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(Thinkstock Images/Getty Images/Comstock Images)
(Thinkstock Images/Getty Images/Comstock Images)

Number Cruncher

Twenty-four U.S. large caps with big potential Add to ...

What are we looking for?

Large U.S. stocks that have long-term potential for gains, based on four technical indicators.

The screen

We limited our pool to the stocks in the S&P 100 – essentially the largest 100 public companies in the United States.

To find the most promising, we looked at each stock’s moving average. This is the average closing price for the stock over the past 10 weeks (10wMA) or past 40 weeks (40wMA). Charting the moving average week by week gives us a sense whether investors are growing more (or less) enthusiastic about the company’s outlook and whether they are more (or less) likely to purchase the stock.Technical analysts pay considerable attention to moving averages, because the beginning of an uptrend in a stock is generally signaled when the short-term moving average (10wMA) crosses above a rising longer-term average (40wMA).

More Related to this Story

To start our selection process, we picked only those stocks trading above their 40wMAs. We then examined each stock and selected only those that are also above their 10wMAs and have positive stochastic and on balance volume (OBV) indicators.

The stochastic indicator measures investors’ activity. It looks at today’s share price range (defined as today’s high minus today’s low) and compares it with the average range of the previous five-days. A positive signal is generated whenever today’s range is higher than the previous five-day’s average. It suggests that buyers are willing to pay more for the stock than they did during the last five days.

On balance volume (OBV) is used to detect momentum. Volume should keep pace with price; each $1 rise in price should be accompanied by a commensurate increase in volume. A rise in price on lesser volume would suggest a negative signal for the stock.

What did we find?

The accompanying table shows the stocks that are trading above both their 40wMAs and 10wMAs and have positive stochastic and OBV indicators.

Ron Meisels is the Director of Research and Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. (www.phases-cycles.com). They may hold shares in companies profiled.

 

Large U.S. stocks with long-term potential for gains

Company Ticker Recent
Price
$US
40wMA 10wMA Stochastic OBV
3M Co MMM-N 124.42 Rising Rising Positive Positive
Apache APA-N 90.45 Rising Rising Positive Positive
Boeing BA-N 131.19 Rising Rising Positive Positive
Capital One Financial COF-N 70.38 Rising Rising Positive Positive
Citigroup C-N 50.06 Rising Rising Positive Positive
ConocoPhillips COP-N 74.06 Rising Rising Positive Positive
Devon Energy DVN-N 64.54 Rising Rising Positive Positive
DuPont, E.I. de Nemours DD-N 61.9 Rising Rising Positive Positive
Emerson Electric EMR-N 67.22 Rising Rising Positive Positive
Ford Motor F-N 17.6 Rising Rising Positive Positive
General Dynamics GD-N 88.26 Rising Rising Positive Positive
General Electric GE-N 25.88 Rising Rising Positive Positive
Halliburton HAL-N 51.69 Rising Rising Positive Positive
Lockheed Martin LMT-N 134 Rising Rising Positive Positive
Lowe's Cos LOW-N 50.59 Rising Rising Positive Positive
Medtronic MDT-N 57.36 Rising Rising Positive Positive
Microsoft MSFT-Q 35.73 Rising Rising Positive Positive
Morgan Stanley MS-N 29.23 Rising Rising Positive Positive
NIKE Inc B NKE-N 75.7 Rising Rising Positive Positive
Occidental Petroleum OXY-N 96.88 Rising Rising Positive Positive
Starbucks SBUX-Q 79.96 Rising Rising Positive Positive
United Technologies UTX-N 107.52 Rising Rising Positive Positive
Walgreen WAG-N 59.19 Rising Rising Positive Positive
Wells Fargo WFC-N 42.86 Rising Rising Positive Positive

Source: Phases & Cycles Inc.

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  • MMM-N
  • BA-N
  • C-N
  • DD-N
  • F-N
  • GE-N
  • HAL-N
  • MSFT-Q
  • MS-N
  • OXY-N
  • SBUX-Q
  • WFC-N
  • WAG-N
  • GD-N
  • LMT-N
Live Discussion of MMM on StockTwits
More Discussion on MMM-N
Live Discussion of BA on StockTwits
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Live Discussion of C on StockTwits
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Live Discussion of DD on StockTwits
More Discussion on DD-N
Live Discussion of F on StockTwits
More Discussion on F-N
Live Discussion of GE on StockTwits
More Discussion on GE-N
Live Discussion of HAL on StockTwits
More Discussion on HAL-N
Live Discussion of MSFT on StockTwits
More Discussion on MSFT-Q
Live Discussion of MS on StockTwits
More Discussion on MS-N
Live Discussion of OXY on StockTwits
More Discussion on OXY-N
Live Discussion of SBUX on StockTwits
More Discussion on SBUX-Q
Live Discussion of WFC on StockTwits
More Discussion on WFC-N
Live Discussion of WAG on StockTwits
More Discussion on WAG-N
Live Discussion of GD on StockTwits
More Discussion on GD-N
Live Discussion of LMT on StockTwits
More Discussion on LMT-N

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