For my money, there are two methods of stock-picking that tend to work.
The first is chart-based. You want to find a stock that’s been lifted by a lot of institutional buying power.
The second is value-based. You want to find stocks that are cheap, and that will be higher months and years down the road.
The first system is especially suited for investors who are impatient.
If that’s you, maybe this chart appeals to you.
Note that Zillow (ZG) bottomed in early August, just as the broad marketing was keeling over, and the stock was fairly immune to the selling pressures that took most stocks down in September. That was a sign that institutions were moving in. The stock topped 35 last week, and buying it here might work out fine.
On the other hand, the stock could easily pull back to 30 in any short-term correction—so it’s a tricky situation. What I really recommend is that you become a regular reader of Cabot Top Ten Trader, which originally recommended the stock.
There you’ll not only read Mike Cintolo’s timely analysis of the company’s real estate intelligence and marketing business—including its recent acquisition of Trulia—you’ll also get expert advice on where to buy the stock.
And you’ll get regular updates every week thereafter, along with profiles of 10 strong stocks every Monday.