Updated quantitative ratings on 121 stocks
Wall Street is on pins and needles ahead of March’s Federal Open Market Committee (FOMC) meeting this week. While FOMC meetings are usually closely watched, the March FOMC meeting could be particularly critical to future market performance.
Many strategists are predicting key interest rate cuts later this year, but that seems very premature to me at this time. Instead, I expect the Fed to raise its key rates by 25 basis points on Wednesday. Personally, I think it’s the Fed’s press release on Wednesday afternoon that will be decisive.
Here’s the reality: we need the Fed to signal that it will “pause” its policy tightening.
The truth is that by raising key rates to drive down inflation, the Fed inverted the yield curve (it has been inverting since July). This is when the two-year Treasury yield curve is higher than the 10-year Treasury yield curve. The Fed is responsible for protecting the integrity of US banks, and an inverted yield curve is deadly for banks. An inverted yield curve hurts bank profitability.
The Fed must therefore reverse the yield curve and restore some stability in the banking sector. The first step towards that is a dovish statement from the FOMC on Wednesday that hinted at an upcoming pause in key interest rate hikes.
If the Fed issues a dovish statement from the FOMC tomorrow, then a massive stock market rally could be in the cards.
However, we cannot expect all stocks to outperform. So today Market 360, I will reveal the stocks most likely to underperform the broader market, due to their weak fundamentals. I’ll also share the best stocks to invest in ahead of the next big market run…
Ranking Changes This Week
After taking a close look at the latest data on institutional buying pressure and the fundamental health of each company, I decided to revise my Portfolio Grader recommendations for 121 headlines. Chances are you have at least one of these stocks in your portfolio, so you might want to browse this list and act accordingly.
I’ve included the top 10 stocks that were downgraded from “Hold” (C rating) to “Sell” (D rating) in the table below. For the full list of 121 stocks – including their fundamental and quantitative ratings – click here.
|AIG||American International Group, Inc.||D|
|BBDO||ADR sponsored by Banco Bradesco SA||D|
|BSBR||Banco Santander (Brasil) SA Sponsored ADR||D|
|FOXA||Fox Corporation Class A||D|
|HBAN||Huntington Bancshares Incorporated||D|
|J||Jacobs Solutions Inc.||D|
|JBHT||JB Hunt Transport Services, Inc.||D|
|J.D.||JD.com, Inc. Sponsored ADR Class A||D|
The point is, it’s important to invest in companies that can sustain robust earnings and sales growth and are also backed by persistent buying pressure – and the companies above just don’t cut it. .
Keep in mind that we are in a narrower market, where only the top 15% of Portfolio Grader stocks have become market leaders.
It is therefore important to invest in fundamentally superior actionsbecause they are the stocks well-positioned to thrive no matter what the market turns.
If you don’t know where to look, then consider my Growth investor service. We have taken steps to align our shopping lists to thrive in the current environment as we have loaded businesses with accelerate the momentum of profits and sales.
If you become a Growth investor member, you will have access to my two shopping lists: High Growth Investments and Elite Dividend Payers. I’m also including a Top Stocks list, which is a select list of stocks from my buy lists that are backed by persistent institutional buying pressure and stunning fundamentals.
To join me at Growth investor today – and get full access to my shopping lists – click here.
And stay tuned! Right now, I see TWO massive economic events on the horizon – events that the mainstream media ignores. I’ll have all the details for you soon, so keep an eye out for your inbox.
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