Best Oversold Stocks to Buy for December 2021

Let’s face it, stocks have been under a lot of pressure lately. Markets are reaching oversold levels.

At my research firm, MAPsignals, we track oversold markets by following the Big Money Index (BMI). It tracks Big Money buying and selling in stocks. Look how it’s at the lowest level since the pandemic in March 2020:

Chart, histogram Description automatically generated A lot of this selling is institutional activity. And inside of this sea of red are great stocks getting sold unfairly…more on that in a bit. The five stocks we see as nearing oversold levels are: APPS, CELH, FB, UPST & SQ.

At MAPsignals, we believe Big Money trading can alert you to the forward fundamental picture of a stock. We want the odds on our side when looking for the highest quality stocks.

Up first is Digital Turbine, Inc. (APPS), which is a digital advertising specialist.

Even though great companies’ stocks can be volatile, like APPS this year, they’re worthy of attention. Check out APPS:

  • 1-month performance (-24.1%)
  • Historical Big Money signals

Just to show you what our Big Money signals looks like, have a look at the top buy signals Digital Turbine has made the past few years in the chart below – the blue bars show that APPS was likely being bought by a Big Money player, according to MAPsignals.

When you see a lot of them, like APPS did in 2020 (when it hovered around 1/6 of its current price), I call it the stairway to heaven:

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, Digital Turbine’s numbers have been strong:

  • 3-year sales growth rate (+66.2%)
  • 3-year earnings growth rate (+183.5%)

Next up is Celsius Holdings (CELH), which is an energy drink maker.

Check out these technicals for CELH:

  • 1-month performance (-19.3%)
  • Recent Big Money signals

Let’s look long-term. These are the top buy signals Celsius has made since 2015. The Big Money may have found a new gem:

Source: www.MAPsignals.com

Let’s look under the hood. As you can see, Celsius has had rock-solid revenue growth, which could be more important than earnings growth since it’s a small company:

  • 3-year sales growth rate = (+54.1%)
  • 3-year earnings growth rate = (-23.06%)

Another growth name is Meta Platforms Inc. (FB), formerly Facebook, which is a social media and advertising giant.

Strong candidates for growth usually have Big Money buying the shares. Meta has that. Also, the stock has dipped a bit recently, which could be an opportunity:

  • 1 month performance (-4.0%)
  • Historical Big Money signals

Below are the Big Money signals Meta has made since 2015. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s look under the hood. Meta’s sales growth is impressive. I expect more growth in the coming years:

  • 3-year sales growth rate = (+28.5%)
  • 3-year earnings growth rate = (+27.3%)

Number four on the list is Upstart Holdings, Inc. (UPST), which is a cloud-based artificial intelligence banking platform.

Here are the technicals important to me:

  • 1 month performance (-38.0%)
  • Historical Big Money signals

Below are the Big Money signals for UPST since it’s 2020 trading debut:

Source: www.MAPsignals.com

Let’s look under the hood. Upstart Holdings has been growing nicely:

  • 3-year sales growth rate = +60.3%
  • 3-year earnings growth rate = +18.3%

Our last growth candidate is Block, Inc. (SQ), formerly Square, which is a top payment processing platform.

Check out these technicals:

  • 1-month performance (-26.8%)
  • Historical Big Money signals

Block is a high-quality stock since it’s made my Top 20 report:

Source: www.MAPsignals.com

Now look under the hood. Sales have been growing quite well, and I expect earnings to pick up too:

  • 3-year sales growth rate = (+64.5%)
  • 3-year earnings growth rate = (-0.7%)

The Bottom Line

APPS, CELH, FB, UPST & SQ represent the top oversold stocks for December 2021. Strong fundamentally sound stocks seeing near-term sell signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in APPS, CELH & UPST in managed accounts and APPS & SQ, in personal accounts.

Investment Research Disclaimer

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