This week we look at five US stocks which combine both momentum, and some excellent financial metrics. I've based my analysis on US and Canadian stocks which could stand to benefit from either macroeconomic or geopolitical forces currently at play, and especially where recent selling activity has pushed shares down into the high value level.
Some of these stocks have broken what looked like impressive momentum trends, but the overall fundamentals look sound and the market has probably over-sold them, especially with many traders away from their desks in August.
#1. Evolution Petroleum
We are starting our review with Evolution Petroleum [NYSE:EPM], a $281m NYSE-listed energy play which is rated 99/100 in terms of value by our data partners BridgeWise. Evolution also measures up extremely well against sector peers. The stock has risen from $6 in May to trade at around $8.6 at the close of the US markets yesterday (Monday). It has also just been added to the Russell 2500 Growth Index, which can't hurt. Evolution Petroleum currently holds interests in a CO2 enhanced oil recovery project in Louisiana's Delta field. It also holds interests in other fields, including the 123,000 acre Barnett Shale field in Texas.
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#2. Opendoor Technologies
Tech company Opendoor Technologies [NASDAQ:OPEN] saw its stock sell off sharply this month, bringing it back into value territory at $3.50 a share. Stock was trading at about $1.20 back in May, so investors have already seen some racy upside from the company this summer. There could be more to come given that shares were trading at $5.10 before the sell off. Opendoor Technologies is an e-commerce platform for real estate transactions in the US market. It actually buys and sells homes itself, so owns housing stock, unlike intermediary platforms. Consequently it has total assets of more than $4bn, which is hefty for a tech company of this size.
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