Stock Markets and Big Money in the Last 6 Months
But that doesn’t change the fact that there’s been a lot more selling than buying over the past six months when it comes to Big Money investors like institutions.
To see what I mean, look at the chart below from my research firm, MAPsignals. We track Big Money activity. The blue bars are Big Money buy signals and the red bars are sells. The light at the end of the tunnel is the absence of red at the far right, but the broader view shows a lot more selling than buying:
It’s been worse for some sectors than others. For instance, the discretionary sector has been walloped over the last year:
When red bars run rampant, good names can get crushed. They can become what I call “oversold.” When this happens, even great stocks can get caught in the selling rush – and that can mean opportunity.
Oversold Stock Inevstment Opportunities for April 2022
There are some great stocks being sold right now, many in the discretionary sector. They’re fundamentally sound companies with good histories, which means discounts for long-term investors. Here are five stocks seeing lots of red that appear to be near-term oversold: TTD, NKE, SBUX, UPST & TMO.
Trade Desk Stock Analysis
Up first is Trade Desk, Inc. (TTD), a cloud-based advertising platform.
Even though great companies’ stocks can be volatile, like TTD over the past year, they’re worthy of attention, especially on pullbacks. Check out Trade Desk:
To show you what our Big Money signals look like on a stock, have a look at all the buys (green bars) and sells (red bars) in TTD over the past year:
Looking more broadly, Trade Desk has been a high-quality stock for years. The blue bars in the chart below show when TTD was a high-ranking stock likely being bought by a Big Money player, according to MAPsignals. When you see a lot of blue, it can be very bullish:
Those blue signals indicate Big Money buying and solid fundamentals. As you can see, Trade Desk’s sales and earnings numbers have been strong, making it worthy of attention:
Nike Stock Analysis
Next up is Nike, Inc. (NKE), the athletic wear giant.
Check out these technicals for NKE:
It’s been getting sold a lot recently:
But now let’s look long-term. These are the top buy signals for Nike since 2010. The Big Money has been on it for a while:
Let’s look under the hood. As you can see, Nike has had rock-solid, double-digit growth in earnings and sales:
Starbucks Corporation Stock Analysis
Another growth name is Starbucks Corporation (SBUX), the well-known coffee brand.
Strong candidates for growth usually have Big Money buying the shares. Starbucks has historically had that. But recently, it’s full of red, which could be an opportunity:
Below are the blue Big Money signals SBUX has made since 2010. That’s the JUICE!
Now let’s dig deeper. Earnings and sales growth for Starbucks have both been impressive. I expect more of the same in the coming years. It’s also profitable and has little debt.
Upstart Holdings Stock Analysis
Number four on the list is Upstart Holdings, Inc. (UPST ), which is a cloud-based artificial intelligence lending platform.
Here are the technicals important to me:
Since last fall it’s been on a steep downward slide, with more Big Money selling than buying:
But Upstart is a Big Money darling. Below are the Big Money Top 20 buy signals for UPST since it began trading:
Let’s look under the hood. Despite the price slide, Upstart earnings have rocketed, and they’re expected to keep growing:
3-year EPS growth rate (+1,060.7%)
2-year vs. 1-year EPS growth rate estimate (+38.9%)
Thermo Fisher Scientific Stock Analysis
Our last growth candidate is Thermo Fisher Scientific Inc. (TMO), a longtime player in the medical devices and life sciences arenas. Like most health care stocks, it’s been getting beaten up this year:
Check out these technicals:
TMO is a high-quality stock since it’s made the MAPsignals Top 20 report. As you can see below, it’s been a Big Money favorite for years. Right now, it’s on a pullback and could be an opportunity.
Now let’s look below the surface a bit. Earnings have been growing, it has a relatively inexpensive valuation (especially for a Big Money favorite), and there’s been solid sales growth too:
3-year EPS growth rate (+40.8%)
Forward price-to-earnings ratio (25.5x)
3-year sales growth rate (+17.6%)
Bottom Line and Explanatory Video
TTD, NKE, SBUX, UPST & TMO represent the top oversold stocks for April 2022. They’ve been sold a lot lately…perhaps too much. Strong, fundamentally-sound stocks seeing near-term sell signals are worthy of extra attention because of their long-term potential.
To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com
Disclosure: the author holds long positions in NKE, SBUX & UPST in personal and managed accounts.
This article was originally posted on FX Empire