New High List Spare As Market Dives

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Wed, Jul 09 2014 00:00:00 E
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By KEN HOOVER, INVESTOR’S BUSINESS DAILY

The new-high list was thin Tuesday because of the market’s sharp sell-off, but a few stocks managed to make the list.

Two Argentine banks, Grupo Financiero Galicia (NASDAQ:GGAL) and BBVA Banco Frances (NYSE:BFR), were among them. Galicia gained 0.29 to close at 15.71 while Banco Frances was up 0.09 to 12.59. Argentina is trying to settle legal liabilities arising from its 2001-02 default on $100 billion in debt.

Banco Frances has two quarters of outstanding earnings growth, up 139% and 157%. Analysts expect a 63% EPS increase in the next report. The five-year annualized EPS growth rate is 22%. Analysts forecast 3% growth in 2014 and a 12% decline in 2015.

Galicia is extended from a base, but has found support at its 50-day moving average. It grew 70% in the most recent quarter, but analysts expect a 4% decline in the next report. The five-year annualized growth rate is 55%.

Chicken producer Pilgrim’s Pride (NASDAQ:PPC) might be an example of a defensive stock making a new high in a risky market.

Food producers, consumer staples and tobacco are examples of defensive names. They are less likely to be hurt in an economic downturn.

Pilgrim’s Pride gained 0.55 to close at 29.50. The Food-Meat Products industry group is ranked No. 2 out of 197 groups tracked by IBD. Last week, Tyson Foods (NYSE:TSN) reached a deal to merge with Hillshire Brands (NYSE:HSH), which may have helped the group.

Cameron International (NYSE:CAM), which makes equipment for oil and gas exploration, also hit a new high during the day. Shares rose 0.57 to close at 68.88.

EPS has grown 5% and 8% over the past two quarters and is forecast to grow 10% in the next report. The five-year annualized growth rate is 8%. Analysts are forecasting 20% growth this year and 25% next year.

Energy-related companies have been strong performers this year, and ConocoPhilips (NYSE:COP) was another stock that hit a new high Tuesday. But it pulled back from it by the close. It was down 0.06 to 86.04.

The major exploration and production company increased its EPS in the most recent quarter by 27%. Analysts expect a 12% increase in the next report.

Click here to view the full list of 52-Week New Highs Lows.

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