Best Oversold Stocks to Buy Now for May 2022

Markets and Big Money in the Last Six Months

See, I like to look at data. My research firm, MAPsignals, tracks the Big Money because we believe that’s what tends to move markets. Right now, there’s tons of selling (red bars), but making matters worse is the lack of buying (blue bars):

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

Two sectors that have been getting slammed for a while are financials and technology. So, this is where I’m going to look for the best oversold stocks. These areas beaten down right now, but they tend to be big growers historically, so it’s time to be opportunistic.

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There are some great stocks being sold right now in these sectors. 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: FB, AAPL, GRMN, GOOGL, and V.

Meta Platforms Inc. (FB) Analysis

Up first is Meta, formerly Facebook, which is the social media and advertising heavyweight.

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

  • Year-to-date month performance (-37.0%)
  • 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 and sells in FB over the past year:

Looking more broadly, Meta has been a high-quality stock for years. The blue bars in the chart below show when FB 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, Meta’s sales growth and earnings outlook have been strong, making it worthy of attention:

  • 3-year sales growth rate (+28.5%)
  • 2-year vs. 1-year EPS growth rate estimate (+18.5%)

Apple Inc. (AAPL) Analysis

Next up is Apple, the technology giant famous for its iPhones, Mac computers, and more.

Check out these technicals for AAPL:

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

It’s been getting bought and sold, but the uptrend is undeniable:

Now let’s look long-term. Below are the top buy signals for Apple 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, Apple has had rock-solid, double-digit growth in earnings and owns a nice profit margin:

  • 3-year EPS growth rate (+67.2%)
  • Profit margin (+25.9%)

Garmin Ltd. (GRMN) Analysis

Another growth name is Garmin, the navigation company offering global positioning system and fitness solutions across a wide range of customers.

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

  • Year-to-date performance (-18.0%)
  • Historical Big Money signals

Below are the blue Big Money signals GRMN has made since 2014. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s dig deeper. Earnings growth for Garmin has been impressive. I expect more of the same in the coming years. Its tiny debt is also encouraging for the future.

  • 3-year EPS growth rate (+16.1%)
  • Debt/equity ratio (1.5%)

Alphabet Inc. Class A (GOOGL) Analysis

Number four on the list is Alphabet, which is a huge tech firm and the parent company of Google.

Here are the technicals important to me:

  • 1-month performance (-16.3%)
  • Historical Big Money signals

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

But Alphabet is a Big Money favorite. Below are the Big Money Top 20 buy signals for GOOGL since 2004:

Source: www.MAPsignals.com

Let’s look under the hood. Despite the price slide, Alphabet sales have jumped quite a bit, and earnings are expected to keep growing:

  • 3-year sales growth rate (+24.0%)
  • 2-year vs. 1-year EPS growth rate estimate (+19.2%)

Visa Inc. (V) Analysis

Our last growth candidate is Visa, the enormous credit card and payment company. Like most financial stocks, it’s not had the easiest year:

Check out these technicals:

  • 1-month performance (-7.9%)
  • Historical Big Money signals

But V 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 bit of a pullback and could be an opportunity:

Source: www.MAPsignals.com

Now let’s look below the surface a bit. Sales have been growing, it’s highly profitable, and the earnings outlook is solid:

  • 1-year sales growth rate (+10.3%)
  • Profit margin (+49.8%)
  • 2-year vs. 1-year EPS growth estimate (+16.9%)

Bottom Line and Explanatory Video

 

FB, AAPL, GRMN, GOOGL, and V represent the top oversold stocks for May 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 GRMN, GOOGL, and V in personal and managed accounts.

Contact

https://mapsignals.com/contact/

Big Money Buys Up Marsh & McLennan

And the insurance and professional services firm could rise even more due to strong earnings and a current dividend of more than 1.3%. But another likely reason is Big Money lifting the stock.

Big Money Attracted to Marsh & McLennan

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 Marsh & McLennan 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 MMC 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 22 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.

Marsh & McLennan Fundamental Analysis

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, Marsh & McLennan has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+15.1%)
  • 3-year EPS growth rate (+25.6%)

Source: FactSet

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

In fact, MMC 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.

MMC has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 56 times since 1990, with its first appearance on 01/15/1990…and gaining 2,819.2% since. The blue bar below shows when Marsh & McLennan was a top pick:

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 MMC makes additional appearances in the years to come. Let’s tie this all together.

Marsh & McLennan Price Prediction

The Marsh & McLennan rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a more than 1.3% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

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

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Sell High-Beta Stocks. Buy Low-Volatility Stocks. It’s The Business Cycle

Summary

A sound investment strategy takes advantage of the economic environment.

The economic environment drives the relative performance of investments.

The business cycle tells which stocks should be in your portfolio: high-beta vs low volatility.

The main forces driving the business cycle

There are three main types of economic indicators: leading, coincident, and lagging. The lagging indicators are the most important ones for investors because they determine the length of the business cycle and the severity of the economic correction needed to bring them down so the economy can expand again.

Inflation, interest rates, and labor costs are the most important lagging indicators. A rise in inflation reduces consumers’ purchasing power. The rise in interest rates makes purchases of anything less affordable – housing and autos in particular. Rising labor costs hinder profitability. Consumers react to the rise in inflation and interest rates by cutting first the purchase of big-ticket items. This is also the time consumer confidence of the University of Michigan declines sharply.

The slowdown in housing and auto sales are the first developments reflecting the economy is downshifting. Such slowdowns are reflected in equity prices. Coincident indicators such as employment and sales eventually also begin to sputter.

The investment opportunity in equities takes place when the leading indicators – those which were the first to signal the slowdown – are going to rise again.

One of the most important tenets of the business cycle is the slowdown will continue until the causes that created the slowdown are brought under control.

The main causes of the slowdown are the rise in the main lagging indicators: inflation and interest rates. The slowdown will continue as consumers reduce spending until their purchasing power restored again. This happens when inflation and interest rates decline. This is also the time when labor costs decrease, improving business profitability.

As retail sales increase because of rising consumers’ purchasing power, the other coincident indicators also rise: employment, production, and income. These developments will reinforce themselves and the positive loop will continue until the economy overheats.

This is the time when the lagging indicators raise their ugly heads, and the business cycle starts all over again.

Where are we now?

The lagging indicators are rising. Consumer prices keep moving higher – up more than 8%. Interest rates – short-term and long-term – have reached new highs for this business cycle. The two-year Treasury yield soared from 0.2% to 2.6% in the last 12 months. The stock market, an important leading indicator, shows no gains since June 2021 as of this writing. Auto sales and housing have been weakening after several months of rising inflation and interest rates.

Consumers cut spending on big-ticket items first when income after inflation declines as it is happening now (see graphs of buying conditions from University of Michigan survey below). In other words, an increase in the lagging indicators (inflation and interest rates) lead a peak in the leading indicator consumers’ buying conditions (see above chart).

The business cycle is just past Point 7 (see first chart above). The next trends will be slower growth in the coincident indicators. Retail sales and income after inflation are already contracting. Production and employment are still strong. They will have to weaken to reflect cuts in production to reduce inventories.

Inflation and interest rates will decline following more weakness in the coincident indicators (sales, income, production, and employment). In the meantime, growth in business activity will continue to decline until inflation and interest rates drop enough to increase consumers’ purchasing power. It will be a long and drawn-out process.

Economic growth drives sectors’ performance

The environment faced by the financial markets is slower economic growth. This is an important trend because the sectors outperforming the market when the business cycle declines, reflecting slower economic growth, are the non-cyclical sectors (XLP, XLU, XLV, XLRE) ( see chart below, energy being the exception).

The chart shows the percent change over the last 200 days. During a period of stronger growth cyclical stocks (XLI, IYT, XLF, XLE, XLB, XME) outperform the market. The strong performance of the non-cyclical sectors confirms the stock market is past its phase of fast growth.

High-beta and low volatility stocks respond to economic forces

High-beta (ETF: SPHB) and low-volatility stocks (ETF: SPLV) perform in different ways depending on the trend of the business cycle as shown on the following chart.

The above chart shows two sets of graphs. The upper panel represents the graph of the ratio SPHB/SPLV. The busines cycle indicator computed in real-time from market data and reviewed in each issue of The Peter Dag Portfolio Strategy and Management is in the lower panel.

High-beta stocks (SPHB) outperform low-volatility stocks (SPLV) (the ratio in the uppere panel rises) when the business cycle rises, reflecting stronger economic growth due to declining or stable inflation and interest rates.

However, low-volatility stocks (SPLV) outperform high-beta stocks (the ratio in the upper panel declines) when the business declines because of rising inflation and interest rates – as it has been happening since late 2021.

Key takeaways

  • The leading indicators will continue to decline reflecting rising inflation and interest rates.
  • During such time low volatility stocks (SPLV) will continue to outperform high-beta stocks (SPHB).
  • The leading indicators, such as stock prices, autos, housing, consumer sentiment of the University of Michigan, will bottom and rise again following a decline in inflation and interest rates.
  • The decline in inflation and interest rates will be preceded by declines in the coincident indicators (sales and income after inflation, production, and employment).
  • This will be the time when high-beta stocks (SPHB) start outperforming low-volatility stocks (SPLV).

Arthur J. Gallagher & Co. Attracts Big Money

And the insurance broker could rise even more due to strong performance and recent acquisitions. But another likely reason is Big Money lifting the stock.

Big Money Buys Arthur J. Gallagher & Co. Time and Again

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 Arthur J. Gallagher & Co. 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 AJG 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 18 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.

Arthur J. Gallagher & Co. Fundamental Analysis

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, Arthur J. Gallagher & Co. has been growing sales at double-digit rates and is profitable. Take a look:

  • 1-year sales growth rate (+17.5%)
  • Profit margin (+11.3%)

Source: FactSet

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

In fact, AJG 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.

AJG has a lot of qualities that are attracting Big Money. It’s made this list 11 times since 2010, with its first appearance on 12/19/2011…and gaining 631.1% since. The blue bars below show the times that Arthur J. Gallagher & Co. was a top pick:

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 AJG makes additional appearances in the years to come. Let’s tie this all together.

Arthur J. Gallagher & Co. Price Prediction

The Arthur J. Gallagher & Co. rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a nearly 1.2% dividend currently. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

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

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Returns for Allstate

And the insurance giant could rise even more due to its ability to withstand inflation and a current 2.4% dividend. But another likely reason is Big Money lifting the stock.

Allstate Attracts 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 Allstate 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 ALL has made the last year.

The last few months 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 10 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.

Allstate Fundamental Analysis

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, Allstate has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+20.7%)
  • 3-year EPS growth rate (+55.5%)

Source: FactSet

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

In fact, ALL 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.

ALL has a lot of qualities that are attracting Big Money. It’s made this list 17 times since 1994, with its first appearance on 02/27/1995…and gaining 1,843.4% since. The blue bars below show the times that Allstate was a top pick:

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 ALL makes additional appearances in the years to come. Let’s tie this all together.

Allstate Price Prediction

The Allstate rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it currently pays a 2.4% dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

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

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Oil, Gold, EUR/USD, USD/JPY and USD/CNY Analysis – Retracement In Oil Prices Aided US Stocks

Global Macro Analysis

Although the tape is incredibly messy, US stocks were supported by a limited rise in real yields, stable earnings expectations and some retracement in energy prices.

The first-quarter earnings season kicks off next week, and, as always, Financials will get things started – almost a third of the XLF ETF reports. And with the Fed rolling out the rate hike policy cannons, it should be music to Bank stock investor’s ears.

Still, with inflation pressures surging, stock pickers will be looking for companies with solid pricing power relative to cost exposures. And I think this could be a key theme as we advance in 2022

But the significant offset here is recession fears, and concerns about a consumer slowdown could lead to broader drivers. I think investors will turn consumer data-dependent, weighing the dilemma of price inflation versus growth deflation.

Notwithstanding the fact, it has become a cliche that tightening monetary policy more aggressively at a time of cyclical uncertainty and slowing consumer demand increases recession risks.

Oil Fundamental Analysis

In the absence of new Russian energy sanctions, oil’s topside feels limited over the short term following the news that the IEA will collectively release crude from emergency reserves. Yet the dip below Brent $100 was only brief, and those expecting a bigger flush were likely disappointed.

I still think at some point, the sentiment-driven sell-off will give way, and fundamentals will reassert themselves, especially as more market participants start fretting about how will the US administration replenish the SPR drawdown.

Oil prices remain volatile amid concerns over Russian supply against the backdrop of slowing demand in China and a likely depressed US summer driving season due to higher prices at the pump.

Still, market deficits are likely to persist but only moderated by the accelerated strategic stock release from May to November and weaker demand growth.

The most significant bullish factor for oil is the continued decline in Russian exports via self or official sanctions. Still, more companies are committing to a ‘private sector embargo,’ including total winding down purchases by year-end. And In the court of public opinion, pressure is mounting on Brussels to act, and if that pressure valve pops and the EU sanctions Russian oil, we could see Brent Crude ( CO1) at $120 in a heartbeat.

Gold Fundamental Analysis

US inflation breakevens remain elevated, signalling to gold buyers that either the combination of rate hikes and balance sheet run-off already priced is insufficient or structural factors mean that the central banks will have a limited impact on inflation.

But gold could trade in an ever tighter range over the short term, with higher real yields offsetting any bullishness around inflation hedging.

FOREX Markets Fundamental Analysis

It was another tough weak for Eurozone as angry investors remained stuck in the fog of war.

Euro vs US Dollar

With the French presidential election this weekend, the market might be cautious about owning the euro, especially into the second round of voting on Apr. 24, as the incumbent Emmanuel Macron’s margin in polls has been shrinking over the past few weeks.

Curiously the euro is lower despite relatively hawkish ECB minutes that warn that a more extended period of above-target inflation would lead to an increased risk of expectations de-anchoring

But given the ECB board’s member’s record of inconsistencies, most took these minutes with a big pinch of salt.

US Dollar vs Japanese Yen

Whether it’s cross JPY selling (negative risk sentiment), lower US yields, or lower energy prices, nothing seems to be able to keep USDJPY down. The apt analogy appears to be a beach ball underwater – it can’t stay down.

US Dollar vs Chinese Yuan

With CPI inflation much lower than in the western world, the PBoC and the government have scope to cut interest rates and incentivize consumer spending via fiscal transfers to alleviate the costs of the country’s zero Covid strategies. This divergent strategy, just as the Fed is about to unleash the monetary policy and QT bazookas, could lead to the cnh underperformance.

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

Old Republic International Attracts New Big Money

And the title insurance firm could rise even more due to its strong earnings. But another likely reason is Big Money lifting the stock.

Big Money Believes in Old Republic International

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 Old Republic International 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 ORI has made the last year.

The last few months 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 15 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.

Old Republic International Fundamental Analysis

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, Old Republic International has been growing sales at double-digit rates and earnings at triple-digit rates! Take a look:

  • 1-year sales growth rate (+30.4%)
  • 3-year EPS growth rate (+101.5%)

Source: FactSet

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

In fact, ORI 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.

ORI has a lot of qualities that are attracting Big Money. It’s made this list three times since 2017, with its first appearance on 01/02/2018…and gaining 73.1% since. The blue bars below show the times that Old Republic International was a top pick:

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 ORI makes additional appearances in the years to come. Let’s tie this all together.

Old Republic International Price Prediction

The Old Republic International rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus ORI pays a nearly 3.4% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

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

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Brown & Brown Brings in Big Money

Plus, the international insurance firm could gain more due to recent acquisitions and strong earnings. But another likely reason is Big Money lifting the stock.

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 Brown & Brown 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 BRO has made the last year.

The last few months 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 17 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, Brown & Brown has been growing earnings and sales at double-digit rates. Take a look:

  • 3-year sales growth rate (+14.9%)
  • 3-year EPS growth rate (+18.9%)

Source: FactSet

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

In fact, BRO 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.

BRO has a lot of qualities that are attracting Big Money. It’s made this list eight times since 2016, with its first appearance on 04/26/2016…and gaining 311.61% since. The blue bars below show the times that Brown & Brown was a top pick.

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 BRO makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Brown & Brown 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 BRO at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

American Express Charging Up Big Money

And the financial services company could grow more due to strong earnings and increased consumer spending. But another likely reason is Big Money lifting the stock.

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 AmEx 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 AXP has made the last year.

The last few months 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 18 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, AmEx has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+14.3%)
  • 3-year EPS growth rate (+38.0%)

Source: FactSet

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

In fact, AXP 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.

AXP has a lot of qualities that are attracting Big Money. Going all the way back to 1994, it’s made this list 26 times, with its first appearance on 09/12/1994…and gaining 3,065.20% since. The blue bars below show the times that AmEx was a top pick:

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 AXP makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The AmEx 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 AXP at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Loves Ares Management Corporation

And the alternative asset manager could rise even more due to strong earnings, a 3.17% current dividend, and recent acquisitions. But another likely reason is Big Money lifting the stock.

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 Ares 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 ARES has made the last year.

The last few months 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 11 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, Ares has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+13.5%)
  • 3-year EPS growth rate (+67.6%)

Source: FactSet

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

In fact, ARES 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.

ARES has a lot of qualities that are attracting Big Money. It’s made this list 21 times since 2017, with its first appearance on 05/21/2019…and gaining 224.96% since. The blue bars below show the times that Ares was a top pick:

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 ARES makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Ares 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, along with an attractive dividend, this stock could be worth a spot in a growth-oriented portfolio.

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

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Lifts Arch Capital Group

And the insurance firm could rise even more due to strong earnings. But another likely reason is Big Money lifting the stock.

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 Arch Capital 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 ACGL 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 eight 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, Arch Capital has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year earnings growth rate (+13.0%)
  • 3-year sales growth rate (+18.3%)

Source: FactSet

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

In fact, ACGL 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.

ACGL has a lot of qualities that are attracting Big Money. It’s made this list four times since 2005 (and three times in the last three months), with its first appearance on 11/14/2005…and gaining 643.77% since. The blue bars below show the times that Arch Capital was a top pick:

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 ACGL makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Arch Capital 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 ACGL at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Pours into Virtu Financial

And the financial services firm could rise even more due to impressive growth and analyst upgrades. But another likely reason is Big Money lifting the stock.

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 Virtu Financial 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 VIRT 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 13 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, Virtu Financial has been growing sales and earnings nicely. Take a look:

  • 1-year earnings growth rate (+1.2%)
  • 3-year sales growth rate (+31.0%)

Source: FactSet

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

In fact, VIRT 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.

VIRT has a lot of qualities that are attracting Big Money. It’s made this list eight times since 2015, with its first appearance on 4/18/2017…and gaining 186.67% since. The blue bars below show the times that Virtu Financial was a top pick:

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 VIRT makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Virtu rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it currently pays a 2.7% dividend. 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 VIRT at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Mastercard Takes in Big Money

But another likely reason is Big Money lifting the stock.

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 Mastercard 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 MA 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 12 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, Mastercard has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+23.4%)
  • 3-year earnings growth rate (+19.8%)

Source: FactSet

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

In fact, MA 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.

MA has a lot of qualities that are attracting Big Money. It’s made this list 15 times since 2016, with its first appearance on 11/1/2016…and gaining 269.19% since. The blue bars below show the times that Mastercard was a top pick:

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 MA makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Mastercard 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 MA at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Flows to Progressive

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 Progressive 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 PGR 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 11 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, Progressive has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+14.4%)
  • 3-year earnings growth rate (+17.6%)

Source: FactSet

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

In fact, PGR 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.

PGR has a lot of qualities that are attracting Big Money. It’s made this list four times since 2016, with its first appearance on 5/28/2019…and gaining 52.27% since. The blue bars below show the times that Progressive was a top pick:

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 PGR makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Progressive 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 PGR at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

W.R. Berkley Attracts Big Money

And the Fortune 500 commercial insurer could rise even more due to strong earnings and its ability to adjust to changing markets. But another likely reason is Big Money lifting the stock.

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 W.R. Berkley 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 WRB 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 17 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, W.R. Berkley has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+17.0%)
  • 3-year earnings growth rate (+26.7%)

Source: FactSet

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

In fact, WRB 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.

WRB has a lot of qualities that are attracting Big Money. It’s made this list five times since 2006, with its first appearance on 11/17/2008…and gaining 527.25% since. The blue bars below show the times that W.R. Berkley was a top pick:

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 WRB makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The W.R. Berkley 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 WRB at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money All Over Fidelity National Financial

And the specialty financial company could rise even more due to its insurance and real estate services businesses. But another likely reason is Big Money lifting the stock.

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 Fidelity National Financial 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 FNF 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 16 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, Fidelity National Financial has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+58.8%)
  • 3-year earnings growth rate (+26.4%)

Source: FactSet

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

In fact, FNF has recently become a top-rated stock at my research firm, MAPsignals. 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.

FNF has a lot of qualities that are attracting Big Money. It’s made this list six times since 2016, all in the past year, with its first appearance on 4/13/2021…and gaining 16.63% since. The blue bars below show the times that Fidelity National Financial was a top pick:

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 FNF makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Fidelity National Financial rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it offers an attractive 3.52% dividend. 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 FNF in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

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/

 

Big Money Invests in Charles Schwab

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 Schwab 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 SCHW 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 2021, the stock attracted 18 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, Schwab has been growing sales and earnings at a double-digit rate. Take a look:

  • 1-year sales growth rate (+73.7%)
  • 3-year earnings growth rate (+13.3%)

Source: FactSet

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

In fact, SCHW 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.

SCHW has a lot of qualities that are attracting Big Money. It’s made this list 10 times since 2016, with its first appearance on 7/11/2017…and gaining 112.85% since. The blue bars below show the times that Schwab was a top pick:

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 SCHW makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Schwab 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 SCHW in personal or 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.

Visit TradePrecise.com to get additional market insights in email for free.

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.