Tired of sifting through housing reports and consumer indices? Here's a different figure that should catch your eye - $19.7 billion - the amount that flowed into US equity markets this week.
According to Quartz, this has been the largest weekly inflow to the market since 2008, and it comes alongside evidence that money is also being pulled out of US bond markets.
Why does this matter? It's a sign that investors across the board have greater confidence in the US exchanges, and no longer see the less-risky bond market at the best place to keep their money. But as Quartz points out, "when smaller investors start buying, that signals a rally is approaching its final run."
US stocks have repeatedly hit new highs as of late, so investors should consider whether the changing flow of cash from bonds to stocks is a sign of volatility to come. If the market experiences dramatic changes in the next few weeks, there are some steps investors can take to prepare.
In the second half of 2011, stock markets across the globe saw significant declines largely due to concerns about the European sovereign debt crisis and slow growth in the US. At the time, we ran a screen to find companies that outperform during market downturns.
Looking at declines in the market over three different time periods, we sought out strong buying ideas based on "alpha" - returns in excess of the S&P 500 benchmark. We coupled those results with stocks that were experiencing significant levels of insider buying, a sign of bullishness from company insiders.
Today we decided to look at the original results from that search - eight stocks - and see how they're faring today. We examined their balance sheets and found three with encouraging inventory turnover trends.
Positive trends in inventory, namely stocks with growth in quarterly revenue greater than growth in quarterly inventory, may indicate that a company is selling its inventory more readily than in the past. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.
Click on the image below to see analyst ratings. Average analyst ratings sourced from Zacks Investment Research.
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Do you think these companies are still worthwhile investments? Use this list as a starting point for your own analysis.
1. Superior Uniform Group Inc. (SGC, Earnings, Analysts, Financials): Manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories in the United States. Market cap at $66.17M, most recent closing price at $10.81.
Revenue grew by 8.66% during the most recent quarter ($30.98M vs. $28.51M y/y). Inventory grew by -2.62% during the same time period ($39.34M vs. $40.4M y/y). Inventory, as a percentage of current assets, decreased from 61.92% to 59.49% during the most recent quarter (comparing 3 months ending 2013-03-31 to 3 months ending 2012-03-31).
2. Star Gas Partners, L.P. (SGU, Earnings, Analysts, Financials): Operates as a home heating oil distributor and services provider in the United States. Market cap at $299.19M, most recent closing price at $5.0.
Revenue grew by 24.71% during the most recent quarter ($785.14M vs. $629.59M y/y). Inventory grew by -7.92% during the same time period ($41.72M vs. $45.31M y/y). Inventory, as a percentage of current assets, decreased from 14.39% to 10.97% during the most recent quarter (comparing 3 months ending 2013-03-31 to 3 months ending 2012-03-31).
3. ClearOne Communications Inc. (CLRO, Earnings, Analysts, Financials): Operates as a communications solutions company that develops and sells audio conferencing, collaboration, streaming media, and connectivity systems and other related products for audio, video, and Web applications. Market cap at $75.05M, most recent closing price at $8.20.
Revenue grew by 11.23% during the most recent quarter ($11.29M vs. $10.15M y/y). Inventory grew by -19.83% during the same time period ($11.6M vs. $14.47M y/y). Inventory, as a percentage of current assets, decreased from 39.09% to 17.3% during the most recent quarter (comparing 3 months ending 2013-03-31 to 3 months ending 2012-03-31).
(List compiled by Emily Smykal. Accounting data sourced from Google Finance. All other data sourced from Finviz.)
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad: Simply click on the links, and use Kapitall's tab navigation to browse through the data...
Analyze These Ideas: Getting StartedRead descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, FilingsSuperior Uniform Group Inc. (SGC, Chart, Download SEC Filings) Star Gas Partners, L.P. (SGU, Chart, Download SEC Filings) ClearOne Communications Inc. (CLRO, Chart, Download SEC Filings)
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