Automatic Data Processing (ADP), Arthur J. Gallagher & Co. (AJG) – Three obscure stocks that are already outperforming the index

As investors, the name of the game is profit REGARDLESS of brand names.

The mistake that many budding investors make is thinking that the brand name is where the profit is when in fact the profit is in the performance of the asset.

A strong brand does not automatically equate to strong stock performance. It is essential to grasp this concept early if you want to get the results you desire.

For example, Twitter is a stock that everyone knows, but it has had a terrible stock performance since its IPO in 2013.

Compare that to the 4 stocks we’ll look at below.

The easiest way to make consistent profits is to use technical analysis (a flashy word for using charts) coupled with a checklist system to establish high probability stocks.

This will allow you to make objective decisions based on stock performance without being influenced by the brand name.

In short, I look for the following to consider buying a stock:

  • A good track record
  • Volume over 1 million
  • The price breaks out of a long-term consolidation
  • Price is trading above last year’s high
  • The price printing new all-time highs

Below are the monthly timelines for three obscure stocks on my watchlist that fall into place to meet the criteria above. 2 US stocks and 1 UK stock.

Automatic data processing ADP

Arthur J. Gallagher & Co. AJG

Relaxation RELX

I’m still waiting for the S&P 500 to cross above the 200 daily simple moving average. This will confirm a bullish bias in the stock market and when I start adding these stocks to my portfolio.

By being patient, I am giving these stocks time to confirm further upward strength. This greatly reduces the risk of me getting caught in a fake breakout and facing unnecessary losses.

Patience is a skill worth having in your investing repertoire.

Image from Shutterstock

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