MarketSmith has identified ten stocks with strong earnings growth and price momentum close to their 52-week highs by applying the principles of William J. O’Neil. The analysis is by integrating both fundamental and technical analysis, emphasizing historical trends
ET summed up these ten stocks and the rationale for the recommendation:
(1) Fluidomat | CMP: ₹1001
Fluidomat has an operating revenue of Rs 63 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 24%, pre-tax margin of 32%, and ROE of 21%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 31% and 42% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 21% from the pivot point (which is extended from the ideal buying range for a stock).
(2) Newgen Software Technologies | CMP: ₹1390
Newgen Software Technologies has an operating revenue of Rs 1374.8 crore on a trailing 12-month basis. The company has outstanding annual revenue growth of 28%, pre-tax margin of 24% and ROE of 20%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 11% and 36% from 50DMA and 200DMA. It is currently FORMING a base in its weekly chart and is trading around 9% away from the crucial pivot point.
CDSL | CMP: ₹1943
CDSL has an operating revenue of Rs 1,034.9 crore on a trailing 12-month basis. The company has outstanding annual revenue growth of 46%, pre-tax margin of 69% and ROE of 28%. The stock from a technical standpoint is comfortably placed above its key moving averages, around 23% and 56% from 50DMA and 200DMA.
It has recently broken out of a base in its weekly chart and is trading around 17% from the pivot point (which is extended from the ideal buying range for a stock).
(4) Black Box | CMP: ₹694
Black Box has an operating revenue of Rs 6,056.4 crore on a trailing 12-month basis. The company has an annual revenue de-growth of 0%, pre-tax margin of 2% and ROE of 28%. The company has a debt to equity of 75%, which is bit higher.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 21% and 68% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 13% from the pivot point (which is extended from the ideal buying range for a stock).
(5) Dynamic Cables | CMP: ₹935
Dynamic Cables has an operating revenue of Rs 875.9 crore on a trailing 12-month basis. The company has an annual revenue growth of 15%, pre-tax margin of 7% and ROE of 17%. The company has a reasonable debt to equity of 3%, which signals a healthy balance sheet.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 19% and 57% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 33% from the pivot point (which is extended from the ideal buying range for a stock).
(6) Indraprastha Medical Corporation | CMP: ₹480
With an operating revenue of Rs 1,318.9 crore on a trailing 12-month basis, Indraprastha Medical Corporation has reported annual revenue growth of 14%, pre-tax margin of 13% and ROE of 25%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 9% and 52% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 4% from the pivot point (which is the ideal buying range for a stock).
(7) BSE | CMP: ₹5635
BSE has an operating revenue of Rs 2,454.8 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 70%, pre-tax margin of 58% and ROE of 23%. The stock from a technical standpoint is comfortably placed above its key moving averages, around 23% and 78% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around 12% from the pivot point (which is extended from the ideal buying range for a stock).
(8) Persistent Systems | CMP: ₹6477
Persistent Systems has an operating revenue of Rs 10,723 crore on a trailing 12-month basis. The company has annual revenue growth of 18%, pre-tax margin of 15% and ROE of 22%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock from a technical standpoint is comfortably placed above its key moving averages, around 13% and 39% from 50DMA and 200DMA.
(9) EMS | CMP: ₹861
EMS Ltd has an operating revenue of Rs 884.6 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 49%, pre-tax margin of 26% and ROE of 19%. The company has a reasonable debt to equity of 9%, which signals a healthy balance sheet.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 10% and 36% from 50DMA and 200DMA. It has recently broken out of a base in its weekly chart and is trading around -5% from the pivot point (which is the ideal buying range for a stock).
(10) Cellecor Gadgets | CMP: ₹64
Cellecor Gadgets Ltd has an operating revenue of Rs 886 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 89%, pre-tax margin of 4% and ROE of 17%. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.
The stock from a technical standpoint is comfortably placed above its key moving averages, around 5% and 64% from 50DMA and 200DMA. It is currently FORMING a base in its weekly chart and is trading around 14% away from the crucial pivot point.
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