On April 22, 2023, we used SimpleVisor’s proprietary Relative and Absolute analysis to provide the most oversold stocks. Click HERE for more information on the tool and the stocks the scan yielded,
The table below shows the original six selections and their absolute and relative scores at the time. We just added the two purple-shaded columns to highlight their performance since April 22 on an absolute and relative basis. All six stocks had positive returns, and five beat the market. On average, the six holdings outperformed the S&P 500 by nearly 10%.
The original scan used the four most oversold sectors. This scan uses the three sectors that are currently oversold versus the market: Real estate, Utilities, and Health Care. These are shown in the first graphic below. The second graphic shows the three sectors that are near fair value to slightly overbought on an absolute basis. That said, they represent the three sectors with the lowest absolute scores.
Screening Criteria
We considered the following factors when screening:
- Top Ten holdings of the four most oversold sector ETFs: Real estate (XLRE), Utilities (XLU), and Health Care (XLV)
- Lowest combined absolute scores and relative scores versus the sector ETF
Company Summaries
Crown Castle Inc. (CCI)
Public Storage (PSA)
Xcel Energy Inc. (XEL)
Bristol-Myers Squibb Company (BMY)
Merck & Co., Inc. (MRK)
Five for Friday
Five for Friday uses stock screens to produce five stocks that we expect will outperform if a particular investment theme plays out in the future. Investment themes may be relevant to the current or expected market, industry and/or economic trends. Investment themes may not always represent our current forecast.
Disclosure
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.
Follow Michael on Twitter or go to 720global.com for more research and analysis.
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