1. February 2017 Stock Picks TOP 25 STOCKS February-17 RANK TICKER NAME
RANK
TICKER
NAME
SECTOR
INDUSTRY 1 FB
Facebook Inc
10 - Technology
Computer Services 2
ULTA
Ulta Salon, Cosmetics & Fragra
09 - Services
Retail (Specialty Non-Apparel) 3
CELG
Celgene Corporation
08 - Health Care
Biotechnology & Drugs 4
MHK
Mohawk Industries, Inc.
04 - Consumer Cyclical
Textiles - Non-Apparel 5 EW
Edwards Lifesciences Corp
Medical Equipment & Supplies 6
DIS
Walt Disney Co
Broadcasting & Cable TV 7
GOOGL
Alphabet Inc 8
AMZN
Amazon.com, Inc.
Retail (Catalog & Mail Order) 9 HD
Home Depot Inc
Retail (Home Improvement) 10
BABA
Alibaba Group Holding Ltd 11 GD
General Dynamics Corporation
02 - Capital Goods
Aerospace and Defense 12
COST
Costco Wholesale Corporation 13
CBS
CBS Corporation 14
AGN
Allergan plc 15
DHI
D.R. Horton, Inc.
Construction Services 16 V
Visa Inc
Business Services 17
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers 18
AAPL
Apple Inc.
Communications Equipment 19
DAL
Delta Air Lines, Inc.
11 - Transportation
Airline 20
USCR
US Concrete Inc
Construction - Raw Materials 21
FDX
FedEx Corporation
Air Courier 22
DOW
Dow Chemical Co 23
BAC
Bank of America Corp
07 - Financial
Regional Banks 24
ARNC
Arconic Inc
Metal Mining 25 C
Citigroup Inc
As of January 31st, Subject to change.

2. February 2017 Growth Stock Picks
As of January 31, Subject to change.

3. February 2017 Growth Stock Picks
As of January 31st, Subject to change.

4. February 2017 Growth Stock Picks
As of January 31st, Subject to change.

5. February 2017 Growth Stock Picks
As of January 31st, Subject to change.

6. February 2017 Growth Stock Picks
As of January 31st, Subject to change.

7. February 2017 Growth Stock Picks
As of January 31st, Subject to change.

8. Apple Inc. (AAPL)
Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers. The company also provides iLife, a consumer-oriented digital lifestyle software application suite; iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers' TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod, a line of portable digital music and media players. Further, the company sells Apple-branded and third-party Mac-compatible, and iOS-compatible accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service; AppleCare that offers support options for its customers; and Apple Pay, a mobile payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, Mac App Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
Source: FinViz.com, October 2016

9. Apple Inc. (AAPL)
POSITIVES: Between first-time smartphone buyers, people switching away from Android, and repeat sales to current customers, Apple has plenty of opportunity to reap the rewards of its iPhone business. Apple's iPhone and iOS operating system have consistently been rated at the head of the pack in terms of customer loyalty, engagement and security, which bodes well for long-term customer retention. Innovation at Apple lives on, in our view, with introductions of Apple Pay, Apple Watch, and Apple TV, each of which could drive incremental revenue but, more important, help to retain iPhone users Possible concerns: Apple’s recent decisions to maintain a premium pricing strategy may help fend off gross margin compression but could limit unit sales growth as devices may be unaffordable for many emerging market customers. Apple has a host of large tech rivals, many of which are willing to sell devices at bare-bones prices in order to earn income elsewhere. Apple’s less-than-stellar launches of Apple Maps and iOS were near-misses that frustrated many users for short periods of time, but any other buggy software launches could diminish Apple’s reputation for building products that “just work.”
Source: Morningstar, October 2016

10. Allergan plc (AGN)
Allergan plc, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide. It operates through US Brands, US Medical Aesthetics, International Brands, and Anda Distribution segments. The company offers a portfolio of products that provide treatments for the central nervous system, gastroenterology, women's health and urology, ophthalmology, neurosciences, and medical aesthetics, as well as dermatology and plastic surgery. It is also involved in developing ocular implants that reduce intraocular pressure associated with glaucoma; medical devices for the correction of prominent ears; and intranasal neurostimulation devices, as well as other dry eye products. Allergan plc also distributes generic and branded pharmaceutical products primarily to independent pharmacies, pharmacy chains, pharmacy buying groups, and physicians' offices. The company was formerly known as Actavis plc and changed its name to Allergan plc in June Allergan plc was founded in 1983 and is headquartered in Dublin, Ireland.
Source: FinViz.com, October 2016

11. Allergan plc (AGN)
POSITIVES: Through acquisitions, Allergan has transformed into a major diversified drug manufacturer with a broad patent-protected portfolio and a healthy drug pipeline. Botox continues to dominate the neuromodulator market with almost 76% market share. Few competitors match Allergan’s product portfolio scope, brand recognition, and loyalty programs in the cosmetic market, and recent therapeutic indications introduce Botox to new areas. Allergan's drug pipeline, including biosimilars, holds potentially large growth opportunities. U.S. FDA approved of Allergan’s new treatment for high blood pressure, Byvalson. Possible concerns: Allergan’s future growth depends on the success of products in development, but some high-risk products have faced developmental challenges, such as the anti-VEGF DARPin currently entering Phase III clinical trials. Lower levels of R&D spending compared with peers puts greater pressure on management to supplement growth through acquisitions. Mis-allocated capital or integration snafus could lead Allergan astray. Allergan's branded drug franchises in women's health, urology, gastrointestinal, and nervous system markets face high levels of generic competition, which erodes pricing power. Revenue has been expected to drop recently due to CVS taking control of Target’s pharmacies.
Source: Morningstar, June 2016

12. Amazon.com Inc. (AMZN)
Amazon.com, Inc. engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International, and Amazon Web Services (AWS) segments. The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo, as well as fire phones; and provides Kindle Direct Publishing, an online platform that allows independent authors and publishers to make their books available in the Kindle Store. In addition, the company offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, it offers compute, storage, database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreements services. Additionally, the company offers Amazon Prime, an annual membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. The company was founded in 1994 and is headquartered in Seattle, Washington.
Source: FinViz.com, October 2016

13. Amazon.com Inc. (AMZN)
POSITIVES: Amazon dominates North American online retail with 2015 product sales of almost $63 billion (excluding services), roughly equal to the next eight closest nonauction competitors combined. With more than half of the world's Internet users coming from developing markets, Amazon has sizable international growth opportunities. Kindle products and complementary devices like Fire TV, Dash, Echo, and Alexa represent intriguing customer acquisition and retention tools that capitalize on the shift to digital media while also promoting Prime memberships and cloud computing capabilities.
Possible concerns: Amazon's margin expansion is likely to be uneven at times, given the firm's global logistics and content investment needs and sources of new competition. International expansion brings unique challenges, including changing e-commerce regulations, infrastructure investments, and incumbent competition in some overseas markets. Certain offerings in the Amazon Web Services portfolio face competition from well-capitalized peers, potentially exposing it to more aggressive price competition and longer-term margin pressures.
Source: Morningstar, October 2016

14. Arconic Inc. (ARNC)
Arconic manufactures value-added aluminum and specialty metals products for a wide variety of industrial end markets, including aerospace and defense, building and construction, and automotive. The company has embraced a growth-by-acquisition strategy, having completed nearly $5 billion of acquisitions since late Many of Arconic’s key product lines will enjoy secular growth due to the need for lightweighting and high-performance materials that hold up in harsh operating conditions.
Source: Morningstar, November 2016

15. Arconic Inc. (ARNC)
POSITIVES: We are in the early innings of the current aerospace upcycle, and Arconic’s increased aerospace exposure positions the company for substantial growth. Arconic will benefit as aluminum takes share from steel in the automotive space. Arconic will remain highly acquisitive, increasing its exposure to attractive growth markets and cutting-edge technologies such as 3-D printing.
Possible concerns: Expectations for commercial aircraft deliveries will prove lofty, weighing on profits from the EPS segment. Higher aluminum prices will drive up unit costs, reducing profits for the company’s aluminum product lines. Arconic will overpay for acquisitions in an effort to rapidly diversify away from aluminum product lines.
Source: Morningstar, November 2016

16. Alibaba Group Holding Limited (BABA)
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. It operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a sales and marketing platform for flash sales; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; Taobao Ad Network and Exchange (TANX), a real-time bidding online marketing exchange in China; and data management platform through TANX for marketers to execute their campaigns with proprietary and tailored data. In addition, it offers cloud computing services, including elastic computing, database, storage and content delivery network, large scale computing, security, and management and application services through its Alibaba Cloud Computing platform; Web hosting and domain name registration services; payment and escrow services; and develops and operates mobile Web browsers. The company provides its solutions primarily for businesses. Alibaba Group Holding Limited was founded in 1999 and is based in Hangzhou, the People's Republic of China.
Source: FinViz.com, October 2016

17. Alibaba Group Holding Limited (BABA)
POSITIVES: Alibaba's China marketplaces boasted 434 million active buyers as of June 2016, roughly one third of China’s total population. We expect a long runway of user growth in the coming years. The company is well positioned to benefit from China e-commerce market's structural shift from C2C to B2C, as Tmall can gain significant organic user traffic from Taobao and better monetize transactions. Approximately 70% of Chinese online shoppers born in the 1990s consider Taobao as their first online shopping option. Their loyalty and user habits suggest a lifetime of potential transactions ahead.
Possible concerns: Rapid expansion of other China e-commerce players like JD.com and Vipshop could limit the growth potential of Alibaba in specific product categories. Alibaba has invested in some businesses that might not significantly improve its ecosystem. This could divert management's attention from its core digital commerce platform or require future impairment charges. Despite its dominant position in China, direct expansion into other regions outside of Southeast Asia could be a challenge, owing to the network effects of local e-commerce rivals.
Source: Morningstar, October 2016

18. Bank of America Corporation (BAC)
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through five segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, Global Markets, and Legacy Assets & Servicing. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans. This segment provides its products and services through approximately 4,700 financial centers, 16,000 ATMs, call centers, and online and mobile platforms. The Global Wealth & Investment Management segment offers investment management, brokerage, banking, and retirement products, as well as wealth management and customized solutions. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, real estate lending, and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. The Legacy Assets & Servicing segment engages in mortgage servicing activities related to residential first mortgage and home equity loans; and managing legacy exposures related to mortgage origination, sales, and servicing. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.
Source: FinViz.com, October 2016

19. Bank of America Corporation (BAC)
POSITIVES: Bank of America is poised to succeed as a provider of retail banking and wealth management services on a nationwide scale. Bank of America's mortgage-related problems are now behind it, expenses have come down by billions of dollars, and profitability is rebounding. Many of Bank of America's past problems were a result of poor capital-allocation decisions. Bank of America's advantages, ranging from its massive deposit and consumer lending franchise to the "thundering herd" of Merrill Lynch's brokers and wealth managers, are becoming clear now that the company finally has most of its problems behind it. The company's size (it is now too big to make material acquisitions) along with increased regulatory scrutiny reduces this risk going forward. Possible concerns: A financial institution of this size and complexity is inherently unmanageable--it's even possible that regulators might decide to break up the company. Cost-cutting programs are not often successful, and Bank of America's is especially large. It will take years for Bank of America to earn its cost of capital.
Source: Morningstar, June 2016

20. Citigroup Inc. (C)
Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions worldwide. It operates through two segments, Citicorp and Citi Holdings. The Citicorp segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. This segment also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. In addition, it offers wholesale banking products and services to corporate, institutional, public sector, and high-net-worth clients. Further, this segment provides fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services. As of December 31, 2015, it operated 2,994 branches in 24 countries. The Citi Holdings segment provides consumer loans; portfolio of securities, loans, and other assets; and retail alternative investment and other services. Citigroup Inc. was founded in 1812 and is based in New York, New York.
Source: FinViz.com, October 2016

21. Citigroup Inc. (C)
POSITIVES: Citigroup is leveraged to the rise of Asia, Latin America, and other emerging markets, while its competitors will struggle with lackluster loan demand in the U.S. and Western Europe. Citigroup is recapitalized and refocused under new management--the perfect conditions for a successful turnaround. A shrinking balance sheet, falling expenses, and a harsher regulatory environment provide a perfect combination for capital return over the next five years. Possible concerns: Emerging-market exposure will pull Citigroup down just as the U.S. begins to recover. The culture that led to Citigroup's bailout will not be easy to change; a quarter of a million employees under one umbrella for twenty-five years cannot change their stripes overnight. The company may be too big for anyone to manage successfully. Citi Holdings will be a drag on earnings for the foreseeable future.
Source: Morningstar, June 2016

22. CBS Corporation (CBS)
CBS Corporation operates as a mass media company worldwide. The company operates through four segments: Entertainment, Cable Networks, Publishing, and Local Broadcasting. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; and produces, acquires, and distributes theatrical motion pictures. The Cable Networks segment offers subscription program services, such as original series, theatrical feature films, documentaries, boxing and other sports-related programming, and special events; and owns and operates multiplexed channels. This segment also owns and manages Smithsonian Networks, which operates a channel featuring cultural, historical, scientific, and educational programs; and operates a CBS Sports Network, a 24-hour cable program service that provides college sports and related content. The Publishing segment publishes and distributes adult and children's consumer books in printed, digital, and audio formats; and develops special imprints and publishes titles based on the products, as well as that of third parties and distributes products for other publishers. It also delivers content; and promotes its products on its Websites, social media, and general Internet sites, as well as those related to individual titles. The Local Broadcasting segment owns 30 broadcast television stations; owns and operates 117 radio stations in 26 U.S. markets and related online properties; and operates local digital properties in various U.S. markets that combine the company's television and radio local media brands online to offer the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews for local community. CBS Corporation was founded in 1986 and is headquartered in New York, New York.
Source: FinViz.com, October 2016

23. CBS Corporation (CBS)
POSITIVES: The CBS television network has consistently generated strong broadcast ratings relative to its peers over the past several years. The success and stability of the network attract advertisers. CBS owns valuable sports rights, including the NFL, the NCAA's March Madness, and college football. This popular programming gives CBS leverage in negotiations with pay TV distributors for retransmission fees and with advertisers interested in the live viewing audience. Quality content is tough to build from scratch, and CBS owns one of the more successful television production studios. Possible concerns: CBS' business model depends on the continued growth of retransmission and reverse compensation fees. Increased cord cutting by consumers and lower ratings could threaten the growth of these fees. If advertisers shift money away from the broadcast networks, profitability at CBS will also fall rapidly because of the high operating leverage of the television business model. Developing hit programs can be unpredictable, especially as CBS is trying to develop more shows internally.
Source: Morningstar, June 2016

24. Celgene Corporation (CELG)
Celgene Corporation discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases worldwide. It markets REVLIMID, an oral immunomodulatory drug for multiple myeloma, myelodysplastic syndromes (MDS), and mantle cell lymphoma; ABRAXANE, a solvent-free chemotherapy product to treat breast, non-small cell lung, pancreatic, and gastric cancers; POMALYST/IMNOVID to treat multiple myeloma; and OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis, psoriasis, ankylosing spondylitis, Behcet's disease, atopic dermatitis, and ulcerative colitis. The company's products also include VIDAZA, a pyrimidine nucleoside analog to treat intermediate-2 and high-risk MDS, and chronic myelomonocytic leukemia, as well as acute myeloid leukemia (AML); THALOMID for the patients with multiple myeloma and erythema nodosum leprosum; ISTODAX to treat cutaneous and peripheral T-cell lymphoma; and FOCALIN, FOCALIN XR, and RITALIN products. Its clinical stage products include OTEZLA for the treatment of various immune-inflammatory diseases; sotatercept for the treatment of renal anemia, beta-thalassemia and MDS; luspatercept for beta-thalassemia and MDS; CC-486 to treat MDS, AML, and solid tumors; CC-122 and CC-220 to treat hematological and solid tumor cancers, and inflammation and immunology diseases; PDA-002 for the treat diabetic foot ulcers and peripheral neuropathy; and PNK-007 for hematological malignancies treatment. The company has collaborative agreements with Novartis Pharma AG; Acceleron Pharma; Agios Pharmaceuticals, Inc.; Epizyme Inc.; Sutro Biopharma, Inc.; bluebird bio, Inc.; FORMA Therapeutics Holdings, LLC; Acetylon Pharmaceuticals, Inc.; OncoMed Pharmaceuticals, Inc.; NantBioScience, Inc.; AstraZeneca PLC; Lycera Corp.; Juno Therapeutics, Inc.; TriNetX, Inc.; Triphase Accelerator Corporation; and Nurix, Inc. The company was founded in 1980 and is headquartered in Summit, New Jersey.
Source: FinViz.com, October 2016

25. Celgene Corporation (CELG)
POSITIVES: Revlimid continues to generate impressive data in approved and potential new indications, and growth should be bolstered by expanded duration of use and novel combinations. Celgene's acquisitions contribute to its positive moat trend. Pharmion solidified Celgene's strategic focus on blood-related cancer therapies, Abraxis moves the firm into the broader oncology market, and Receptos and Nogra build more immunology exposure. Celgene's pipeline has produced new products beyond Revlimid; the firm launched multiple myeloma drug Pomalyst in 2013 and oral immunology drug Otezla in Possible concerns: Revlimid side effects delayed first-line and maintenance setting approval in Europe, and the drug's expansion into lymphoma looks less certain. Takeda and J&J's Velcade vies with Revlimid in the first-line setting, and while combination of the two therapies is effective, cost may become an increasing issue, particularly in international markets as Velcade's patents expire ( ). Despite efforts to diversify in oncology and immunology, we think Revlimid will remain more than 50% of Celgene's sales when generics begin to launch, setting the firm up for a massive patent cliff.
Source: Morningstar, October 2016

26. Costco Wholesale Corporation (COST)
Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio; meat, bakery, deli, and produces; and apparel and small appliances. It also operates gas stations, pharmacies, optical dispensing centers, food courts, and hearing-aid centers; and engages in the travel businesses. In addition, the company provides gold star individual and business membership services. As of August 28, 2016, it operated 715 warehouses, including 501 warehouses in the United States, Washington, District of Columbia, and Puerto Rico; 91 in Canada; 36 in Mexico; 28 in the United Kingdom; 25 in Japan; 12 in Korea; 12 in Taiwan; 8 in Australia; and 2 in Spain. Further, the company sells its products through online. The company was formerly known as Costco Companies, Inc. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Source: FinViz.com, October 2016

27. Costco Wholesale Corporation (COST)
POSITIVES: Costco offers investors the highest near-term cash flow visibility in the retail defensive sector because of its membership fee model and high-quality customer base. The loss-leader capabilities of Costco's business model should continue to drive market share gains over the long term. In contrast to its big-box industry peers, Costco has international operations that generate returns above its cost of capital. The warehouse club concept has shown promise in the U.K., Taiwan, Korea, and Australia, suggesting attractive global growth potential.
Possible concerns: There is little room for further household penetration because Costco already has around 80 million members; historical sales and earnings growth forecasts may not be sustainable. If Amazon decides to invest heavily behind its Pantry concept, the competitive environment could become more intense for Costco. New club openings in existing markets could lead to cannibalization of sales from older locations. Securing suitable real estate options for 140,000-square-foot warehouse clubs can be a challenge in urban areas.
Sources: Morningstar, October 2016

28. Delta Air Lines Inc.(DAL)
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its route network is centered around a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including delta.com and mobile, telephone reservations, traditional brick and mortar, and online travel agencies. It also provides aircraft maintenance, repair, and overhaul services; staffing, and professional security and training services, as well as aviation solutions to third parties; vacation packages to third-party consumers; and aircraft charters, and aircraft management and programs. As of February 3, 2016, the company operated a fleet of approximately 800 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.
Source: FinViz.com, October 2016

29. Delta Air Lines Inc. (DAL)
POSITIVES: Delta Air Lines beat Q3 EPS estimates, while revenues remained under pressure. For Q3, Delta Air Lines (NYSE:DAL) easily surpassed analysts' EPS estimates. The stock has traded near multi-year lows, as investors fear capacity growth in the airline industry will doom the sector to the negative returns of the past. The company was hit by numerous headwinds during the quarter, yet the airline produced substantial cash flows and capital returns: Operating cash flow of $1.9 billion, free cash flow of $1.1 billion, and capital returns of $650 million. These numbers are incredible considering the airline estimates the system outage to cost $150 million in pre-tax income. The stock remains cheap compared to peers, with capacity headwinds slowly churning towards a tailwind.
Possible concerns: During Q3, Delta Air Lines faced numerous headwinds, including the internally created system outage. The higher oil prices and competitive environment are feared by the market, but the airline proved yet again that the market overly frets over the industry based on the past and not the present.
Sources: Seeking Alpha, October 2016

30. D.R. Horton, Inc. (DHI)
D.R. Horton, Inc. operates as a homebuilding company. It engages in the acquisition and development of land; and construction and sale of homes in 27 states and 79 markets in the United States under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, Regent Homes, Crown Communities, and Pacific Ridge Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, triplexes, and condominiums. It is also involved in the origination and sale of mortgages; and provision of title insurance policies, and examination and closing services. The company primarily serves title insurance agents, homebuyers, and homebuilding customers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Fort Worth, Texas.
Source: FinViz.com, October 2016

31. D.R. Horton, Inc. (DHI)
POSITIVES: The launch of the Express Homes brand positions D.R. Horton well to capture demand from the underserved entry-level homebuyer, with prices averaging $188,000. The current cyclical housing rebound is likely to prove stronger than most expect, given pent-up demand from household formations, aging of millennials into their prime homebuying years, and still-supportive affordability. As the largest builder in the country by housing units sold, D.R. Horton realizes some scale-driven overhead and housing component cost advantages, as well as better access to labor and capital
Possible concerns: D.R. Horton is disproportionately focused on the entry-level home buyer, which tends to carry lower margins and is more sensitive to economic forces, interest rates, and underwriting standards. Raw land and finished lot inflation, as well as cost pressures from labor and materials, is causing margin pressure. Further, significant tailwinds from home price advances are unlikely to continue. Midcycle industry single-family housing production is being set lower, given consumers' lower propensity to own a home and increased desire to live closer to city centers.
Source: Morningstar, June 2016

32. The Walt Disney Company (DIS)
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels, and ABC Family, as well as UTV/Bindass and Hungama. The company owns eight domestic television stations. It also owns and operates the Walt Disney World Resort in Florida that includes theme parks; hotels; vacation club properties; a retail, dining, and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water parks; and other recreational facilities. In addition, the company operates Disneyland Resort in California; Disney Resort & Spa in Hawaii; Disney Vacation Club, Disney Cruise Line, and Adventures by Disney; and Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. Further, it produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings, and live stage plays; licenses trade names, characters, and visual and literary properties to retailers and publishers; publishes entertainment and educational books, magazines, and comic books; and operates English language learning centers in China. Additionally, the company is involved in the sale of merchandise through its retail stores, Internet shopping sites, and wholesale business. In addition, it creates and distributes entertainment and lifestyle content for interactive media platforms. The company was founded in 1923 and is based in Burbank, California.
Source: FinViz.com, October 2016

33. The Walt Disney Company (DIS)
POSITIVES: The parks and resorts segment has rebounded strongly from the recession and the opening of Disneyland Shanghai should provide additional momentum. The addition of the Star Wars franchise broadens the demographics that the company can address. Additionally, the strong distribution and merchandising capabilities of Disney should help to speed the monetization of the Lucasfilm acquisition. Although making movies is a hit-or-miss business, Disney's large library of content with popular franchises and characters reduces this volatility over time.
Possible concerns: The business model for the media networks depends on the continued growth of retransmission and reverse compensation fees. Any slowdown in the growth of these fees, perhaps because the pay-television business begins to shrink, would hurt the profitability of this segment. Increases in the cost of popular programming such as sports events and television series could adversely affect margins at ESPN and ABC. Developing mass-market hit programs can be unpredictable, especially as media fragmentation continues.
Sources: Morningstar, October 2016

34. The Dow Chemical Company (DOW)
The Dow Chemical Company manufactures and supplies products that are used primarily as raw materials in the manufacture of customer products and services worldwide. It operates through Agricultural Sciences, Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals, and Performance Plastics segments. The Agricultural Sciences segment provides crop protection and seed/plant biotechnology products and technologies, urban pest management solutions, and healthy oils. The Consumer Solutions segment offers semiconductors and organic light-emitting diodes, and adhesives and foams used by the transportation industry; and cellulosics and other polymers for innovative pharmaceutical formulations and food solutions. It serves automotive, electronics and entertainment, food and pharmaceuticals, and personal and home care products markets. The Infrastructure Solutions segment provides architectural and industrial coatings, construction material ingredients, building insulation, adhesives, and microbial protection products for the oil and gas industry; water technologies; monomers; and silicone and silicone products. The Performance Materials & Chemicals segment offers chlorine and caustic soda; industrial solutions; and propylene oxides, propylene glycols, polyether polyols, and aromatic isocyanates. The Performance Plastics segment provides elastomers, polyolefin plastomers, and ethylene propylene diene monomer elastomers; wire and cable insulation, semiconductive, and jacketing compound solutions, as well as bio-based plasticizers; acrylics, polyethylene, polyolefin emulsions, and polyolefin plastomers; and ethylene, propylene, benzene, butadiene, cumene, octene, aromatics co-products, and crude c4. The company was founded in 1897 and is headquartered in Midland, Michigan.
Source: FinViz.com, October 2016

35. The Dow Chemical Company (DOW)
POSITIVES: Dow benefits from greater feedstock flexibility than the average basic chemical producer in North America and Europe, giving it opportunities for added profits in periods of fluctuating input and output prices. Dow's investments in feedstocks at the U.S. Gulf Coast and in the Middle East should boost profitability for its downstream businessesThe merger with DuPont should create meaningful cost synergies.
Possible concerns: A plethora of announced petrochemical projects in the U.S. could eventually lead to oversupply. Lower oil prices should be pressure on Dow's North American-based ethylene operations. As seen in 2009, Dow operates in a cyclical industry that can get pounded by downturns in the global economy. The recent slowdown in GDP growth does not bode well for Dow's near-term prospects.
Sources: Morningstar, September 2016

36. Edwards Lifesciences Corporation (EW)
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients worldwide. It offers transcatheter heart valve therapy products comprising transcatheter aortic heart valves and their delivery systems for the nonsurgical replacement of heart valves. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral replacement, and minimally invasive aortic heart valve system; and tissue heart valves and repair products, which are used to replace or repair a patient's diseased or defective heart valve. In addition, it produces pericardial valves from biologically inert animal tissue; and provides heart valve repair therapies, including annuloplasty rings and systems. Further, the company offers critical care products, such as hemodynamic monitoring systems to measure a patient's heart function in surgical and intensive care settings; pulmonary artery catheters; and continuous venous oximetry catheter for measuring central venous oxygen saturation. Additionally, its critical care products include disposable pressure monitoring devices and closed blood sampling systems to protect patients and clinicians from infection; and peripheral vascular products used to treat endolumenal occlusive disease, such as embolectomy catheters for removing blood clots from peripheral blood vessels. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.
Source: FinViz.com, October 2016

37. Edwards Lifesciences Corporation (EW)
POSITIVES: Edwards' efforts to focus on efficiency and higher-margin products have paid off, as gross margins increased from 47% in 2000 to 75% in Cardiothoracic surgeons are a fairly conservative bunch and like to stick with proven devices and brands. As a pioneer in heart valves, Edwards continues to be seen as the gold standard. Edwards should benefit from an aging population, which experiences problems with heart valves and congestive heart failure with greater frequency. Possible concerns: Edwards' ambitions to diversify into minimally invasive medical technologies place the firm in direct competition with much larger competitors, such as Medtronic and St. Jude Medical, who can easily bid up prices for emerging technologies that Edwards couldn't match. If transcatheter aortic valves are as interchangeable as coronary stents, Edwards is vulnerable to quick share loss. If Sapien pricing remains high even after the entrance of rival Medtronic, practitioners and payers may opt for traditional surgical valve repair among the high-risk patients.
Source: Morningstar, October 2016

38. Facebook, Inc. (FB)
Facebook, Inc. operates as a mobile application and Website that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers worldwide. Its solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for mobile and Web on various platforms and devices, which enable people to reach others instantly, as well as enable businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application. The company also develops Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2015, it had 1.04 billion daily active users (DAUs) and 934 million DAUs who accessed Facebook from a mobile device. The company has a partnership with the Federation of Indian Chambers of Commerce and Industry to augment the Millennium Alliance initiative, as well as support and expand the development of the social enterprise sector in India. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
Source: FinViz.com, October 2016

39. Facebook, Inc. (FB)
POSITIVES: With more users and usage time than any other social network, Facebook provides the largest audience and the most valuable data for social network online advertising. Facebook’s ad revenue per user is growing, demonstrating the value that advertisers see in working with the firm. The application of AI technology to Facebook’s various offerings, along with the launch of VR products such as the Oculus Rift, will increase user engagement, driving further growth in advertising revenue. Possible concerns: Facebook is currently a one-trick pony and will be affected severely if online advertising no longer grows or if more advertising dollars shift to others like Google or Snapchat. Despite rapid user growth, many of Facebook’s customers may also belong to other social networks, such as Snapchat, so the firm will continually have to fight to capture a user’s time and engagement with Facebook’s properties. Regulations could emerge that limit the application and collection of user and usage data, which could minimize the value of Facebook’s aggregated data.
Source: Morningstar, October 2016

40. FedEx Corporation (FDX)
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information; and offers critical inventory logistics, transportation management, and temperature-controlled transportation services, as well as international express transportation, small-package ground delivery, and freight transportation services. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages, as well as offers third-party logistics services. The company's FedEx Freight segment offers less-than-truckload freight, and freight-shipping services. As of May 31, 2016, this segment operated approximately 65,000 vehicles and trailers from a network of approximately 370 service centers. Its FedEx Services segment provides sale, marketing, information technology, communication, customer, technical support, billing and collection, and other back-office support services; FedEx Mobile, a suite of solutions to track packages, create shipping labels, view account-specific rate quotes, and access drop-off location information; access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and ground shipping and time-definite express shipping services; and packing services, supplies, and boxes. The company was founded in 1971 and is based in Memphis, Tennessee.
Source: FinViz.com, October 2016

41. FedEx Corporation (FDX)
POSITIVES: FedEx's huge air fleet, 50,000 drop boxes, and global operations knit together a massive presence unlikely to be replicated except by its few current competitors. In addition to ground growth, resumption of higher margins in the LTL freight and international express businesses should boost revenue growth and consolidated operating margins, assuming some boost in international volume over current levels. During its four-decade history, FedEx has weathered multiple economic cycles and oil supply crises. While short-term results may suffer, the firm's powerful network is here to stay. Possible concerns: Although critical to growth, a high level of international exposure makes the firm vulnerable to downturns in global trade and political interference. Operating one of the world's largest airlines is a highly capital-intensive endeavor, and air freighter replenishment will demand substantial capital expenditures during the next several years. While fuel surcharges buffer much of the impact of rapid jet fuel and diesel price shocks, FedEx remains highly exposed to the price of crude oil.
Source: Morningstar, September 2016

42. General Dynamics Corporation (GD)
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The Aerospace group designs, develops, manufactures, and outfits business-jet aircraft; provides aircraft services, such as maintenance, repair, aircraft management, charter, fixed-base operational, and staffing services; and performs aircraft completion services for other original equipment manufacturers. The Combat Systems group is involved in the design, development, production, modernization, and sustainment of combat vehicles, weapons systems, and munitions. This group offers wheeled combat and tactical vehicles; main battle tanks and tracked combat vehicles; armaments; and maintenance and logistics support and sustainment services. The Information Systems and Technology group provides technologies, products, and services that support a range of military, federal/civilian, state, local, and commercial customers. This group offers information technology solutions and mission support services; communication, command-and-control, and computer mission systems; and imagery, signals, and multi-intelligence systems for customers in the defense sector, intelligence and homeland security communities, and the United States allies. The Marine Systems group designs, constructs, and repairs surface ships and submarines for the United States Navy and Jones Act ships for commercial customers. This group offers nuclear-powered surface combatants, auxiliary and combat-logistics ships, and commercial product carriers and containerships; and provides design and engineering support services, as well as overhaul, repair, and lifecycle support services. The company was founded in 1899 and is based in Falls Church, Virginia.
Source: FinViz.com, October 2016

43. General Dynamics Corporation (GD)
POSITIVES: Management's focus on margins over revenue means improved operating performance for the company, which will continue to boost the bottom line. Strong orders from the U.K. and Saudi Arabia will enable a resurgence in sales growth over the coming years. The funded backlog rebounded to $51.7 billion in 2015 after falling to a multiyear low in This backlog should also fuel long-term growth. Possible concerns: Information systems, at 30% of sales, has been hit by constrained government budgets and faces significant cost pressures. Business jet demand is likely to be weak throughout 2016 and a downturn will occur in late In addition, General Dynamics faces a complex transition to the G500 and G600 models. Continued uncertainty around defense spending and sequestration could affect backlog visibility and hurt long-term planning.
Source: Morningstar, October 2016

44. Google Inc. (GOOGL)
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, such as Virtual Reality. This segment also sells hardware products comprising Chromecast, Chromebooks, and Nexus. The Other Bets segment includes businesses, such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X, and other initiatives. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
Source: FinViz.com, October 2016

45. Google Inc. (GOOGL)
POSITIVES: As the number of online users and usage increases, so will digital ad spending, of which Google will remain one of the main beneficiaries. Android’s dominant global market share of smartphones leaves Alphabet’s Google well positioned to continue generating top-line growth as search traffic shifts from desktop to mobile. The significant cash generated from the Google search business allows Alphabet to remain focused on innovation and the long-term growth opportunities that new areas present. Possible concerns: There is little revenue diversification within Alphabet, as it remains heavily dependent on Google and the state of the search ad space. Alphabet is allocating too much capital towards high-risk bets, which face a very low probability of generating returns. Google’s dominant position in online search is not sustainable, as more companies and regulatory agencies are contesting the methods through which the company has been extending its leadership.
Source: Morningstar, October 2016

46. The Home Depot, Inc. (HD)
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me (DIFM), and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its DIFM customers through third-party installers. It primarily serves home owners; and renovators/remodelers, general contractors, repairmen, installers, small business owners, and tradesmen. The company also sells its products through online. As of December 31, 2015, it had 2,274 stores, including 1,977 in the United States, 182 in Canada, and 115 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
Source: FinViz.com, October 2016

47. The Home Depot, Inc. (HD)
POSITIVES: Home Depot's focus on distribution and merchandising should improve productivity and increase market share domestically as the housing market improves, increasing sales and margins. The company has returned $41 billion to its shareholders through dividends and share buybacks over the past five years (more than 20% of its market cap). The firm has consistently increased its dividend and plans to use excess cash to repurchase shares. The addressable pro market is around $50 billion and Interline and Home Depot together represent less than 5% share, leaving meaningful upside up for grabs. Possible concerns: Weak consumer spending or an economic downturn could delay home improvement projects and affect Home Depot's sales. IT and supply chain improvements face implementation risks, which could affect profit growth if peers surpass Home Depot’s capabilities. Limited footprint growth domestically may drive increased competitive pricing pressures between Home Depot and Lowe's, constraining ROIC expansion.
Source: Morningstar, September 2016

48. Mohawk Industries Inc. (MHK)
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide. It operates through three segments: Global Ceramic, Flooring North America (Flooring NA), and Flooring Rest of the World (Flooring ROW). The Global Ceramic segment provides a range of ceramic tile, porcelain tile, and natural stone products; and sources, markets, and distributes other tile related products. This segment markets and distributes its products under the American Olean, Daltile, KAI, Kerama Marazzi, Marazzi, and Ragno brands. The Flooring NA segment offers product lines in a range of colors, textures, and patterns, including carpets, rugs, and carpet pads; hardwood and laminate products; and vinyl products, such as luxury vinyl tiles. This segment markets and distributes its flooring products under the Aladdin, Bigelow, Columbia Flooring, Durkan, Horizon, IVC, Karastan, Lees, Mohawk, Pergo, Portico, QuickStep, and SmartStrand brands. The Flooring ROW segment provides laminate and hardwood flooring, as well as roofing elements, insulation boards, medium-density fiberboards, chipboards, and vinyl flooring products under the IVC, Moduleo, Pergo, Quick-Step, and Unilin brands; and licenses patents related to flooring manufacturers. The company sells its products through independent distributors, home center retailers, independent and individual floor covering retailers, ceramic specialists, commercial contractors, commercial end users, mass merchandisers, department stores, shop at home, buying groups, retailers, and wholesalers, as well as private labeling programs. Mohawk Industries, Inc. was founded in 1988 and is headquartered in Calhoun, Georgia.
Source: FinViz.com, October 2016

49. Mohawk Industries Inc. (MHK)
POSITIVES: Mohawk Industries kept its winning streak alive in the second quarter. In constant days and currency exchange rates, June-period sales increased 12.1%, to an all-time high. (There was one more selling day in the 2016 quarter, and there will be one less in the third period.) The company also delivered a ninth-straight record in quarterly adjusted earnings. The adjusted gross margin (before depreciation) increased 190 basis points, benefiting from productivity gains, higher volume, accretive acquisitions, and lower input costs. A decline in material costs has resulted in pricing pressure in carpet, however. And the expense ratio was up moderately due to accelerated investments in product introductions and sales expansion. Expenses as a percent of sales are expected to decline in the second half of Capital investments are geared to efficiency projects and capacity expansion. From 2013 through 2016, we estimate Mohawk will have spent more than $2 billion on existing assets to increase output and improve productivity. A key priority this year is increasing capacity for luxury vinyl tile (LVT). A new ceramic plant, which will produce higher-value porcelain tile, is also near completion. Acquisitions are nearing full integration. Newcomers contributed about 9% to the June-quarter sales gain. Xtratherm, bought in late 2015, significantly boosted sales of insulation panels, while the IVC purchase (mid-2015) added LVT products in Europe. Mohawk is now in the final stages of modernizing the Italian ceramic assets of Marazzi, acquired in We would wait for a price pullback before committing funds to this untimely issue. The housing market (both new and remodel) has room to grow. Mohawk's geographic and product diversity is also attractive.
Possible concerns: Competitors are also adding plants, but this will likely replace Chinese imports, and LVT is the fastest-growing flooring category. Consumers are also shifting away from solid wood, so Mohawk plans to add more capacity for engineered wood by the end of this year.
Source: Value Line, September 2016

50. ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA)
Ulta Salon, Cosmetics & Fragrance, Inc. operates as a specialty retailer in the United States. Its stores provide cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. The company also offers cosmetics, which includes products for the face, eyes, cheeks, lips, nails, and brushes; haircare products, such as shampoos, conditioners, styling products, and hair accessories and brushes; and salon styling tools comprising hair dryers, curling irons, and flat irons. In addition, it provides skincare, and bath and body products consisting of products for face, hands, and body; fragrances; nail polish and nail care products; and men's skincare, haircare, and fragrance products. Further, the company offers private label products consisting of Ulta branded cosmetics, skincare, bath and body products, and haircare products; and other health and beauty products. As of January 30, 2016, it operated 874 retail stores in 48 states. The company's full-service salon offers hair, skin, and brow services; and provides products through its Website, ulta.com. Ulta Salon, Cosmetics & Fragrance, Inc. was founded in 1990 and is based in Bolingbrook, Illinois.
Source: FinViz.com, October 2016

51. ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA)
POSITIVES: Retail sales topped expectations in October off of broad strength across key categories. On a year-over-year comparison, retail sales were up 4.3% during the month as hiring and wage growth clearly overshadowed election fatigue. This firm, which is in the Retail-Miscellaneous/diversified industry, saw EPS growth of 25.1% last year, and is looking great for this year too. In fact, the current growth estimate for this year calls for earnings-per-share growth of 27.9%. Furthermore, the long-term growth rate is currently an impressive 19.5% suggesting pretty good prospects for the long haul. Ulta has been consistently growing its footprint while also guiding for higher total store count in the U.S. Ulta has grown to over 900 stores as of Q During that release, management raised its future store count guidance from 1,200 stores, to a range of 1,400 to 1,700 total in the U.S. By nearly doubling its store count, Ulta's earnings have the potential to continue growing steadily in the years to come -- and that's not even taking into account the potential for international growth. By offering exclusive product demos and salon experiences with beauty experts inside its stores, Ulta provides an experience that customers wouldn't be able to get online. Also, by successfully increasing its own online presence with exclusive product how-to videos on its site and a loyalty program, that keeps customers going back to Ulta.com instead of third-party online shops. Ulta's e-commerce sales jumped 55% year over year in the most recent quarter, representing around 20% of total sales, and its loyalty program has more than 20 million members. There's no doubt that the stock looks pricey now, and waiting for a small pullback could be a good idea. However, analysts expect EPS to come in at $7.84 next year, putting the forward P/E estimate by 2017 earnings at a more palatable 33 times.
Possible concerns: The leading risk factor for Ulta is that the company will lose ground to third-party online sellers.
Source: Seeking Alpha, November 2016
The Motley Fool, November 2016

52. U.S. Concrete, Inc. (USCR)
U.S. Concrete, Inc., through its subsidiaries, produces and sells ready-mixed concrete, aggregates, and concrete-related products and services for the construction industry in the United States. It operates through two segments, Ready-Mixed Concrete and Aggregate Products. The Ready-Mixed Concrete segment is involved in the formulation, preparation, and delivery of ready-mixed concrete to customers' job sites; and the provision of various services that include the formulation of mixtures for specific design uses, on-site and lab-based product quality control, and customized delivery programs. The Aggregate Products segment offers crushed stone, sand, and gravel for use in commercial, industrial, and public works projects. The company also engages in the operation of building materials stores; provision of concrete blocks, lime slurry, and Aridus rapid-drying concrete technology; sale of brokered products; hauling and recycled aggregates operation activities; and operation of drum mixer trucks, as well as transfer trucks for transporting cement and aggregates. It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders in north and west Texas, California, New Jersey, New York, Washington, D.C., and Oklahoma. U.S. Concrete, Inc. was incorporated in 1997 and is headquartered in Euless, Texas.
Source: FinViz.com, January 2017

53. U.S. Concrete, Inc. (USCR)
POSITIVES: U.S. Concrete’s relatively higher commercial construction exposure positions it well for the still rising improvement in nonresidential construction activity. U.S. Concrete continues to maintain manageable leverage despite completing nearly 20 bolt-on acquisitions in the last two years. U.S. Concrete holds leading market share positions in attractive locations, including Texas, Northern California, and the New York metro area. US Concrete currently has a Fundamental rating of 8, which is significantly more bullish than the Construction Materials industry average of 5.9. Price momentum rating is 9.
Following the election of Donald J. Trump as America's next president, U.S. aggregates and concrete companies have rallied sharply, gaining more than 30% since the election. Concrete is almost entirely consumed near its production sites given low value-to-weight ratios. As a result, increases in infrastructure spending definitely benefit the financial performance of U.S. Concrete. During his campaign, President-elect Donald Trump proposed to spend $1 trillion over a 10-year period to repair roads, bridges, and other infrastructure. In part, Trump hopes to lean on private spending to achieve his goal with $137 billion in tax credits for construction companies who would then borrow on the open market to fund projects with attached revenue streams--a toll road, for example. U.S. infrastructure construction (including transportation, highway and street, sewage and waste disposal, water supply, conservation and development) is set to total about $180 billion in Tacking on an additional $100 billion would translate to a 55% increase in annual spending.
Possible concerns: While the FAST Act provides some funding certainty through the end of the decade, the Highway Trust Fund still lacks the ability to self-fund and will lead to another political battle a few years down the road. U.S. Concrete’s earnings depend on volatile factors beyond management's control, such as U.S. economic performance, government budgets, and credit availability. Roughly 40% of U.S. Concrete’s revenue comes from Texas, where lower energy prices could threaten local economies and construction activity.
Source: Morningstar, November 2016
E-trade, January 2017

54. Visa Inc. (V)
Visa Inc., a payments technology company, operates an open-loop payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. The company also provides a suite of digital, ecommerce, person-to-person payments, and mobile products and services. In addition, it offers merchant gateway services for ecommerce merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products. The company provides its services under the Visa, Visa Electron, Interlink, and PLUS brands. Visa Inc. has a strategic alliance with Bottomline Technologies. The company was incorporated in 2007 and is headquartered in San Francisco, California.
Source: FinViz.com, October 2016

55. Visa Inc. (V)
POSITIVES: Visa is king of the hill in the digital payment market and will not be easily toppled. The ability to deal with hundreds of legal and regulatory frameworks around the world is a significant barrier to entry. Visa has an established network and brand and has only to adopt new technologies for its own purposes in order to fend off competition.
Possible concerns: The global financial system is becoming increasingly regulated, and the biggest players will be the first victims. Visa's already large market share, and its relative dependence on U.S. spending and debit cards, may place it at a growth disadvantage. The increasing use of mobile technologies will usher in a new payment paradigm at some point.
Source: Morningstar, October 2016

56. Westlake Chemical Corporation (WLK)
Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products. It operates through two segments, Olefins and Vinyls. The Olefins segment offers ethylene, polyethylene, styrene monomer, and various ethylene co-products, as well as sells propylene, crude butadiene, pyrolysis gasoline, and hydrogen. The Vinyls segment provides specialty and commodity PVC, VCM, EDC, chlorine, caustic soda, and ethylene products. This segment also manufactures and sells products fabricated from PVC, including pipe, fittings, profiles, foundation building products, fence and deck components, window and door components, and film and sheet products. The company's products are used in various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction, as well as other durable and non-durable goods. It also offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses primarily in North America and Europe. The company was founded in 1985 and is headquartered in Houston, Texas. Westlake Chemical Corporation is a subsidiary of Ttwf Lp.
Source: FinViz.com, October 2016

57. Westlake Chemical Corporation (WLK)
POSITIVES: Despite the sequential improvement analysts envision in the back half of 2016, the top and bottom lines will likely slip 5% and 20%-25%, respectively, for the full year. That said, The company ought to show a partial rebound in A better operating environment, thanks to the steady improvement in consumer spending and ongoing recovery of residental construction, should help Westlake make a comeback in the near term. In all, analysts look for profits to recover 5%-10%, on a 3% revenue advance next year. The pending Axiall purchase should play out nicely over the long haul. Westlake sweetened its merger offer for Axiall (AXLL), which the synthetic chemical company accepted in early June. Under the terms of the deal, Westlake will pay $33.00 per AXLL share, and assume its outstanding liabilities, valuing the acquisition at approximately $3.8 billion. The combination would complement both its geographic positions and product roster. Moreover, we think this move falls nicely within Westlake's vertical integration strategy, and ought to enhance its supply-chain management and increase the scale of its business and manufacturing capacity, thereby bolstering operating margins. Indeed, management expects Axiall to be accretive to earnings within a year of its acquisition (the merger is expected to close by the fourth quarter). The deal would lead to roughly $100 million in annualized cost synergies. Meanwhile, Westlake has raised debt to help finance the pending acquisition.
Possible concerns: Westlake Chemical will likely post difficult comparisons this year. During the second quarter, share earnings dropped 45%, on a 8% revenue decline. The chemical company was hard hit by lower global energy prices, plus planned maintenance and some unplanned outages hurt its recent performance.
Source: Value Line, August 2016

58. Lee Johnson Capital Management uses research and investment information from sources that it deems reliable. This information is not a recommendation to buy or sell, but for illustrative purposes. Please consult your advisor before investing in these or like investments, as not all investments are suitable. Each investor has different goals and objectives.

59. LJCM uses our proprietary screening to determine what we consider, the Top 25
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