50 Ways to Make Market Swings Work For You

by Louis Navellier | April 22, 2013 6:01 pm

50 Ways to Make Market Swings Work For You

We’re only a few weeks into first-quarter earnings season and already the analyst community has slashed their overall earnings estimates: The average S&P 500 company is now expected to post a slight dip in earnings. This, and the fact that the seasonal pension funding season is over, has given some in the “sell in May and go away” crowd an excuse to flee the market. So the “bad news” is that the market is now officially oversold.

We knew this was coming[1], but if the recent bumpiness has you nervous, you can keep this in mind. First, as I mentioned earlier[2], if history repeats itself, Wall Street will likely bounce around over the next few weeks before firming up sometime next month. So this near-term bumpiness presents some tantalizing buying opportunities.

First, high-yield stocks are looking more attractive by the hour. With the average S&P 500 stock yielding nearly 2.1%, the stock market is much better than you can get through most savings accounts. When chasing yields, just be sure to do your homework and screen dividend stocks for fundamental health[3].

The other opportunity is in companies that are surprising Wall Street with their first quarter sales and earnings results. You can use Portfolio Grader[4] to get a sense of which companies are likely to beat estimates; take note of how a company scores in terms of “Analyst Earnings Revisions” and “Earnings Surprises.”

Even though the stock market might be oscillating day to day, volatility is now moderating and I suspect that we can use these daily oscillations to step up and buy these premium stocks. But before you buy, let’s look at the 50 big blue chips that have been upgraded and downgraded this weekend. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for each of the stocks listed below.

Upgrades

Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
AFL[5] AFLAC B B
APH[6] Amphenol B B
BBVA[7] Banco Bilbao Vizcaya Argentaria B B
BEAM[8] Beam In B B
BRFS[9] BRF SA ADR B B
DISH[10] DISH Network B D
ETR[11] Entergy B C
KO[12] Coca-Cola B C
MA[13] MasterCard C B
SNDK[14] SanDisk B C
TSM[15] Taiwan Semiconductor Manufacturing B B
VIP[16] VimpelCom B B
VRTX[17] Vertex Pharmaceuticals A F
VRX[18] Valeant Pharmaceuticals B C

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
BBBY[19] Bed Bath & Beyond D B
CMG[20] Chipotle Mexican Grill D B
CRM[21] salesforce.com D C
EL[22] Estee Lauder D B
EXC[23] Exelon C D
INFY[24] Infosys D C
MJN[25] Mead Johnson D B
RBS[26] Royal Bank of Scotland C D
SAN[27] Banco Santander C D
SBUX[28] Starbucks D B
VIV[29] Telefonica Brasil D C

Downgrades

Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
BAP[30] Credicorp C B
BTI[31] British American Tobacco C B
CTRX[32] Catamaran C C
CX[33] Cemex SAB B C
GE[34] General Electric C C
GPC[35] Genuine Parts C C
MTB[36] M&T Bank C B
STX[37] Seagate Technology C B
TWC[38] Time Warner Cable C B

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
ABB[39] ABB D C
BXP[40] Boston Properties D D
EOG[41] EOG Resources D D
EQR[42] Equity Residential D C
ESV[43] Ensco PLC D C
FDX[44] FedEx D C
FTI[45] FMC Technologies D C
HAL[46] Halliburton D C
HOG[47] Harley-Davidson D C
IBM[48] International Business Machines F B
L[49] Loews D D
NSC[50] Norfolk Southern D D
DROK[51] Rockwell Automation D C
USB[52] U.S. Bancorp D C
XOM[53] Exxon Mobil D B
Endnotes:
  1. We knew this was coming: http://navelliergrowth.investorplace.com/blog/archive/2013/03/my-may-2013-forecast.html
  2. as I mentioned earlier: http://navelliergrowth.investorplace.com/blog/archive/2013/04/lessons-from-oversold-market-weeklybrief.html
  3. screen dividend stocks for fundamental health: http://navelliergrowth.investorplace.com/portfolio-grader/
  4. use Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  5. AFL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AFL
  6. APH: http://studio-5.financialcontent.com/investplace/quote?Symbol=APH
  7. BBVA: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBVA
  8. BEAM: http://studio-5.financialcontent.com/investplace/quote?Symbol=BEAM
  9. BRFS: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRFS
  10. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  11. ETR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ETR
  12. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  13. MA: http://studio-5.financialcontent.com/investplace/quote?Symbol=MA
  14. SNDK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNDK
  15. TSM: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSM
  16. VIP: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIP
  17. VRTX: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRTX
  18. VRX: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRX
  19. BBBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBBY
  20. CMG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMG
  21. CRM: http://studio-5.financialcontent.com/investplace/quote?Symbol=CRM
  22. EL: http://studio-5.financialcontent.com/investplace/quote?Symbol=EL
  23. EXC: http://studio-5.financialcontent.com/investplace/quote?Symbol=EXC
  24. INFY: http://studio-5.financialcontent.com/investplace/quote?Symbol=INFY
  25. MJN: http://studio-5.financialcontent.com/investplace/quote?Symbol=MJN
  26. RBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=RBS
  27. SAN: http://studio-5.financialcontent.com/investplace/quote?Symbol=SAN
  28. SBUX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBUX
  29. VIV: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIV
  30. BAP: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAP
  31. BTI: http://studio-5.financialcontent.com/investplace/quote?Symbol=BTI
  32. CTRX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTRX
  33. CX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CX
  34. GE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GE
  35. GPC: http://studio-5.financialcontent.com/investplace/quote?Symbol=GPC
  36. MTB: http://studio-5.financialcontent.com/investplace/quote?Symbol=MTB
  37. STX: http://studio-5.financialcontent.com/investplace/quote?Symbol=STX
  38. TWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWC
  39. ABB: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABB
  40. BXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=BXP
  41. EOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=EOG
  42. EQR: http://studio-5.financialcontent.com/investplace/quote?Symbol=EQR
  43. ESV: http://studio-5.financialcontent.com/investplace/quote?Symbol=ESV
  44. FDX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FDX
  45. FTI: http://studio-5.financialcontent.com/investplace/quote?Symbol=FTI
  46. HAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=HAL
  47. HOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=HOG
  48. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  49. L: http://studio-5.financialcontent.com/investplace/quote?Symbol=L
  50. NSC: http://studio-5.financialcontent.com/investplace/quote?Symbol=NSC
  51. ROK: http://studio-5.financialcontent.com/investplace/quote?Symbol=ROK
  52. USB: http://studio-5.financialcontent.com/investplace/quote?Symbol=USB
  53. XOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=XOM

Source URL: http://investorplace.com/2013/04/50-ways-to-make-market-swings-work-for-you-ibm-ko-ge-afl-ap/
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