As anyone who watched professional or college football over the Thanksgiving weekend can tell you, the best defense is a strong offense. This wisdom applies both on the playing field and on Wall Street right now because we’re in a unique market environment.
We are in the seasonally strongest time of year for the stock market. The 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 the holidays with friends and family, consumer sentiment tends to improve and that tends to rub off on investor sentiment and cause an early “January effect.”
But this time, it’s going to be a bit different from past years. Instead of a broad-based rally, we’re seeing a rotation into quality stocks as investors gravitate towards those stocks that are most likely to sustain strong sales and earnings growth. This flight to quality will likely carry over into the New Year.
So we need a strategy. Like the bargain hunters that are scouring the internet for bargain buys, we also need to focus on good deals. I’ll get you started by listing the latest upgrades and downgrades in my stock screening tool, Portfolio Grader.
Over the weekend I noticed 55 big-name stocks were on the move and have revised their ratings to reflect the latest data.
I’ll start with the 17 stocks that have been upgraded to buys.
Upgrades
Last Week’s Holds, Now Buys
Symbol | Company Name | Quantitative Grade | Fundamental Grade |
BAC | Bank of America Corporation | B | B |
BBBY | Bed Bath & Beyond Inc. | B | B |
BX | The Blackstone Group L.P. | B | C |
CHKP | Check Point Software Technologies Ltd. | B | B |
HIG | The Hartford Financial Services Group, Inc. | B | C |
KSS | Kohl’s Corporation | B | C |
LBTYA | Liberty Global Plc | B | C |
LBTYK | Liberty Global Plc Class C | B | C |
M | Macy’s Inc | B | B |
MSI | Motorola Solutions, Inc. | C | B |
NOK | Nokia Oyj | B | C |
PAYX | Paychex, Inc. | B | C |
RYAAY | Ryanair Holdings Plc | B | C |
STX | Seagate Technology PLC | B | C |
VIP | VimpelCom Ltd. | B | D |
VLO | Valero Energy Corporation | B | C |
WDAY | Workday, Inc. | B | C |
Last Week’s Sells, Now Holds
Symbol | Company Name | Quantitative Grade | Fundamental Grade |
BBT | BB&T Corporation | C | D |
COF | Capital One Financial Corporation | D | B |
DFS | Discover Financial Services | D | B |
DVA | DaVita HealthCare Partners Inc. | D | B |
EPD | Enterprise Products Partners L.P. | C | C |
KRFT | Kraft Foods Group, Inc. | D | C |
LINTA | Liberty Interactive Corporation | D | C |
QCOM | QUALCOMM Incorporated | D | B |
ROP | Roper Industries, Inc. | D | C |
TIF | Tiffany & Co. | C | B |
TSM | Taiwan Semiconductor Manufacturing | D | C |
Downgrades
Last Week’s Buys, Now Holds
Symbol | Company Name | Quantitative Grade | Fundamental Grade |
ADM | Archer-Daniels-Midland Company | B | C |
BMO | Bank of Montreal | C | B |
CNP | CenterPoint Energy, Inc. | D | C |
D | Dominion Resources, Inc. | C | C |
GLW | Corning Incorporated | C | C |
KEP | Korea Electric Power Corporation | B | C |
KORS | Michael Kors Holdings Ltd | C | B |
NEE | NextEra Energy, Inc. | C | B |
SLF | Sun Life Financial Inc. | C | C |
Last Week’s Holds, Now Sells
Symbol | Company Name | Quantitative Grade | Fundamental Grade |
A | Agilent Technologies, Inc. | D | C |
ABT | Abbott Laboratories | D | B |
ADI | Analog Devices, Inc. | D | C |
AME | AMETEK, Inc. | D | B |
APA | Apache Corporation | D | B |
BCH | Banco de Chile | D | B |
BNS | The Bank of Nova Scotia | D | C |
DG | Dollar General Corporation | D | B |
DUK | Duke Energy Corporation | D | C |
GPC | Genuine Parts Company | D | C |
HTZ | Hertz Global Holdings, Inc. | D | C |
ITW | Illinois Tool Works Inc. | D | C |
NBL | Noble Energy, Inc. | D | C |
PAA | Plains All American Pipeline, L.P. | D | C |
PEG | Public Service Enterprise Group | D | C |
PPL | PPL Corporation | D | C |
PSX | Phillips 66 | D | D |
SLB | Schlumberger NV | D | B |