Watch now…
I can’t really stress this enough: Now is the time to buy stocks.
And to help you out, we’re going to run through several stocks today to give you a few fresh ideas.
I’ve talked about a potentially big run for a while now. We’ve discussed more specific reasons like interest rates falling, inflation now under control, and both election-year and seasonal patterns that signal a Big Lift.
It’s even bigger and better than that. The fourth quarter is clearly great, but data also shows we should invest now for strength that lasts well into the new year.
This new signal study below says it all: November through April is big-time bullish.
When you consider the average annual return for the market is around 8% to 10%, you can see that most (if not all) of that seems to come in the six-month period we’re about to enter.
That’s why you hear every spring to “sell in May and go away.” That’s clearly ill-advised. You can also see that anyone who does that leaves profits on the table. Plus, that can be a great time to buy at lower prices for the seasonal strength that kicks into gear come November. But it’s still not too late to set yourself up for profits this year. And that’s why Luke Downey and I recorded a special Power Trends+ video.
We talk more about the data above, and then we tee up six stocks that your fellow Power Trends readers have asked about.
And kudos to you for the great ideas. We learned a few things ourselves.
We dive into what our Quantum Edge System reveals on six stocks:
- A building company. Luke likes builders right now, and this one’s Quantum Score is in the buy range. But it does have a few drawbacks.
- A nuclear components supplier. As I wrote about in last Thursday’s Power Trends, nuclear power is in the headlines again with Constellation Energy (CEG) agreeing to restart one of its Three Mile Island reactors to supply power to Microsoft (MSFT) to meet the huge demands from artificial intelligence. This smaller, lesser-known company is also in our buy range, but again with some caveats.
- An electronic components supplier that we honestly weren’t very familiar with, but we sure like what we see. We appreciate the suggestion, and plan to research this company more.
- A company we do know very well. It’s been on our radar a long time. The business model is more concentrated than we like to see, but the data looks good, and this stock could be an opportunity on a pullback.
- One of the largest medical firms on the planet that should be making more money than it is. Luke owns it as a dividend play, but for price appreciation, there are definitely better fish in the pharmaceutical sea.
- An interesting solar-related company. As I also wrote last Thursday, solar power looks ready to “shine.” This one is what I call a divergence stock. The fundamentals are excellent, but the technicals are poor.
In the end, I always come back to the Quantum Score. We’re looking for an edge, and the score and our Quantum Edge system gives us that. So, while divergence stocks can be intriguing, they need to be viewed differently.
I almost always prefer to wait until the score gets into that 70 to 85 range. That’s where we get that 7-to-1 market outperformance over the last three decades. It’s also where I count on a 70% win rate, with the winners much bigger than the losers.
Click here to watch our analysis of these stocks and how we rate them.
The stocks we analyze in this video issue are not currently recommended in my investing services, but were submitted by your fellow readers. They were great suggestions, and we have more to get to.
Keep the questions and tickers coming. Email me at [email protected]. We always love hearing from you, and we try to help you become a better investor.
Talk soon,
Jason Bodner
Editor, Jason Bodner’s Power Trends