Market Lab Report - Premarket Pulse 11/5/15
A few new actionable names hit our screens yesterday. Keep in mind that while the number of such stocks over the last several days has been sizeable, a number of them are not moving higher despite the uptrending market. This is a yellow flag that warrants caution as not all cylinders are firing as they should. Instead, institutional money is flowing primarily into the risk-off, largest cap names as witnessed by the NASDAQ-100 being the first index to hit new highs.
Information technology hardware and software product maker CDW Corp. (CDW) had a pocket pivot yesterday on a strong earnings report. Earnings are accelerating, ROE 49.7%, institutional sponsorship has grown in every quarter since the company went public 10 quarters ago, group rank 5.
Web-based and mobile fleet management software maker Fleetmatics Group (FLTX) gapped up yesterday on a strong earnings report, then fell but then returned to its gap up price at which time this report was sent. Pretax margin 21.9%, group rank 21.
Cloud-based human capital management software maker Paycom Software (PAYC) had a buyable gap up yesterday on a strong earnings report. ROE 24.1%, Earnings and sales are soaring, institutional sponsorship has grown over the last 3 quarters, group rank 21.
Facebook (FB) is gapping up this morning after beating on earnings last night. We will be monitoring this for a possible buyable gap-up, and issue a report as appropriate.
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