Locking in a Triple Play of Double Digit Gains and a Semiconductor Bet

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

This week’s Alpha Algorithm takes us back into a sector that the rally following Donald Trump’s presidential election victory had ignored up until now — technology.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials, Inc. (AMAT) provides manufacturing equipment, services and software to the semiconductor, display, solar photovoltaic (PV) and related industries worldwide. The company serves manufacturers of semiconductor wafers and chips, liquid crystal and other displays, solar PV cells and modules and other electronic devices.

AMAT chart 12-7

Applied Materials, Inc. (AMAT) vs. the S&P 500 YTD

Nine Top Investment Strategies Betting on Applied Materials, Inc. (AMAT)

  1. Momentum Factor

The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.

  1. Large-Cap Momentum

The stock is part of a major hedge fund’s systematic strategy that invests in large- and mid-cap U.S. companies with positive momentum and that rank in the top third of total return over the prior 12 months, excluding the last month.

  1. Pure Growth

The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.

  1. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

  1. Large-Cap Alpha Growth

Applied Materials has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation — among more traditional factors — and weights the constituents based on their respective growth scores.

  1. Large-Cap Growth and Value

Using a proprietary ranking based on separate models for growth and value, this is a large-cap stock that is part of an index that has historically outperformed its market-cap weighted benchmark.

  1. Exponential Technologies

The stock is part of a strategy that invests in nine different fields deemed to be vast growth “exponential technologies”: big data and analytics, nanotechnology, medicine, networks, energy and environmental systems, robotics, 3-D printing, bioinformatics and financial services.

  1. IBD Top Fifty

Applied Materials is a Top 50 stock based on Investor’s Business Daily’s proprietary trading formula to identify 50 stocks that meet one of seven different catalysts. The “CAN SLIM” strategy identifies companies with either fundamental (improving earnings or new product) or technical (upward stock move on strong volume) catalysts.

  1. Share Buybacks

The company’s outstanding shares have been reduced by at least 5% in the previous year through share repurchases.

Exclusive  The Market Melt-up Continues

Recommendation

Buy Applied Materials, Inc. (AMAT) at market today and place your initial stop at $27.50.

I am holding off on an options recommendation for AMAT at this time as the market seems oversold after its recent rise.

Portfolio Update

You were stopped out of Northrop Grumman Corporation (NOC) this morning at $243.60 for a 15.43% gain.

You were stopped out of United Healthcare (UNH) on Dec. 5 at $156.65 for a 10.91% gain.

Raise your stop in Berkshire Hathaway (BRK-B) to $159.10 to lock in at least a 10% gain in the stock

Click here to view the Portfolio Update table.

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

Real estate investment trusts (REITs) are an income-producing investment for many people but how much do you really know about them? Even though REITs trade like stocks, their underlying structure and business model are very different. After all, what business than a REIT pays out 90% of its income as dividends every year? With uncertainty, market volatility and at least one interest rate increase ahead in 2017, being selective is going to matter now more than ever. The National Associatio

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE