We’ve all seen stock analyst ratings. Heck, I’ve used them multiple times when I’m screening the market for potential stock picks. However, while they do give us a good idea about what analysts think of a certain stock, ratings typically do not include technical analysis.
And I get it. Not everyone can do technical analysis on stock charts—just like not everyone can do thorough fundamental analysis on stocks like analysts and experts do. But we get shorthand and summarized ratings for the latter, so can we find something similar for technical analysis?
Well, we can. Barchart Opinions allows you to examine buy or sell recommendations for stocks based on technical analysis. So, today, let’s use both analyst ratings and Barchart Opinions to find the best Dividend Aristocrats with strong buy signals.
How I Screened For The Following Stocks
Frequent readers should be familiar with my primary screening tools: Barchart’s Watchlist and Stock Screener. The Watchlist allows me to create a customized list of stocks that may fall under similar categories that you customize. For this example, I used my pre-prepared Dividend Aristocrats Watchlist based on the S&P 500’s Dividend Aristocrat Index.
Then, I used Stock Screener to whittle down my list further, choosing from dozens of stock filters that ranged from company information to fundamental and technical analysis. (Note: Stock Screener can also be used to create Watchlists.)
For this analysis, I used the following filters:
- Current Analyst Ratings: Set to Moderate (3.5 to 4.4.) to Strong Buy (4.5 to 5.0). Analyst firms have different ways of analyzing stocks, but they mostly depend on fundamental and economic indicators like business models, financial health, management expertise, industry and sector environments, valuations, target prices, etc.
- Overall Buy/Sell/Hold Signal: Set to Buy. This filter is the first of many that use Barchart Opinions. This proprietary analysis platform uses 13 different technical indicators that assign a buy, hold, or sell signal to specific stocks.
- Overall Opinion Strength: Set to Strong, Max, and Top 1%. Based on a stock’s Opinion score, the signal strength measures how strong the signal is based on the technical indicators. Opinion Strength also does a comparative analysis of all other stocks in the market and identifies those that belong to the top 1% in terms of strength.
With those filters set, I clicked on See Results, and we have 6 potential hits:
I then rearranged them from the highest to lowest Opinion Strength and took the top three. So, to kick off our list, let’s start with number one:
Walmart (WMT)
Walmart is a retail giant known all over the world. The company primarily operates in the US but has a presence in 18 other countries, including Canada, Central America, Cina, India, Mexico, and Africa. It has over 10,000 physical stores worldwide and an e-commerce platform similar to those of Amazon and Target.
Walmart currently has a 100% buy rating and a 100% strength rating based on Barchart Opinions. This puts it in the top 1% of all stocks in the market—and at the very top of my list.
Analysts seem to share the opinion: WMT stock has a strong buy rating based on 31 analysts with a high target price of $81. Currently, it’s trading at $69.68 and the stock has been on an upward trend since last year.
Walmart pays 83 cents annually in dividends, translating to a 1.19% yield. It also has 51 years of consecutive dividend increases.
Colgate-Palmolive Company (CL)
Colgate-Palmolive is another company with a global footprint. It manufactures and distributes consumer products, such as its flagship Colgate brand for oral hygiene and soaps and shampoos under the Palmolive brand. It also offers daily household products and pet nutrition. Colgate-Palmolive has a significant presence in developed (US, Australia, Japan, most of Europe) and emerging (China, Philippines, Malaysia, Mexico) markets.
Colgate-Palmolive currently has a 100% buy rating based on Barchart Opinions. While its strength scores range from soft to maximum, its direction score is 100%, ranking it among the top 1%.
Meanwhile, analysts rate it a strong buy with a high target price of $109. CL stock is on an upward trend and trading at $97.58. It recently dropped to the $95 support level but is returning to its $99 resistance.
In terms of income, the company has been paying dividends since 1895 and has 60 years of consecutive increases. Its latest payout is at a $2 annual rate, translating to a 2.04% yield.
Cintas Corporation (CTAS)
Cintas Corporation is a well-known provider of corporate and safety uniforms for different businesses in different industries. Product examples include labeled work shirts, flame-resistant clothing, high-visibility vests, food processing uniforms and accessories, and more.
It also offers facility service products like mats, mops, chemicals, hand sanitizers, first aid supplies, and PPEs. Lastly, the company offers specialized equipment like eyewash stations, defibrillator accessories, water coolers, and more, rounding out its extensive product catalog for business safety and operational needs.
Cintas Corporation has a 100% buy rating based on Barchart Opinions. Its current strength and current direction range from 70% to 85%.
Analysts also rate CTAS stock a moderate buy, with a high target price of $790. Chart-wise, I’m seeing some choppy sideways movement, with immediate resistance in the $715 to $720 levels. The stock is currently trading at $711.03.
Cintas pays a quarterly dividend of $1.35, which works out to $5.40 annually and translates to a 0.76% yield.
Final Thoughts
Barchart Opinions and analyst ratings give investors a rounded view of their prospective picks from both a technical and fundamental standpoint. However, no two indicators exist in a vacuum. Always do your due diligence and craft stock analysis strategies according to your investment goals.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
