The stock market struggled to find direction early this week, but that’s not too surprising. Trading volume is light because most traders have already packed up to get a jump start on the holiday weekend. As a result, stocks are more susceptible to big swings.
I should add that some of my Portfolio Grader’s stock ratings are swinging a bit, too. I revised my Portfolio Grader recommendations for 68 big blue chip stocks over the weekend, and of those 68 stocks, 30 stocks were downgraded from a Buy (B-rating) to a Hold (C-rating) and 13 stocks were downgraded from a Hold to a Sell (D-rating).
One stock that I would like to call out that was upgraded from a D-rating to a C-rating is NVIDIA Corporation (NASDAQ:NVDA). The fact is the stock has been stuck at a D-rating since November, so what changed?
NVDA’s Quantitative Grade.
The Quantitative Grade, which accounts for about 70% of a stock’s Total Grade, measures a company’s institutional buying pressure. You can think of this as “following the money.” The more money that floods into a stock, the more momentum a stock has to rise. The opposite is also true; the more money that flees a stock, the more momentum a stock has to fall. Given the revised C-rating for NVDA’s Quantitative Grade, it’s clear that money is starting to flow back into the stock.
I’ve listed the 10 stocks (including NVIDIA) that were also upgraded from a D-rating to a C-rating below, but for the full list of upgrades and downgrades, please click here. 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|
|DDOG||Datadog Inc Class A||C|
|NICE||NICE Ltd Sponsored ADR||C|
|SNOW||Snowflake, Inc. Class A||C|
|TTM||Tata Motors Limited Sponsored ADR||C|
This list a great starting point for tidying up your portfolio, but to ensure that you’re locked and loaded with the best stocks for 2023, you’ll want to consider my High-Growth Investments and Elite Dividend Payers Buy Lists in Growth Investor. The fact of the matter is we are in a 15% stock market, where essentially all the positive sales and earnings forecasted in the top 15% of all stocks that I monitor. As a result, that institutional buying pressure that creates the “Alphas” that I see is expected to chase fewer stocks than when 40% of all stocks are performing well and exhibiting relative strength.
In other words, that institutional buying pressure is focused on fewer stocks and is almost acting like a “firehose” that is creating relentless buying pressure – and my Growth Investor stocks are in prime position to benefit.
In the upcoming Growth Investor January Monthly Issue, I’ll explain exactly why. This issue will be available on my members-only website after the market closes on Thursday.
If you’re interested, join me at Growth Investor today so you have access to the Monthly Issue, as well as my two newest recommendation and latest Top Stocks lists as soon as the issue is released.
P.S. Don’t forget that the stock market will be closed next Monday, December 26, for the Christmas holiday! The InvestorPlace offices and customer service department will be closed on Friday, December 23, and Monday, December 26.
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:
Datadog Inc Class A (DDOG), NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT)