This week’s Alpha Algorithm revisits your very first recommendation, made back on Feb. 25.
As a reminder, you were stopped out of Constellation Brands Inc. (STZ) on May 31 at $152.75 for a 10.41% gain.
Your STZ July $140 calls gained an average of 83.52% over that three-month period.
Victor, New York-based Constellation Brands, Inc. (STZ) has been long known for its wine business. It also became the third-largest brewer in the United States when it acquired the rights to Corona, Modelo Especial and other Mexican beers from AB InBev (BUD) in 2013.
Constellation Brands (STZ) vs. the S&P 500 Year to Date
Seven Top Investment Strategies Betting on Constellation Brands, Inc. (STZ).
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 historically has driven a significant part of those companies’ risk and return.
2. Hedge Fund Alpha
Based on publicly available disclosures, successful hedge fund managers are investing in the stock.
3. Hedge Fund Gurus
The company is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.
4. Momentum Model
The stock is among the top approximately 100 U.S.-listed companies to demonstrate powerful relative strength characteristics when compared to the 3,000 largest U.S.-listed companies.
5. Value Line Model
The stock is among the top 100 stocks, from a universe of 1,700 stocks, to which Value Line gives a #1 ranking in its Timeliness Ranking System.
6. 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.
7. IBD Top Fifty
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, new product) or technical (upward stock move on strong volume) catalysts.
Buy Constellation Brands, Inc. (STZ) at market today.
Place your stop at $148.00.
With the overall market overbought, I am holding off on making an option recommendation this week.
You were stopped out of AT&T Inc. (T) on July 7 for a 10.02% gain.
Nicholas A. Vardy