Best ETFs to Buy Now for July 2022

Everyone was pummeled by inflation and now we have talks of a recession, which usually don’t bode well for markets.

So, how is Big Money reacting? It’s selling more than buying. Let me explain.

Markets and Big Money in the Last Six Months

My research firm, MAPsignals, measures Big Money investor activity. That includes institutions, pension funds, big individual investors, and so on. We follow Big Money because our research shows Big Money moves markets.

We created the Big Money Index (BMI), which is a 25-day moving average of large-scale investor buy and sell activity. Over time it has shown itself to be a leading indicator of where markets may go. The BMI went oversold in May, which is a hugely bullish long-term signal. It’s bounced back a bit since but is trending lower again of late:

Chart, histogram Description automatically generated

The Big Money selling includes shedding the sector that’s been a lone 2022 bright spot – energy. That’s ushered in more volatility as uncertainty continues to reign over inflation, recession, and geopolitical tensions. Check out the recent dip:

Chart, histogram Description automatically generated

On a more macro level, Big Money has been selling ETFs heavily over the past six months. Worse, buying has been basically nonexistent since March, meaning there’s no leadership now. Big selling combined with no buying will drive markets downward every time.

Chart, histogram Description automatically generated

But in times of uncertainty, bargains can be had. This month’s ETF picks have long-term value appreciation in mind. Some of them are experiencing low liquidity right now due to market volatility and a lack of overall leadership. Still, we think these ETFs have great long-term potential: FFTY, IEIH, XLV, FXU, and XLP.

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.

Now, let’s get to the best ETFs to buy now for July 2022.

Innovator IBD 50 ETF (FFTY) Analysis

This ETF is a weekly, rules-based, computer-generated stock index with a nearly 1.4% current dividend that seeks to identify the current top 50 growth stocks. It’s seen a downtrend for a while, with no Big Money buying. But, as markets rise again (and they almost certainly will at some point), FFTY should benefit because it holds great stocks focused on growth. It’s down 41.4% so far this year and is trading at an attractive price relative to its peak:

Chart, histogram Description automatically generated

FFTY holds many growth-oriented stocks across different industries. One health care example is Vertex Pharmaceuticals Incorporated (VRTX), which has three-year sales growth of 36.1%, three-year EPS growth of 23.5%, and a 30.8% profit margin. Here is the one-year Big Money action for VRTX:

Chart, histogram Description automatically generated

iShares Evolved U.S. Innovative Healthcare ETF (IEIH) Analysis

This is another low-liquidity ETF, so expect some volatility. That said, IEIH holds tremendous stocks in U.S. pharmaceutical and biotechnology firms with lots of long-term potential and pays a nearly 1.3% current dividend. It’s been choppy for much of the last year, but overall is down just 4.6% so far in 2022:

Chart, histogram Description automatically generated

One great stock IEIH holds is AbbVie, Inc. (ABBV). This drugmaker has seen big three-year EPS growth of 44.3% and sports a profit margin of 20.4%. Sales have been strong too, growing 20.6% over three years. The Big Money has been all over ABBV:

Chart, histogram Description automatically generated

Health Care Select Sector SPDR ETF (XLV) Analysis

Again sticking with the health care sector, XLV holds many great companies across several health care fields, including medicines, insurance, equipment suppliers, and more. This ETF is giant, so there should be no liquidity issues, and pays a more than 1.4% current dividend. XLV has seen Big Money action throughout the past year and is up 0.6% in that time:

Chart, histogram Description automatically generated

A fantastic stock within XLV is Thermo Fisher Scientific Inc. (TMO), a supplier of scientific equipment and services worldwide. It’s down in 2022, but its fundamentals remain strong. TMO has growing sales (one-year sales growth of 21.7%) and three-year EPS growth of 40.8%. Since 2012, TMO has attracted lots of Big Money. Each blue bar below shows when it was a Top 20 Big Money buy:

Chart, histogram Description automatically generated

First Trust Utilities AlphaDEX Fund (FXU) Analysis

When investors seek safety, that often means utilities that pay dividends. That makes sense because we all have to pay our utility bills, recession or not. FXU is a medium-liquidity ETF, so it still experiences some choppiness. But it’s up 5.4% over the past year, pays a more than 2.2% current dividend, and looks to have a bright future:

Chart, histogram Description automatically generated

One rock-solid dividend stock within this ETF is Duke Energy Corporation (DUK), a U.S. energy firm serving southern and midwestern areas of the country. While Big Money has been in and out of it over the past year, DUK has three-year EPS growth of 51.9% and a profit margin of 15.5%. Plus, it jumped 7.2% over a year’s time:

Chart, histogram Description automatically generated

Consumer Staples Select Sector SPDR ETF (XLP) Analysis

With recession fears high, consumer staples stocks are attractive to investors. That’s certainly justified right now. XLP holds several household names consumers buy regularly, is highly liquid, and offers a nearly 2.4% current dividend yield. It’s seen 12 Big Money buy signals in the last year and is up 4.2% in that time:

Chart, histogram Description automatically generated

A great stock in XLP is Coca-Cola Company (KO), the beverage maker (and Warren Buffett favorite). KO is fundamentally strong – it has one-year sales growth of 17.2% and a profit margin of 25.2%. It’s up more than 7% so far in 2022 and it wouldn’t surprise me to see this one rise more (it’s had 48 Top 20 Big Money buy signals since 1992 and is up 1,148.7% in that time):

Chart, histogram Description automatically generated

Here’s a Big Money recap:

  • When Big Money buying heats up, stocks and ETFs tend to rise
  • Deep selling on great quality can be a phenomenal opportunity
  • Repeated buying usually means outsized gains

Bottom Line and Explanatory Video

FFTY, IEIH, XLV, FXU, and XLP are my top ETFs for July 2022. They hover around health care a lot, but also cover other sectors that could rise over time. These picks can climb higher, in my opinion, largely because they each hold great stocks. With markets rocky, bargains can be had, and these ETFs show great long-term potential right now.

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

Disclosure: the author holds no positions in FFTY, IEIH, XLV, FXU, XLP, VRTX, TMO, DUK, or KO at the time of publication, but holds long positions in ABBV in managed accounts.

Contact:

https://mapsignals.com/contact/

Best Oversold Stocks to Buy Now for April 2022

Stock Markets and Big Money in the Last 6 Months

But that doesn’t change the fact that there’s been a lot more selling than buying over the past six months when it comes to Big Money investors like institutions.

To see what I mean, look at the chart below from my research firm, MAPsignals. We track Big Money activity. The blue bars are Big Money buy signals and the red bars are sells. The light at the end of the tunnel is the absence of red at the far right, but the broader view shows a lot more selling than buying:

It’s been worse for some sectors than others. For instance, the discretionary sector has been walloped over the last year:

When red bars run rampant, good names can get crushed. They can become what I call “oversold.” When this happens, even great stocks can get caught in the selling rush – and that can mean opportunity.

Oversold Stock Investment Opportunities for April 2022

There are some great stocks being sold right now, many in the discretionary sector. They’re fundamentally sound companies with good histories, which means discounts for long-term investors. Here are five stocks seeing lots of red that appear to be near-term oversold: TTD, NKE, SBUX, UPST & TMO.

Trade Desk Stock Analysis

Up first is Trade Desk, Inc. (TTD), a cloud-based advertising platform.

Even though great companies’ stocks can be volatile, like TTD over the past year, they’re worthy of attention, especially on pullbacks. Check out Trade Desk:

  • 1-month performance (-14.1%)
  • Recent Big Money sell signals

To show you what our Big Money signals look like on a stock, have a look at all the buys (green bars) and sells (red bars) in TTD over the past year:

Looking more broadly, Trade Desk has been a high-quality stock for years. The blue bars in the chart below show when TTD was a high-ranking stock likely being bought by a Big Money player, according to MAPsignals. When you see a lot of blue, it can be very bullish:

Source: www.MAPsignals.com

Those blue signals indicate Big Money buying and solid fundamentals. As you can see, Trade Desk’s sales and earnings numbers have been strong, making it worthy of attention:

  • 3-year sales growth rate (+36.0%)
  • 3-year EPS growth rate (+29.2%)

Nike Stock Analysis

Next up is Nike, Inc. (NKE), the athletic wear giant.

Check out these technicals for NKE:

  • Year-to-date performance (-17.0%)
  • Recent Big Money sell signals

It’s been getting sold a lot recently:

But now let’s look long-term. These are the top buy signals for Nike since 2010. The Big Money has been on it for a while:

Source: www.MAPsignals.com

Let’s look under the hood. As you can see, Nike has had rock-solid, double-digit growth in earnings and sales:

  • 3-year EPS growth rate (+67.2%)
  • 1-year sales growth rate (+18.9%)

Starbucks Corporation Stock Analysis

Another growth name is Starbucks Corporation (SBUX), the well-known coffee brand.

Strong candidates for growth usually have Big Money buying the shares. Starbucks has historically had that. But recently, it’s full of red, which could be an opportunity:

  • Year-to-date performance (-22.0%)
  • Historical Big Money signals

Below are the blue Big Money signals SBUX has made since 2010. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s dig deeper. Earnings and sales growth for Starbucks have both been impressive. I expect more of the same in the coming years. It’s also profitable and has little debt.

  • 3-year EPS growth rate (+89.2%)
  • 1-year sales growth rate (+23.6%)
  • Profit margin (+14.5%)
  • Debt/equity ratio (0.0%)

Upstart Holdings Stock Analysis

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

Here are the technicals important to me:

  • 1-month performance (-23.9%)
  • Historical Big Money signals

Since last fall it’s been on a steep downward slide, with more Big Money selling than buying:

But Upstart is a Big Money darling. Below are the Big Money Top 20 buy signals for UPST since it began trading:

Source: www.MAPsignals.com

Let’s look under the hood. Despite the price slide, Upstart earnings have rocketed, and they’re expected to keep growing:

  • 3-year EPS growth rate (+1,060.7%)
  • 2-year vs. 1-year EPS growth rate estimate (+38.9%)

Thermo Fisher Scientific Stock Analysis

Our last growth candidate is Thermo Fisher Scientific Inc. (TMO), a longtime player in the medical devices and life sciences arenas. Like most health care stocks, it’s been getting beaten up this year:

Check out these technicals:

  • 1-month performance (-11.0%)
  • Historical Big Money signals

TMO is a high-quality stock since it’s made the MAPsignals Top 20 report. As you can see below, it’s been a Big Money favorite for years. Right now, it’s on a pullback and could be an opportunity.

Source: www.MAPsignals.com

Now let’s look below the surface a bit. Earnings have been growing, it has a relatively inexpensive valuation (especially for a Big Money favorite), and there’s been solid sales growth too:

  • 3-year EPS growth rate (+40.8%)
  • Forward price-to-earnings ratio (25.5x)
  • 3-year sales growth rate (+17.6%)

Bottom Line and Explanatory Video

TTD, NKE, SBUX, UPST & TMO represent the top oversold stocks for April 2022. They’ve been sold a lot lately…perhaps too much. Strong, fundamentally-sound stocks seeing near-term sell signals are worthy of extra attention because of their long-term potential.

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

Disclosure: the author holds long positions in NKE, SBUX & UPST in personal and managed accounts.

Contact:

https://mapsignals.com/contact/

Best ETFs to Buy for March 2022

When there’s huge buying and selling in the market, it’s usually unsustainable and coincides with peaks and troughs, especially over the past two years. It reminds me of investor overexuberance. There’s just too much excitement (either of the buying or selling variety), for such movements to be anything that will last.

Chart, histogram Description automatically generated
Source: www.mapsignals.com

Opportunistic investors can take advantage of these movements, especially when there’s deep selling. Those times have proven to be when stocks and ETFs are on sale. When zooming in to the last three months (below), we see lots of unsustainable selling. This could set up well for some discount buying that may serve long-term investors well.

Chart Description automatically generated
Source: www.mapsignals.com

Given these conditions, we’ve identified some ETFs we think have long-term potential, a few of which are priced nicely right now: RDVY, QUAL, IGV, IHI, and FDN.

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 March 2022.

#1 First Trust Rising Dividend Achievers ETF (RDVY)

This is a market rotation play as growth stocks are shed in favor of more predictable value-oriented companies that pay dividends. And while dividends are great and rising dividends are even better. RDVY holds some great companies that have histories of raising dividends. It’s likely why Big Money has been buying RDVY in chunks over the past year:

RDVY holds several solid stocks, including some big technology companies; one example is Activision Blizzard Inc. (ATVI), which has a 3-year EPS growth rate of 16.6%, but is still getting sold a lot. Here are Big Money signals for ATVI:

#2 iShares MSCI USA Quality Factor ETF (QUAL)

This one is all about quality. QUAL holds a basket of stocks with excellent fundamentals, many of which are household names. So, it’s not surprising that an ETF all about quality has performed well over the past few years. There were dips around October and February (red bars), but big dips have typically preceded big rises in this ETF:

One great stock QUAL holds is Nike, Inc. Class B (NKE). It’s a long-time Big Money favorite with fantastic fundamentals (3-year EPS growth of 67.2%). As the multi-year chart below shows, it’s been a growing giant for a while:

#3 iShares Expanded Tech-Software Sector ETF (IGV)

This high-flying ETF has seen Big Money buys for a long time, and it’s performed well. It holds some phenomenal stocks, many of which are outliers – the kind that of stocks that produce HUGE gains. But with the recent pullbacks, IGV can be considered a discount buy right now:

One of many big winners within IGV is Adobe Inc. (ADBE). It’s an outlier stock – it’s 3-year sales growth is an impressive 20.8% – and has been a Top 20 Big Money buy for years:

#4 iShares U.S. Medical Devices ETF (IHI)

This one is another on our hunt for bargains. By identifying weaker ETFs holding stocks with strong fundamentals, we can buy in a good spot. IHI was destroyed in January 2022, but not long before that was at peaks, likely because its stocks are phenomenal and medical devices markets remain strong:

One standout within this ETF is Thermo Fisher Scientific Inc. (TMO), a giant healthcare company high huge earnings growth (3-year EPS growth of 40.8%). The multi-year chart below shows lots of Big Money buying. And notice how sells appear to be discounts:

#5 First Trust Dow Jones Internet Index Fund (FDN)

This is another “bargain bin” pick, but that’s because this ETF is getting killed recently (unfairly in my opinion). FDN has seen Big Money buying in the past, but it’s dropped significant value since around last Still, it holds fantastic technology stocks, which makes the current price appetizing:

One great stock in FDN is Amazon.com Inc. (AMZN). It’s been stagnant lately, but Big Money has leaned on AMZN for a long time. Given the firm’s ubiquitous nature, growth vision, and huge performance (26.6% 3-year sales growth and 50% 3-year EPS growth). It wouldn’t surprise to see this one rise high again:

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

Let’s summarize here:

Chart Description automatically generated with low confidence

RDVY and QUAL rank high. IGV, IHI, and FDN, however, rank lower on our list, due to weaker technicals. That’s why I think these weaker ETFs represent great potential bargains.

The Bottom Line

RDVY, QUAL, IGV, IHI, and FDN are my top ETFs for March 2022. These picks can rise higher, in my opinion, largely because they each hold great stocks. Some of them are 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 RDVY, QUAL, IGV, IHI, FDN, ATVI, ADBE, TMO, or AMZN in managed or personal accounts at the time of publication; he holds long positions in NKE in managed accounts.

Investment Research Disclaimer

https://mapsignals.com/contact/

 

Brace Yourself For Another Wild Month In Stock Markets

For the year, the Dow is down -6%, the S&P 500 is down just over -9%, and the Nasdaq has lost -14.7%. The previous record-holder is January 2009, an ugly moment for the economy, when the stock market fell -8.6%. In addition, the VIX – aka the CBOE Volatility Index – has actually dropped back to around 31 after topping 37 earlier this week, its highest point since November 2020.

Keep in mind, the index isn’t registering anywhere close to levels reached during other periods of “extreme” volatility. For example, the index, which is measured between zero and 100, hit its highest point of almost 83 during the financial crisis in 2008. Its most extreme point during the pandemic was around 66 in March 2020. So, by comparison, this week’s volatility has been rather mild.

Federal Reserve

Some insiders equate the wild swings in stock prices to investors, particularly “big money,” trying to establish a new baseline for stock valuations minus the Fed’s easy money policies that have driven a massive amount of cash into markets since the pandemic began in 2020.

At its height, the Fed was pumping as much as +$120 billion per month into the system via its asset purchase program, ballooning its balance sheet to now nearly $9 trillion.

At the same time, the Fed has held its benchmark rate at near-zero and, before that, hadn’t even attempted to raise rates since 2018, and then only briefly. The last full-cycle of rate hikes was 2015. What’s more, investors haven’t really had to factor for inflation since the early 90s and it hasn’t been this high since the 80s.

Bottom line, whatever the new “normal” ends up looking like, it will be dramatically different from the pre-pandemic investing landscape. I’ve heard several large stock traders saying it seems to be the return of Alpha instead of the race to levered Beta. I hear others on Wall Street referencing it to a bit of league recreational youth baseball team where everybody now gets an award simply for participation, but then kids run into a rude awakening when performance really starts to matter.

It feels like we are there in the stock market; every business that was coming into the market was simply being rewarded with participation points, now people are starting to keep a real scorebook and counting the strikeouts and runs scored.

Economy still roars

The good news is that the U.S. economy continues to roar. Historically, a combination of moderate inflation and moderate interest rates has led to some of the biggest boom times for U.S. Last week, the Commerce Department said Q4 Gross Domestic Product (GDP) grew at an annualized rate of +6.9%, stronger than Q3’s +2.3% and well above Wall Street expectations of around +5.7% growth.

Consumer spending climbed at a +3.3% annual pace led by a +4.7% increase in services spending. But the real stand out was private investment which rocketed +32% higher, boosted by a surge in business inventories as companies stocked up to meet higher customer demand. Rising inventories, in fact, contributed nearly +5% to Q4 GDP growth.

On the one hand, the inventory build is positive because it indicates an easing of supply chain dislocations that should in turn help with inflation pressures. On the other hand, many economists note that the big boost from retailer and wholesaler restocking is not likely to be repeated.

Companies will also likely start to unwind at least some of that inventory in the quarters ahead, which could drag overall 2022 GDP, especially if consumer spending also drops off. And investors are more closely tracking consumer behavior as inflation continues to rise.

With consumer spending accounting for about 70% of the U.S. economy, any signs that belts are tightening or moods are getting overly pessimistic will likely set off some alarm bells.

Data to watch

Turning to next week, it will be another busy one for both key economic data as well as earnings. The main economic data highlight will be the January Employment Situation on Friday. Other key data includes ISM Manufacturing, Construction Spending, and the JOLTS report on Tuesday; ADP’s private payrolls report on Wednesday; Productivity & Costs, Factory Orders, and the ISM Non-Manufacturing Index on Thursday.

Earnings wise, results are due from NXP Semiconductor and Trane on Monday; Advanced Micro Devices, Alphabet, Amgen, Chubb, Electronic Arts, Exxon, General Motors, Gilead Sciences, Match Group, PayPal, Sirius XM, Starbucks, and UPS on Tuesday; AbbVie, Aflac, Allstate, Boston Scientific, CNH, Corteva, D.R. Horton, Ferrari, Humana, Johnson Controls, Meta (Facebook), MetLife, Novartis, Novo Nordisk, Qualcomm, Siemens, Thermo Fisher, TMobile, and Waste Management on Wednesday; Activision Blizzard, Amazon, Biogen, Carlyle Group, Check Point, Cigna, Clorox, ConocoPhillips, Deckers Outdoors, Eli Lilly, Estee Lauder, Ford, Hanesbrands, Hershey, Honeywell, Ingredion, Merck, Pinterest, Quest Diagnostics, Royal Dutch Shell, Snap, SnapOn, Wynn Resorts, and Xylem on Thursday; and BristolMyersSquibb, CBOE, Phillips 66, Regeneron, and Sanofi on Friday.

Bottom line, brace for another huge week of extreme volatility.

XLV: Confidence in Medical Science at Containing Covid Is Highly Beneficial

The year 2020 was so hard for most of us as the pandemic struck bringing an unprecedented level of disruption to our lives. It’s now more than two years that the world is affected by the deadly and invisible virus with millions being infected and millions more have lost their jobs as the economies of many countries were devastated and governments were challenged into putting into place tough social distancing measures.

However, while infection rates have reached a new peak with the Omicron strain (as per the chart below in blue), the number of people who have actually lost the battle against the invisible enemy continues to fall as depicted by the death rate in the grey chart below trending lower.

https://static.seekingalpha.com/uploads/2022/1/3/49663886-16411948064843268.png

Source: Google

There are many reasons for the decrease in death rate with the most important ones being the rise in vaccination among populations worldwide as well as the provision of better hospital-level care to patients infected with Covid. This has been made possible by new antibodies treatments. For this purpose, the Health Care Select Sector SPDR Fund (XLV) includes key plays like Johnson and Johnson (JNJ) with its Janssen vaccine as well as Pfizer (PFE) with its Covid pill, as longer-term solutions to countering Covid.

Apparently trivial, but equally important, there is the important role played by diagnostics companies in early detection of the coronavirus so that infected people can be isolated. This separation act has been critical in order to contain the infection, in turn reducing hospitalization rates. Here, companies like Thermo Fisher (TMO) and Abbott (ABT) who were quick to develop relatively cheap Covid tests come to mind. In this respect, for those wondering about the role of these medical devices and tool plays in the future where Covid becomes more analogous to “normal” seasonal flu, there is the stark reality of the coronavirus mutating rapidly into Alpha, Delta, and Omicron strains. Thus, the market for Covid testing should become a constant in the new normal.

https://static.seekingalpha.com/uploads/2022/1/3/49663886-16411948065317018.png

Source: ssga.com

Moreover, XLV is not just about Covid as seen with health insurance plays like United Healthcare (UNH). The company makes the system work better for everyone by simplifying the health care experience through the use of advanced data and technologies, breakthrough treatments, and consumer choice. Talking diversification, with normalization in health care, there are a number of sectors including ophthalmology and dentistry as well as clinical trials activities in areas like biotech research which should prove beneficial for XLV’s holdings.

The market seems to already have realized this, rewarding XLV with 7.36% during the last month against only 2.69% for the S&P 500.

Source: Trading View

I believe that this outperformance should continue in 2022, as the role of medical science, especially through sequencers in rapidly understanding the DNA of the coronavirus as well as its mutants has been established. There may be periods of doubt as for example when investors’ high expectations of Merck’s Covid pills were dashed when some clinical trial data suggested that Molnupiravir was less effective than originally thought. This resulted in volatility in the State Street fund around December 13. Subsequently, XLV rapidly overcome this “volatility episode” and is now at the $140-141 range.

Looking at the sector, XLV comes with an expense ratio of just 0.12% and a dividend yield of 1.32%. Another peer, the Vanguard Health Care ETF (XHT) does offer lower fees of just 0.10%, but, it is the State Street fund that has outperformed both on a one-year and one-month basis, by 600 and 110 basis points respectively.

Finally, in line with its five-year performance, XLV should continue with its uptrend and reach the $150-155 level by the middle of 2022.

 

Best Stocks to Buy Now September 2021

The hard part is finding them.

At MAPsignals, that’s where we focus.

And this month we look at my best stocks to buy now for September 2021. Keep in mind, I like to use a lot of data in my process and this isn’t personalized advice.

But let’s touch on the market first. The big indexes are chugging higher but are largely being propped up by a handful of the biggest stocks. The data under the surface is deteriorating quickly. The Big Money Index is falling rapidly indicating more sellers than buyers. It’s often a leading indicator, so recent weakness isn’t surprising.

Graphical user interface, chart

Description automatically generated

Pullbacks are part of the game. In fact, that’s an opportunity for long-term investors. Patience is the key to investing.

For MAPsignals, we focus on Big Money buying the best stocks. We find that oftentimes how a stock trades can alert you to the forward fundamental picture more than just looking at a company’s financials. I like the odds in my favor when looking for the highest quality stocks.

Up first is Thermo Fisher Scientific Inc. (TMO), which is a leading medical devices company. They have been trucking higher for years.

When we decide on the strongest candidate for long-term growth, we consider many fundamental and technical considerations.

Here we see great 1 and 3-year sales and earnings growth. We also see a hefty profit margin. Just for fun, juice is good, so-so is ok, and not ideal is underwhelming:

Source: MAPsignals, FactSet

To see if Big Money is plowing in, we can look at the MAPsignals Top 20 charts. Below are all the top buy signals TMO has made the past few years. Blue bars are showing that Thermo Fischer was likely being bought by a Big Money player according to MAPsignals.

When we see a lot of blue signals, we call it the stairway to heaven:

Source: MAPsignals.com

Next up is Intuitive Surgical, Inc. (ISRG), which is a leading surgical robotics maker. Imagine being a surgeon in one country operating in a patient in another! This company makes it theoretically possible.

Let’s take a peek under the hood:

Text

Description automatically generated

Source: MAPsignals, FactSet

While the stock has outperformed recently, look at the long-term picture. These are the top buy signals ISRG has made since 2015. Clearly the Big Money has been into it for years:

Source: MAPsignals.com

Another growth name to consider is Activision Blizzard, Inc. (ATVI). The video game maker has seen negative press regarding work culture and other assorted stories. But it doesn’t change the monster business they do.

Looking at the fundamental picture we see a strong history of 1 and 3-year sales and earnings growth and a chunky profit margin:

Text

Description automatically generated

Source: MAPsignals, FactSet

Below are the big money signals Activision has made since 2015. This stock has been a magnet for Big Money with one notable rough patch. Clearly, they turned it around and have been in a strong long-term uptrend:

Chart, histogram

Description automatically generated

Source: MAPsignals.com

Number 4 on the list is Generac Holdings Inc. (GNRC), which is an industrials leader making electrical products such as their popular home generators. The shares have been in juice-mode for years.

Check out the fundamental picture. For GNRC we see growing sales and earnings:

Text

Description automatically generated

Source: MAPsignals, FactSet

Below are the big money signals that GNRC has made since 2015. Notice that it’s only recently come to Big Money attention in late 2019:

Source: MAPsignals.com

Our last growth powerhouse is PayPal Holdings Inc (PYPL), which is a specialty finance company focusing on digital payments.

This company boasts strong fundamentals with great 1 and 3-year sales and earnings growth. A gross profit margin of 55% is awesome.

Text

Description automatically generated

Source: MAPsignals, FactSet

Below are the big money signals PayPal has made since 2016. You can see how powerful the performance has been:

Chart, histogram

Description automatically generated

Source: MAPsignals.com

The Bottom Line

TMO, ISRG, ATVI, GNRC, & PYPL represent my best stocks to buy now for September 2021. Given the strong historical revenue & earnings growth, and multiple big money buy signals, these stocks could be worth extra attention, especially if they pull back with a likely pending sell-off in the market.

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

Disclosure: the author holds long positions in PYPL in personal and managed accounts. He holds no positions in TMO, ISRG, GNRC, or ATVI at the time of publication.

Investment Research Disclaimer