Sell: Abercrombie & Fitch (ANF)
I recently reported on a big third-quarter earnings surprise at fashion clothing retailer Abercrombie & Fitch (ANF). The stock reacted with a huge run-up.
ANF is up 21% since joining the Growth & Income Portfolio three weeks ago. Now that we have had big changes in EPS, P/E and share price, the stock is no longer an undervalued bargain. Therefore, I’m selling the stock from the portfolio today.
I’d like to reiterate that there’s nothing wrong with ANF. Buy-and-hold investors still own a growth stock with a big dividend. If you rarely sell stocks out of your portfolio, then by all means, hold onto ANF.
It’s entirely likely that I’ll put a buy rating on ANF again, if the price falls back down to 22. Stay tuned!
Congratulations on a big short-term gain! Let’s keep that money moving by investing in a more undervalued stock.
Buy: Federated Investors (FII)
Today I’m adding Federated Investors (FII) to the Growth & Income Portfolio. Federated Investors is a global asset manager, set to benefit from rising interest rates. The company is projected to attain double-digit increases in earnings per share in 2015 through 2017, and the dividend yield is 3.2%.
Try to buy FII below 32 this week, before it continues climbing toward upside price resistance at 34.50.
You can read more about the company in the December issue of Smart Investing in Turbulent Times, which will arrive in your inbox tomorrow!