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Consumer and Tech Stocks that Could be Poised to Rebound this December

Dec 04, 2018

 

  • Today, we take a look at “Top Buys” in our Multi-Factor AI Quant Stock Models, specifically in our US Consumer Discretionary Global Top Stock Ideas and in our US Information Technology Global Top Stock Ideas that are largely negative for 2018 with a purpose of identifying “Top Buys” in our Multi-Factor AI Quant Stock Models that may be poised to rebound in the last trading month of the year.
     
  • In looking at the 15 most negative “Top Buys” in our US Information Technology Global Top Stock Ideas, which can be seen in the table below, a few opportunities stand out:

Worst Performing YTD "Top Buys" in our US Information Technology Global Top Stock Ideas

Company Name Ticker November Return YTD Return 'Top Buy' in Another Model?
INTERNAP CORP INAP -6.43% -62.57% No
EBIX INC EBIX -15.38% -39.90% Yes, US SMID-Cap
CDK GLOBAL INC CDK -12.33% -28.59% No
ACTIVISION BLIZZARD INC ATVI -28.04% -26.41% No
SKYWORKS SOLUTIONS INC SWKS -18.68% -22.63% No
NIC INC EGOV -3.99% -21.14% Yes, US SMID-Cap
CSG SYSTEMS INTL INC CSGS -1.90% -19.49% Yes, US SMID-Cap
CONDUENT INC CNDT -33.51% -18.01% No
CALAMP CORP CAMP -13.45% -15.31% Yes, US SMID-Cap
SCIENCE APPLICATIONS INTL CP SAIC -0.71% -9.13% Yes, US SMID-Cap
SHUTTERSTOCK INC SSTK -5.65% -8.37% No
AVX CORP AVX -0.12% -3.64% Yes, US SMID-Cap
LEIDOS HOLDINGS INC LDOS -0.57% -3.08% No
LUMENTUM HOLDINGS INC LITE -21.04% -2.31% No
NUANCE COMMUNICATIONS INC NUAN -8.31% -1.22% No

Source: Capital IQ

  • NIC Inc. (EGOV) is down 21.14% YTD after falling 3.99% in the November trading month. NIC currently trades at an NTM P/E of 19.83x its estimated forward earnings while offering investors a strong 32.25% trailing ROE. NIC is rated “Top Buy” in our US Information Technology Global Top Stock Ideas and “Top Buy” in our US SMID-Cap Global Top Stock Ideas. 
     
  • CSG Systems (CSGS) may be another opportunity in our US Information Technology Global Top Stock Ideas after the stock fell 1.90% in November, dragging its YTD return lower to –19.49%. CSGS is an attractive value opportunity as management has consistently hiked the company’s shareholder dividend since 2013. CSG Systems maintains a forward dividend yield of 2.40% while, in its most recent fiscal year, CSG Systems offered a payout ratio of 45.9%. CSG Systems is rated “Top Buy” in our US Information Technology Global Top Stock Ideas and “Top Buy” in our US SMID-Cap Global Top Stock Ideas.
     
  • In looking at the 15 most negative “Top Buys” in our US Consumer Discretionary Global Top Stock Ideas, which can be seen in the table below, a few additional opportunities stand out:

Worst Performing YTD "Top Buys" in our US Consumer Discretionary Global Top Stock Ideas

Company Name Ticker November Return YTD Return 'Top Buy' in Another Model?
CARNIVAL CORP/PLC (USA) CCL 4.40% -7.97% No
TEGNA INC TGNA 8.58% -6.18% Yes, US SMID-Cap
HOME DEPOT INC HD -0.08% -4.11% No
CHOICE HOTELS INTL INC CHH 2.46% 2.29% Yes, US SMID-Cap
OMNICOM GROUP OMC 3.04% 5.29% Yes, US Large-Cap
ROSS STORES INC ROST -10.99% 5.61% No
TRIBUNE MEDIA CO TRCO 4.57% 5.91% No
MCDONALD'S CORP MCD 7.79% 7.70% Yes, US Large-Cap
GENTEX CORP GNTX 4.65% 8.59% No
CINEMARK HOLDINGS INC CNK -9.01% 9.62% No
GENUINE PARTS CO GPC 6.01% 9.67% Yes, US Large-Cap
YUM BRANDS INC YUM 4.81% 12.82% No
NEXSTAR MEDIA GROUP NXST 6.17% 12.94% No
CRACKER BARREL OLD CTRY STOR CBRL 12.68% 13.03% No
DARDEN RESTAURANTS INC DRI 5.42% 14.61% Yes, US Large-Cap

Source: Capital IQ

  • Tegna Inc. (TGNA) rallied 8.58% in the November trading month to bring its YTD return to –6.18%. Tegna trades at a cheap forward multiple with an NTM P/E of 7.85x estimated forward earnings while maintaining an extremely high LTM ROE of 56.90%. Tegna is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US SMID-Cap Global Top Stock Ideas.  
     
  • Omnicom Group (OMC) is up just 5.29% YTD after gaining 3.04% in November. Over the last 5 years, Omnicom has consistently raised its dividend payment while it currently offers an attractive LTM ROE of 40.50%. Omnicom is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.