Invest in financial services during a recovery
I added Broadridge Financial Solutions (BR) to the Barchart Van Meerten New High portfolio. They are a leading global provider of technology-based outsourcing solutions to the financial services industry. Their integrated systems and services include investor communication, securities processing, and clearing and outsourcing solutions. Broadridge offers a broad, integrated suite of innovative global solutions across the investment lifecycle and provides a wide range of cost-effective and scalable solutions to the financial industry. Their systems help reduce the need for clients to make significant capital investments in operations infrastructure, thereby allowing them to increase their focus on core business activities.
Although Wall Street brokerages only have 1 buy recommendation published it is based on an estimate of an increase in sales and in earnings per share of 10.00% annually for the next 5 years.
The stock has recent upward price movement with 18 new highs in the last 20 sessions including 5 of the last 5. Barchart has an overall 96% technical buy signal with the stock trading around 23.18 well above its 50 day moving average of 20.97. The price appreciated 15.54% last month with a 14 day Relative Strength Index of 79.27%.
What drew me to the stock was the very positive general investor sentiment with the CAPS members on Motley Fool betting the stock will beat the market by a vote of 220 to 9 with the All Stars even more positive with a vote of 83 to 0. The Wall Street columnists Fool follows have written 5 positive articles about it.
The stock has:
1 - Positive price movement with Barchart technical indicators looking good
2 - Wall Street brokerages looking for increased sales and earnings
3 - Very positive investor sentiment
4 - Wall Street columnists writing positive articles
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.