Trade of the Day: Bank of the Ozarks (OZRK)

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This is an important notice for all traders. A clear “W” bottom has now formed. This also happened back in late 2011, but that “W” bottom failed significantly before returning to the bull market we’ve enjoyed for the past four years. A somewhat similar pattern also evolved in early 2008 before the spectacularly devastating crash later in the year

So the question is if this time will be different? Or do we have a head-fake in the making? Frankly, I believe the risk of a head-fake is high right now. That means traders must be extra diligent and only buy those stocks with top-notch fundamentals and technicals—those stocks that can withstand or buck another market dip.

And I have just such a trade for you today.

Bank of the Ozarks (OZRK) provides a range of retail and commercial banking services. It has a 52-week range of $31.63–$48.68, a market cap of $4.03 billion, and a dividend yield of 1.28%. The stock has been in a bullish trend since January 2013 and is performing very well in a volatile market.

I give the company a fundamental score of 90/100—which is excellent. I also give OZRK an excellent technical score of 89/100.

Helping OZRK’s scores is its recent earnings report. Earnings per share came in 40% higher than a year ago and were in line with the consensus estimate. Net revenues grew 26.3% to $118.5 million. Shares fell on the day of the announcement, but have been trending higher since.

OZRK has been significantly outperforming its Industry (Regional – Southeast Banks) and Sector (Financials).  Average daily volume has been steadily increasing for months.  Institutional ownership is strong at about 80% of outstanding shares. OZRK’s share price is approaching an upper resistance level of about $48, but if it can break through that level and if the market stays strong, this could be a big winner.

I recommend entering this trade at $49.00 or better and to set your stop at $40.96.

By the way, if you were able to act on my last trade recommendation in Home Depot (HD), the stock achieved its upside target on Tuesday.

Mike Turner and his team of software engineers developed Turner Analytics, a sophisticated software market and trade-timing system that provides unbiased, quantifiable recommendations on thousands of equities and rates, ranks and scores these equities from best to worst in an easy-to-use on-line tool for individual investors. He is also the editor of Signal Investor.

Most recently, Mike launched Quick Hit Trader. This trading service is based on weekly analysis of the 6,000+ stocks and ETFs in his proprietary Turner Analytics computer stock-rating system. Every Monday before the market open, Mike emails subscribers his three best trades for the week, including the buy, sell and target price.


Article printed from InvestorPlace Media, https://investorplace.com/2015/10/trade-of-the-day-bank-of-the-ozarks-ozrk/.

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