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The Alpha Algorithm Targets a Medical Device Manufacturing Giant

Founded under its current name in 2000 and headquartered in Irvine, California, Edwards Lifesciences Corp. (EW) is a medical device company that provides products and technologies to treat structural heart disease and critically ill patients worldwide. The company distributes its products through direct sales force and independent distributors.

Edwards Lifesciences Corp. (EW) versus the S&P 500 (YTD)

Six Top Investment Strategies Betting on Edwards Lifesciences Corp. (EW)

Momentum Factor

The stock is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.

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.

IBD Top Fifty

It is a Top 50 stock based on Investor’s Business Daily’s proprietary trading formula to identify 50 stocks that meet one of seven different catalysts. The “CAN SLIM” strategy identifies companies with either fundamental (improving earnings, new product) or technical (upward stock move on strong volume) catalysts.

High Quality Stock

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

Insider and Analyst Sentiment

It is one of 100 top stocks out of 5,000 U.S. stocks where a corporate insider (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 recently have increased earnings estimates.

Large-Cap Growth and Value

Using a proprietary ranking based on separate models for growth and value, this is a large-cap stock that is part of an index that has historically outperformed its market-cap-weighted benchmark.

Recommendation

Buy Edwards Lifesciences Corp. (EW) at market today, and place your stop at $104.50.

I am holding off on recommending options on this position until the next market pullback.

Portfolio Update

You were stopped out of your position in Johnson & Johnson (JNJ) last week for a 10.7% gain.

Your position in CDK Global, Inc. (CDK) has dropped below the minimum of five Alpha Algorithm strategies in which it must be included in order to remain in the portfolio. Therefore, I am recommending that you close your position today for a 5.68% gain.

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.