From the desk of Steve Strazza @sstrazza
We’ve enjoyed a ton of success with the bottoms-up scans and the columns they’ve inspired.
We absolutely love our scans! When we combine them with our traditional top-down approach, they make it almost impossible to miss key market themes.
In fact, we’ve launched four columns around these scans since last year — and we have many more that we only run internally.
Today, we’re sharing one with you. We call it “Fade The Street,” and it’s one of my personal favorites.
The scan leverages data from sell-side analysts including their buy/sell ratings and price targets in order to identify stocks with the potential to become the market’s next big winners.
How do we do this? Simple…
We scan for top-performing stocks that happen to be some of the most-hated and out-of-favor names on the street. Basically, we’re looking for names that analysts have gotten wrong – or at the very least, are trending against their respective ratings.
There is a natural tailwind behind names appearing on this scan. When the sell-side shops and banks eventually take action and chase these stocks higher, investors will, too.
The idea is that we’ll already own the strongest names and simply enjoy the ride. As analysts are forced to come out with upgrades and price hikes, they will act as catalysts for even higher prices.
Here is our latest list. Just look at how underwater the analysts are in these stocks that are trading at or near fresh all-time highs!
Somethings got to give…