This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Growth Stocks Loved by Technical Analysts

BOSTON ( TheStreet) -- Hot gadget maker Apple (AAPL - Get Report) and filtration company Polycore (PPO) are favorite stocks of market strategist and technical analyst Gene Peroni Jr., who favors growth over value even as the economy is stuck in a rut.

Peroni, whose father pioneered the "Peroni Method" of selecting stocks using a technical perspective over 50 years ago, says he follows charts and valuation, as well as money flows and relative strength, to find stocks where there is sustainability of a trend.

"In times like these, we are ambushed daily by these headline news events. Technical analysis lets us get a clearer interpretation of the real market condition," says Peroni, who works for Conshohocken, Pa.-based Advisors Asset Management, a firm with $7.3 billion in client assets. "When the trends diverge from the daily headline news, it can be very exciting."

Peroni says the divergences he is witnessing now are bullish for stocks, and that the underlying tone of the equity market is improving relative to the volatility, which has been spurred by the growing debt crisis both domestically and in Europe and a weakening global economy. It seems not a day passes without some drama involving the potential of a Greek default or rescue, and that increased uncertainty has led to wild swings in equity prices.

"The market never likes uncertainty and it's faced with plenty of uncertainty now," Peroni says. "Through it all, the market's internal behavior is improving even in the thick of the very unstable events globally. I think we're closing in on some sort of a bottom here. So much of the bad news is on the table and, to some degree, digested by the market."

While large-cap, dividend-paying stocks have been the defensive go-to for investors hungry for yield and looking for protection, Peroni says there has been a migration from the perceived safety plays from large-caps to quality mid-cap stocks, many of which offer more earnings growth leverage.

"The biggest trend we're seeing is that growth is winning out substantially over value," he says. "That is very encouraging. This market is much more balanced in terms of its leadership. It's uniquely broad-based. This market continues to be populated by different and diverse sectors."

As proof, Peroni points out that a defensive consumer-staple stock like Colgate-Palmolive (CL) is making new record highs at the same time a rocket stock like fertilizer company CF Industries (CF) is also reaching all-time highs.

"It's a very exciting environment, and it's one where many investors remain largely absent," Peroni says. "Investors might be doing themselves a disservice by not regarding growth as part of their overall equity allocation."

Peroni offers up several growth stocks he has come across using the methodology his father pioneered more than half a century ago. Peroni says these stocks are in portfolios of his clients and have both short-term appeal based on technical factors but also have good long-term potential.

"These are stocks that we feel strongly about not for a trade but to hold for the long haul," he says. The following pages detail five stocks Peroni is currently favoring in this market environment.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PPO $0.00 0.00%
AAPL $93.99 0.00%
AMZN $507.08 0.00%
CRR $15.30 0.00%
HLF $44.64 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs