T = Trends for a Stock’s Movement

United Continental Holdings is a holding company and its principal, wholly owned subsidiaries are United Air Lines and Continental Airlines. The company transports people and cargo through its mainline and regional operations. It also has contractual relationships with various regional carriers to provide regional jet and turboprop service branded as United Express. Companies and consumers worldwide look to travel at increasing rates since air travel is quicker and is becoming less expensive. As costs decrease and flights become more efficient, United Continental stands to see soaring profits as consumers and businesses look to travel more than ever.

T = Technicals on the Stock Chart are Strong

United Continental Holdings stock has recently broken above a consolidation range established over the last two years. The stock looks set to test prices not seen since before the 2008 Financial Crisis. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, United Continental Holdings is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of United Continental Holdings options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call and put buyers or sellers, neutral over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Decreasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on United Continental Holdings’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for United Continental Holdings look like and more importantly, how did the markets like these numbers?

United Continental Holdings has seen mostly decreasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have expected a little more from United Continental Holdings’ recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has United Continental Holdings stock done relative to its peers, Delta Air Lines (NYSE:DAL), Southwest Airlines (NYSE:LUV), US Airways Group (NYSE:LCC), and sector?

United Continental Holdings has been a relative performance leader, year-to-date.

Conclusion

United Continental Holdings provides access to quick and efficient air travel to consumers and companies across the nation. The stock has recently broken out and looks keen to test prices not seen since before the Financial Crisis. Over the last four quarters, investors in the company have expected a little more as earnings have decreased a bit while revenue figures have been mixed. Relative to its peers and sector, United Continental has been a year-to-date performance leader. WAIT AND SEE what United Continental does in coming quarters.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

Boeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corporation. As a leading provider of aerospace products and services to large corporations, including the United States Government, look for Boeing to continue to advance and develop this space and fuel aerial progress.

T = Technicals on the Stock Chart are Strong

Boeing stock has seen a very powerful surge higher over the last several years. The stock is set to test previous all-time high prices so it may need time to battle out these prices. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Boeing is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Boeing options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Boeing’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Boeing look like and more importantly, how did the markets like these numbers?

Boeing has seen improving earnings and revenue figures over the last four quarters. From these numbers, the markets have generally been happy about Boeing’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Boeing stock done relative to its peers, Lockheed Martin (NYSE:LMT), Spirit Aerosystems (NYSE:SPR), Northrop Grumman (NYSE:NOC), and sector?

Boeing has been a relative performance leader, year-to-date.

Conclusion

Boeing is an aerospace company that provides companies and Governments worldwide with constantly improving aerial technology. The stock has seen a strong move in recent years and is now getting ready to test previous all-time high prices. Over the last four quarters, earnings and revenue figures have shown signs of progress which have kept investors in the company generally happy. Relative to its peers and sector, Boeing has been a year-to-date performance leader. Look for Boeing to continue to OUTPERFORM.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

Smithfield Foods produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. It operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments. Fresh and packaged meats are essential food choices for many consumers around the world. As populations grow and consumers look to add these options to their food choices, companies like Smithfield Foods stand to see significant profits. So long as demand for meat products exists and populations expand, Smithfield Foods will continue to be a strong company.

T = Technicals on the Stock Chart are Strong

Smithfield Foods stock has seen a consistent uptrend over the last several years. The stock is making strong moves this year and looks set to battle it out near all-time high prices. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Smithfield Foods is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Smithfield Foods options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Smithfield Foods’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Smithfield Foods look like and more importantly, how did the markets like these numbers?

Smithfield Foods has seen mostly decreasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have been optimistic about Smithfield Foods’ recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Smithfield Foods stock done relative to its peers, Tyson Foods (NYSE:TSN), Hormel Foods (NYSE:HRL), Seaboard (NYSE:SEB), and sector?

Smithfield Foods has been a relative performance leader, year-to-date.

Conclusion

Smithfield Foods is a provider of fresh and packaged meat products that are seen as a staple food item for many consumers and growing populations worldwide. The stock has seen an impressive run over the last few years and is now set to battle it out near all-time high prices. Over the last four quarters, earnings have mostly decreased while revenue figures have been mixed, regardless, investors in the company have been optimistic. Relative to its peers and sector, Smithfield Foods has been a year-to-date performance leader. Look for Smithfield Foods to OUTPERFORM.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

Elan is a biotechnology company that is focused on discovering and developing advanced therapies in neurodegenerative and autoimmune diseases. Such diseases include Alzheimer’s Disease, Parkinson’s Disease, Celiac disease, Crohn’s Disease, and Narcolepsy. These diseases really take a toll on the lives that they affect so any positive progress Elan can make may be very rewarding. As many of these diseases come to the attention of people around the world, biotechnology companies such as Elan will see rising demand.

T = Technicals on the Stock Chart are Strong

Elan stock has seen its fair share of volatility over the last several years. The stock is now trading in a ranging extending back to last year and looks comfortable at these prices. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Elan is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Elan options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call buyers or sellers and higih demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Elan’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Elan look like and more importantly, how did the markets like these numbers?

Elan has seen decreasing earnings and rising revenue figures over the last four quarters. From these numbers, the markets have been disappointed with Elan’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Elan stock done relative to its peers, Pfizer (NYSE:PFE), Sanofi (NYSE:SNY), Biogen Idec (NASDAQ:BIIB), and sector?

Elan has been a relative performance leader, year-to-date.

Conclusion

Elan is a biotechnology company that is looking for ways to improve and better the lives of people with neurodegenerative and autoimmune diseases. The stock has struggled over the last couple of years and looks to be comfortable at these prices. Over the last four quarters, investors in the company have been disappointed as earnings have decreased while revenue figures have increased. Relative to its peers and sector, Elan has been a year-to-date performance leader. WAIT AND SEE what Elan does in coming quarters.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

This rapid growth is unusual for GE, which is often thought of as stock that exhibits stable growth and attractive dividends. It is safe to say that shareholders are not complaining about GE’s recent success. With that being said, let’s use our CHEAT SHEET framework to decide whether GE can keep its positive momentum and if it is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

Catalysts For Growth

General Electric is a multinational conglomerate operating in four different industries: energy, technology, capital finance, and consumer and industrial products. GE is such a large and diversified company that it can almost be viewed as a proxy for the overall economy; thus, when the economy performs well, so does GE, and vice versa.

GE has benefited recently from higher consumer and industrial expenditures as the economy continues to rebound and the Fed continues its stimulus program. GE, the largest manufacturer of jet engines, saw a sharp increase in engine orders from both Boeing (NYSE:BA) and Airbus. GE should expect those orders to continue as both airplane manufacturers race for dominance in the widebody jet market. Moreover, GE Aviation has recently begun building a new factory in Asheville, North Carolina. The factory will manufacture ceramic matrix composites, a new technology that will improve fuel efficiency in its new LEAP jet engines and reduce greenhouse gas emissions. GE anticipates delivery of these LEAP engines to Boeing and Airbus in 2016.

GE’s capital financing arm currently generates 40 percent of the company’s profits. Despite how lucrative the division is, management at GE is focusing on downsizing GE Capital. The decision to shrink such a profitable division may leave investors scratching their heads, but GE Capital created many of the company’s financial woes during the 2008 financial crisis and still leaves GE exposed to risks associated with the financial services sector.

Let’s use some fundamental analysis to help determine whether GE is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

Fundamentals Are Strong 

GE confirmed the strength of its financials after announcing its first quarter earnings on April 19. It reported first quarter operating earnings of $4.1 billion, up 14 percent from last year’s earnings. The company increased its cash pile by $12.2 billion to $136.1 billion while simultaneously decreasing its borrowings from $414.1 billion to $397.3 billion. Moreover, GE has recently undertaken a company-wide cost-cutting initiative to the tune of $1 billion, which will boost operating margins.

Investors should be careful when utilizing relative valuation methods to analyze GE because the company has four vastly different business operations. Two often-used comparables are Citigroup (NYSE:C), a competitor for GE’s capital financing division, and Siemens (NYSE:SI), a competitor for GE’s electronics division.

GE currently trades at a more attractive PE ratio than Citigroup (17.59 vs. 18.12). This means that GE’s earnings to date are relatively cheaper than Citigroup’s, implying that GE is a better value. Moreover, GE has a higher dividend yield than Citigroup (3.2 percent vs. 0.1 percent). Citigroup has a growth rate that is twice that of GE’s, but if you take into account the extra risk that a pure financial services firm like Citigroup is exposed to, GE is clearly the more attractive of the two.

Siemens has a lower P/E ratio than GE suggesting that it is relatively cheaper (17.59 vs. 16.24); however, its dividend yield is lower than GE’s. Additionally, analysts project that Siemens will have a negative growth of -6.5 percent over the next year. A negative growth rate is never a good thing for shareholders.

Technicals Are Strong

At Monday’s close of $23.77, GE is currently trading above both its 50-day moving average of $23.16 and its 200-day moving average of $22.53. GE has been on a tear since its first quarter earnings announcement and is experiencing a strong uptrend. GE’s recent break through its 50-day moving average suggests positive momentum and investor sentiment moving forward. GE is quickly approaching its 52-week high of $24.13.

Conclusion

Investors who have a bullish outlook on the economy should consider adding GE to their portfolio. The company is so large and diverse that investors can almost look at it as a fund indexed to the S&P 500. A history of strong management and attractive dividend yields relative to its competitors make this a good long-term stock to have in your portfolio.

Those bearish about the near future of the economy would do best to avoid GE. If the economy becomes stagnant, GE is likely to take a hit. A large part of its business operation is consumer and industrial products. If we fall into another recession, these divisions will take large hits. Worse off will be GE Capital, a large source of GE’s profits. Another recession would cripple GE’s capital financing division — one of the reasons that GE managers are working to downsize this division.

For now, investors would do best wait and see if and when Ben Bernanke and the Fed decide to unwind the stimulus program. GE announces its second-quarter earnings on July 19. Investors should see how GE performs in the current quarter, specifically with respect to the success of their cost-cutting initiative. If this cost-cutting program is successful, it will provide a nice buffer against losses in revenue should the economy suffer another decline in the near future. For now, General Electric is a WAIT AND SEE.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

Netflix is an Internet subscription service streaming television shows and movies. The company’s subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers, and mobile devices, and in the United States, subscribers can also receive DVDs delivered to their homes. A recent deal with Dreamworks (NASDAQ:DWA) is fueling demand for Netflix stock as the streaming service is ramping-up its original programming menu with popular choices from the maker of Shrek, Madagascar, and Kung Fu Panda. Netflix has revolutionized the television and movie industry with its services. Consumers in the United States and around the world look to access their favorite shows and movies via Internet mediums at increasing rates. Look for Netflix’s increasing popularity to lead it to rising profits.

T = Technicals on the Stock Chart are Strong

Netflix stock has seen an explosive run in its stock after seeing a mediocre last two years. The stock continues to plow higher and looks set to test previous all-time highs in the near future. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Netflix is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Netflix options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Netflix’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Netflix look like and more importantly, how did the markets like these numbers?

Netflix has seen mixed earnings and increasing revenue figures over the last four quarters. From these numbers, the markets are getting excited about Netflix’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Netflix stock done relative to its peers, Amazon (NASDAQ:AMZN), Comcast (NASDAQ:CMCSA), Coinstar (NASDAQ:CSTR), and sector?

Netflix has been a relative performance leader, year-to-date.

Conclusion

Netflix offer entertainment services highly valued by a growing user base. A recent deal with Dreamworks has investors flocking to the stock. The stock has displayed an explosive move this year that does not show any signs of slowing. Over the last four quarters, earnings have been mixed while revenue figures have been rising which have really made investors excited about the company. Relative to its peers and sector, Netflix has blown them out of the water and has led in year-to-date performance. Look for Netflix to continue to OUTPERFORM.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

AT&T is a provider of telecommunications services in the United States and worldwide. Services offered include wireless communications, local exchange services, and long-distance services. AT&T operates in four segments: Wireless, Wireline, Advertising Solutions, and Other. The communications products offered through AT&T’s segments reach audiences using just about every widely adopted medium: Internet, voice, television, and mobile. As consumers continue to adopt this technology, giant providers like AT&T stand to see rising profits. Look for AT&T to continue its dominance as consumers and companies aim to communicate quickly, easily, and efficiently.

T = Technicals on the Stock Chart are Mixed

After an impressive run over the last several years, AT&T stock has just slightly managed to squeeze out a positive performance for the year. The stock looks to currently be consolidating so it make take some time before it makes a decisive move in either direction. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, AT&T is trading near its key averages which signal neutral price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of AT&T options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on AT&T’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for AT&T look like and more importantly, how did the markets like these numbers?

AT&T has seen mostly increasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have not been too happy about AT&T’s recent earnings announcements.

P = Poor Relative Performance Versus Peers and Sector

How has AT&T stock done relative to its peers, Verizon (NYSE:VZ), T-Mobile (NYSE:TMUS), Sprint Nextel (NYSE:S), and sector?

AT&T has been a poor relative performer, year-to-date.

Conclusion

AT&T provides valuable and essential communications products and services to a wide range of consumers around the world. The stock has struggled this year after seeing a strong run in recent years. Over the last four quarters, the company has seen increasing earnings and mixed revenue figures which have not made investors too happy. Relative to its peers and sector, AT&T has been a poor performer, year-to-date. WAIT AND SEE what AT&T does in coming quarters.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

Catalysts

There is no time like the present for American oil and gas companies. As of May 31, the United States is producing more oil than it imports—an occurrence that it has not experienced in sixteen years. The big guns in the oil and gas industry stand poised to gain from America’s burgeoning energy independence.

Exxon Mobil is the largest publicly traded oil and gas company. It is an international powerhouse for oil production and distribution, manufacturing 3 percent of the world’s oil. Quarterly revenues have been mostly positive over the past three years. Exxon has benefitted from rising oil prices and new technological developments in oil production: fracking and horizontal drilling. Two key decisions coming from Washington in the coming months could provide a surge in company profits if they go Exxon’s way. Shareholders and potential investors should keep a close eye on developments concerning the Keystone XL pipeline and the decision as to whether US oil companies will be able to export natural gas. If both of these decisions play out in Exxon’s favor the company should see unprecedented growth in profits.

The sharp increase in domestic oil production benefits the United States’ balance of trade, but we have yet to see if the increased supply of domestic oil will put downward pressure on prices. A fall in oil prices will clearly hurt Exxon’s profits. Additionally, because of the lingering weak macroeconomic conditions from the financial crisis, worldwide demand for oil has been subdued.

Let’s use some fundamental analysis to help determine whether Exxon is an OUTPERFORM, WAIT AND SEE or STAY AWAY.

Fundamentals

Despite a slight decline in operating cash flow growth over the past several quarters, Exxon’s balance sheet is strong. The company is sitting on around $10 billion in cash — enough to cover its yearly dividend payout four times over. The company generates a lot of cash without much debt; its debt-to-equity ratio is 0.08, which is low relative to its competitors. Moreover, Exxon’s debt is rated AAA suggesting that the possibility of default is close to zero.

Last year, Exxon Mobil’s return on capital was 25 percent, the best in the industry. This metric is especially important to consider when analyzing oil and gas companies because the industry is very capital-intensive. Exxon’s dividend yield is 2.88 percent, low by some standards. However, the company stresses dividend growth, so investors can expect to see larger dividends in the future.

Insider trading activity can provide helpful information to investors about the current valuation of a stock price and whether the stock is poised for growth. Generally, insiders buy stock when they think the share price is undervalued or they see exciting growth prospects in the company. With this being said, Exxon’s Vice President Patrick Mulva recently bought $979,000 worth of Exxon stock, so we can infer that the vice president believes either that the share price will rise or the stock is undervalued.

Technicals Are Mixed

At Friday’s close of $90.58, Exxon is currently trading slightly below its 50-day moving average of $90.73 but above its 200-day moving average of $89.35. Generally, when a stock trades above its 200-day moving average, the stock is experiencing an uptrend. Investors should keep an eye on the share price in relation to the 50-day moving average. If the stock price breaks through the 50-day moving average, Exxon may be beginning an uptrend.

Conclusion

While Exxon has been in the news recently for disasters that you would think would lower the stock price (the state of Arkansas sued Exxon today for a March pipeline spill), these events are unavoidable occurrences in the industry and do not do much to affect the company’s stability in the long run. What will affect Exxon’s future profitability is its ability to withstand potentially sharp declines in the price of oil. Exxon is based in the United States but is a huge multinational corporation, supplying 3 percent of the world’s oil. Even if oil prices fall in the States or demand falters in emerging markets, Exxon is so large and diversified that these events are unlikely to affect their long-term profitability. With its strong free cash flow growth, minimal debt, a history of selecting profitable oil exploration projects, and an attractive dividend growth rate for investors, Exxon looks poised to cash in on the energy renaissance emerging in the United States. If you are looking to add a low risk oil giant to your portfolio, Exxon Mobil is an OUTPERFORM.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

Boeing is an aerospace company. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corporation. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. As a leading provider of aerospace products and services to large corporations, including the United States Government, look for Boeing to continue to advance and develop this space and fuel aerial progress.

T = Technicals on the Stock Chart are Strong

Boeing stock has made an impressive move after breaking-out from a multi-year consolidation. The stock is now soaring higher and is looking to test previous all-time high price. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Boeing is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Boeing options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Improving Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Boeing’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Boeing look like and more importantly, how did the markets like these numbers?

Boeing has seen improving earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Boeing’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Boeing stock done relative to its peers, Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), Spirit Aerosystems (NYSE:SPR), and sector?

Boeing has been a relative performance leader, year-to-date.

Conclusion

Boeing enables companies, governments, and consumers around the world to explore the skies through its valuable technology. The stock has been on a powerful surge higher and looks ready to rest all-time high prices. Over the last four quarters, earnings and revenue figures have improved which have pleased investors in the company. Relative to its peers and sector, Boeing has been a year-to-date performance leader. Look for Boeing to continue to OUTPERFORM.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

T = Trends for a Stock’s Movement

Amazon serves consumers through its retail websites and focus on selection, price, and convenience. The company also manufactures and sells Kindle devices. It offers programs that enable sellers to sell their products on its websites, their own branded websites, fulfill orders through them, and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Online commerce has been on the rise because of the convenience, efficiency, and relatively low prices offered. Amazon is a leader in the Internet commerce space so look for them to continue to see rising profits, as consumers and companies opt for this method of shopping and selling over the standard method.

T = Technicals on the Stock Chart are Strong

Amazon stock has struggled a bit this year but seems to have finally broken above this year’s pullback. The stock is now consolidating right above the breakout point so it may need a little time before continuing higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Amazon is trading above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Amazon options may help determine if investors are bullish, neutral, or bearish.

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

As of today, there is an average demand from call and put buyers or sellers, neutral over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Amazon’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Amazon look like and more importantly, how did the markets like these numbers?

Amazon has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been optimistic about Amazon’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Amazon stock done relative to its peers, eBay (NASDAQ:EBAY), Apple (NASDAQ:AAPL), Barnes & Noble (NYSE:BKS), and sector?

Amazon has been a relative performance leader, year-to-date.

Conclusion

Amazon provides consumers and businesses with an excellent shopping and selling experience that is steadily growing in popularity. The stock has struggled this year and is now consolidating above a recent breakout price level. Over the last four quarters, earnings have decreased while revenues have been on the rise, but overall, investors have been optimistic about the company’s earnings reports. Relative to its peers and sector, Amazon has been a year-to-date performance leader. WAIT AND SEE what Amazon does this coming quarter.

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