I. Conservative Recommendation
Citigroup Inc. (C)
Citigroup, a holding in the Alpha Algorithm, broke out to the upside this past week.
Twenty-six banks last Wednesday announced plans to buy back stock after they passed the Fed’s annual check-up for financial stability. Citigroup led the way, doubling its quarterly dividend to 32 cents after getting the Fed’s blessing.
Citigroup also announced a common stock repurchase program of up to $15.6 billion. That would be the biggest ever buyback for Citi, surpassing a $15 billion buyback announced in 2005 before the financial crisis.
II. Aggressive Recommendation
Constellation Brands (STZ)
Constellation Brands announced better-than-expected earnings last Thursday.
Adjusted earnings per share (EPS) in fiscal first-quarter 2018 rose 52% on a year-over-year basis, driven by higher sales and a rise in the adjusted operating margin.
Corona, the country’s top-selling premium beer and one of Constellation’s brand names, led the beer business to another blockbuster quarter.
The stock is now also the top one based on the technical screens used for Momentum Trader Alert.
Nicholas A. Vardy