ARO has a score of 4/2. It scores 100% on the Warren Buffett, Joel Greenblatt, and James O'Shaughnessey screens, 93% on the Peter Lynch screen, 90% on the Kenneth Fisher screen, 81% on the John Neff screen, and, oddly enough, 71% on the Benjamin Graham screen. This is another stock lighting up the growth screens, but it's also interesting to see it light up some more value-oriented screens.
ARO doesn't report earnings again until early March, and it does not pay a dividend.
ARO is technically looking like many of my other picks - a fundamentally strong company in a brief downtrend that's rallying into heavy resistance. The 50-day and 200-day EMAs are literally right on top of each other. If ARO can clear this hurdle, these levels will provide solid support, but for now, they're resistance. I believe ARO will eventually overtake these levels, but I also believe a pullback is necessary first.
ARO is optionable and has a strong chain that is liquid in terms of volume and open interest and the strikes and bid/ask spreads are tight. The options are pretty cheap in this stock, and this is another call spread candidate. I don't typically play with front-month options, but a call spread buying the January $31's and selling the January $35's and/or $36's makes sense here if you believe as I do that the stock will not be able to clear resistance just yet. Most likely, however, I would make such a play by buying February and/or April calls while selling January calls. The trick is to buy the dip and sell the rip when making call spreads.
Position: none
Disclaimer: This is not a recommendation and is presented for informational purposes only.
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