These 2 Electronics Stocks Could Shine in November

Outperforming ROK and AME could continue to rise

Oct 25, 2017 at 1:38 PM
facebook X logo linkedin

Rockwell Automation (NYSE:ROK) and AMETEK, Inc. (NYSE:AME) both showed up on our list of best stocks to buy for November. These names fall under our Electronics sector, which, as a whole, has performed well over the past year. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, 70% of the stocks we cover in this group are trading above their 80-day moving average, with an average 52-week gain of 42.2%. Shares of ROK and AME both sport year-over-year gains even greater than that, but more upside could be coming.

Rockwell Automation Stock Seems Overdue for Upgrades

For instance, Rockwell Automation stock has added 57.3% during the past year, and just yesterday hit a record high of $189.91. The shares haven't traded below their 20-day moving average since Sept. 8, and this technical strength sent the security's 14-day Relative Strength Index (RSI) to 78 at last night's close, well into overbought territory. That could be why ROK stock is down 1% at $186.59 today.

As alluded to, though, November has been very good to the equity, so this pullback may not last long. The shares have ended the month higher eight of the past 10 years, with an average gain of 6.06%. Such a move would put the security near the $198 level.

Despite Rockwell's outperformance, analysts have remained bearish. In fact, only two of 14 covering brokerage firms say to buy the equity, and its average 12-month price target of $165.13 is a significant discount to current levels. It would seem like only a matter of time before some bullish analyst attention comes ROK's way, which should result in tailwinds.

AMETEK Stock Short Sellers Have Been Hitting the Bricks

As for AMETEK stock, it has added 51.7% over the past 12 months, and also hit a record high yesterday at $69.07. And with its 14-day RSI closing last night at 75, it's now pulling back, last seen 1.1% lower at $67.95. But the shares have closed higher in November eight of the last 10 years, and have averaged a 3.73% gain.

Short sellers are certainly getting out of the way. These bearish bets have been declining for months, including a 26.4% drop during the past two reporting periods. If this trend continues, it could help AME stock continue its ascent.

Looking ahead, the company is scheduled to report earnings ahead of the open next Thursday, Nov. 2. Still, near-term options don't seem overly expensive. For instance, AMETEK's Schaeffer's Volatility Index (SVI) of 19% is only 16 percentage points from an annual low. In other words, volatility expectations for short-term options contracts are unusually muted at the moment.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI