Daily Stock Pick: NBTY Inc - 2/26/2010

Every trading day, we search our database for a brand new TopStock pick that, in our humble opinion, is in solid technical condition and perhaps, ready to move up.

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A question we are constantly asked is: How do we find these TopStocks? In short, we follow a disciplined three-step process.

Step 1: Identity the Top Sectors and Industry Groups
We first determine the market’s leadership by identifying the top performing sectors and industry groups. From 10 sectors and more than 100 Industry Groups, our proprietary ranking systems (which has been designed in conjunction with the nation's leading independent research firm) identifies the top 5 sectors and the top 20 groups based on momentum, industry strength, and indicators that are specific to the industry being ranked.

Step 2: Isolate the Highest Rated Companies
From more than 2400 stocks, the system identifies the top 5% in terms of earnings strength, earnings momentum, company performance, and relative strength.

Step 3: Select the Strongest Stocks in the Top Industry Groups
We then merge the two rankings and select the top ranked companies that are in the top Industry Groups. This keeps us focused on the best performing stocks in the leading sectors of the market.

And then every weekend, we rerun the TopStock ratings and start all over again!

The TopStock Pick of the Day

The TopStock Pick listed below has met all of our fundamental criteria and currently displays a solid technical "set up" for a buy. The stocks highlighted in our daily Stock Pick reports are definitely on our radar, and may even be in some of our portfolios (see disclosure for details).

Stock	Symbol	Industry	TopStock Rating	Annualized Profit Projection	S.T. Stop Loss
NBTY Inc	NTY	Personal Products	9.7	88.0%	$42.38
Company Profile: NBTY, Inc. (NBTY) is a vertically integrated manufacturer, marketer and retailer of a line of nutritional supplements in the United States and throughout the world. The Company markets approximately 25,000 products under numerous brands, including Nature’s Bounty, Ester-C, Solgar, MET-Rx, American Health, Osteo Bi-Flex, Flex-A-Min, SISU, Knox, Sundown, Rexall, Pure Protein, Body Fortress, WORLDWIDE Sport Nutrition, Natural Wealth, Puritan's Pride, Holland & Barrett, GNC (UK), Physiologics, Le Naturiste, De Tuinen, Julian Graves and Vitamin World. The Company’s vertical integration includes the purchase of raw materials, formulating and manufacturing products, which it markets through the four channels of distribution: Wholesale/United States Nutrition, North American Retail, European Retail and Direct Response/E-Commerce. During the fiscal year ended September 30, 2009 (fiscal 2009), the Company manufactured approximately 90% of the nutritional supplements it sold.
Chart Watch: Intraday Chart Watch: Last 3 Months Chart Watch: Last 12 Months
Stock Rating: The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest. Annualized Profit Projections: The projected annualized return is based on the historical relationship of the stock's TSP's technical model Disclosure: At the time of publication the editor and affiliated companies own the following positions: None Note: Positions may be bought or sold while this publication is in circulation without notice.

 

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