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(Getty Images/Pixland)
(Getty Images/Pixland)

Number Cruncher

20 stocks with rising prices, soaring earnings Add to ...

What are we looking for?

U.S. stocks that are riding a momentum wave.

Craig McGee, senior consultant at Morningstar Canada, is helping us out again with a look at his firm’s top-performing strategy this year. It consists of looking for firms with strongly rising share prices as well as soaring earnings.

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How we did it

Mr. McGee searched for U.S. firms that combine strong price performance over the past three, six and nine months with high revisions to analysts’ consensus earnings estimates over the past one, two and three months.

To be included, companies must show positive growth in earnings and have a flat or positive surprise in their most recent earnings release.

The full Morningstar CPMS Price Momentum strategy uses a portfolio of 40 companies; today, we’ll show the top 20 qualifiers.

More about Morningstar

Morningstar Inc. provides independent investment research in North America, Europe, Australia and Asia. Its investment research tool, Morningstar CPMS, provides quantitative North American equity research and portfolio analysis to institutional clients and financial advisers. CPMS data cover more than 95 per cent of the investable North American stock market.

What did we find?

The CPMS Price Momentum strategy has produced a dazzling 30.9 per cent return so far this year, outpacing all the other CPMS models. By comparison, the S&P 500 Total Return index has generated a return of only 14.9 per cent this year.

The strategy’s long-term record is nothing to sneer at either. Since inception on Dec. 31, 1993, its annualized return has been 16.1 per cent versus 8.1 per cent for the index.

Remember, though, that there’s no guarantee that this stellar performance will continue.

Do your own research before buying any of the stocks listed here.

Follow on Twitter: @IanMcGugan

 

Morningstar CPMS Price Momentum Strategy (Top 20)

Rank Company Symbol Market Cap ($ Mil)
1 CVR Energy Inc. CVI-N 4,078
2 Flagstar Bancorp Inc. FBC-N 1,045
3 Louisiana-Pacific Corp. LPX-N 2,415
4 Stewart Info Svcs Corp. STC-N 520
5 Brown Shoe Co. Inc. BWS-N 787
6 OfficeMax Inc. OMX-N 836
7 Computer Sciences Corp. CSC-N 6,150
8 Clearwire Corp. CLWR-Q 4,918
9 eHealth, Inc. EHTH-Q 522
10 Cooper Tire & Rubber Co. CTB-N 1,501

Morningstar Canada

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  • CVI-N
  • FBC-N
  • LPX-N
  • STC-N
  • BWS-N
  • OMX-N
  • CSC-N
  • XLWR-Q
  • EhTH-Q
  • CTB-N
  • SSI-N
  • MTZ-N
  • CLGX-N
  • SSYS-Q
  • EXP-N
  • GMCR-Q
  • FAF-N
  • PHM-N
  • REGN-Q
  • GGC-N
Live Discussion of CVI on StockTwits
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Live Discussion of STC on StockTwits
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Live Discussion of BWS on StockTwits
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Live Discussion of OMX on StockTwits
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Live Discussion of CSC on StockTwits
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Live Discussion of XLWR on StockTwits
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Live Discussion of EhTH on StockTwits
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Live Discussion of CTB on StockTwits
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Live Discussion of SSI on StockTwits
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Live Discussion of MTZ on StockTwits
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Live Discussion of CLGX on StockTwits
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Live Discussion of SSYS on StockTwits
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Live Discussion of EXP on StockTwits
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Live Discussion of PHM on StockTwits
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Live Discussion of REGN on StockTwits
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Live Discussion of GGC on StockTwits
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