Find Winning Stocks in a Bear Market

Find Winning Stocks in a Bear Market

Navigating 2022 has been challenging for investors.

Numerous macro headwinds have kept a lid on broader indexes, causing investor sentiment to sour. That’s the bad news.

The good news is there are companies bucking the overall bearish trend. MAPsignals helps investors find winning stocks in a bear market.

The stock market has had plenty to deal with in 2022: rising interest rates, high commodity prices, global war, a strong dollar and more. It’s been a rough tide for markets, no doubt about it. Year to date, the S&P 500 is down 17.31%.

Even with the macro-overhang, there are stocks under heavy accumulation. Yes, money gets put to work every day by big investors. Those inflows are one of the key tenants of stock performance.

Today I’ll break down our daily process. Then I’ll show you how our software helps reveal some of the best performing stocks out there. I’ll showcase one of the companies dominating our research this year.

Let’s get to it.

Find Winning Stocks in a Bear Market

From the 30,000-foot view, the stock market ebbs and flows as money rushes in and out of stocks. A great way to see that is the daily Big Money Buys and Sells Chart. This is our first step in analyzing the market’s daily activity.

Our software scans thousands of stocks a day, plotting the flow of unusual volumes. When stocks are getting bought, the blue bars spike. When selling increases, red bars increase:

Large inflows and outflows | Big Money Stock Buys & Sells

Monitoring the large buying and selling patterns helps us navigate extreme points in the market. That’s been very useful in the tough landscape of 2022.

Next, we take it a step further. Our system compiles every buy and sell signal each week and ranks each company on fundamental and technical qualities. Those factors generate an overall MAP Score. The higher the score the better.

Here’s an example of the Top 5 stocks from our Top 20 list from September 20th. The top 5 stocks each scored above 80 (green) because of strong fundamental and technical scores:

Top 5 Stocks for MAPsignals TOP 20

The top names that week were e.l.f. Beauty (ELF), Cal-Maine Foods (CALM), Ulta Beauty (ULTA), Chesapeake Energy (CHK), and Catalyst Pharmaceuticals (CPRX).

Today I’m going to zero in on CPRX. Catalyst Pharmaceuticals is a small 2-billion-dollar pharmaceuticals company. It’s been one of the most recurring bought names in our research. To show you want I mean, here are all the Big Money signals for CPRX in 2022:

Unusual buy activity alerted July 26th | Catalyst Pharmaceuticals (CPRX) | MAPsignals

Those green bars are days when CPRX saw big volumes as the price rose. But once we overlay the MAP Score, we see it was a top name 10 times since August. Blue bars indicate CPRX was on our Top 20 list:

First Top 20 appearance August 2nd | Catalyst Pharmaceuticals (CPRX) | MAPsignals

Since Catalyst first appeared on August 2nd, it’s gained 84%. Not too bad!

Looking at a list of fundamental and technical qualities for CPRX in our portal, shows you why it ranked so high. The 1-year EPS growth estimate sits at 66%. Additionally, the stock trades near a 52-week high, giving it a high technical score:

Catalyst Pharmaceuticals (CPRX) Technicals & Fundamentals | MAPsignals

Those are strong stats for a company. Sales and earnings growth are key qualities you want to find in leading stocks. Marrying those alongside great technicals can be a winning recipe.

The key takeaway is that using software helps you find winning stocks in a bear market.

Let’s wrap up:

Here’s the bottom line: Bear markets are tough for the overall indexes. But there’s always opportunity when you dive under the surface.

MAPsignals software can take your investing to the next level by showcasing under the radar stocks climbing on large volumes. Many of these companies are the best performers out there.

Data can help you find winning stocks in a bear market.

You guys have a great holiday season! Get started with a MAPsignals subscription today!

(Disclosure: Luke holds a long position in CALM in a managed account at the time of this writing.)