Stock Picks: Leaders of Growth in Three Months

RoboForex |


Medifast, Inc. (MED)

Medifast, Inc. was founded in 1980 by William Vitale, a physician. The company specializes in producing and selling healthy food products. Since the company inception, its products have been endorsed by over 20 000 physicians. In 2016, the company introduced its new brand, Optavia, which involves selling products by business coaches, who support their clients, which helps Medifast get tons of positive reviews both regarding the product and the company as such, which boosts sales.

The company falls into Service (Specialty Retail, Other) sector. Its stocks have drawn attention of the investors by the remarkable growth by 81.55% over the last three months.

The stocks originally bounced on Mar 3, 2018, when the adjusted earning report exceeded expectations and showed $0.60 EPS, which was 78% higher than in Q4 2017.

On Mar 15, the board announced dividend payments to shareholders, which are now at $0.48 per share. The dividends will be paid on May 8 to everyone who held Medifast shares in their portfolio as per Mar 30.

There is even more good news, however. The Q1 earnings report also showed that the EPS nearly doubled, amounting to $1.01, while Dan Chard, Medifast Chief Executive Director, announced the company's expanding to Hong Kong and Singapore in 2018.

The company forecasts include the EPS rising from $1.02 to $3.55 in 2018 by boosting the sales from $98.6M to $485M.

All this positive news couldn't but become clearly visible on the chart. The price is now above the 200-day SMA, which signals a steady uptrend. On May 4, there was a gap up on the market opening, and as long as this gap is not broken out, the growth may still continue. The immediate support levels are at $100 and $90 per share.

The investors should be quite wary, though, as such a sharp increase with so much positive news often ends in a large pullback; once that supposed pullback is over, the stock will become even more attractive. The owner having sold 56.27% of shares may signal such a correction, whole the Short Float is very low, just at 3.72%, which signals that the price may start growing right after the pullback.

The investment funds are not so much into getting rid of the shares, also giving a rise signal.

Axon Enterprise, Inc. (AAXN)

Axon Enterprise, Inc. was founded in 1993. The company develops, produces, and sells hi-tech security equipment throughout the world, as well as provides software for this kind of equipment.

The stock falls into the Industrial Goods (Aerospace/Defense Products & Service) category. Over the last three months, the stock price of Axon rose by 72.54%.



Axon Enterprise focuses on supplying its products to the law enforcement bodies. As such, they provide mini cameras, Taser electric pistols and other items for police officers that helps them simplify their work and speed up the evidence collection process, while also freeing them up some time they otherwise would spend on weekly report drafting. All camera records are automatically synced with cloud storage where they are subsequently stored. The pilot project showed the rate of complaints on the police workers dropped by 93%, as those cameras add to policemen's self-discipline, while people they have to deal with have to behave better, too.

Over the last two years, the company sold around 300 000 Taser pistols and 200 000 cameras. Meanwhile, the company management measured the demand for such equipment in the US, which amounted to around $3M, and said they are planning to get 30% of the market share. As outlined above, Axon got a few large contracts for New York and Phoenix police stations.

When it comes to Axon, the current period is not very rich on interesting figures, while the previous periods stats is rather engaging. The first growth impulse appeared after the earnings report which came 28.20% higher than last year, and this of course drew the investors' attention. This is not the most important thing for now, though. What is really important is that Axon eliminated its competitor, Vievu, by acquiring it, while the acquisition amount is still unknown. There is only one competitor left, Digital Ally, but their sales are hardly 4% of the Axon yearly sales, while the market cap is even less than 1%.

Thus, 2018 and beyond may prove to be very favorable to Axon, as long as not serious competition emerges.

Technically, there is an ascending trend forming, with the price being above the 200-day SMA. The support levels are at $40 and $37, and they may well be reached after a pullback that should follow this substantial growth.

Whiting Petroleum Corporation (WLL)

Whiting Petroleum Corporation (WLL) was founded back in 1980. The company is focused on oil&gas exploration, production and sales.

The company stock falls into the Basic Materials (Oil & Gas Drilling& Exploration) category. With crude going up, an oil company that also grows steadily is something which is very logical. Over the last 3 months, the investor profit rose by 65.69%.

The Q1 earnings report was also positive, as it beat expectations. Company net profit reached $15M, or $0.16 per share, while in Q1 2017 there was a loss of $87M (-$0.96 EPS). Such a report obviously influenced the share price and attracted the investors' attention.

Whiting Petroleum is the leader in oil production in Baku Shale Deposit in North Dakota. The company well used the moment while the OPEC is reducing oil production in order to keep the prices high, and boosted production by 8.30% to 11.43M barrels per day.

Technically, the company stock price is growing steadily, with the price being above the 200-day SMA, which is an uptrend signal. The support levels are at $40 and $35.

When the price was reaching $40 and beyond, the volumes were also going up, which shows much interest from the investors' side and means a very strong support in case of correction.

The share prices are still dependent on the crude price. As long as OPEC continues cutting production levels, Whiting Petroleum will be boosting them in order to make maximum profit. As of now, the company looks very promising when it comes to midterm investments.

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets

Disclaimer

Any forecasts contained herein are based on the authors' particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

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
WLL Whiting Petroleum Corporation 48.84 -1.70 -3.36 7,537,532 Trade
MED MEDIFAST INC 140.58 -0.35 -0.25 151,903 Trade
AAXN Axon Enterprise Inc. 63.01 0.93 1.50 1,378,380 Trade

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