Stocks are still getting slammed in 2022, especially technology stocks. Of the tech stocks my research firm MAPsignals follows, nearly all the recent activity has been selling (a whopping 92% of all tech signals):
See the red bars? Those are stocks we believe are getting sold. When red bars run rampant, good names can get crushed. They can become what I call “oversold.” When this happens, even great stocks can get caught in the selling rush – and that can mean opportunity.
There are some great stocks being sold right now (not all in tech either). They’re fundamentally sound companies with good histories, which means discounts for long-term investors. Here are five stocks seeing lots of red that appear to be near-term oversold: CRM, INTU, LULU, MNST & AMD.
Up first is Salesforce.com Inc. (CRM), the enterprise customer management software platform.
Even though great companies’ stocks can be volatile, like CRM over the past year, they’re worthy of attention, especially on pullbacks. Check out Salesforce:
To show you what our Big Money signals look like on a stock, have a look at all the buys (green bars) and sells (red bars) in CRM over the past year:
Clearly, that’s a lot of red, especially this year.
Looking more broadly, Salesforce has been a high-quality stock for years. The blue bars in the chart below show when CRM was likely being bought by a Big Money player and also a high-ranking stock, according to MAPsignals.
When you see a lot of blue, like CRM did in 2017, 2018, and 2020, it can be very bullish:
Source: www.MAPsignals.com
Those blue signals indicate Big Money buying and strong fundamentals. As you can see, Salesforce’s sales and earnings numbers have been super strong, making it worthy of attention:
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3-year sales growth rate (+26.6%)
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3-year EPS growth rate (+1,161.0%)
Next up is Intuit Inc. (INTU), the financial management software maker.
Check out these technicals for INTU:
It’s been getting sold a lot recently:
But now let’s look long-term. These are the top buy signals Intuit has made since 2017. The Big Money has been on it for a while:
Source: www.MAPsignals.com
Let’s look under the hood. As you can see, Intuit has had rock-solid, double-digit growth in earnings and sales:
Another growth name is Lululemon Athetlica Inc. (LULU), the athletic clothing company.
Strong candidates for growth usually have Big Money buying the shares. Lululemon has historically had that. But recently, it’s full of red, which could be an opportunity:
Below are the blue Big Money signals LULU has made since 2015. That’s the JUICE!
Source: www.MAPsignals.com
Now let’s dig deeper. Lululemon’s growth in earnings is impressive, as is its sales growth. I expect more of the same in the coming years.
Number four on the list is Monster Beverage Corporation (MNST), which is an energy drink company.
Here are the technicals important to me:
Recently, it’s been a steep downward slide, with more Big Money selling than buying:
But Monster Beverage is a cash magnet and Big Money favorite. Below are the Big Money Top 20 buy signals for MNST since 2015:
Source: www.MAPsignals.com
Let’s look under the hood. Despite the price slide, Monster Beverage has been growing earnings and sales at double-digit rates:
Our last growth candidate is Advanced Micro Devices, Inc. (AMD), a maker of powerful semiconductor chips. Like most technology stocks, it’s been getting beaten up this year:
Check out these technicals:
AMD is a high-quality stock since it’s made the Top 20 report. As you can see below, it’s been a Big Money favorite for years. Right now, it’s on a pullback and could be an opportunity.
Source: www.MAPsignals.com
Now let’s look below the surface a bit. Earnings have been skyrocketing, and there’s been big sales growth too:
The Bottom Line
CRM, INTU, LULU, MNST & AMD represent the top oversold stocks for March 2022. They’ve been sold a lot lately…perhaps too much. Strong, fundamentally-sound stocks seeing near-term sell signals are worthy of extra attention because of their long-term potential.
To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com
Disclosure: the author holds long positions in CRM, INTU & LULU in personal accounts and INTU & LULU in managed accounts.
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https://mapsignals.com/contact/
This article was originally posted on FX Empire
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