I hope you enjoyed the long weekend! There’s no doubt that Wall Street needed it. Not only did the S&P 500 fall into a bear market last week, but it recorded its worst weekly performance since early 2020.
So, today’s rally is a breath of fresh air. Even better? Odds are high that this strength will continue. The folks at Bespoke documented that the S&P 500 has only experienced 5%-plus slips two weeks in a row seven times since 1945, and they found that the S&P 500 tends to move up after. Specifically, the S&P 500 climbed an average 5.24% over the next month, 5.74% over the next three months, 20.64% over the next six months and 28.16% over the next year.
If history repeats, we should see a nice, healthy rebound here — especially in fundamentally superior stocks, as these will be the companies the “smart money” turns to first as it looks to invest in names that can continue to grow their sales and earnings in the current inflationary environment.
So, it pays to stay on top of the latest profit opportunities. Now, if you’re not sure where to start, you’ll want to check out my latest Weekly Upgrades and Downgrades post. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I revised my Portfolio Grader recommendations for 60 stocks.
I’ve included the first 10 stocks that were upgraded from a Hold (C-rating) to a Buy (B-rating), but you can click here for the full list of 60 stocks, as well as their Quantitative Grade and Fundamental Grades. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
| Ticker | Company Name | Total Grade |
|---|---|---|
| BBVA | Banco Bilbao Vizcaya Argentaria | B |
| BF-A | Brown-Forman Corporation Class A | B |
| CBOE | Cboe Global Markets Inc | B |
| DB | Deutsche Bank Aktiengesellschaft | B |
| DFS | Discover Financial Services | B |
| FITB | Fifth Third Bancorp | B |
| GOLD | Barrick Gold Corporation | B |
| HPE | Hewlett Packard Enterprise Co. | B |
| MUFG | Mitsubishi UFJ Financial Group | B |
| NEM | Newmont Corporation | B |
Of course, if you’re looking for the best stocks to invest in right now, you’ll want to review my Growth Investor Buy Lists. I feature more than 30 stocks in my High-Growth Investment Buy List and Elite Dividend Payers Buy List, so you’ll have plenty of fundamentally superior companies to choose from. I should also add that I will be recommending three more stocks in my Growth Investor Monthly Issue for July on Friday. These companies are energy, food and electric vehicle (EV) plays that are forecast to post strong second-quarter results.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Newmont Corporation (NEM)
