Look in the fridge for your next investment
I'm adding an old favorite brand name to my Wall Street Survivor portfolio: Arm & Hammer. Like me, you might not know the name Church & Dwight.
First let's see why it came up on my list. The stock had a price appreciation in 14 of the last 20 trading sessions and was 5 for 5 recently. It has enjoyed a 7.97% price increase in the last month. On Barchart's 13 technical indicators the stock has a buy signal on 12 of the 13 indicators. This stock has the positive and consistent price momentum I like.
On the fundamental side analysts have 5 buy, 9 hold and only 1 under perform recommendation outstanding and 10 of them have increased their EPS estimates for the future in the last 30 days alone. They expect a 4.1% increase in revenue coupled with a 11.3% increase in earnings per share for the coming year. A 5 year compounded EPS growth rate of 12% is projected.
The stock enjoys growing investor sentiment. Some of that might have been triggered by a recent article on The Street.com naming CHD as one of the top 5 Mid Cap Stocks. On Motley Fool CAPS members have noticed and voted that the stock will out perform the market by a vote of 303 to 15 and the All Stars agree 111 to 6. The Wall Street columnists Fool follows like the stock 8 to 0.
The reasons I like CHD:
- Recent price appreciation in more than 50% of the last 20 trading sessions
- Good analysts recommendations with positive revenue and earnings projected in the future
- A solid brand recognition on the products it owns
- Positive recent press on The Street.com
- Great investor sentiment as evidenced by the positive votes from Motley Fool members.
I'm adding 150 shares of Church & Dwight (CHD) to my Wall Street Survivor portfolio to replace ScanSource (SCSC) which I sold last week when it failed to maintain a price above its 50 day moving average.
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Disclosure: No positions in the stocks mentioned at the time of publication
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
After enjoying a smooth rise in stock prices since May, investors are about to be hit with another bout of volatility.
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