Bull of the Day: Intl Game Tech (IGT)
I’ve said before in some of my videos, including the one I called “Requiem for a Bull Market”, sometimes there’s no better way to roll the dice than buying stock in a company that literally gets paid when people roll the dice. I guess in that regard I’m a little bit of a gambler. But of course I like to live life dangerously. A Corvette’s my daily driver (even though I take the train to work) and I have a Mustang with 100 hp shot of nitrous I drive for “fun.” You know, just in case I need to get away from danger a quarter mile away in 11 seconds.
It should come as no surprise then when I try and get a little money back from this rolling of the dice. Today I’m talking about International Game Technology (IGT). The Company is engaged in design, development, manufacture and marketing of casino-style gaming equipment, systems technology, and game content. Its business segment consists of North America and International. The company operates primarily in the United Kingdom; Rome, Italy; Las Vegas, Nevada, and Providence, Rhode Island.
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Looks like a big reason for the Zacks Rank #1 (Strong Buy) on this one is analysts have recently pushed up estimates for the current year and next year. The bullish sentiment has taken the Zacks Consensus Estimate from 81 cents to 86 cents for the current year and from $1.47 to $1.76 for next year. Add to that two straight earnings surprises to the upside and you have pretty compelling story.
This bad boy may be due for a bounce here. Shares have come under pressure over the last year, dropping from over $21 in April to a low of $13.50 earlier this month. There may be some support here at $14 though as the commodity channel index has bounced a bit from below -100 to -85.76. Should shares continue to show strength and IGT rally a bit that CCI is likely to cross the zero line and give a buy signal technical traders may jump on. Sure there’s still downside risk here but I think it’s worth a roll of the dice with a stop below $13.50.
Be sure to click FOLLOW THE AUTHOR above to stay on top of all the hot momentum stocks at Zacks.com. David Bartosiak is the Momentum Stock Strategist with Zacks, editor of the Momentum Trader and Home Run Investor, and host of “Trending Stocks”
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