Market Got You Down?: Here Are Six Hot Stocks

Harry Domash |

Pandora.jpg

Despite the dismal market, here are six stocks that have bucked the trend. As of Wednesday, September 30, all had returned at least 16% so far this year (year-to-date), returned at least 22% over the past three months (quarter), at least 13% over the last month, and continued their winning ways over the past week.

As you’ll see, these are not flukes. There were fundamental reasons to account for their strong showings. That said, this market takes no prisoners. If you buy any or all of them, you must be prepared to sell on any signs of weakness.

Here are the six hot stocks:

  • Coca-Cola Bottling Company Consolidated (COKE) : Produces, markets and distributes non-alcoholic beverages, mostly Coca-Cola Company products, but it also produces and sells Dr. Pepper, Snapple and Monster Beverage products. Already strong revenue and earnings growth combined with the acquisition of additional bottling facilities from Coca-Cola spurred COKE’s share price gains. Year-to-date return (YTD) 120%, last quarter (last Q) 28%.  

  • Straight Path Communications (STRP) : This small-cap ($500 million market-cap) holds, leases and markets millimeter band spectrum licenses to mobile telecom network and internet service providers. Millimeter band spectrum isn’t widely used now, but will be needed when cell phones move up to the next big thing, “5G.” So, STRP’s story is all about the future. Not much in the way of revenues and earnings yet. YTD return 113%, last Q 23%.

  • Central Garden & Pet Company (CENTA) : Makes and markets lawn and garden and pet supplies to specialty and mass market retailers. Long stagnant is terms of sales and earnings, new management is taking steps to reignite sales and earnings growth. YTD return 69%, last Q 41%.

  • National Beverage (FIZZ) : Makes and markets flavored beverages targeting active and health conscious. Historically not a fast grower, but recent new product announcements have excited the market. YTD return 32%, last Q 37%.

  • Pandora Media (P) : Already a major supplier of internet music services, but still growing. Recent court rulings that could result in lower royalty charges, and hence, higher profit margins, triggered its recent share price advance. YTD return 20%, last Q 37%. 

  • Inteliquent (IQNT) : Provides voice telecommunications services on a wholesale basis to carriers and other communications services providers. IQNT hasn’t recorded much growth in recent years, but a new contract that makes IQNT the sole provider of IP (internet) communications for T-Mobile has reignited growth expectations. YTD return 16%, last Q 22%. 

I found these stocks based on their recent share price action (momentum). But momentum strategies are inherently risky. Further, I may have missed lurking problems. So, do your own research. The more you know about your stocks, the better your results.

If you do buy any of these momentum plays, sell on any bad news, sell on any negative earnings surprise (earnings below analyst forecasts), or sell when the share price drops 10% below its recent high. 

For tips and information on the best utilities and dividend stocks from Harry Domash, please check out Dividend Detective.  

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
STRP Straight Path Communications Inc. Class B 23.44 0.51 2.22 86,011
P Pandora Media Inc. 13.85 0.07 0.51 9,624,284
FIZZ National Beverage Corp. 52.28 0.67 1.30 187,856
CENTA Central Garden & Pet Company Class A Common Stock 31.06 0.32 1.04 244,187
COKE Coca-Cola Bottling Co. Consolidated 162.03 2.31 1.45 51,247
IQNT Inteliquent Inc. 23.17 0.01 0.04 320,677

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