Manitowoc Signaling a Resumption of Its Bullish Trend

MTW partially closed a gap, finding support at its 20-day moving average

   
Manitowoc Signaling a Resumption of Its Bullish Trend

Manitowoc Company (MTW) — This company operates in two segments, selling cranes and related products and foodservice equipment. The stock carries a “five-star strong buy” rating from S&P with a $40 12-month price target. S&P notes the recent pay down of about $1.4 billion in debt, and looks for earnings to increase from $1.14 per share in 2013 to $1.80 in 2014 and $2.25 in 2015.

I first recommended this stock on June 23, under $30, after it was highlighted by our Profit Scanner service. MTW made a new high at $33.50 on July 3, but then retreated, partially closing a gap at $29.75 to $33.04 by dropping to $31.15, where the 20-day moving average provided support. The gap was opened on June 27 when activist fund Relational Investors announced it had taken an 8.5% stake.

The stock is indicating a resumption of the primary bullish trend. Buy MTW at the market for a trade to $38 with a stop-loss order at $28.

07 16 14 mtw 300x194 Manitowoc Signaling a Resumption of Its Bullish Trend
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chart key 300x84 Manitowoc Signaling a Resumption of Its Bullish Trend


Article printed from InvestorPlace Media, http://investorplace.com/2014/07/trade-day-manitowoc-company-mtw-2/.

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