Categories: Alpha Algorithm HotlinesStock Market News

Revisiting a Previous Double-Digit Percentage Gainer

This week’s Alpha Algorithm revisits your very first recommendation, made back on Feb. 25.

As a reminder, you were stopped out of Constellation Brands Inc. (STZ) on May 31 at $152.75 for a 10.41% gain.

Your STZ July $140 calls gained an average of 83.52% over that three-month period.

Victor, New York-based Constellation Brands, Inc. (STZ) has been long known for its wine business. It also became the third-largest brewer in the United States when it acquired the rights to Corona, Modelo Especial and other Mexican beers from AB InBev (BUD) in 2013.

Constellation Brands (STZ) vs. the S&P 500 Year to Date

Seven Top Investment Strategies Betting on Constellation Brands, Inc. (STZ).

1. 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 historically has driven a significant part of those companies’ risk and return.

2. Hedge Fund Alpha

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

3. Hedge Fund Gurus

The company is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

4. Momentum Model

The stock is among the top approximately 100 U.S.-listed companies to demonstrate powerful relative strength characteristics when compared to the 3,000 largest U.S.-listed companies.

5. Value Line Model

The stock is among the top 100 stocks, from a universe of 1,700 stocks, to which Value Line gives a #1 ranking in its Timeliness Ranking System.

6. 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.

7. IBD Top Fifty

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.

Recommendation

Buy Constellation Brands, Inc. (STZ) at market today.

Place your stop at $148.00.

Options

With the overall market overbought, I am holding off on making an option recommendation this week.

Portfolio Update

You were stopped out of AT&T Inc. (T) on July 7 for a 10.02% 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.