40 Blue Chips Making Waves

If you go to my Portfolio Grader tool and look up today’s biggest gainers on the S&P 500, you’ll see that today’s best performing stocks are C- and even D-rated. How could this be happening?

Well, in a normal environment, the best-rated stocks (As and Bs) are the ones that beat the market day in and day out. But the strong bull market we’re seeing right now is anything but normal. The fact that the chaff is rising along with the wheat is a big red flag for choppiness to come.

I’ll discuss this further over the next few weeks, but the market should narrow as it climbs higher. While investors have turned a blind eye to some companies’ dubious fundamentals, I expect many will wise up during first-quarter earnings season. This will spark a flight to quality that should normalize the market.

To prepare for the bumpiness to come, let’s look at the 40 big blue chips that have been upgraded and downgraded this weekend. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for each of the stocks listed below.


Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
ADBE Adobe Systems Inc. B C
AMP Ameriprise Financial Inc. B B
BAC Bank of America Corp. B C
BX Blackstone Group L.P. B B
CBG CBRE Group Inc C A
CRM salesforce.com inc. B C
ERIC Ericsson ADR B C
EW Edwards Lifesciences Corp. B B
GPC Genuine Parts Co. B B
HON Honeywell International Inc. B B
NLSN Nielsen Holdings N.V. B C
NTRS Northern Trust Corp. B C
UAL United Continental Holdings Inc. B D

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ADM Archer Daniels Midland Co. D C
LFC China Life Insurance Co. Ltd. ADS C C
MCD McDonald’s Corp. D C
NLY Annaly Capital Management Inc. C C
NUE Nucor Corp. C C
TXN Texas Instruments Incorporated C C
VOD Vodafone Group PLC ADS C C
XRX Xerox Corp. D C
YNDX Yandex N.V. Cl A D B
YUM Yum! Brands Inc. C C


Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
AGN Allergan Inc. C C
BMY Bristol-Myers Squibb Co. B C
CAH Cardinal Health Inc. C B
KORS Michael Kors Holdings Ltd. C A
LYG Lloyds Banking Group PLC ADS B C
PETM PetSmart Inc. C B
TM Toyota Motor Corp. ADS B D
VAL Valspar Corp. C C
WAG Walgreen Co. B D

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
AMAT Applied Materials Inc. D C
DLTR Dollar Tree Inc. D B
ISRG Intuitive Surgical Inc. D B
LTD Limited Brands Inc. D C
MJN Mead Johnson Nutrition Co. D B
MNST Monster Beverage Corp. D C
PCG PG&E Corp. D D


Louis Navellier

Louis Navellier

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