Over the weekend, Barron’s produced their list of “15 Stocks To Buy Now”. I always like to run my metrics against others ideas. That is how I tend to get some of my best ideas.
The list was divided between tech and financials. Right now I am not going to touch financials until we begin to get some signs that in fact we have an economy and second that interest rates can rise instead of fall, especially on yields at the long end of the curve.
Therefore that limits my review to technology names. Most of the names were complete dogs with Yahoo, Micron and Seagate on the list. The only name that interested me was Akamai Technologies $AKAM. Technically the stock has almost retraced 61.80% of its October 2011 low to May of 2015 high. That number is $41.24. That said it is holding $45 and there is decent weekly support there.
Fundamentally there is earnings growth from $2.43 to $2.69 this next year. So earnings growth of $0.26 or 10.69%, The P/E is 16.84. Not cheap. Earnings are due next Tuesday on February 9th.
Therefore, I want to want to see how earnings go. This name goes on my shopping list but I am not willing to buy it here. The lesson learned here is as we correct it makes sense to build lists and buy where there is real and not perceived value.
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