Daily Traders Edge

Here Are 5 Potentially Explosive Stocks For You

December 06
16:15 2017

The S&P 500 has shot up more than 20% for the year-to-date through Dec. 1. Story stocks like  Apple (AAPL) and  Amazon (AMZN) are up more than twice that. So are companies as varied as  McDonald’s (MCD)Caterpillar (CAT),  Visa (V),  UnitedHealth Group (UNH) and  Wal-Mart (WMT). Not surprisingly, these stocks are all trading in 1-, 2-, or 3-star range today, meaning that they’re fairly valued or overvalued by our measures.

Yet several stocks have returned at least twice as much as the S&P 500 this year but still trade in 4-star range, which suggests that these stocks remain undervalued. Here are five such high fliers that may have more gas left in the tank.

Guidewire Software (GWRE) 
Year-to-date return: 48.29%
Rating: 4 stars
Economic moat: Wide
Uncertainty: Medium

“Guidewire remains one of the most compelling stories in enterprise software in our view,” writes analyst Rodney Nelson in his latest note. “We believe investors should be taking a close look at the stock.”

Continue Reading at Morningstar

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