How To Find The Best Stocks In a Bear Market

In the volatile market we’re currently smack dab in the middle of, it’s difficult to know which stocks to buy, let alone keep track of all of them.

While some stocks’ fundamentals remain intact and shares are simply down with the broader market, others have been knocked down for a reason. I’ve said it before and I’ll say it again: While good stocks bounce like tennis balls, bad stocks fall like rocks. And the last thing you want is a rock burning a hole in your pocket when the stock market’s rally resumes.

That said, sometimes a good stock can go bad and vice versa. This is why I created my Weekly Upgrades & Downgrades blog post based on my Portfolio Grader ratings. (You can find it here.) Every week, I run a scan on nearly 5,000 stocks and pull together a list of blue chips, with at least a $10 billion market cap, to show you which among them were upgraded to buys and holds, or downgraded to holds and sells. Take Monday’s post, for example:

This Week’s Ratings Changes:

Upgraded: From Hold to Buy

Symbol

Company Name

Quantitative Grade

Fundamental Grade

Total
Grade

ANTM

Anthem, Inc.

B

B

B

BRK.B

Berkshire Hathaway Inc. Class B

B

C

B

CRH

CRH Plc Sponsored ADR

B

C

B

DB

Deutsche Bank AG

B

C

B

DFS

Discover Financial Services

B

C

B

DISCB

Discovery, Inc. Class B

B

C

B

EIX

Edison International

B

C

B

ESS

Essex Property Trust, Inc.

B

C

B

FITB

Fifth Third Bancorp

B

B

B

GE

General Electric Company

B

C

B

ILMN

Illumina, Inc.

B

C

B

INFY

Infosys Limited Sponsored ADR

C

B

B

ISRG

Intuitive Surgical, Inc.

B

C

B

KEY

KeyCorp

B

C

B

LOW

Lowe’s Companies, Inc.

B

C

B

MET

MetLife, Inc.

B

C

B

O

Realty Income Corporation

B

B

B

PCAR

PACCAR Inc

B

C

B

PPL

PPL Corporation

B

C

B

PUK

Prudential plc Sponsored ADR

B

C

B

SQ

Square, Inc. Class A

B

B

B

SRE

Sempra Energy

A

D

B

SYY

Sysco Corporation

B

C

B

TSN

Tyson Foods, Inc. Class A

B

C

B

VOD

Vodafone Group Plc Sponsored ADR

B

C

B

WPC

W. P. Carey Inc.

B

C

B

 

Upgraded: From Sell to Hold

Symbol

Company Name

Quantitative Grade

Fundamental Grade

Total
Grade

AFL

Aflac Incorporated

C

C

C

ANET

Arista Networks, Inc.

D

B

C

AVAL

Grupo Aval Acciones y Valores SA

C

C

C

BBL

BHP Group Plc Sponsored ADR

D

C

C

CHKP

Check Point Software Technologies Ltd.

D

C

C

DELL

Dell Technologies Inc Class C

C

D

C

DEO

Diageo plc Sponsored ADR

C

C

C

EC

Ecopetrol SA Sponsored ADR

D

C

C

HPE

Hewlett Packard Enterprise Co.

D

B

C

IAC

IAC/InterActiveCorp.

B

C

B

LYG

Lloyds Banking Group

D

C

C

LYV

Live Nation Entertainment, Inc.

B

C

C

MFG

Mizuho Financial Group, Inc.

D

B

C

MUFG

Mitsubishi UFJ Financial Group, Inc.

C

C

C

QSR

Restaurant Brands International Inc

C

C

C

RBS

Royal Bank of Scotland Group

D

C

C

SYF

Synchrony Financial

C

C

C

TAK

Takeda Pharmaceutical Co. Ltd. Sponsored ADR

C

C

C

TOT

Total SA Sponsored ADR Class B

C

C

C

WIT

Wipro Limited Sponsored ADR

D

B

C

YUM

Yum! Brands, Inc.

C

C

C

 

Downgraded: From Buy to Hold

Symbol

Company Name

Quantitative Grade

Fundamental Grade

Total
Grade

BAC

Bank of America Corp

C

C

C

BDX

Becton, Dickinson and Company

C

D

C

BR

Broadridge Financial Solutions, Inc.

B

D

C

BTI

British American Tobacco

C

C

C

CHD

Church & Dwight Co., Inc.

C

C

C

COO

Cooper Companies, Inc.

B

C

C

DIS

Walt Disney Company

B

C

C

FMS

Fresenius Medical Care AG & Co.

C

C

C

FRC

First Republic Bank

C

C

C

LVS

Las Vegas Sands Corp.

D

C

C

MKC

McCormick & Company, Incorporated

C

C

C

MRK

Merck & Co., Inc.

C

B

C

ROL

Rollins, Inc.

C

C

C

RYAAY

Ryanair Holdings Plc Sponsored ADR

C

C

C

SJM

J.M. Smucker Company

C

C

C

STT

State Street Corporation

C

B

C

UDR

UDR, Inc.

B

C

C

UL

Unilever PLC Sponsored ADR

C

C

C

UPS

United Parcel Service, Inc. Class B

B

D

C

VIV

Telefonica Brasil S.A. Sponsored ADR Pfd

C

C

C

VMC

Vulcan Materials Company

B

C

C

VZ

Verizon Communications Inc.

C

B

C

WCN

Waste Connections, Inc.

C

C

C

WM

Waste Management, Inc.

B

C

C

 

Downgraded: From Hold to Sell

Symbol

Company Name

Quantitative
Grade

Fundamental
Grade

Total
Grade

CCEP

Coca-Cola European Partners Plc

D

C

D

DOW

Dow, Inc.

D

C

D

EMR

Emerson Electric Co.

D

C

D

ENIC

Enel Chile SA Sponsored ADR

D

C

D

FCAU

Fiat Chrysler Automobiles N.V.

D

C

D

GIB

CGI Inc. Class A

D

C

D

IP

International Paper Company

D

D

D

MAR

Marriott International, Inc. Class A

D

C

D

PPG

PPG Industries, Inc.

D

C

D

TCOM

Trip.com Group Ltd. Sponsored ADR

F

C

D

TD

Toronto-Dominion Bank

D

C

D

VFC

V.F. Corporation

D

C

D

WBA

Walgreens Boots Alliance Inc

D

C

D

 

As you can see above, 84 stocks were upgraded or downgraded over the weekend. This includes companies like Lowe’s Companies, Inc. (LOW), which was upgraded to a B-rated “Buy,” and Bank of America (BAC), which was downgraded to a C-rated “Hold.” Chances are that you have at least one of these 84 stocks in your portfolio, whether directly or in fund shares.

But I understand if you don’t have time to check your stocks week-to-week, which is why I also have my Portfolio Grader 500. This is a quarterly guide to the best and worst stocks for the current quarter. It is my master list of 250 A- and B-rated powerhouses, plus 250- D and F-rated stocks to sell immediately. Each grade listed is a projection for the entire quarter.

The Portfolio Grader 500 features predominantly large-cap stocks that are either at the top of the heap (the stocks to buy) or at the bottom of the heap (the stocks to sell), according to my stock-picking system. This list is generated entirely using the information covered by my Portfolio Grader (namely the Quantitative Grade, and the eight parts that make up the Fundamental Grade.)

Let me give you an example….

On January 2, I released my Portfolio Grader 500 for the first quarter. Alcoa Corporation (AA) held an F-rating, making it a strong sell. In comparison, Advanced Micro Devices, Inc. (AMD) was A-rated, making it a strong buy. Take a look at the chart below to see how they performed in the first quarter.

As you can see, AA lost 70%. That’s almost four times the damage sustained by the S&P 500, which is down 18.5% to end the quarter. On the other hand, AMD gained 4%, which is pretty impressive in the current bear market. Clearly, my projections were on to something!

If you don’t want to sort through 500 stocks each quarter – I’ve got you covered with my Platinum Growth Club Model Portfolio. I only recommend the crème de la crème of stocks, all of which are highly rated in Portfolio Grader. So, you can rest assured that you’re investing in the best of the best.

If you try us out now, you will receive my Portfolio Grader 500. And it’s perfect timing, as I will be publishing my latest top 250 stocks to buy and top 250 stocks to sell tomorrow morning. So, you’ll have plenty of time to adjust your portfolio for the second quarter, which is sure to be a wild one.

Plus, in Platinum Growth Club, I will be releasing the names of three new companies that are flashing the “buy” signal after the close tomorrow. These are set to benefit from the online boom in China right now. You don’t want to miss out.

With Platinum Growth Club, you’ll also have full access to my hand-picked Model Portfolio, plus my VIP chats. (I’ve also been recording podcasts constantly in this crazy market for subscribers to Platinum Growth Club and ALL my services.)

In addition, you’ll have access to all my other services – Growth InvestorBreakthrough Stocks and Accelerated Profits, as well as the Power Portfolio 2020 my InvestorPlace colleague Matt McCall and I created. If you sign on by midnight tonight, you can take part in our Open House and try Platinum Growth Club for 30 days, risk-free – at a steep discount.

Click here to learn all about Platinum Growth Club and how we find great stocks – even in the corners of the market you wouldn’t think to look.

Note: As I mentioned, I’m currently finalizing those 3 new urgent buy recommendations for Wednesday.

Here’s the thing: Tonight at midnight is your last chance for my best-ever Platinum Growth Open House offer.

It’s 100% risk-free. You’ll have 30 days to check everything out yourself — including my new Crisis Master Plan research report, as well as the names of my 3 upcoming “buys” and the full Model Portfolio.

So if you’re interested, don’t wait. Go here for the details now.

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