Time certainly flies — this week marks the one-year anniversary of Stock of the Day! For those of you who have been with me since I launched the Stock of the Day last September — thank you.
For those of you who aren’t as familiar with it, but would like clear and actionable daily stock advice, you can try it out by downloading the free Stock of the Day app for your Apple device, e-reader or Android phone here. Or, if you’re not quite on the app bandwagon yet, you can access the full archive on this website.
Of course, what good is a stock-picking feature if we don’t have the performance data to back it up? So, as we ring in the first full year of Stock of the Day (and the 150th entry since I added it to the Navellier Growth home page), I want to look back on the highlights (and lowlights) of this feature and show you just how valuable it can be.
It’s comes as no surprise, but of the 48 stocks that have appreciated in the double digits since their Stock of the Day entry, the majority were A- and B-rated. Here were three of my biggest winners:
- Way back in February Home Depot (NYSE:HD) caught my eye as the home improvement chain was headed into the strongest time of year in terms of sales. When it came to competitive advantage and its earnings prospects, I like what I saw, so I gave HD a buy recommendation. Since then, the stock has gained an additional 26% and is trading around an all-time high!
- At the end of June, I was looking for a smart housing play, and I found it in builder Toll Brothers (NYSE:TOLL). Toll Brothers impressed me in terms of its track record of wild earnings surprises and increasing bottom-line momentum and I felt that it deserved a B-rating. If you listened to my recommendation at the time, you would have seen a 30% return in less than three months!
- Finally, also in February I looked at PetSmart (NASDAQ:PETM) as our “Valentine’s Day” Stock. At the time I saw clear sailing for this pet goods retailer, so I stamped it with an A-rating. Since then, the stock has continued to climb, advancing 30%.
Of the 23 stocks that have plunged at least 10% since I featured them on Stock of the Day, 19 were C-, D- or F-rated stocks. If you took my advice at the time, you have saved yourself a lot of stress, avoiding plays like:
- At the end of March, I covered Plug Power (NASDAQ:PLUG), which received an F-rating at the time due to low buying pressure. I anticipated that there would be further downside, and sure enough, since then, shares have plummeted nearly 50%! Trading volumes for this stock are now so low that it no longer qualifies for my Portfolio Grader tool.
- Back in May, some bargain hunters wondered if Research in Motion’s (NASDAQ:RIMM) new restructuring plan could breathe new life into the struggling smartphone company. To that, I said no way, and issued a strong-sell recommendation for RIMM. Just over three months later, shares have gapped down an additional 35%.
- In May I also covered Zipcar (NASDAQ:ZIP), which after going public in 2011 was still a fresh face on Wall Street. But after having four quarters’ worth of data under its belt, the car sharing service still wasn’t able to drum up steady buying pressure, so I advised investors to steer clear. Since that recommendation, the stock has lost over 25%.
The past 150 Stocks of the Day have shown that it pays to run any potential buys through my Portfolio Grader tool. The average A- or B-rated stock has gained 5.3% in 16 weeks—compared with a 2.7% return on C-rated stocks and a 0.6% loss on D- and F-rated stocks. By comparison, the Dow has gained just 3.7% over that time.
Features like Stock of the Day are what I live for—delivering timely and helpful stock advice based on fundamental analysis. If you have been with me for a while, I hope the past year has been as eye opening for you as it has for me, and I look forward to continuing Stock of the Day in the year to come!