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Copyright 2018 Investor's Business Daily Inc.
3 ALIGN TECH (ALGN) Grp 55 o$258.4371.4M Shares 99 Comp. Rating 97 EPS RS 97 ROE 20%
DEVELOPED A PROPRIETARY SYSTEM FOR TREATING MALOCCLUSION,OR THE MISALIGNMENT OF TEETH.
+20% Ann. EPS Gro PE 85 Avg. D. Vol 1,108,900 Debt 0%Last Qtr Eps +60%5 Prior Qtr +37%5 Last Qtr Sales +38%3 Qtrs EPS ) 15%Eps Due 1/29R&D 7%
Acc/Dis A-Sup/Demand 82
New base forms after huge post-breakout gain; 266.51 entry.
6 UNITED RENTALS (URI) Grp 38 o$180.8982.9M Shares 99 Comp. Rating 94 EPS RS 93 ROE 48%
PROVIDES CONSTRUCTION AND INDUSTRIAL EQUIPMENT RENTALSAND SALES THROUGH 887 LOCATIONS IN U.S. AND CANADA.
+12% Ann. EPS Gro PE 18 Avg. D. Vol 1,066,700 Debt 436%Last Qtr Eps +26%5 Prior Qtr +15%6 Last Qtr Sales +17%4 Qtrs EPS ) 15%Eps Due 1/23
Acc/Dis A-Sup/Demand 80
Well past 20% profit-taking area from 134.38 entry.
9 SQUARE INC CL A (SQ) Grp 42 o$41.25255.4M Shares 99 Comp. Rating 81 EPS RS 98 ROE 2%
PROVIDES POINT-OF-SALE SOFTWARE THAT MANAGES RECEIPTS, IN-VENTORY AND SALES REPORTS WITH ANALYTICS AND FEEDBACK.
% Ann. EPS Gro PE 172 Avg. D. Vol 21,699,800 Debt 0%Last Qtr Eps +600%5 Prior Qtr +250%5 Last Qtr Sales +33%6 Qtrs EPS ) 15%Eps Due 2/20R&D 16%
Acc/Dis A-Sup/Demand 96
Breaks upper channel line, but new base may form.
12 C B R E GROUP INC (CBG) Grp 34 o$44.89336.1M Shares 98 Comp. Rating 96 EPS RS 84 ROE 27%
PROVIDES PROPERTY INVESTMENT MANAGEMENT, LOAN SERVICING,ORIGINATION WITH 450 OFFICES WORLDWIDE.
+17% Ann. EPS Gro PE 17 Avg. D. Vol 2,018,300 Debt 85%Last Qtr Eps +28%5 Prior Qtr +25%5 Last Qtr Sales +11%3 Qtrs EPS ) 15%Eps Due 2/8
Acc/Dis A
Extended from autumn breakout; no new entry yet.
15 MARRIOTT INTL (MAR) Grp 23 o$139.78320.8M Shares 98 Comp. Rating 93 EPS RS 91 ROE 119%
OPERATES, FRANCHISES OR LICENSES 6,080 LODGING PROPERTIESWITH 1,190,604 ROOMS IN 122 COUNTRIES.
+18% Ann. EPS Gro PE 34 Avg. D. Vol 2,683,700 Debt 153%Last Qtr Eps +21%5 Prior Qtr +10%6 Last Qtr Sales +44%1 Qtrs EPS ) 15% Yield 0.94%Eps Due 2/13
Acc/Dis B
More than 25% above 107.73 buy point; could take profits.
18 BLACKROCK (BLK) Grp 72 o$555.53157.1M Shares 98 Comp. Rating 88 EPS RS 87 ROE 11%
MANAGES FIXED INCOME, CASH, EQUITY AND ALTERNATIVE INVEST-MENT PRODUCTS FOR INSTITUTIONAL AND INDIVIDUAL INVESTORS
+4% Ann. EPS Gro PE 25 Avg. Daily Vol 434,600 Debt 17%Last Qtr Eps +21%5 Prior Qtr +15%5 Last Qtr Sales +20%2 Qtrs EPS ) 15% Yield 1.8%Eps Due 4/19e
Acc/Dis A+
Hits 25% profit zone past 442.93 entry; take some profits.
1 ARISTA NETWORKS (ANET) Grp 5 o$259.0345.3M Shares 99 Comp. Rating 99 EPS RS 97 ROE 25%
PROVIDES CLOUD NETWORKING SOFTWARE, HARDWARE FOR INTER-NET, CLOUD AND NEXT-GEN DATA CENTERS.
+49% Ann. EPS Gro PE 53 Avg. Daily Vol 879,500 Debt 4%Last Qtr Eps +95%5 Prior Qtr +81%5 Last Qtr Sales +51%19 Qtrs EPS ) 15%Eps Due 2/14R&D 24%
Acc/Dis B-Sup/Demand 79
Extended above six-week cup base's 245.75 buy point.
4 PAYPALHOLDINGS (PYPL) Grp 42 o$80.541057M Shares 99 Comp. Rating 96 EPS RS 94 ROE 12%
PROVIDES DIGITAL AND MOBILE PAYMENTS ON BEHALF OF CONSUM-ERS AND MERCHANTS WORLDWIDE.
+19% Ann. EPS Gro PE 45 Avg. D. Vol 8,821,700 Debt 0%Last Qtr Eps +31%5 Prior Qtr +28%5 Last Qtr Sales +21%4 Qtrs EPS ) 15%Eps Due 1/24R&D 8%
Acc/Dis B+
Above 79.48 entry in flat base, but volume is lacking.
7 ALPHABET INC CL A (GOOGL) Grp 17 o$1130.65295.3M Shares 99 Comp. Rating 94 EPS RS 81 ROE 15%
PROVIDES ONLINE SEARCH, INTERNET CONTENT SERVICES, AND WEB-BASED AND DESKTOP SOFTWARE APPLICATIONS VIA GOOGLE.COM.
+21% Ann. EPS Gro PE 33 Avg. D. Vol 1,400,500 Debt 3%Last Qtr Eps +32%5 Prior Qtr +27%6 Last Qtr Sales +24%3 Qtrs EPS ) 15%Eps Due 1/24R&D 15%
Acc/Dis B+
Extended beyond 5% buy zone after retaking 1,006.29 entry.
10 SALESFORCE.COM (CRM) Grp 62 o$110.24671.7M Shares 98 Comp. Rating 98 EPS RS 84 ROE 11%
PROVIDES ON-DEMAND CUSTOMER RELATIONSHIP MANAGEMENTSOFTWARE APPLICATIONS AND SERVICES TO BUSINESSES.
+38% Ann. EPS Gro PE 86 Avg. D. Vol 4,619,600 Debt 24%Last Qtr Eps +63%5 Prior Qtr +38%5 Last Qtr Sales +25%4 Qtrs EPS ) 15%Eps Due 2/26R&D 14%
Acc/Dis B+
Breakout from base-on-base entry at 109.29 lacks volume.
13 ADOBE SYSTEMS (ADBE) Grp 51 o$195.05488.0M Shares 98 Comp. Rating 95 EPS RS 92 ROE 21%
PROVIDES DESIGN, IMAGING AND PUBLISHING SOFTWARE FOR PRINT,WEB, MOBILE AND DYNAMIC MEDIA PRODUCTION
+48% Ann. EPS Gro PE 45 Avg. D. Vol 2,556,700 Debt 26%Last Qtr Eps +40%6 Prior Qtr +47%5 Last Qtr Sales +25%13 Qtrs EPS ) 15%Eps Due 3/15R&D 17%
Acc/Dis B+
Clears 186.37 entry in low volume; near top of buy zone.
16 MASTERCARD INC (MA) Grp 42 o$162.33897.5M Shares 98 Comp. Rating 93 EPS RS 86 ROE 69%
PROVIDES GLOBAL PAYMENT SOLUTIONS IN SUPPORT OF THE CREDIT/DEBIT PAYMENT PROGRAMS OF FINANCIAL INSTITUTIONS.
+11% Ann. EPS Gro PE 38 Avg. D. Vol 3,227,800 Debt 92%Last Qtr Eps +24%5 Prior Qtr +15%6 Last Qtr Sales +18%1 Qtrs EPS ) 15% Yield 0.62%Eps Due 1/29
Acc/Dis B+
Almost extended from 154.75 entry of flat base.
19 PARKER-HANNIFN (PH) Grp 45 o$210.04130.6M Shares 98 Comp. Rating 87 EPS RS 86 ROE 22%
MAKES SYSTEMS TO CONTROL MOTION, FLOW AND PRESSURE USINGHYDRAULIC, PNEUMATIC/ELECTROMECHANICAL COMPONENTS.
+2% Ann. EPS Gro PE 24 Avg. Daily Vol 731,100 Debt 92%Last Qtr Eps +39%5 Prior Qtr +29%6 Last Qtr Sales +23%4 Qtrs EPS ) 15% Yield 1.26%Eps Due 1/31
Acc/Dis A
Hits 20% profit taking level from 167.60 entry.
2 FACEBOOK INC CL A (FB) Grp 17 o$179.372337M Shares 99 Comp. Rating 99 EPS RS 74 ROE 19%
PROVIDES A PLATFORM ENABLING MEMBERS TO STAY CONNECTEDWITH FRIENDS AND FAMILY VIA FACEBOOK.COM.
+87% Ann. EPS Gro PE 35 Avg. D. Vol 14,992,400 Debt 0%Last Qtr Eps +77%5 Prior Qtr +69%6 Last Qtr Sales +47%8 Qtrs EPS ) 15%Eps Due 1/30R&D 21%
Acc/Dis A-
Slides below 184.35 buy point, tests 10-week line.
5 CHARLES SCHWAB (SCHW) Grp 13 o$55.391179M Shares 99 Comp. Rating 96 EPS RS 88 ROE 12%
PROVIDES BROKERAGE, BANKING AND FINANCIAL SERVICES TO 12.8MIL CLIENTS VIA 335 BRANCHES IN 46 STATES, PUERTO RICO
+20% Ann. EPS Gro PE 36 Avg. D. Vol 5,948,300 Debt 18%Last Qtr Eps +24%6 Prior Qtr +30%6 Last Qtr Sales +16%8 Qtrs EPS ) 15% Yield 0.58%Eps Due 1/16
Acc/Dis A-
Near 20% profit-taking zone from 46.31 flat-base buy point.
8 DOLLAR TREE (DLTR) Grp 6 o$114.84230.0M Shares 99 Comp. Rating 92 EPS RS 92 ROE 18%
OPERATES 14,334 DISCOUNT VARIETY STORES IN 48 STATES ANDCANADA, OFFERING MERCHANDISE AT THE FIXED PRICE OF $1.00.
+14% Ann. EPS Gro PE 26 Avg. D. Vol 2,267,800 Debt 114%Last Qtr Eps +40%5 Prior Qtr +38%5 Last Qtr Sales +6%2 Qtrs EPS ) 15%Eps Due 3/7
Acc/Dis A
Extended from 100.03 buy point of 15-month cup base.
11 RED HAT INC (RHT) Grp 51 o$125.95175.2M Shares 98 Comp. Rating 96 EPS RS 87 ROE 32%
PROVIDES OPEN SOURCE ENTERPRISE OPERATION SYSTEMS AND RE-LATED SYSTEMS MANAGEMENT SERVICES BASED ON LINUX.
+19% Ann. EPS Gro PE 47 Avg. D. Vol 1,647,500 Debt 60%Last Qtr Eps +20%6 Prior Qtr +40%5 Last Qtr Sales +22%2 Qtrs EPS ) 15%Eps Due 3/27eR&D 20%
Acc/Dis B
Multiple trips to 10-week line; needs to form new base.
14 FLEETCOR TECHNOLOGIES (FLT) Grp 42 o$203.2785.3M Shares 98 Comp. Rating 94 EPS RS 89 ROE 22%
GLOBAL PROVIDER OF PAYMENT PRODUCTS AND SERVICESTO COM-MERCIAL FLEETS, OIL COMPANIES AND PETROLEUM MARKETERS.
+17% Ann. EPS Gro PE 25 Avg. Daily Vol 675,000 Debt 82%Last Qtr Eps +14%6 Prior Qtr +27%6 Last Qtr Sales +19%0 Qtrs EPS ) 15%Eps Due 2/6
Acc/Dis A
Extended from 171.88 buy point of long base.
17 ROSS STORES INC (ROST) Grp 2 o$83.58370.7M Shares 98 Comp. Rating 91 EPS RS 89 ROE 42%
OPERATES 1,340 ROSS DRESS FOR LESS AND DD'S DISCOUNTS RETAILSTORES IN 36 STATES, D.C. AND GUAM
+13% Ann. EPS Gro PE 27 Avg. D. Vol 2,754,900 Debt 14%Last Qtr Eps +16%5 Prior Qtr +15%5 Last Qtr Sales +8%2 Qtrs EPS ) 15% Yield 0.77%Eps Due 2/26
Acc/Dis A
Extended from 72.13 opening price in gap-up entry.
20 TDAMERITRADEHLDG (AMTD) Grp 13 o$54.50283.5M Shares 98 Comp. Rating 84 EPS RS 82 ROE 15%
PROVIDES SECURITIES BROKERAGE, FINANCIAL SERVICES THROUGHTHE INTERNET AND BRANCH NETWORKS.
+6% Ann. EPS Gro PE 31 Avg. D. Vol 2,213,600 Debt 35%Last Qtr Eps +29%5 Prior Qtr -2%6 Last Qtr Sales +19%1 Qtrs EPS ) 15% Yield 1.54%Eps Due 1/16
Acc/Dis B+
Extended 15% from 47.36 breakout in September.
SMARTSELECT® COMPOSITE RATING Rel Annual LastQtrNextQtr LastQtr Mgt Spn-EPS Str EPSEst EPS EPS Sales Pretax Own shp
6Rank Company Price Rtg Rtg %Chg %Chg %Chg %Chg ROE mrgn % Rtg
This Top-Rated Stock IsStill Looking For Volume
BIG CAP 20
B Y P A U L W H I T F I E L D
INVESTOR’S BUSINESS DAILY
San Francisco’s Salesforce.comCRM
hasshown consistentlystrong earn-ings and revenue growth of late.
In fiscal 2015-17, the companygrew earnings 49%, 44% and 35%.Revenue growth was 32%, 24% and26% in the same years.
Because the fiscal year ends inJanuary, the market expects to getthe final numbers for the year inFebruary. Analysts see earnings ris-ing 33% on a 24% pop in revenue.
While there has been some ero-sion in annual growth, the changesare too small to worry about.
Margins are another thing towatch when fiscal 2018 results arereleased. Pretax margins steppedup from 8.3% to 10%, 11.8% and12.9% in recent years.
Salesforce.com’s stock sketchedand broke out of three bases in2017. Gains from the ideal buypoint to the start of the next consoli-dation were 9% after an Aprilbreak-out, then 7% and 11% from the brea-kouts in August and October.
The current consolidation beganforming in November. The poten-tial buy point is 109.29 with the 5%buy zone stretching to 114.75. Sales-force shares are trying to pokeabove that entry now.
Because the earlier bases ad-vanced less than 20% after eachbreakout, the base count technical-ly remains first stage. But an inves-tor might expect the next breakoutto behave more like a second-stagebase than a first-stage one — prima-rily because the stock has already
enjoyed a long run from its low in2008.
What does this mean to inves-tors? Investors should lower theirexpectations.
If the stock breaks out in strongvolume and an investor buysshares, then the investor should setthe profit-taking level at 20%, or131.14. The 20% gain is measuredfrom the ideal buy point, not theplace the investor buys. So the in-vestor who buys at the top of the 5%buy zone (114.75), for example,would sell at 131.14 for a 14% profit.
Some investors often buy stockshigh in the 5% buy zone and thencomplain that they rarely see a 20%gain. This will happen if they aremeasuring from their entry ratherthan the proper ideal entry.
Publishing software providerAdobe SystemsADBE ends its fiscalyear in November. In 2015-17, earn-ings rose 56%, 45% and 43%. Reve-nue increased 16%, 22% and 25% inthe same years.
The Street expects earnings togrow 29% in fiscal 2018 on a reve-nue gain of 19%.
Pretax margin in 2017 was 37.5%,the highest in at least nine years.
Adobe broke out of bases in Janu-ary and October in 2017. The Janu-ary breakout led to a 42% gain inabout eight months. The Octoberbreakout brought a 12% gain inabout five weeks.
The buy point is 186.37. Adobeinched above the buy point recent-ly, but volume was below averageand declining. Watch to see if bigvolume can kick in and thereby vali-date the breakout.
6 UpBlackrock BLK Fnce-Invsmnt Mgt 555.5 6.24 vs 5.14 +21.4` +3.6 3469 +20` 88 87Educational Dvlpmnt EDUC Media-Books 16.70 0.52 vs 0.31 +67.7a .. 38.9 +27 99 97Jp Morgan Chase JPM Banks-Money Cntr 112.7 r1.62 vs 1.58 +2.5a –4.1 28119 +7.8` 62 82Pnc Finl Svcs Grp PNC Banks-Supr Rgional 151.8 2.32 vs 1.97 +17.8` +5.5 4740 +13` 85 79Skyline SKY Bldg-Mbile/Mfg & Rv 21.18 0.26 vs –0.07 +471` .. 57.8 –10 81 99Wells Fargo & Co WFC Banks-Money Cntr 62.55 1.75 vs 0.96 +82.3` +65 24695 +6.3` 80 71
4 DownLoop Industries Inc LOOP Chemicals-Plastics 16.55 –0.20 vs –0.02 .. .. .... .. 2 64Sonic Foundry Inc SOFO Comptr Sftwr-Dsktp 2.65 –0.36 vs –0.19 .. .. 8.3 –12 13 3Taylor Devices Inc TAYD Mchnry-Gen Indstrl 13.00 0.02 vs 0.27 –92.6 .. 4.8 –38 43 20Volt Info Science VISI Comml Svcs-Stffng 4.40 –0.34 vs 0.18 .. .. 289 –16 13 75
The Big Cap 20 is a computer-generated watch list of leadinggrowth stocks. IBD uses earn-ings, sales & other fundamentalfacts plus strong price action tocreate your weekly snapshot. Donot buy a stock solely on it beingin the list. Scan charts for stocksnear buy points. See Inves-tors.com to research stocks fur-ther. Be sure to read archived sto-ries & analyze company withIBD’s Stock Checkup.
Company Earnings ReportsIBD’s earnings reports show stock symbols, industry, % above or belowestimates, EPS and Relative Strength Ratings. EPS growth over 25% isboldfaced. Entire line is bolded if EPS Rating is also over 85 & quarter beatestimates. Arrows show earnings or sales acceleration or decelerationvs. prior quarter % change. All earnings are for current quarter. Nonrecur-ring items may be excluded from earnings per share.
Curr Prior Under Sales RelClosing Qtr Yr’s Qtr EPS /Over Sales % EPS Str
Company Name Symbol Industry Price Erns Erns %Chg Est % (Mil) Chg Rtg Rtg
1 Arista Networks 259.0 99 99 97 +60 +95 +35 +51 25 29 28 B7Seeing demand from giants such as Microsoft, Alphabet and Amazon.
2 Facebook Inc Cl A 179.4 99 99 74 +67 +77 +60 +47 19 45 2 B7Social network enters enterprise software market with Workplace.
3 Align Technology 258.4 99 97 97 +57 +60 +63 +38 20 22 2 CTeens, overseas markets give teeth realignment expert opportunities.
4 PayPal Holdings 80.54 99 96 94 +24 +31 +24 +21 12 20 6 BFormer eBay subsidiary a top player in e-payment business.
5 Charles Schwab 55.39 99 96 88 +24 +24 +17 +16 12 38 12 BDiscount brokerage cuts commissions and shakes up industry.
6 United Rentals 180.9 99 94 93 +20 +26 +22 +17 48 19 1 CCompany tends to benefit when construction activity heats up.
7 Alphabet Inc 1130.7 99 94 81 +16 +32 +32 +24 15 26 1 BAlphabet represents a restructuring of firm formerly known as Google.
8 Dollar Tree 114.8 99 92 92 +31 +40 +35 +6 18 6 3 CDiscount chain sets new store concepts, new markets.
9 Square Inc Cl A 41.25 99 81 98 +550 +600 +40 +33 2 .. 4 B7Payment processor recently expanded into the United Kingdom.
10 Salesforce.com 110.2 98 98 84 +32 +63 +18 +25 11 12 6 BDemand for cloud-based applications driving growth.
11 Red Hat Inc 126.0 98 96 87 +26 +20 +33 +22 32 23 1 BMakes open-source Linux operating systems, a trend in business.
12 CBRE Group Inc 44.89 98 96 84 +15 +28 +1 +11 27 9 1 CGeographic diversification protects against local real estate cycles.
13 Adobe Systems 195.1 98 95 92 +29 +40 +35 +25 21 32 1 BForms partnership with Microsoft on cloud computing.
14 FleetCor Tech 203.3 98 94 89 +22 +14 +23 +19 22 50 5 B7Wal-Mart will accept its payment cards at fueling stations.
15 Marriott Intl 139.8 98 93 91 +18 +21 +18 +44 99 9 11 BAt year-end, development pipeline increased to more than 420,000 rooms
16 Mastercard Inc 162.3 98 93 86 +24 +24 +30 +18 69 53 3 BCompany sees growth in transactions as consumer health improves.
17 Ross Stores Inc 83.58 98 91 89 +16 +16 +19 +8 42 13 2 BDeep discounter has 1,274 stores in 34 states, D.C. and Guam.
18 BlackRock 555.5 98 88 87 +21 +21 +19 +20 11 40 2 BRetirement trends, strong ETF business driving growth.
19 Parker-Hannifin 210.0 98 87 86 +18 +39 +7 +23 22 12 3 CRevenue segments include diversified industrial and aerospace.
20 TD Ameritrade 54.50 98 84 82 +44 +29 +22 +19 15 40 0 BTrading activity rising; firm is diversifying to other products.
Stocks Ex-Dividend for Jan. 17, 2018Company AmountAdient Plc ................................................................ 0.275Apollo Senior Fltng Rate ......................................... 0.090Apollo Tactical Inc Fund ......................................... 0.100Compass Diversified Hldg ...................................... 0.360Credit Suisse Hi Yld Bd ............................................ 0.066Doubleline Incm Solution ....................................... 0.150Doubleline Oppt Credit ........................................... 0.167Dreyfus Muni Bd Infra Fd ........................................ 0.106Fairfax Finl Holdings ............................................. 10.000Mexico Fund ........................................................... 0.130P N M Resources Inc ................................................ 0.265Pennantpark Flting Rt Cp ....................................... 0.095Pioneer Divers Hi Inc Tr ........................................... 0.285Pioneer Muni Hi Incm Adv ....................................... 0.053Pioneer Muni Hi Incm Tr ......................................... 0.158Solar Senior Capital Ltd .......................................... 0.118West Pharmaceutical Svcs .................................... 0.140
Dividends Record Payment Period Amt. DateDate
INCREASED NewAlly Financial Inc .............. Q .13 1-31 2-15
Blackrock Inc ................... Q 2.88 3-6 3-22
Enterprise Prd Prtr ........... Q .425 1-30 2-7
REGULARBassett Furniture ............. Q .11 2-8 2-23
Colgate Palmolive ........... Q .40 1-22 2-15
Education Rlty Tr ............. Q .39 1-30 2-15
Keycorp ............................. Q .105 2-26 3-15
Lennar Corp ...................... Q .04 1-25 2-9
G - payable in Canadian funds; Q - Quarterly;A - Annually; S - Semiannually; M - Monthly;U - Pay undetermined; I - Initial; Y - Year-end.
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I N S I D E B I G C A P 2 0
B18 WEEK OF JANUARY 15, 2018 INVESTORS.COM
