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Chart of the Day: Farmer Mac Has a Farm - EIEIO
The Chart of the Day belongs to agricultural loan agency Federal Agricultural Mortgage Corp (AGM) I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 7/14 the stock gained 11.30%.
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy segments. The company's Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 52.70+ Weighted Alpha
- 53.04% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 20 new highs and up 19.49 in the last month
- Relative Strength Index 82.87%
- Technical support level at $160.75
- Recently traded at $166.92 with 50 day moving average of $148.68
Fundamental Factors:
- Market Cap $1.80 billion
- P/E 13.14
- Dividend yield 2.65%
- Revenue predicted to grow 7.70% next year
- Earnings expected to increase 16.60% this year, an additional 8.00% next year and continue to compound at an annual rate of 11.00% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 2 strong buy opinions on the stock
- Analysts gave price targets of $172 to $178 - a consensus pf $175 for another 5% gain
- The individual investors following the stock on Motley Fool voted 66 to 18 for the stock to beat the market with their most experienced investors voting 7 to 3 for the same result
- Value Line gives the stock its an above average rating of 2
- CFRAs MarketScope rates it a buy
- 4,520 investors monitor the stock on Seeking Alpha
Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
