Why AAPL is Still Sour (And 55 Other Actions to Take This Week)

On an otherwise flat day for the markets, the NASDAQ Composite is seeing some action. After breaking through to an all-time high on Friday, the tech-heavy index has continued to rally today.

The main driver is Apple Inc. (AAPL), which has cracked the top 10 of the Fortune 500 list for the first time ever. In 2012, Apple was ranked at No. 17—this year, it has jumped all the way to sixth place. Meanwhile, PC maker Hewlett-Packard (HPQ) has been booted off the top 10 list—down to No. 15—as profits have eroded. And newcomer Facebook.com Inc. (FB) just managed to squeeze onto the list at No. 482.

But while AAPL shareholders have responded favorably to the tech shuffle, I don’t want you to buy into it. Just a quick scan through Portfolio Grader tells you that it’s going to take more than a Fortune 10 spot to get a buy recommendation for me. As I mentioned in an earlier blog post, the company is struggling to accelerate sales and earnings due to the increasing competition. And since then, institutional buying pressure has fallen even further so I have downgraded the stock to an F-rated “strong sell.”

So it just goes to show that as certain stocks fall in and out of public favor each week, you should also monitor how these stocks are ranking in Portfolio Grader. Let’s start here by looking at the 55 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
BEN Franklin Resources Inc. B B
ETN Eaton Corporation PLC B C
ICE IntercontinentalExchange Inc. B C
LMT Lockheed Martin Corp. B B
RTN Raytheon Co. B B
TRP TransCanada Corp. B C
VRX Valeant Pharmaceuticals B C

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ABV Ambev D C
BHI Baker Hughes Inc. C D
CIE Cobalt International Energy Inc. C C
ENI Enersis S.A. ADS D C
ESRX Express Scripts Holding Co D B
ESV Ensco PLC Cl A D C
HUM Humana Inc. D B
INFY Infosys Ltd. ADR D C
MRO Marathon Oil Corp. C D
NUE Nucor Corp. C C


Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
AGNC American Capital Agency Corp. C C
BAC Bank of America Corp. B D
BAP Credicorp Ltd. C B
C Citigroup Inc. C B
CERN Cerner Corp. C B
CTRX Catamaran Corp C C
DG Dollar General Corp. C B
EPD Enterprise Products Partners L.P. C C
HES Hess Corp. C B
MO Altria Group Inc. C B
NKE Nike Inc. Cl B C B
NLSN Nielsen Holdings N.V. C C
NVO Novo Nordisk A/S ADS C B
PCG PG&E Corp. C C
SNDK SanDisk Corp. C B
SO Southern Co. C C
SPG Simon Property Group Inc. C B

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
ADM Archer Daniels Midland Co. D C
BG Bunge Ltd. D D
CHK Chesapeake Energy Corp. D C
FDX FedEx Corp. D C
FE FirstEnergy Corp. D D
GD General Dynamics Corp. D C
HOG Harley-Davidson Inc. D B
KSS Kohl’s Corp. D C
LTD L Brands Inc. D C
LULU lululemon athletica inc. D B
NLY Annaly Capital Management Inc. D C
NSC Norfolk Southern Corp. D C
OKS ONEOK Partners L.P. D D
PM Philip Morris International Inc. D C
RBS Royal Bank of Scotland Group D C
SCCO Southern Copper Corp. D C
VNO Vornado Realty Trust D C
WFM Whole Foods Market Inc. D C
WMB Williams Companies Inc D C
XRX Xerox Corp. D B


Louis Navellier

Louis Navellier

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