March Madness is upon us and we are excited about these 5 stocks which have been up every March for the last 10 years. CressCap’s RoboResearch models show the very best seasonal trends in the stocks with the strongest fundamentals. We use a multi-factor model to select the best-performing stocks based on their performance in core fundamental metrics of growth, profitability, value, momentum and strong EPS revisions. From there we can apply our seasonality analysis tool to identify stocks which have been consistently up in the same month over the last 10 years. While these stocks have varying fundamental grades, they have all generated positive gains every March for the last 10 years. Taking advantage of seasonal patterns is a great way to generate a little extra alpha. Based on this investment concept, investors or traders will need to be prepared to sell at the end of the month. Seasonal trends could offer a great opportunity to capture additional upside.
Entegris Seasonal Pattern
Entegris, Inc. (ENTG-US)-IT
Entegris manufactures and supplies critical materials for the semiconductor, data storage, and pharmaceutical industries. The stock is not only a seasonal recommendation in our system, following its 10-year track record of going up in March, but a CressCap buy recommendation as well. Overall, analysts have been revising estimates up for ENTG. One of the trends we emphasize is the strong sector relative EPS revisions, which our system grades A+ and A for FY1 and FY2, respectively. These positive revisions are likely due to the record fourth-quarter revenue of $350.6 million, a 14% gain from the prior year. The company’s growth, along with its solid momentum grades, has led us to believe Entegris will continue its upward trend. The seasonal pattern presents a unique window of opportunity to purchase shares with a track record of trading up.
Plantronics is a Perennial Bloomer Each March
Plantronics, Inc. (PLT-US)-IT
Plantronics is a producer of lightweight headsets and is focused on innovation and catering to the needs of the consumer. This business model has worked out particularly well for the company during March, finishing up in the month for the past 10 years. We think positive March trends could continue on the back of A+ graded EPS revisions from sell-side investment analysts. The company just reported 3rd quarter non-GAAP diluted EPS was $1.02 compared with $0.79 in the 3rd quarter of 2017. Prior to the release of these results, the company was giving a guidance range of $0.75 to $0.85. What’s more, Plantronics is somewhat undervalued relative to the sector, graded an A- for 1yr PEG ratio. If Plantronics looks appealing based on fundamentals, picking up the stock prior to March could be beneficial.
Sempra Powers Up Every March
Sempra Energy (SRE-US)-Utilities
Sempra is an energy holdings company which provides power to around 32 million people. The company is a producer of public utilities which power homes and businesses in Southern California, Chile and Peru. They are preparing to thrive in the age of sustainable energy as they have already moved 50% of their production capacity to wind, solar, and hydroelectric sources. Their A+ grade for growth and B+ for profitability are reflective of strong historical cash flow growth rates and high returns on equity. The 10-year stock price return for March has been an average increase of 2.87% and a 100% rate of being up in the month. Over the last 10 years, February through April have been positive months for stock price, with March representing the month of greatest growth.
March Marks Its Spot On Woodmark – 11 Years In A Row
American Woodmark Corporation (AMWD-US)-Industrials
American Woodmark Corporation has an overall CressCap grade of B+ relative to the industry and the sector. A number of the financial metrics for EPS and revenue growth hold strong grades of B+ and better. CressCap’s value grade of D exhibits that the stock is expensive on a number of valuation metrics, but it does have a B grade on EV/EBIT. Usually, the valuation grades would raise some red flags, making us question if the stock is overpriced. However, AMWD also touts a 10-year track record of positive price movement in March, convincing us that there is some room for it to move up in the next few weeks. The mid and long-term momentum are graded A+ relative to the sector.
March is a Medical Miracle for ICU
ICU Medical, Inc. (ICUI-US)-Healthcare
ICU Medical is listed with no recommendation based on CressCap’s analysis, however, it has a 100% rate of moving up in March over the past 10 years, meaning it may be an out-of-the-box opportunity. CressCap’s buy recommendations are based on a number of factors which are all independently calculated and weighted, therefore if a stock has no recommendation it does not mean that it is weak necessarily. In the case of ICU, the 5 core metrics all possess grades of B- or better, indicating that the company possesses strong fundamentals across all core metrics. The A- grades for return on capital and return on investment indicate the company is quite profitable and the 2yr forward sales growth rate grade is an A. ICU has been historically weak during January and February, setting the stock up for a good lift off over the next few months.
