Yahoo Finance Big Money Likes Continental Resources
And the energy exploration firm could increase even more due to strong performance and a recent “take private” bid. But another likely reason is Big Money lifting the stock.
Continental Resources Attracting Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Continental Resources has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CLR has made the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
In the last year, the stock attracted 18 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
1-month outperformance vs. Energy Select Sector SPDR ETF (+17.5% vs. XLE)
Outperformance is important for leading stocks.
Continental Resources Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Continental Resources has been growing sales well and is profitable. Take a look:
1-year sales growth rate (+124.8%)
3-year sales growth rate (+26.1%)
Profit margin (+28.4%)
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, CLR has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CLR has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 39 times since 2007, with its first appearance on 12/31/2007…and gaining 416.3% since. The blue bars below show when Continental Resources was a top pick:
Source: www.mapsignals.com
It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CLR makes additional appearances in the years to come. Let’s tie this all together.
Continental Resources Price Prediction
The Continental Resources rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a current dividend of more than 1.6%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in CLR at the time of publication.
Learn more about the MAPsignals process here.
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This article was originally posted on FX Empire
