Emerging Growth. It makes this week’s stock picks for mainly for its financial strength and the firm will also be reporting earnings after the close on Tuesday.
BGFV in my eyes is even more attractive now than when I previously wrote the article and I can see the company doing well this year as a result of all the sporting events taking place.
Most importantly, the stock looks as though it may have bottomed and the financial statistics are very promising. PE is 12.06, forward PE 11.49, PEG is 0.69 and current ratio is 2.00.