One of the best ways to make sure your portfolio is in the right place at the right time is to own only the very best stocks. As the market advance continues to narrow, institutional attention is going to have a laser-like focus on stocks with the very best fundamentals. Buying pressure from these large pools of money will push the prices higher and make you money if you spot the opportunity early.
One way to accomplish this task is to look for stocks to buy that are upgraded in the Portfolio Grader system to a “Triple A” — overall top-rated stocks that also score “A” ratings in the fundamental and quantitative categories — and buy them shortly after the initial upgrade.
Century Casinos (CNTY) does pretty much what you would expect — it owns and operates casinos around the world, focusing on midsize casinos in well-regulated markets. Century Casinos currently runs two casinos in Canada, two in Colorado, one in Aruba and nine in Poland, as well as casinos on board 12 cruise ships. In the most recent quarter the company reported earnings 200% higher than the year-ago period, catching analysts off-guard. Portfolio Grader has noticed the rapid improvement in the company’s fundamentals and two weeks ago upgraded the stock to an “A.” Century Casinos looks to be just getting started and remains a “strong buy.”
FXCM (FXCM) serves customers who like to make a different kind of bet. The company provides online foreign exchange trading to retail and institutional customers worldwide. It offers spot FX trading in approximately 58 currency pairs and also offers stock and option trading to non-U.S.-based customers in the U.K. and U.S. equity markets. The company grew earnings by more than 600% in the most recent quarter, handily beating analysts’ estimates. This type of growth was noticed in the Portfolio Grader system and the stock was upgraded earlier this month and is a “strong buy.”
Stocks that have an overall “A” grade with an “A” in both the quantitative and fundamental score are truly the best of the best — exactly the type of stocks you want to own when the market is volatile and confused as it appears to be right now. These two were just upgraded to “Triple A” and should continue to improve during the rest of the year and beyond.
Louis Navellier is editor of Blue Chip Growth.