Best Growth Stocks to Buy Now for June 2022

Markets overall continued to trend downward recently on heavy selling action. Geopolitical tensions and uncertainty due to a host of factors, inflation being a big one, caused investors to flee.

However, we’re now seeing an uptick. Markets may have turned a corner. In fact, we recently hit an incredibly bullish indicator that historically has preceded big future returns.

Markets and Big Money in the Last Six Months

At MAPsignals, we follow the Big Money because it tends to produce outlier stocks and drive markets. When price movements occur on big volumes, it’s often intuitions, pension funds, and other “whale” investors influencing the swings. We created the Big Money Index (BMI) to track this activity and help show where markets could go.

When it’s hit oversold in the past, big returns followed. Well, the BMI recently hit oversold levels (the green horizontal line), but as you can see, it’s quickly snapped back:

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That’s due to a decrease in selling and more sustained buying:

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We’re seeing lots of buying in the energy sector. The materials, real estate, and industrials sectors are expected to grow too based on earnings, per FactSet. This shows how growth stocks not always tech related. They can be in any in any industry that’s growing.

The best outlier stocks (regardless of sector) have three common traits: strong fundamentals, great technicals, and a history of Big Money activity in the shares. At MAPsignals, we believe Big Money trading can alert you to the forward fundamental picture of a stock. And we want the odds on our side when looking for the highest quality stocks.

Focusing on quality is critical when markets are under pressure. Using the MAPsignals database, we’ve filtered for strong fundamentals and future growth to identify five ideas for potential long-term investment: PXD, COP, ADM, VRTX, & META.

Pioneer Natural Resources Company (PXD) Analysis

Up first is Pioneer, an oil and gas exploration company focused on Texas that pays a current dividend of more than 4.3%.

Even though great stocks can be volatile, like PXD this year, these companies are worthy of attention, especially when they grow earnings and return lots of cash to investors. Check out PXD:

  • 1-month performance (+5.6%)
  • Historical Big Money signals

Just to show you what our Big Money signals look like, have a look at the top buy signals PXD has made over time in the chart below. Blue bars are showing it was likely being bought by a Big Money player, according to MAPsignals.

When you see a lot of them, I call it the stairway to heaven:

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Source: www.MAPsignals.com

But, what about fundamentals? As you can see, PXD’s sales and profits have been strong:

  • 1-year sales growth rate (+154.4%)
  • Profit margin (+11.8%)

ConocoPhillips (ODFL) Analysis

Next up is ConocoPhillips, the huge, global energy company with a nearly 1.6% current dividend.

Check out these technicals for COP:

  • 1-month performance (+13.9%)
  • Historical Big Money signals

Let’s look longer-term. This is the Big Money action on ConocoPhillips since 2016, and it’s clear that if you bought when Big Money was selling, you’d be doing quite well:

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Source: www.MAPsignals.com

Now let’s dive deeper. As you can see, ConocoPhillips has had double-digit growth in sales and big profits:

  • 3-year sales growth rate (+30.8%)
  • Profit margin (+17.5%)

Archer-Daniels-Midland Company (ADM) Analysis

The third growth stock idea is Archer-Daniels-Midland, the agricultural commodities processor.

Strong candidates for growth usually have Big Money buying the shares. Archer-Daniels-Midland has that. Also, the stock has fallen recently:

  • 1-month performance (-0.2%)
  • Historical Big Money signals

Below are the Big Money signals ADM has made since 2016. That’s the JUICE!

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Source: www.MAPsignals.com

Now let’s look under the hood. Archer-Daniels-Midland’s sales growth is solid. And given its strong sales, valuation, and current 1.8% dividend, I expect more growth in the coming years:

  • 3-year sales growth rate (+10.9%)
  • Forward price-to-earnings ratio (8.2x)

Vertex Pharmaceuticals Incorporated (VRTX) Analysis

Number four on the list is a health care giant and long-time Big Money favorite, Vertex. It creates treatments for the world’s most serious diseases, like cystic fibrosis and muscular dystrophy.

Here are the technicals important to me:

  • 1-month performance (+7.1%)
  • Historical Big Money signals

It’s a hugely successful stock. Below are the Top 20 Big Money buy signals for VRTX since 2018 – it’s been a Top 20 buy more than 20 times since then:

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Source: www.MAPsignals.com

Let’s examine a bit more. Vertex has been growing sales nicely and expects earnings to grow too, likely due to its profit margin:

  • 1-year sales growth rate (+22.5%)
  • 2-year vs. 1-year EPS growth estimate (+7.9%)
  • Profit margin (+30.8%)

Meta Platforms, Inc. (META) Analysis

Our last growth candidate – Meta, the parent company of Facebook and Instagram – is a beaten-down giant in the technology industry. Meta helps connect people worldwide and is a huge player in advertising.

Check out these technicals:

  • YTD performance (-42.0%)
  • Historical Big Money signals

META is more than 270 days from its 52-week high, but believe me, it’s still a high-quality stock. It’s made the MAPsignals Top 20 report many times since 2015:

Source: www.MAPsignals.com

Now look under the hood. META has been growing sales and earnings at big rates, its outlook is solid, and the valuation is attractive:

  • 1-year sales growth rate (+37.2%)
  • 3-year EPS growth rate (+26.4%)
  • 2-year vs. 1-year EPS growth estimate (+19.4%)
  • Forward price-to-earnings ratio (16.7x)

Bottom Line and Explanatory Video

PXD, COP, ADM, VRTX, & META represent top growth stocks to buy now for June 2022. Strong fundamentals and historical Big Money buy signals make these stocks worthy of extra attention for long-term investors, despite being in non-traditional growth sectors or suffering recent dips.

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

Disclosure: the author holds no positions in PXD, COP, ADM, VRTX, or META.

Contact

https://mapsignals.com/contact/

Best ETFs to Buy Now for April 2022

They include energy:

Materials:

And real estate (notice the yellow arrow on the right – that is HUGE buying on March 29, 2022):

Markets and Big Money in the Last 6 Months

My research firm, MAPsignals, measures Big Money investor activity. That includes institutions, pension funds, big individual investors, and so on. Our research shows Big Money moves markets. And right now, Big Money flows into stocks have been positive over the last month:

That’s driving up major indices as well as the Big Money Index (BMI), which measures large-scale investor activity. It’s spiked recently, though may be cresting:

So, things are looking up somewhat, but the general direction of markets going forward is no certainty. Opportunistic investors can take advantage of volatile markets, especially when there’s deep selling. Those times have proven to be when stocks and ETFs are on sale.

Given these conditions, we’ve identified some ETFs we think have long-term potential, one of which is priced nicely right now: VDE, SCHG, SCHH, HDV, and IJJ.

Long-term investors should look for ETFs (and their stocks), with great setups. Remember, ETFs are just baskets of stocks, so we need to look at them in detail. MAPsignals specializes in scoring more than 6,500 stocks daily. If I know which stocks compose the ETFs, I can apply stock scores to the ETFs. Then I can rank them all from strongest to weakest.

Let’s get to the five best ETF opportunities for April 2022.

Vanguard Energy ETF (VDE) Analysis

The current geopolitical situation has changed the global energy market in big ways. The ripple effect brought oil and gas back in the spotlight while driving up prices for energy. As you can see, Big Money has been buying VDE in chunks over the past year, with heavy buying starting in October 2021:

VDE holds several powerhouse stocks. One example is ConocoPhillips (COP), which is up 35% this year and has a profit margin of 17.5%. Here are Big Money signals for COP:

Schwab U.S. Large-Cap Growth ETF (SCHG) Analysis

True, the near-term chart on SCHG doesn’t look great. But the broad view shows its huge upward trend, and it holds a basket of stocks with excellent fundamentals, many of which are household names.

One great stock SCHG holds is Tesla Inc. (TSLA). It’s a long-time Big Money favorite with fantastic fundamentals, including a 10.3% profit margin, 3-year EPS growth of 336.2%, and 3-year sales growth of 37.8%. As the multi-year chart below shows, it’s been a growing giant for a while:

Schwab U.S. REIT ETF (SCHH) Analysis

Remember the huge spike in real estate stock buying? Well, that’s reflected in SCHH too. While there have been a couple dips in the past year, the trend on this one overall is undeniably upward:

SCHH is a REIT ETF, but it contains some stocks you wouldn’t expect. A good example is Mastercard Incorporated (MA). It’s fallen recently, but it’s an outlier stock with a profit margin of 46%. It’s also been a Top 20 Big Money buy for years:

iShares Core High Dividend ETF (HDV) Analysis

When markets get uncertain, many investors flock to defensive positions, especially great dividend stocks. As various headwinds like inflation and geopolitical tensions picked up late last year, fundamentally strong stocks with dividends captured investors’ attention. For instance, HDV was chopping along until December 2021, when Big Money began its ramping up:

One longstanding dividend stock within this ETF is Johnson & Johnson (JNJ), a giant, profitable healthcare company (22.3% profit margin) that’s been a recent Big Money magnet. The multi-year chart below shows lots of Big Money buying, and its current 2.39% dividend is part of the reason:

iShares S&P Mid-Cap 400 Value ETF (IJJ) Analysis

This is a “bargain bin” pick, but that’s because this ETF is getting battered around recently (unfairly in my opinion). IJJ holds smaller companies and has seen some Big Money buying in the past. It’s been choppy over the last year, but the longer-term performance proves it can hold a valuable place in a diversified portfolio:

One great stock in IJJ is Knight-Swift Transportation Holdings Inc. (KNX). It’s fundamentally strong – it has 3-year EPS growth of 31.9% and a 12.4% profit margin. But it’s down 25% this year so far. However, it wouldn’t surprise to see this one rise high again (it’s had 23 Top 20 Big Money buy signals since 2005):

Here’s a Big Money recap:

  • When Big Money buying pours in, stocks tend to go up
  • Red selling on great quality can be a great opportunity
  • Repeated buying usually means outsized gains

Bottom Line and Explanatory Video

VDE, SCHG, SCHH, HDV, and IJJ are my top ETFs for April 2022. VDE, SCHG, SCHH, and HDV rank high, while IJJ ranks lower due to weaker technicals. These picks can rise higher, in my opinion, largely because they each hold great stocks. One of them is discounted right now because of selling pressures. But as we know, deep red days often prove to be big opportunities over time.

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

Disclosure: the author holds no positions in VDE, SCHG, SCHH, HDV, IJJ, COP, TSLA, MA, JNJ, or KNX in managed or personal accounts at the time of publication.

Contact:

https://mapsignals.com/contact/

 

Which Stocks are Better to Buy – Oil, Gas or Renewable

The announcement on March 8, by president Biden, claiming all imports of Russian oil, gas, and energy sources will be banned at all American ports of entry has left investors seemingly hawkish, even as the Brent crude was trading well above $100 per barrel, an increase last witnessed in 2008.

The U.S. benchmark, the West Texas Intermediate, was also climbing sharply at the start of March, with prices per barrel toppling close to $120.

Even while consumer demand has remained steady, and countries imposing stricter diplomatic sanctions on Russia, fossil fuels, and renewable energy shares have entered some choppy waters in recent days, leaving investors on both sides of the aisle on whether the oil bubble is set to burst, or if renewables are still the safer bet?

The world is still predominantly oil and gas

While we’ve seen a lot of companies and governments trailing efforts shifting to renewable energy, the world still runs mostly on fossil fuels. From the road and transportation industry, production and manufacturing of goods, to energy and gas, there’s still a hefty reliance on fossil fuels.

As of 2019, around 84% of the world’s energy consumption primarily came from burning fossil fuels, including natural gas, coal, and oil – consumers, and governments are still relying heavily on the need for these fuels.

It does however make it a bit more clear to the investor who’s looking to make a quick buck with the oil and gas rally to see that prices for these energy resources aren’t going to come down any time soon.

With oil and gas prices rising, companies are looking for new ways to explore the market, and investors are willing to jump on the bandwagon, and rising prices are perhaps the last thing that’s putting off investors. During this time, companies in the oil and gas industry aren’t just seeing record-breaking revenues, but it’s also giving them the ability to strategize, as renewables are sweeping across markets.

Exxon Mobil (NYSE: XOM) announced at the start of the year a $22 billion expenditure budget, a hefty jump from the $17 billion in 2021. Exxon operations have gone global in recent years, with deepwater drilling in Australia, the Middle East, selected African waters, and the Permian Basin.

As demand has increased year-over-year, operations have grown bigger, and the positive outlook has for some time calmed any cuts to Exxon’s 4.5% dividend.

XOM can trail a successful year, and its $380 billion market cap is one way to attract investors who are willing to place their bets on Exxon as the fossil fuel movement remains quite strong across the world.

Even if Exxon is not delivering on its promise, there’s still Chevron, who’s been trailing XOM for quite some time, with a market cap just shy of $334 billion, and investors have been seeing positive returns as oil prices have been climbing.

Conoco Phillips (NYSE: COP) has been on investors’ watchlist for most of 2021 and so far 2022 as well. After the acquisition of Concho Resources in 2021, the company’s market cap trailed a healthy $129 billion, marking it as one of the biggest independent oil companies in the U.S.

With soaring oil prices, and its healthy balance sheet after spending more than $9 billion for Shell’s 225,000 net acres in the Texas Delaware Basin, Conoco is increasing its holdings and domestic influence.

The midstream American gas giant, Enterprise Products Partners (NYSE: EPD) is what investors are looking for, delivering increased capacity and production throughout the last few years, and its recent acquisition of Navitas Midstream Partners for $3.5 billion in cash is one indication of the current condition of the company.

As the current economic recovery takes its toll on Americans, with inflation hitting a 40 year high, EPD has been placed in a fortunate position, offering an investment with the ability to hedge inflationary price increases. With most of its debt secured for the long-term at 4.4%, increased prices can be passed off to the consumer, rather than the company itself.

EOG Resources (NYSE: EOG) is perhaps one of the more overlooked oil stocks on the market, yet its market cap of close to $68.97 billion keeps investors well on their heels, with the company constantly developing new technology and production equipment.

EOG places more interest and focus on using technology and big data in drilling operations than in the production, and exporting category. It placed them in a comfortable position, where the company now has acreage in the Eagle Ford shale, and among other giants in the Permian Delaware Basin.

Although environmental efforts and polarizing political agendas have scraped these companies from the spotlight, there’s still a hefty amount of steam left before they’ll witness renewables and sustainability taking a majority stake.

There’s still money in renewables

On the other side of the aisle, renewables have had a difficult road throughout the last few decades, but a push for Environmental Sustainability and Governance (ESG) policies by governments in developed and developing nations has helped them fast-track their global dominance.

SolarEdge Technologies (NASDAQ: SEDG) has been heading into 2022 with a strong pace, with a four-week gain of 23.6% between February and March. Analysts have been keeping an eye on SEDG as it managed to cross its 12-month target price from $327.05 to $328.91 per share.

Upcoming quarterly earnings of $1.31 per share represent a 33.7% change in the last year, with more than $600 million in expected revenues.

Perhaps Albemarle (NYSE: ALB), a global leader in the chemical industry should offer a bit more clarity to the rise in go-green stock purchases. The company which is among the largest producers of lithium saw its stocks rise by more than 58% in 2021.

With the demand for electric vehicles (EVs) and hybrids climbing to never-before-seen highs, Albemarle is perfectly positioned for another stellar year, even as some investors and consumers remain skeptical.

Renewable energy sources have increased by more than 45% in 2020, and these stocks are perhaps in for one rollercoaster year, out betting most estimates, with overall returns of more than 159% since 2019.

The real winner between oil, gas, and renewables is a hard swing, but a swing in the right direction nonetheless. Investors who are looking to increase their returns, while playing it safe are perhaps better off investing in big oil and gas companies.

Although demand for both industries has increased, there’s still no end to the consumption of fossil fuels yet, and as renewables start to take form, even in the most volatile markets there are hopes that their influence will see investors more interested.

Solar, wind, and hydropower stocks remain a stronghold, and a valuable asset to any portfolio, and for investors who are keener on adding stocks that will offer better long-term returns, you should perhaps look to lean more towards renewable stocks.

The deciding factor is irrelevant, in some cases, and investors should consider the risks that come along when choosing either or to invest in. There’s potential to grow, and whether you predict demise on the horizon or not, these stocks can become a vital asset to any portfolio.

How Would Sanctions On Russian Energy Affect The World Markets?

Key Insights

  • The U.S. signals that it is ready to consider sanctions on the Russian energy sector. 
  • The markets are nervous as sanctions on the key exporter may lead to huge price spikes.
  • The big U.S. oil producers will benefit from this scenario. 

The U.S. Remains Open To The Possibility Of Banning Russian Energy

White House spokeswoman Jen Psaki has recently stated that the U.S. was “very open” to imposing sanctions on Russia’s oil and gas industry.

Traders have already begun to price in the possibility of such sanctions. As a result, WTI oil moved above the $100 level and attempted to settle above $112.50.

In 2021, Russia produced an average 10.52 million barrels per day (bpd), and this production continued to grow as OPEC+ relaxed its production curbs. According to IEA, Russia’s total oil production in January 2022 was 11.3 million bpd. Russia is the world’s largest oil exporter to global markets, exporting 7.8 million bpd in December 2021.

Not surprisingly, the markets are nervous in the current situation, as excluding a huge player could lead to uncontrollable consequences.

The situation is even tenser in the natural gas market, although the problems are limited to Europe as the natural gas market is more fragmented. The natural gas market in the U.S. will likely remain stable regardless of any future sanctions on Russia.

Energy Demand Is Inelastic And Sensitive To Small Changes

The main problem is that energy demand is inelastic. When you need heat in winter or energy to drive a car from A to B, you cannot postpone consumption. Meanwhile, it’s not easy to store oil or gas, and even the biggest reserves in the world are limited. In this light, even small changes in the demand/supply balance can cause massive price spikes.

We had already seen this during the coronavirus crisis in 2020 when the price of oil futures temporarily went below zero as demand declined, and traders were ready to pay any price to avoid taking delivery of oil that could not be stored.

If the U.S. and EU impose sanctions on Russia, the opposite may happen. Suddenly, the world will rush to buy non-sanctioned oil, while oil producers will have a hard time boosting output. OPEC+ struggled to meet its quotas due to lack of investment during the coronavirus crisis, while Western oil companies have reduced investments due to the shift to green energy.

Who Wins If Russian Energy Is Hit By Sanctions?

At this point, it looks that big U.S. oil companies like Chevron, ConocoPhillips, Exxon Mobil (despite its exposure to Russia) will be the main beneficiaries of the hard sanctions scenario. However, it is clear that Western governments will carefully weigh such a decision as it could create true chaos in energy markets, especially in the near term.

For a look at all of today’s economic events, check out our economic calendar.

Big Money Energizes ConocoPhillips

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And ConocoPhillips has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals COP has made the last year.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 26 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

Outperformance is important for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, ConocoPhillips has been growing sales at double-digit rates and is profitable. Take a look:

  • 3-year sales growth rate (+30.8%)
  • Profit margin (+17.5%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, COP has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

COP has a lot of qualities that are attracting Big Money. Going way back to 2004, it’s made this list eight times, with its first appearance on 01/05/2004…and gaining 534.70% since. The blue bars below show the times that ConocoPhillips was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if COP makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The ConocoPhillips rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no positions in COP at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

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