One of the best indicators for investors is the marriage of good fundamentals and support from a solid technical chart. One of the best technical indicators is when a stock breaks out on a 90-day chart for price and volume. A new research report from Merrill Lynch includes a large list of stocks rated Buy that hit that technical criteria.
We screened the Merrill Lynch list of Buy-rated stocks with a 90-day price and volume breakout for those that make sense now as the market seems to be hitting a wall. We avoided momentum stocks simply because, if the market rolls over and sells off, they will be the first to go regardless of technicals and fundamentals. We chose the three stocks with the best volatility rating from Merrill Lynch.
This company always has a big audience as it is one of the top spirits distillers and bottlers in the United States. Brown-Forman Corp. (NYSE: BF-B) manufactures, bottles, imports, exports, markets and sells various alcoholic beverages worldwide. It provides spirits, wines, ready-to-drink cocktails and liqueurs. The company offers its products primarily under the Jack Daniel’s, Gentleman Jack, Finlandia, Southern Comfort, Korbel, el Jimador, Woodford Reserve, Canadian Mist, Herradura, Sonoma-Cutrer, Early Times, Chambord, Pepe Lopez, Antiguo, Old Forester, Tuaca, Collingwood and Santa Dose labels.
The stock broke out in June after putting in a long base and combined with outstanding earnings and growth prospects. It remains a good holding for long-term growth stock buyers.
Brown-Forman investors are paid a small 1.16% dividend. The Merrill Lynch price target for the stock is $110, though the Thomson/First Call consensus target was not posted. The stock closed on Tuesday at $109.51.