by Mike Turner | July 8, 2014 9:01 am
The market’s bull run seems to be gathering more steam and I expect this strength to continue near-term. As such, I think it’s vital for investors to take advantage of stocks that also have strength in the current market. My methodology of picking a stock is fairly straight forward and can be summed up with this motto; “Think like a fundamentalist and trade like a technician.”
Thinking like a fundamentalist means you’ll focus on stocks that have the best potential for future growth. Trading like a technician means you will almost always get the timing right when buying and selling stocks so that you will have higher profits.
Today’s trade fits right into my methodology and is a stock fundamentals rock star in my database. Tata Motor LTD (TTM) engages in the manufacture and sale of commercial and passenger vehicles, primarily in India. The company’s product portfolio includes micro, compact, and midsize passenger cars; premium and luxury sports utility vehicles and cars; utility vehicles; and small, light, intermediate, and medium and heavy commercial vehicles, as well as vans, trucks, buses, and defense and homeland security vehicles. It also develops electric and hybrid vehicles for personal and public transportation.
Tata Motors first made waves when it stated that it would build the world’s most affordable entry level car. Since then the country paid $2.3 billion to acquire luxury brands like Jaguar and Land Rover. Tata Motor is also considered to be one of the best performing auto companies this year with the stock up 40% up to date.
TTM’s stock fundamentals are rated as strong buy in my database with score of 87 out of 100. The technical rating is also quite impressive with a score of 95 out of 100. The stock is also rated low in volatility and has an expected move of 9.08% or $3.83. On top of strong fundamental and technical ratings look have a strong long-term growth potential. Like any stock there are some facts that might make an investor hesitate.
TTM has been technically lagging its industry (Auto Manufacturing) and sector (Consumer Discretionary) for the past month or so, despite having an exceptionally high demand fundamental score. However, recently, the stock broke out of its slump and jumped higher by more than 2% and is giving indications of a breakout to the upside.
TTM is the No. 1 rated stock in my entire database of stocks; another stellar reason to own some shares of this equity. I like the increasing accumulation of shares by large institutions (always a good sign) and the recent uptick in average daily volume. In a bull market like we are in right now, TTM makes a lot of sense to own.
I recommend entering TTM at $42.00 and setting a stop limit at $36.18.
Mike Turner is an engineer turned entrepreneur with more than 20 years’ experience in systems development and enterprise-level software applications and 15+ years in finance and stock market strategies. He is the founder of Signal Investor and Turner Analytics.
Mike’s background in finance, computer science and engineering provide a solid foundation for Signal Investor’s rule based trading approach. Turner Analytics provide members with access to the software Mike created and uses to make his stock, option and trading recommendations.Click here to get Mike’s unique take on stocks through technical and fundamental analysis.
Source URL: http://investorplace.com/2014/07/trade-of-the-day-tata-motors-ltd-ttm-stock-fundamentals/
Short URL: http://invstplc.com/1ogtQcE
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.