When a stock is rallying, that is to say that the price is now higher than its 20, 50 and 200-day moving averages, current and potential investors have one question: Does the stock have more upside to price in?
There's no easy answer to this, but there are clues we can take to guide our analysis. One indication of sentiment comes from short seller data. [More Lists: 4 Stocks Undervalued by to Target Price with Short Covering]
BUILDING THE LIST
To create the list below we created a stock universe of consumer good companies offering dividends and trading above their 20, 50 and 200 day moving average (MA). Investors will question if the momentum behind these stocks is burning out, or if it has more upside to price in.For ideas, we screened the universe for bullish sentiment from short sellers, with significant short covering activity month over month. This suggests more upside is expected. So what of you think is in store for the 10 stocks that made our list? Use this as a starting point for your own analysis. Interactive tools: Press play to see changes in the dividend yield over the past two years. Click through to access more free tools and data on the companies listed.
1. American Greetings Corp. (AM): Engages in the design, manufacture, and sale of greeting cards and other social expression products worldwide. Market cap at $573.95M, most recent closing price at $18.14. Dividend yield at 3.31%. The stocks is currently rallying 9.76% above its 20-day MA, 11.56% above its 50-day MA and 16.84% above its 200-day MA. Shares shorted have decreased from 11.24M to 10.49M over the last month, a decrease which represents about 2.57% of the company's float of 29.21M shares. Days to cover ratio at 19.24 days.
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