CHARLOTTE, N.C. ( TheStreet) -- I like growth stocks and so should you. The object of managing your own portfolio is to whittle down the 12,000 stocks you might invest in and find the dozen you need for your portfolio that fits all of your criteria and has the best chance to beat the market.
I think the medical appliance and equipment company Cyberonics (CYBX) is that kind of stock and I'll walk you through the reasons why.
First I like to see price momentum. If the market isn't responding to a stock, why should you? In the past month the stock has been up almost 8% as you can see in this hourly trading chart provided by
The recent momentum is there but how has the stock done against the rest of the market? During the past six months, the market as measured by the Value Line Index is up about 3% but CYBX is up 23%:
Cyberonics, a neuromodulation company, engages in the design, development, sale, and marketing of implantable medical devices that provide vagus nerve stimulation therapy for the treatment of refractory epilepsy and treatment-resistant depression. Its proprietary VNS therapy system consists of a generator to provide the stimulation to the vagus nerve; a lead that connects the generator to the vagus nerve; associated equipment to assist with implantation surgery; equipment to assist with setting the stimulation parameters particular to the patient; instruction manuals; and magnets to suspend or induce stimulation manually.
The company sells its products through a direct sales force in the U.S., as well as through a combination of direct sales representatives and independent distributors internationally. Cyberonics was founded in 1987 and is headquartered in Houston (according to a Yahoo Finance profile).Factors to consider: Barchart technical indicators:
Competition: The market is the best scorecard and I always like to invest in sector leaders by charting how the stock does against the rest of the competition. During the past year Medtronics (MDT) was down 4%, as was Covidien (COV). Baxter International (BAX) was down even further, by 13%, while Cyberonics soared 53%:
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