Sell Stepan for a quick gain

By Linda McDonough • April 20, 2016

We are selling Stepan Company (NYSE: SCL) from the Growth Stock Strategist portfolio. The stock is up almost 13% since our recommendation on March 3 and is just about touching our $60 target.

The specialty chemical maker trades at 15 times 2017 estimates but is only growing at 6%. Although Stepan’s operating model is sound, the market has recognized–as we did last month–that its stock was under priced.

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About The Author

Linda McDonough

Bio | Archive

Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.