What Financial Jitters? I'm Buying Lifelock

NEW YORK (TheStreet) -- When I look at my individual holdings I get no jitters at all. I own about 100 different stocks spread out among four different portfolios. I also continue to find some great stocks using my Best Stocks Now app. Once my interest is piqued I check the stock chart to determine buy and sell points.

Well I just found another small-cap, U.S.-based stock out of the financial sector I like and added it to my aggressive growth accounts recently. The stock is Lifelock (LOCK), headquartered in Tempe, Ariz.

Data from Best Stocks Now App

Lifelock is a company that we didn't need 10, maybe not even five years ago. But today it makes sense. LOCK provides proactive identity theft protection services for consumers and identity theft risk assessment as well as fraud protection.

The company went public in 2012 at $9 per share and today it's trading at $19. With current events in the world such as the Target (TGT) breach, this stock has the potential to go much further.

Performance

Data from Best Stocks Now App

LOCK's performance has been tremendous so far. Over the past 12 months Lifelock has returned106% to investors. It has the potential to go even higher as the stock just broke out again to new all-time highs.

Lifelock passes my performance test and gets a momentum grade 'A'.

Valuation

When I project out LOCK's earning growth over the next five years, and then apply a multiple that I think is appropriate, I come up with a five-year target price of around $35 per share.

Data from Best Stocks Now App

As a reminder, the stock is currently trading at $19 and is up 16% for the year to date. LOCK has 87% upside potential. I like stocks with 80% upside potential or more. Lifelock not only passes my performance test, but my valuation test as well and earns a Gunderson Value Grade of 'B+'.

Stock Chart

My last test I require Best Stocks Now to pass is the stock chart test.

As I look at the chart of Lifelock, I see that it is in a very strong uptrend.

Data from Best Stocks Now App

In fact out of 3,795 stocks in my Best Stocks Now app database, LOCK comes in at #59. It is also a stock that I currently own at Gunderson Capital Mgt.

At the time of publication, the author held LOCK.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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