Big Money Sells Synopsys, Should You?

The electronic design automation firm has pulled back due to growth stock weakness, a technology sharing investigation, and debt concerns. But another likely reason is Big Money selling the stock.

Big Money Dropping Synopsys

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 Synopsys 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 SNPS 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

Just this year the stock has attracted eight 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:

Heavy underperformance is an obvious red flag for leading stocks.

Synopsys Fundamental Analysis

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

  • 1-year sales growth rate (+14.0%)
  • 3-year EPS growth rate (+19.7%)

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 the case of Synopsys, investors buying at each red mark prior to this year would have gained:

In fact, SNPS has been a top-rated stock at my research firm, MAPsignals, for years. 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.

SNPS has had a lot of qualities that attracted Big Money over the years. Since 2012, it’s made the MAPsignals Top 20 list 42 times, with its first appearance on 08/21/2012…and gaining 729.1% since.

Despite the recent decline, long-term investors can consider it a winner. The blue bars below show the times that Synopsys was a top pick since 2012:

Source: www.mapsignals.com

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

Synopsys Price Prediction

The Synopsys decline makes the stock look oversold. Big Money selling in the shares is signaling to take notice. But 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 no positions in SNPS at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

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/

Arista Networks Brings in Big Money

And the cloud networking solutions provider could rise even more due to its data center solutions and big customer wins. But another likely reason is Big Money lifting the stock.

Big Money Likes Arista

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 Arista 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 ANET 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 five 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.

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

  • 1-year sales growth rate (+27.2%)
  • 3-year EPS growth rate (+54.1%)

Source: FactSet

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

In fact, ANET 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.

ANET has a lot of qualities that are attracting Big Money. It’s made this list 53 times since 2014, with its first appearance on 06/09/2015…and gaining 534.5% since. The blue bars below show the times that Arista was a top pick:

Source: www.mapsignals.com

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

Arista Price Prediction

The Arista 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 diversified portfolio.

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

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Love for Axcelis is No Fabrication

And the semiconductor manufacturing industry supplier could rise even more due to projected earnings increases. But another likely reason is Big Money lifting the stock.

Axcelis 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 Axcelis 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 ACLS has made the last few years. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted two 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.

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

  • 3-year sales growth rate (+18.5%)
  • 3-year EPS growth rate (+73.2%)

Source: FactSet

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

In fact, ACLS 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.

ACLS has a lot of qualities that are attracting Big Money. It’s made this list twice, with its first appearance on 03/22/2022. It’s declined 12.0% since, but the long-term trend and fundamental strength is undeniable. The blue bars below show the times that Axcelis was a top pick:

Source: www.mapsignals.com

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

Axcelis Price Prediction

The Axcelis 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 diversified portfolio.

Disclosure: the author holds no positions in ACLS in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Rambus Ramping Up with Big Money

And the advanced semiconductor maker could rise even more due to strong revenue gains. But another likely reason is Big Money lifting the stock.

Rambus 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 Rambus 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 RMBS 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 20 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.

Rambus 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, Rambus 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 (+48.4%)

Source: FactSet

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

In fact, RMBS 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.

RMBS has a lot of qualities that are attracting Big Money. It’s made this list three times since 2016, with its first appearance on 09/06/2016…and gaining 101.1% since. The blue bars below show the times that Rambus was a top pick:

Source: www.mapsignals.com

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

Rambus Price Prediction

The Rambus 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 diversified portfolio.

Disclosure: the author holds no positions in RMBS in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Knows and Loves Cognizant

And the tech-focused professional services firm could rise even more due to projected consulting revenue increases. But another likely reason is Big Money lifting the stock.

Cognizant Attracting 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 Cognizant 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 CTSH 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 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.

Cognizant 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, Cognizant has been growing sales at double-digit rates and has a strong profit margin. Take a look:

  • 1-year sales growth rate (+11.1%)
  • Profit margin (+11.5%)

Source: FactSet

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

In fact, CTSH 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.

CTSH has a lot of qualities that are attracting Big Money. It’s made this list 79 times since 2005, with its first appearance on 01/03/2005…and gaining 828.1% since. The blue bars below show the times that Cognizant was a top pick:

Source: www.mapsignals.com

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

Cognizant Price Prediction

The Cognizant 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 CTSH pays a nearly 1.2% 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 long positions in CTSH in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Backs HP

And the personal computing firm could gain more due to big recent earnings, a strong dividend, and stock repurchase plans. 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 HP 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 HPQ has made the last year. It’s received Big Money attention for many years.

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

  • 1-year sales growth rate (+12.7%)
  • 3-year EPS growth rate (+42.4%)

Source: FactSet

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

In fact, HPQ 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.

HPQ has a lot of qualities that are attracting Big Money. It’s made this list nine times since 2009, with its first appearance on 06/22/2009…and gaining 171.67% since. The blue bars below show the times that HP was a top pick.

Source: www.mapsignals.com

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

The Bottom Line

The HP 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 current 2.75% 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 HPQ at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Believes in Cisco

And the technology giant could bounce higher due to more businesses moving to the cloud. 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 Cisco 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 CSCO has made the last year.

The last six months or so 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, Cisco has been growing earnings at huge rates and is profitable. Take a look:

  • 3-year EPS growth rate (+4,348.5%)
  • Profit margin (+21.3%)

Source: FactSet

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

In fact, CSCO 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.

CSCO has a lot of qualities that are attracting Big Money. It’s made this list eight times since 2009, with its first appearance on 08/03/2009…and gaining 243.73% since. The blue bars below show the times that Cisco was a top pick.

Source: www.mapsignals.com

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

The Bottom Line

The Cisco 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 pays a current 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 long positions in CSCO in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Palo Alto Networks Secures Big Money

And the military-focused cybersecurity company could bounce higher given the current geopolitical tensions. 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 Palo Alto Networks 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 PANW 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 19 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, Palo Alto Networks has been growing sales at double-digit rates. Take a look:

  • 1-year sales growth rate (+24.9%)
  • 3-year sales growth rate (+23.3%)

Source: FactSet

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

In fact, PANW 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.

PANW has a lot of qualities that are attracting Big Money. It’s made this list three times since 2014, with its first appearance on 10/06/2014…and gaining 457.21% since. The blue bars below show the times that Palo Alto Networks was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Palo Alto Networks 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 PANW at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Loves Check Point

And the cybersecurity firm could soar higher due to strong earnings and a double-digit sales growth estimate. 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 Check Point 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 CHKP 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, Check Point has been growing and profitable. Take a look:

  • 1-year sales growth rate (+4.9%)
  • Profit margin (+37.6%)

Source: FactSet

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

In fact, CHKP 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.

CHKP has a lot of qualities that are attracting Big Money. It’s made this list 34 times since 2013, with its first appearance on 08/13/2013…and gaining 139.59% since. The blue bars below show the times that Check Point was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Check Point 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 CHKP at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Photronics Brings in 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 Photronics 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 PLAB 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 four 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, Photronics has been growing earnings at double-digit rates. Take a look:

  • 1-year earnings growth rate (+15.4%)
  • 3-year earnings growth rate (+20.9%)

Source: FactSet

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

In fact, PLAB 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.

PLAB has a lot of qualities that are attracting Big Money. It’s made this list six times since 2016, with its first appearance on 2/12/2019…and gaining 57.35% since. The blue bars below show the times that Photronics was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Photronics 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 PLAB at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Selling Dynatrace

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

Smart money managers are always looking for the next hot stock. And Dynatrace 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 DT 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, Dynatrace has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+21.3%)
  • 1-year earnings growth rate (+24.5%)

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, DT has been a top-rated stock at my research firm, MAPsignals, for years. 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 – it’s definitely happened with DT in the past.

DT has had a lot of qualities that attracted Big Money. Since it began trading in 2019, it’s made the MAPsignals Top 20 list nine times, with its first appearance on 06/22/2021, and declining (-10.88%) since.

Despite the recent decline, the fundamental story is strong. The blue bars below show the times that Dynatrace was a top pick since 2019 (look how the price ramps up):

Source: www.mapsignals.com

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

The Bottom Line

The Dynatrace 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 no positions in DT at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Should You Copy Big Money’s Entegris Sell-Off?

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

Smart money managers are always looking for the next hot stock. And Entegris 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 ENTG 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 month the stock attracted three 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:

  • 3-month underperformance vs. Technology Select Sector SPDR Fund (-9.8% vs. XLK)

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

  • 3-year sales growth rate (+11.6%)
  • 3-year earnings growth rate (+70.3%)

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, ENTG has been a top-rated stock at my research firm, MAPsignals, for years. 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.

ENTG has had a lot of qualities that attracted Big Money. Since 2016, it’s made the MAPsignals Top 20 list 47 times, with its first appearance on 11/29/2016, and gaining (+580.03%) since.

Despite the recent decline, the fundamental story is strong. The blue bars below show the times that Entegris was a top pick since 2016:

Source: www.mapsignals.com

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

The Bottom Line

The Entegris 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 ENTG in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Apple Eaten Up by Big Money

And despite recent dips, the technology giant could rise even more due to easing supply chain pressures and upcoming 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 Apple 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 AAPL 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 20 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:

  • 1-month outperformance vs. Technology Select Sector SPDR ETF (+3.0% vs. XLK)

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

  • 3-year sales growth rate (+12.2%)
  • 3-year earnings growth rate (+27.2%)

Source: FactSet

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

In fact, AAPL 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.

AAPL has a lot of qualities that are attracting Big Money. It’s made this list 10 times since 2016, with its first appearance on 1/5/2016…and gaining 532.44% since. The blue bars below show the times that Apple was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Apple 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 AAPL in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Loves Lam Research

And the semiconductor processing equipment maker could rise even more due to strong demand. 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 Lam Research 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 LRCX 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 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, Lam Research has been growing sales and earnings at a double-digit rate. Take a look:

  • 1-year sales growth rate (+42.5%)
  • 3-year earnings growth rate (+26.9%)

Source: FactSet

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

In fact, LRCX 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.

LRCX has a lot of qualities that are attracting Big Money. It’s made this list 44 times since 2016, with its first appearance on 6/28/2016…and gaining 793.62% since. The blue bars below show the times that Lam Research was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Lam Research 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 long positions in LRCX in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Applied Materials Attracts Big Money Buying

And the semiconductor supplier could rise even more due to strong demand across multiple lines of business. 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 Applied Materials 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 AMAT 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, Applied Materials has been growing sales and earnings at a double-digit rate. Take a look:

  • 3-year sales growth rate (+12.2%)
  • 3-year earnings growth rate (+29.6%)

Source: FactSet

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

In fact, AMAT 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.

AMAT has a lot of qualities that are attracting Big Money. It’s made this list 32 times since 2016, with its first appearance on 5/24/2016…and gaining 610.94% since. The blue bars below show the times that Applied Materials was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Applied Materials 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 AMAT in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

US Fed Playing With Fire – Bubbles May Burst While Bond Yields & Metals Rally

As a result, traders quickly attempt to adjust their capital allocation levels as risk assets, technology, and US major indexes roll lower because of expected Fed Rate Hikes and other Hawkish activities.

We will explore how the US Fed’s comments and potential future actions may prompt significant market trends in 2022 and beyond. We’ll also attempt to identify how and when the US Fed may disrupt the US markets. We know the actions of the US Fed will prompt some significant trends over the next 12 to 24 months. We know certain assets will likely rise in value as fear settles into the markets because of rising interest rates and deflating asset bubbles. It is just a matter of understanding how the speculative asset bubble of the past 8+ years and how the US Fed may move to pop these speculative bubbles soon.

Asset Bubbles Everywhere, The Global Markets Continue To Froth

Asset bubbles, such as those created in Cryptos, the US stock market, US Real Estate, and the art/collectible market over the past 5+ years, have visualized the US Fed’s easy money results in terms of bubbles.

Take a look at this chart showing the growth in certain asset classes since the start of 2019. It is incredible to think that these asset classes have rallied so far and so fast in just over 35 months:

  • The Grayscale Bitcoin ETF rallied more than 1200%.
  • The Technology sector rallied more than 200%. Real Estate rallied more than 85%.
  • The S&P 500 rallied more than 94%.

The US Federal Reserve’s move to lower interest rates after the 2018 market collapse, which resulted in a December 24, 2018, Christmas Bottom, prompted an incredible rally phase where traders followed the US Fed in piling into assets. As long as the US Fed continued buying assets and kept interest rates near zero, global traders had no reason to fight the US Fed.

Chart

Description automatically generated

(Source: StockCharts.com)

Is The US Fed About To Pop The Bubble From The Stratosphere?

Our research suggests the US Federal Reserve is changing its policy a little late into the game. However, it appears the US and global markets have already “rolled over” in terms of growth trends and expectations. This SPY to QQQ ratio chart highlights that the US markets entered a peaking phase in late July/August 2020 and reached an ultimate peak in February 2021.

Chart

Description automatically generated

(Source: TradingView.com)

S&P 500 PE Ratio Suggests Investors Are ALL-IN For The Next 90+ Years

In other words, it appears traders have reached their ceiling in terms of what they believe the US Fed is capable of doing at this stage in the rally. For example, the PE Ratio of the US Stock market ending in 2021 ended just below 30, with a historical high for 2021 near 37. The historical mean is 15.96 – which is still relatively high for the US stock market.

Remember, a PE level of 15.96 means any investor buying in at those levels would need a minimum of 15.96 years of a company handing over “every penny of revenue” to the investor (excluding all costs, payrolls, taxes, fees, and other operating expenses) to cover the PE multiple of the investment. So a PE level of 30, as we see at the end of 2021, suggests that stock price valuation levels are at least 60 to 90+ years ahead of real returns.

The only thing that can change this historic level of speculation in the markets is a deleveraging/revaluation event.

Graphical user interface, chart, histogram

Description automatically generated

(Source: multpl.com)

From the US Fed’s Actions To How Traders Should Prepare For Shifting Markets

This first part of our ongoing research into the US Fed’s actions and where they are telegraphing their intents will continue. Part II of this article will investigate how traders should read into these shifting markets and where we’re attempting to highlight what has taken place over the past 3 to 5+ years.

We’ve managed to live through an incredible event in history. I can only think of one other time when a global superpower extended this type of credit and support for the worldwide economy. That was the Roman Empire many thousands of years ago.

What we experience over the next 20 to 40+ years could be the biggest and most incredible opportunity of your lifetime. The process of deleveraging all this debt and working all this capital through the global markets over the next few decades may present one of the most incredible investment/trading opportunities anyone has ever seen in over 1500 years.

Look for my Part II to this article, and we’ll continue exploring the current shifts in the US and global stock and asset markets.

Finding The Right Strategies That Will Help You Navigate Through Bulls & Bears

If you have struggled with finding opportunities over the past year or so and want to know which are the hottest sectors, or how to protect and grow your capital, then please take a minute to review my Total ETF Portfolio – Triple-Strategy Trading Plan to help you profit from these big market transitions.

Learn how I use specific tools to help me understand price cycles, set-ups, and price target levels in various sectors to identify strategic entry and exit points for trades. Over the next 12 to 24+ months, I expect very large price swings in the US stock market and other asset classes across the globe. I believe the markets are starting to transition away from the continued central bank support rally phase and may start a revaluation phase as global traders attempt to identify the next big trends. Precious Metals will likely start to act as a proper hedge as caution and concern start to drive traders/investors into Metals.

I invite you to learn more about how my three Technical Trading Strategies can help you protect and grow your wealth in any type of market condition by clicking the following link:   www.TheTechnicalTraders.com

Chris Vermeulen
Founder and Chief Market Strategist of The Technical Traders Ltd.

 

For High-Growth Tech Lovers, the Trend Indicates That it is Time to Consider Value-Oriented ETFs

Also, subtracting 2% due to “positive sentiment” induced by the Santa Claus rally, it can be inferred that the index actually fell by more than 8%. At the same time, a look at the S&P 500 (in orange) which holds more than 28% of technology assets exhibits a more neutral position, while the Dow Jones Industrial average (in blue), up by 1.52% indicates that the more cyclical names are being prioritized by investors, as potential beneficiaries of the economic recovery.

https://static.seekingalpha.com/uploads/2022/1/9/49663886-16417501192287376.png

Source: Trading View

Going further in the past, the weakness in tech started from the second quarter of 2021 when it became evident that the Fed was adopting a more hawkish tone and bond yields were on the rise. However, the adverse market conditions for technology were masked by the gains from these six most popular stocks, namely, Tesla (TSLA), Apple (AAPL), Microsoft (MSFT), NVIDIA (NVDA), Meta Labs (FB), and Google (GOOGL). Now, with the Nasdaq bearing a P/E ratio of 28, tech valuations remain high compared to the broader market, and the weakness in richly-valued high-growth names in the technology sector should continue, perhaps in the same way as during the Internet bubble of 1999-2000.

Growth to value rotation

Now, moving away from high-growth tech names to lower-valued cyclical names reminds us that the “rotation from growth to value”, which some analysts were invoking in 2021, has gained momentum. For investors, rapidly growing tech stocks with their high R&D and sales expenses primarily focus on growth while value names are more conservative in spending and lay more emphasis on profitability.

To further verify whether the growth to value shift is really happening, I make a comparison between growth and value ETFs as per the chart below. In this case, the iShares Edge MSCI USA Value Factor ETF (VLUE) and the Vanguard Value ETF (VTV) are both up by 5.6% and 3.9% respectively, while the Schwab U.S. Large-Cap Growth ETF (SCHG) and the Technology Select Sector SPDR ETF (XLK) are down by more than 3% each. This one-month performance confirms that value is up, while growth/technology is down.

https://static.seekingalpha.com/uploads/2022/1/9/49663886-16417501193779671.png

Source: Trading View

Looking ahead, in view of the uncertainty associated with Covid variants, supply chain issues, and inflationary concerns in the first half of 2022, there is no guarantee that the current trend favoring value will continue, but, at the same time, we cannot remain insensible to the new market regime. Moreover, for those who have been used to investing in growth made relatively easy due to the momentum induced by the mighty Nasdaq, it may prove difficult to screen the market for high-quality value stocks with appropriate free-cash-flow, balance-sheet, and valuations metrics.

The value-oriented ETF rationale

Hence, it is precisely for these tech investors that investing in value-oriented ETFs where the fund managers select the best stocks, makes sense.

In this respect, VTV with an expense ratio of 0.04% and paying dividends at a yield of 2.15% holds mostly Financials (22%), Healthcare (18.5%), and Industrials (14%) stocks as part of total assets. Finally, for tech lovers, better performing VLUE, with 30.85% of IT exposure, and paying a 2.41% dividend yield at an expense ratio of 0.15% is a better choice.

Disclosure: I am long XLK.

 

Big Money Buys Dominant KLA Repeatedly

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 KLA 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 all 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 KLAC 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 2021, the stock attracted 24 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, KLA has been growing sales and earnings at a double-digit rate. Take a look:

  • 1-year sales growth rate (+25.9%)
  • 3-year earnings growth rate (+41.2%)

Source: FactSet

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

In fact, KLAC 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.

KLAC has a lot of qualities that are attracting Big Money. Since 2015 it’s made this list 22 times, with its first appearance on 8/7/2018…and gaining 264.01% since. The blue bars below show the times KLA was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The KLA 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 long positions in KLAC in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Big Money Loves Intuit

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 Intuit 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 all 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 INTU 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 2021, the stock attracted 34 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, Intuit has been growing sales and earnings at a double-digit rate. Take a look:

  • 3-year sales growth rate (+17.5%)
  • 3-year earnings growth rate (+17.5%)

Source: FactSet

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

In fact, INTU 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.

INTU has a lot of qualities that are attracting Big Money. It’s made this list 46 times since 2015, with its first appearance on 10/31/2017…and gaining 325.92% since. The blue bars below show the times Intuit was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Intuit 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 long positions in INTU in managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

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