Quant Ratings Updated on 84 Stocks

The stock market posted a stunning reversal on Friday, boosting the S&P 500, Dow and NASDAQ up 2.4%, 1.5% and 3.8%, respectively. What’s interesting is that a rebound of this magnitude is unusual for a Friday. Plus, there was a lot of uncertainty heading into the weekend given the war between Russia and Ukraine. So, while the broader market’s surge was refreshing, it was also highly unprecedented.

That surge makes Friday’s rally a great example of “money flow.” That’s when money flows in and out of stocks.

Let’s consider Alphabet Inc. (GOOG) for a moment. As I discussed in April, Google’s parent company had been under pressure after reporting an earnings and revenue miss for its first quarter in fiscal year 2022. Despite the strength of its advertising and cloud businesses, Alphabet reported earnings of $24.62 per share on $68.01 billion in revenue, which missed estimates for earnings of $25.94 per share and revenue of $68.07 billion.

As a result, the stock slipped to a C-rating in my Portfolio Grader. The fact is Alphabet’s Quantitative Grade, which measures institutional buying pressure – i.e., money flow – fell to a C-rating. However, following the stock’s 3% surge on Friday, institutional buying pressure increased, which upped Alphabet’s Quantitative Grade back to a “B” and its Total Grade to a “B.” So, thanks to money flow, the stock flipped from a Hold to a Buy.

Of course, Alphabet wasn’t the only stock upgraded from a C-rating to a B-rating over the weekend. After examining the latest data on institutional buying pressure and each company’s fundamental health, I revised my Portfolio Grader recommendations for 84 blue-chip stocks – 31 of which now hold a B-rating in my Portfolio Grader.

Below, I list the first 10 stocks that were upgraded from a C-rating to a B-rating. For the full list of 84 and their Quantitative Grade and Fundamental Grade, 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.

Before we go, I wanted to let you know that I will be doing a special Q&A in my Market360 articles this week. I’ve received excellent questions about several big topics, like inflation, earnings season and the Federal Reserve. So, over the next few days I will be taking some time to answer these questions. The first question is on how to hedge against inflation, so keep an eye on your inbox for my answer tomorrow!

Then, next Tuesday, May 24, at 4 p.m. Eastern time, I will be putting on a Special Event called The Great American Wealth Shift to discuss my brand-new prediction. I’ll share more details on Wednesday, so please stay tuned. If you’d like to reserve your spot today, just click here.



Louis Navellier

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