Crista Huff

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis. 

Stock number one is: 

Dow Jones Utility Average, (SYMBOL: DJU) and the headline says:


As interest rates head higher, utility stocks will have increased competition as investors may soon be choosing bond yields over utility stock dividends.  S&P comments, “we do not believe the [utility] sector's above average valuation is justified by its negative 2013 EPS outlook.”

The utility sector, as represented by the Dow Jones Utility Average, had an 18% run-up year-to-date.  It then lost almost its entire year-to-date gains in the last four weeks.

The chart is bearish, and unlikely to recover in sync with the broader stock market.

Our Ransom Note trendline says:  STAY ON THE SIDELINES.

^DJU Chart

^DJU data by YCharts

Stock number two is: 

CarMax Inc., (SYMBOL: KMX) and the headline says:

CarMax First Quarter Results Top Estimates – RTT News

Used car retailer CarMax Inc. reported first quarter earnings of 64 cents, surpassing Wall Street’s estimate of 58 cents.  The company also beat expectations on revenue, operating income and margins, continuing a long-term corporate growth trend.

CarMax is expected to increase earnings per share 11-13% per year for the next three years.  The PE of 21.6 is high, within a normal range of 11 to 22; and the long-term debt ratio is high at 64%.

The stock ran up 36% since breaking past resistance levels in late December, and is now experiencing a pullback.

Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
TOWNHALL DAILY: Be the first to read Crista Huff's column. Sign up today and receive daily lineup delivered each morning to your inbox. Release of Liability: Through use of this website viewing or using you agree to hold and its employees harmless and to completely release and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do. Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.

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