Now is a great time to buy fundamentally superior stocks, particularly small- and mid-cap stocks.
For one, this month kicks off the seasonally-strongest time of year for smaller stocks. This seasonal strength is typically caused by year-end pension funding as well as the fact that folks tend to be happier during the holidays. In other words, as we gather to celebrate Thanksgiving, Christmas, Hanukah and the like, consumer sentiment tends to improve and that seasonally has rubbed off on investor sentiment.
Interestingly, these positive feelings typically continue in the New Year, when the stock market benefits from persistent inflows that are caused by additional pension funding in the new fiscal year.
And secondly, investors are using earnings as an excuse to take profits in some stocks that have had strong runs so far this year. Earnings season is separating the winners from the losers, ending profit runs and starting new ones. Now is a great time to start your own profit runs, so this week I’m doing things a little differently with my Monday afternoon blog post.
This time, I’ve screened out 66 mid-cap companies that are on the move in Portfolio Grader. Now that we have a new batch of Fundamental and Quantitative Grades for the week, I recommend that you note these upgrades and downgrades and see whether any applies to your current holdings.
Upgrades
Last Week’s Holds, Now Buys
Symbol |
Company Name |
Quantitative Grade |
Fundamental Grade |
COLM | Columbia Sportswear | B | C |
CRI | Carter’s | B | C |
DV | DeVry Education Group | B | D |
FOSL | Fossil | B | B |
GES | Guess?, | B | C |
TAP | Molson Coors Brewing | B | C |
THI | Tim Hortons | B | C |
WLK | Westlake Chemical | B | B |
XYL | Xylem Inc. | B | B |
ZION | Zions Bancorporation | C | B |
Last Week’s Sells, Now Holds
Symbol |
Company Name |
Quantitative Grade |
Fundamental Grade |
AMD | Advanced Micro Devices | D | C |
CBT | Cabot | C | C |
TPX | Tempur Sealy International | C | B |
WSM | Williams-Sonoma | D | B |
Downgrades
Last Week’s Buys, Now Holds
Symbol |
Company Name |
Quantitative Grade |
Fundamental Grade |
AJG | Arthur J. Gallagher | C | C |
ASPS | Altisource Portfolio Solutions | C | B |
ASR | Grupo Aeroportuario del Sureste | C | C |
BIN | Progressive Waste Solutions | B | C |
BKW | Burger King Worldwide | C | B |
CIEN | Ciena | D | B |
CNC | Centene | C | B |
CNK | Cinemark | C | C |
ENR | Energizer Holdings | C | B |
FNF | Fidelity National Financial | C | C |
HFC | Hollyfrontier | C | C |
HTZ | Hertz Global | C | C |
LXK | Lexmark International, | C | B |
MANU | Manchester United Plc | C | B |
MELI | MercadoLibre SA | C | C |
RGC | Regal Entertainment | C | B |
RKT | Rock-Tenn Company | C | B |
SIG | Signet Jewelers | C | C |
SOHU | Sohu.com | B | C |
SSYS | Stratasys | B | C |
TRW | TRW Automotive Holdings | C | B |
WU | Western Union | C | C |
Last Week’s Holds, Now Sells
Symbol | Company Name | Quantitative Grade | Fundamental Grade |
AB | AllianceBernstein Holding | D | C |
AOL | AOL | D | D |
ATML | Atmel | D | C |
BIG | Big Lots | D | C |
CAB | Cabela’s | D | C |
CVI | CVR Energy | D | C |
EV | Eaton Vance | D | C |
HSP | Hospira, | D | C |
HTA | Healthcare Trust of America | D | C |
HUN | Huntsman | D | D |
IGT | International Game Technology | F | C |
IHG | InterContinental Hotels Group PLC | D | B |
JBL | Jabil Circuit | D | C |
MKC | McCormick & Company | D | C |
NSR | NeuStar | D | B |
NVDA | NVIDIA | D | C |
R | Ryder System | D | C |
TDG | TransDigm Group | D | C |
TGH | Textainer Group Holdings | D | C |
WYN | Wyndham Worldwide | D | B |