5 Best Oversold Stocks to Buy from October 2023
The best time to buy stocks is when the crowd is uninterested.
Those moments are the golden hour for investing.
Here’s a replay of the 5 best oversold stocks to buy from October 2023. And while you may feel many stocks are out of reach at these levels, just focus on companies with secular tailwinds.
Now for some interesting history: Did you know that crystal balls date back to the time of the Druids, estimated at roughly 1500 years ago?
Spherical shiny glass-like materials offered imaginative crystal-gazing.
Fortune-tellers were said to use the mounted ball to uncover people’s past… and ultimately their future.
Crystal balls, while outdated today, reveal the human desire to predict the future.
As futile as predictions may seem, there’s evidence that during extreme moments in the stock market, data-driven analysis can offer some predictive value.
Of course, as with anything, nothing is 100% accurate. However, if your process is grounded in high-probability bets – odds are you’ll win out in the long-run.
At MAPsignals, we don’t have crystal balls… nope, we have one of the best market indicators in the business: the Big Money Index (BMI).
The last time it went oversold was October 9th.
Today, I’m going to walk you through the 5 best oversold stocks we suggested our subscribers own from back then.
Our process was simple: Look back at prior top-ranked stocks under heavy accumulation, with the future expectation that those same equities would attract a similar level of support once the rally kicked in.
The results have been nothing short of stunning… but remember, the process is what’s important.
Even in today’s elevated environment, plenty of outlier stocks are vaulting week after week. And they’re poised to zoom a lot higher.
5 Best Oversold Stocks to Buy from October 2023
I like to say, you need to look backwards to see the future.
When we review prior oversold instances of the Big Money Index (BMI), a clear pattern emerges.
Stocks soar.
On October 19th, we wrote how stocks surge out of oversold conditions. It’s not wizardry… it’s a data-based observation.
Below showcases the forward returns of the BMI once it breaks below 26. For comparison, we’ve included the average returns of the S&P 500 in all periods. With this research in hand in October, it was easy to wager on a bullish move for equities in the months ahead:
Oversold conditions rarely last. In fact, up to this point they’ve always ended at some point. We’ve learned that these “golden hour” moments are great times to buy quality stocks on sale.
This is where a process is critical.
Armed with data, we’re able to see the historical Big Money magnets… the handful of companies that consistently attract institutional support.
When fears are high, these are the types of equities that can stage crowd stunning performances.
Here’s the list of large-cap stocks we profiled on October 9th. As of this week, the average gain stands at 59%… easily beating the impressive 18% lift for the S&P 500 (SPY ETF).
Each of these companies are well-known in our research:
- Semiconductor firm, NVIDIA Corp. (NVDA)
- Software company, Microsoft Corp. (MSFT)
- Semiconductor firm, Lam Research Corp. (LRCX)
- Footwear maker, Deckers Outdoor Corp. (DECK)
- Cosmetics retailer, Ulta Beauty Inc. (ULTA)
Disclosure: I have long positions in MSFT and LRCX.
While a victory lap is important from time to time, I find it mission critical to help you learn how we find incredible companies at MAPsignals.
Peering into the past can often signal what’s ahead for the future.
After being in business for nearly 10 years now, we’ve learned that superior stock picking is less about luck and more about the 3 simple traits that all great companies possess:
- 1. Consistent revenue growth
- 2. Consistent earnings growth
- 3. Consistent institutional support
Focusing on these few attributes will sift out the contenders from the pretenders. Our weekly Top 20 report targets these types of stocks.
It’s our unique power signal.
Let’s look at Microsoft as an example. Each blue bar is every time that MSFT was showcased on our Top 20 report from 2015.
The more Top 20 signals, the better.
When it came to isolating 5 stocks in October, we simply looked to the past for clues on the future. Our own Maria Maple shows this beautifully. Focus on the institutional footprints:
The white line is the oversold period last October. That pullback looks like a blip when you zoom out years.
Every superstar stock we’ve uncovered have charts like this…rising due to unwavering institutional buying.
And to add more clarity on our process-driven approach, below is the audio message sent to subscribers detailing not only the 5 tickers from October, but the fundamental reasons for each stock.
The exact process used then is the same we use every single week:
This lookback recap sheds light on our process while also revealing 5 outstanding companies to keep on your radar. My hunch is they’re poised to keep climbing in the years ahead.
To me, that’s better than any crystal ball.
Let’s wrap up.
Here’s the bottom line: Humans have tried to predict the future since the dawn of time. A thousand plus years ago, polished crystal balls offered a peek into the unknown.
At MAPsignals, we aren’t fortune-tellers with magical powers. Nope.
Instead, we’re data scientists on a mission to uncover tomorrow’s top stocks through the lens of heavy institutional accumulation.
Our process during oversold conditions is the same we used last week… and next. Focus on select high-quality outliers loved by institutions.
Looking into the past can predict the future.
Never invest blindly.
Instead, consult a MAP.
Finally, if you’re wanting evidence-rich equity research, get started with a MAP PRO subscription today. You’ll get access to our weekly Top 20 list, showing the best stocks under heavy accumulation.
You’ll see why Registered Investment Advisors (RIAs) and money managers enjoy our unique approach.
Here’s to good fortune in 2024.