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/

Should You Follow Big Money and Ditch Upstart?

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

Smart money managers are always looking for the next hot stock. And Upstart has many fundamental qualities that are attractive. But sometimes when values decline, money managers look to sell or may be forced to liquidate.

This downward movement creates uncertainty for the stock going forward. And as I’ll show you, the Big Money has been exiting the shares recently.

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. But Big Money sells too, especially when the situation changes.

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 UPST has made the last year.

We’ve recently seen Big Money selling activity. Each red bar signals big trading volumes as the stock price dipped:

Source: www.mapsignals.com

In the last three months the stock attracted 14 Big Money sell signals. Generally speaking, recent red bars could mean more uncertainty is ahead.

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

Vast underperformance is an obvious red flag for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to understand the fundamental story too. As you can see, Upstart has been growing sales and earnings at a double-digit rate. Take a look:

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

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term. But when there is disagreement between the two, it could mean the situation has changed. Or it could be a huge long-term value play on a great stock.

In fact, UPST has been a top-rated stock at my research firm, MAPsignals. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. Usually when selling dries up, great stocks rally again.

UPST has had a lot of qualities that attracted Big Money. Since it began trading in late 2020, it’s made the MAPsignals top list 9 times, with its first appearance on 3/23/2021, and losing -1.29% since.

Despite the recent decline, the fundamental story is strong. The blue bars below show the times that Upstart was a top pick since 2020:

Source: www.mapsignals.com

It’s been a top stock in the financial sector according to the MAPsignals process. I wouldn’t be surprised if UPST reappears on this list in the years to come. Let’s tie this all together.

The Bottom Line

The Upstart decline makes the stock look oversold. Big Money selling in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be a huge value play long-term and still worth a spot in a growth-oriented portfolio.

Disclosure: the author holds long positions in UPST in personal and managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

One Chart Reveals The Sector Rotation In The Stock Market

In case you are still wondering what’s happening in the stock market since November 2021, the chart below will give you a clear picture.

Based on the ratio chart IVW/IVE where IVW is S&P 500 Growth ETF and IVE is S&P 500 Value ETF, it can be observed that the price peaked in mid of November 2021 followed by a lower high and lower low and had a sharp selloff in the first week of January in 2022.

As shown the price action of the above chart, the growth stocks started to underperform the value stocks in December 2021 (since it formed a lower high and a lower low) and the scenario is getting worse as reflected in the selloff last week.

Another thing to pay attention to is the increasing of the volume during the correction as this suggested urgent selling by the institutional investors. Nuances of the price and volume are to be studied via volume spread analysis in order to detect the subtle difference between institutional selling versus a normal pullback.

Effect of Fed’s Tapering to the Stock Market

This is In line with the Federal Reserve’s announcement of reducing the monthly bond buying program back in November 2021 because lots of leading growth stocks like Sea (SE), Shopify (SHOP), Upstart (UPST), Zscaler (ZS), Bill.com (BILL) started a steep correction since mid of November 2021.

There are tell-tale signs behind the sharp decline of the growth stocks, which you can refer to the post on the deterioration of the stock market breadth to find out how to judge the overall health in the stock market.

As the growth stocks are very sensitive and vulnerable to credit tightening environment, it is not surprised to see them kick start the correction especially given their rich valuation in 2021.

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Sector Rotation to Energy, Finance and Consumer Sectors

While the sector rotation is on-going with the growth stocks being abandoned, cyclical and defensive sectors like Energy (XLE), Finance (XLF) and Consumer (XLP) are breaking all-time high, as shown in the chart below:

Consumer staple (XLP) sector is traditionally a defensive sector. So, it is not surprised to have money flows in upon a market correction or a technology sector selloff. The cyclical sectors like the energy and finance are bucking the trend of the market thanks to the Santa Claus rally in crude oil and the expectation of rising interest rate macro environment, with at least 2-3 rate hikes coming in 2022 as guided by Fed.

S&P 500 Price Prediction

S&P 500 futures (ES) broke below the critical support at 4710 on 5 Jan 2022 and subsequently it failed to rally back above, which is a bearish sign for more weakness ahead. Should S&P 500 break below 4660, lower price targets at 4600 and 4500 could be expected. Refer to the chart below:

Since S&P 500 is vulnerable for a correction, if you are keen for a long trade, it is essential to carefully select the stocks within these outperforming sectors (XLP, XLE, XLF) with the best entry setup and high reward to risk ratio. Stop loss is essential for trading in case the trade setup fail due to the market weakness. Else shorting weak stocks like those in the ARKK ETF could be a better choice.

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

https://mapsignals.com/contact/

 

Best Growth Stocks October 2021

Oftentimes, that can be institutional activity. We’ll go over what that looks like in a bit. But, the 5 stocks we see as long-term candidates are NFLX, PYPL, UPST, ASML, & TSLA.

For MAPsignals, we believe that 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 Netflix, Inc. (NFLX), which is the leader in on-demand video.

Strong growth candidates tend to have strong performance. Check out NFLX:

  • YTD performance (+16.68%)
  • Historical big money signals

Just to show you what our Big Money signal looks like, have a look at the top buy signals Netflix has made the past few years.

Blue bars are showing that NFLX 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:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

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

  • 3-year sales growth rate (+28.9%)
  • 3-year earnings growth rate (+71.92%)

Next up is PayPal Holdings, Inc. (PYPL), which is a leading digital payments firm.

Check out these technicals for PYPL:

  • YTD performance (+25.2%)
  • Historical big money signals

Let’s look long-term. These are the top buy signals PayPal has made since 2015. Clearly the Big Money has been consistent for years:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Let’s look under the hood. As you can see, PayPal has grown revenues massively:

  • 3-year sales growth rate = +17.96%
  • 3-year earnings growth rate = +36.06%

Another growth name is Upstart, Inc. (UPST), which is a lending platform.

Strong candidates for growth usually have big money buying the shares. Upstart has that. Also, the stock has been a rocket:

  • YTD performance (+544%)
  • Recent Big Money signals

Below are the big money signals Upstart has made since 2019. It’s a newer listing with mega juice!

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

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

  • 3-year sales growth rate = +60.28%
  • 3-year earnings growth rate = +18.32%

Number 4 on the list is ASML Holding NV ADR (ASML), which is a huge semiconductor firm.

Here are the technicals important to me:

  • YTD performance (+77.2%)
  • Historical big money signals

Below are the big money signals for ASML since 2015:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

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

  • 3-year sales growth rate = +16.45%
  • 3-year earnings growth rate = +21.9%

Our last growth candidate is Tesla, Inc. (TSLA), which is the leader in the EV space.

Check out these technicals:

  • YTD performance (+6.7%)
  • Historical big money signals

Tesla is just now starting to crank with strong fundamentals, that’s why there’s few Big Money signals:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Now look at these juicy growth numbers:

  • 3-year sales growth rate = +41.78%
  • 3-year earnings growth rate = +33.26%

The Bottom Line

NFLX, PYPL, UPST, ASML, & TSLA represent top growth stocks for October 2021. Strong fundamentals and big money buy 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 NFLX, PYPL, & TSLA in personal accounts and long positions in NFLX, PYPL, & UPST in managed accounts. He holds no positions in ASML at the time of publication.

Investment Research Disclaimer

Upstart Holdings Rockets Higher With Big Money

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 Upstart has many fundamental qualities that are attractive.

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

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 UPST has made the last year.

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

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has attracted 8 Big Money buy signals. And more importantly, zero sell signals. They recently reported a strong earnings report. Generally speaking, recent green bars could mean more upside is ahead.

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

  •  YTD outperformance vs. financials ETF (+366.91% vs. XLF)

Outperformance is huge 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, Upstart has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+60.28%)
  • 3-year earnings growth rate (+18.32%)

Source: FactSet

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

In fact, Upstart has been a top-rated stock at my research firm, MAPsignals, 3 times before. 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.

UPST has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 3/23/2021, it’s up 71%. The blue bars below are the times that Upstart was a top pick:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if Upstart makes additional appearances in the years to come. Let’s tie this all together.

Upstart Holdings continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The Upstart 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 position in UPST at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer