the Hormuz Top 5

[mrmarket]

Here are my 5 favorite picks from the most recent data dump...which one do you like, and why?:

AGX BLX DOCN EIX OPY

[antioch6]

I like EIX. Utilities never let anyone down did they? The earnings are also very stable. The p/e is lower. AGX and DOCN seem more of a bet that the price momentum will continue so that is less based on business conditions, and OPY has unstable earnings, which could give back in a stock market downturn.

[BlueWolf]

Here are my thoughts for what they’re worth:

AGX: Good revenue and earnings growth over the last two years. Solid record of beating on earnings. Chart is a little whipsawed, especially after it gapped up from $400s. Multiples are a little high. Priced as it is right now, especially after that big gap up, I fear that any negative news that hits the market is going to roll this over hard.

BLX: Very choppy revenue stream, although good earnings growth. Choppy cash flow too. Solid record of beating on earnings. Bullish chart. Multiples look mostly OK, but price-to-sales getting a little high.

DOCN: Solid revenue growth over last few years with a turn to profitability in 2023. Capital expenditures still have them burning cash, though. Consistent beater on earnings. Multiples headed in right direction, but the interesting things is that most analysts have this as overvalued. The chart is sort of basing at its recent high, but has it been basing there too long? Because of valuation concerns, this one could roll over hard if bad news hits the markets.

EIX: Great revenue and earnings growth over last five years with blowup in 2025. Heavy capital expenditures have them burning a little cash. Mostly beating on earnings with a few misses sprinkled in. Multiples look good. I like the daily chart a lot as it looks like it is just breaking out from a little cup and handle, but on longer term charts, stock hasn’t really been able to get any traction, probably because of all the controversy and litigation. I really like this setup, but to be honest, the company’s reputation gives me a little pause.

OPY: Decent revenue and excellent earnings growth over last couple of years with a little slow down maybe looming for current fiscal year. Modest positive cash flow. Mostly beats on earnings with a few misses sprinkled in. Excellent multiples. Bullish chart characterized by recent gap up. It would have been a great time to buy when this was in the 90’s as it formed that little cup and handle. Despite the gap up and overbought indicators, the valuation tells me this can go higher still.

I’m a little torn here, probably because I’m tired of getting whipped around by the market like someone hanging on to the end of a fire hose. With some trepidation because these guys like walking into disasters, I like EIX the best. After that, I’d probably go with OPY.