Sell Alert: Benchmark Electronics (BHE) and Prudential Financial (PRU)
Big gains in the stock market during the past week have pushed some stock prices to unsustainable heights. Earlier today, I issued sell advisories for Knight Transportation and Harman International. During the past hour or so, two more Cabot Benjamin Graham Value Investor stocks have attained their Min Sell Prices and should be sold.
Benchmark Electronics (BHE 27.25) reached its Minimum Sell Price of 27.27 today. Sales and earnings growth have been lackluster during the past several quarters, but BHE has gained 31.9% year to date. The recent surge in BHE provides an excellent opportunity to take profits.
Benchmark Electronics was first recommended in January 2015 at 24.90. The company was featured in the Cabot Enterprising Model using the Classic Value Analysis. BHE has advanced 9.5% in the past 22 months compared to a gain of 7.2% for the Standard & Poor’s 500 Index during the same time period. SELL.
Prudential Financial (PRU 99.31) reached its Minimum Sell Price of 99.71 today. Sales and earnings have begun to improve, but PRU has climbed 21.8% year to date and is now overvalued.
Prudential was first recommended in November 2010 at 54.90. The company was featured in the Cabot Enterprising Model using the Classic Value Analysis. PRU has increased 81.6% during the past six years compared to a gain of 77.0% for the Standard & Poor’s 500 Index during the same time period. SELL.