• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

These 'Stressed Out' Stocks Show Long-Term Potential

Three 'Stressed Out' stocks show more technical staying power and profit potential.
By BRUCE KAMICH
Mar 08, 2016 | 11:57 AM EST
Stocks quotes in this article: AVP, FCX, TMST

The talented team at TheStreet's Real Money produced a list of 20 "Stressed Out" names comprised of companies with high debt. These stocks have rebounded smartly in recent weeks.

I used this list as a jumping off point to see if any of the names had more technical staying power and profit potential from here. Here are three names that made the cut.

Avon Products (AVP) has been bottoming since September. AVP has been trading above the flat 50-day moving average and has rallied to retest the 200-day average. The On-Balance-Volume (OBV) line has been going up since November, telling us that AVP buyers have been more aggressive.

The Moving Average Convergence Divergence (MACD) oscillator is rising smartly above the zero line for a strong buy signal. Put all these positives together, and AVP should be able to rally into the $6 to $7 area in the next few months.

Freeport-McMoRan (FCX) has had plenty of media attention. In this chart of FCX, above, we can see that prices made a lower low in January, but the OBV line made a bottom in August. The OBV line recently made a new high for the move up, and this could be leading the price action.

FCX is above the rising 50-day moving average and has been testing the 200-day average. The rising MACD oscillator is very bullish. FCX could extend its advance into the $15 to $20 area in the weeks ahead, if some temporary dollar weakness translates in some further strength into copper prices.  

TimkenSteel (TMST) is our last candidate. In the chart above, one can see the price low in January and the subsequent recovery. Prices moved up and the OBV line moved up in tandem confirming the strength.

Prices are back above the 50-day moving average and the slope of this average is pointed up. The MACD oscillator is back above the zero line for a buy signal. TMST could extend its gains into the $15 to $20 area in the next couple of months.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

TAGS: Investing | U.S. Equity

More from Investing

I'm Going to Let the Air Out of a Fundamental Rating of Air Products

Bruce Kamich
May 25, 2022 3:30 PM EDT

APD got a "Buy" recommendation, but my analysis doesn't jibe.

As Pioneer Natural Resources Blazes a Trail Higher, We Have New Price Targets

Bruce Kamich
May 25, 2022 2:50 PM EDT

Here's our updated bullish strategy on PXD.

Home Depot's Charts Are Building Out Nicely

Bruce Kamich
May 25, 2022 1:24 PM EDT

Investors can measure out their long positions at these levels.

Sell the Rumor and Buy the News on Dick's Sporting Goods

Bruce Kamich
May 25, 2022 12:24 PM EDT

Wednesday's down to up move makes trading decisions more complex.

Toll Brothers: We're Going to Need a Bigger Base

Bruce Kamich
May 25, 2022 11:36 AM EDT

The homebuilder's charts need more base building for me to get more constructive.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login