Categories: Alpha Algorithm HotlinesStock Market News

Another Seven-Strategy Star Generated by the Alpha Algorithm

The market continued its winning ways this past week, and the Alpha Algorithm has generated yet another seven-strategy stock.

Founded in 1940 and based in Oak Brook, Illinois, McDonald’s Corporation (MCD) operates and franchises McDonald’s restaurants across the globe. At the close of 2015, it operated 36,525 restaurants, including 30,081 franchised restaurants and 6,444 company-operated restaurants.

McDonald’s versus S&P 500

Seven Top Investment Strategies Betting on McDonald’s Corp. (MCD)

1. Insider Buying

MCD is among the U.S. stocks that corporate officers, directors and shareholders who own more than 5% of each company’s stock are accumulating.

2. Insider and Analyst Sentiment

One of 100 top stocks out of 5,000 U.S stocks where corporate insiders (a director or senior officer of a company, or any person or entity that owns more than 10% of the company’s stock) is buying the stock and Wall Street analysts have recently increased earnings estimates.

3. Fundamental Strength

A top U.S. stock is based on fundamentals measured by book value, cash flow and sales dividends.

4. Large Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

5. Dividend Aristocrat

The stock is among those that have increased dividends for at least consecutive 25 years.

6. Hedge Fund Alpha

Based on publicly available disclosures, successful hedge fund managers are investing in the stock.

7. High Quality Stock

The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.

Recommendation

Buy McDonald’s Corp. (MCD) at market today.

Place your initial stop at $113.00

Options

With the stock technically overbought over the short term, I am holding off on recommending options this week.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.