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You can feel the excitement on Wall Street as the Dow approaches 20,000. It’s been such a tease for us over the last several trading sessions but now we are inching closer to the historic milestone. There has to be a way to capitalize on this bullish move in the large caps. I’m a big fan of buying higher and selling higher That’s what momentum investors do. Here I’m putting together a game plan to find large cap stocks that are breaking out during this move.
I used the screener on Zacks.com to come up with large cap stocks that are at or near their 52-week highs right now. But I didn’t want to end there as I know if I apply the time-tested capabilities of the Zacks Rank to my screen I’ll have much higher odds of success.
The screen I came up with gave me Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks with market caps greater than $10 billion that are within 5% of their 52-week highs. I decided to throw in another wrinkle to find stocks that exhibit the most growth. I added the condition that this year’s estimated growth had to be over 10% year-over-year. This gives me some solid large cap growth companies that are breaking out to new highs during a very strong move in the market.
Here are five large cap stocks breaking out to new highs:
Abb Ltd
Abb is engaged in providing power and automation technologies for its utility and industrial customers. The company provides a range of products, systems, solutions and services that are designed to improve power grid reliability, increase industrial productivity and enhance energy efficiency.
The company is a Zacks Rank #1 (Strong Buy) in an industry that is ranked in the Bottom 29% of our Zacks Industry Rank. Abb shares had a huge gap down on earnings in October, taking the stock from $22 to $20.50. Things turned around in early December with Abb pushing above the 20-day moving average and kicking off a new rally. Today the stock broke on through to a new 52-week high. The commodity channel index is overbought at 117. With the Dow breaking out I may chase this one higher.
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
AMAT shares have been on a tear since February 2016. From there it’s consistently pushed higher, finding support at the 50-day moving average several times throughout the year. A Commodity Channel Index “Buy” signal occurred the first week of January, propelling shares to new highs. The stock is threatening to break much higher in the short-term. Dow 20,000 could be the catalyst to get this over $35.
Broadcom Limited designs, develops, and supplies a range of complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
The breakout from resistance at $184 has unfolded over the last several days. Shares are quickly approaching the $200 mark. I don’t know if I want to chase this one right here. I think a safer way to play is to wait for a pullback to the mid-$180s or play a break above $200. With shares just below resistance I think it’s best to wait it out for a few days. The CCI over 180 is very overbought.
LyondellBasell Industries N.V. operates as a manufacturer of chemicals and polymers, refiner of crude oil, producer of gasoline blending components, and developer and licensor of technologies for production of polymers. The company operates in five segments: Olefins and Polyolefins - Americas; Olefins and Polyolefins - Europe, Asia, International; Intermediates and Derivatives; Refining; and Technology.
Today marked the day the stock broke out, following through on the Commodity Channel Index “Buy” signal the stock gave in late December 2016. Today’s move destroyed the previous 52-week high and broke the double-top. Now Iit’s flirting with the top end of the Fall 2015 consolidation range. A real bullish move could take it to a retest of the $106 level not seen since May 2015.
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates railroads in the United States. It offers freight transportation services for agricultural products, food and beverage products, automotive products, chemicals, crude oil, and soda ash. The company also provides transportation services for coal and petroleum coke, industrial products minerals, consumer goods, metals, lumber, paper, and other miscellaneous products. Union Pacific Corporation’s rail network includes 32,084 route miles linking the Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways.
There has been a steady ramp up in share prices from January 2016 lows near $70. There have been a few dips along the way, notably strong selling from mid-October to early November. Surprisingly the dip and recovery played out over a very short period and the long-term trend resumed. The recent push higher bounced from the 50-day moving average and seems very sustainable in the intermediate to long-term. This may be the slowest and steadiest way to play a breakout of 20,000 for the Dow.
Bottom Line
Don’t fear Dow 20,000, embrace uncharted territory with these large cap growth stocks that are all breaking higher. As the market pushes higher to more stretched out valuations, it can be a scary ride. Rather than being afraid of what may be the next shoe to drop, you can play breakouts on these large caps while cheering the Dow on.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
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Dow 20,000 Breakout Stocks to Buy
You can feel the excitement on Wall Street as the Dow approaches 20,000. It’s been such a tease for us over the last several trading sessions but now we are inching closer to the historic milestone. There has to be a way to capitalize on this bullish move in the large caps. I’m a big fan of buying higher and selling higher That’s what momentum investors do. Here I’m putting together a game plan to find large cap stocks that are breaking out during this move.
I used the screener on Zacks.com to come up with large cap stocks that are at or near their 52-week highs right now. But I didn’t want to end there as I know if I apply the time-tested capabilities of the Zacks Rank to my screen I’ll have much higher odds of success.
The screen I came up with gave me Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks with market caps greater than $10 billion that are within 5% of their 52-week highs. I decided to throw in another wrinkle to find stocks that exhibit the most growth. I added the condition that this year’s estimated growth had to be over 10% year-over-year. This gives me some solid large cap growth companies that are breaking out to new highs during a very strong move in the market.
Here are five large cap stocks breaking out to new highs:
Abb Ltd
Abb is engaged in providing power and automation technologies for its utility and industrial customers. The company provides a range of products, systems, solutions and services that are designed to improve power grid reliability, increase industrial productivity and enhance energy efficiency.
The company is a Zacks Rank #1 (Strong Buy) in an industry that is ranked in the Bottom 29% of our Zacks Industry Rank. Abb shares had a huge gap down on earnings in October, taking the stock from $22 to $20.50. Things turned around in early December with Abb pushing above the 20-day moving average and kicking off a new rally. Today the stock broke on through to a new 52-week high. The commodity channel index is overbought at 117. With the Dow breaking out I may chase this one higher.
Applied Materials (AMAT - Free Report)
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
AMAT shares have been on a tear since February 2016. From there it’s consistently pushed higher, finding support at the 50-day moving average several times throughout the year. A Commodity Channel Index “Buy” signal occurred the first week of January, propelling shares to new highs. The stock is threatening to break much higher in the short-term. Dow 20,000 could be the catalyst to get this over $35.
Broadcom (AVGO - Free Report)
Broadcom Limited designs, develops, and supplies a range of complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
The breakout from resistance at $184 has unfolded over the last several days. Shares are quickly approaching the $200 mark. I don’t know if I want to chase this one right here. I think a safer way to play is to wait for a pullback to the mid-$180s or play a break above $200. With shares just below resistance I think it’s best to wait it out for a few days. The CCI over 180 is very overbought.
LyondellBassel Industries (LYB - Free Report)
LyondellBasell Industries N.V. operates as a manufacturer of chemicals and polymers, refiner of crude oil, producer of gasoline blending components, and developer and licensor of technologies for production of polymers. The company operates in five segments: Olefins and Polyolefins - Americas; Olefins and Polyolefins - Europe, Asia, International; Intermediates and Derivatives; Refining; and Technology.
Today marked the day the stock broke out, following through on the Commodity Channel Index “Buy” signal the stock gave in late December 2016. Today’s move destroyed the previous 52-week high and broke the double-top. Now Iit’s flirting with the top end of the Fall 2015 consolidation range. A real bullish move could take it to a retest of the $106 level not seen since May 2015.
Union Pacific (UNP - Free Report)
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates railroads in the United States. It offers freight transportation services for agricultural products, food and beverage products, automotive products, chemicals, crude oil, and soda ash. The company also provides transportation services for coal and petroleum coke, industrial products minerals, consumer goods, metals, lumber, paper, and other miscellaneous products. Union Pacific Corporation’s rail network includes 32,084 route miles linking the Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways.
There has been a steady ramp up in share prices from January 2016 lows near $70. There have been a few dips along the way, notably strong selling from mid-October to early November. Surprisingly the dip and recovery played out over a very short period and the long-term trend resumed. The recent push higher bounced from the 50-day moving average and seems very sustainable in the intermediate to long-term. This may be the slowest and steadiest way to play a breakout of 20,000 for the Dow.
Bottom Line
Don’t fear Dow 20,000, embrace uncharted territory with these large cap growth stocks that are all breaking higher. As the market pushes higher to more stretched out valuations, it can be a scary ride. Rather than being afraid of what may be the next shoe to drop, you can play breakouts on these large caps while cheering the Dow on.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>