Stock Selection Top 5% S&P 500 – March 2021
➡ These are the 11 stocks making the top 5% of the S&P 500 (USD), according to the RQM strategy. This month all of them on HOLD except the last one. Only one clear BUYER.
💡 Reading between the lines: Maybe it’s a good moment to really “HOLD ON”. Just wait and see what happens in March. A good chance also to review the past performance and try to rebalance your portfolio.
QCOM: QUALCOMM, founded in 1985 in San Diego, develops and commercializes products used in mobile devices and other wireless products. It develops and supplies integrated circuits and system software based on 5G as well. The company also provides development, and other services and related products to the United States government agencies and their contractors.
| Company | Ticker | Signal | Final | Quality | Momentum |
|---|---|---|---|---|---|
| 1️⃣ Apple | AAPL | HOLD | 100% | 90% | 100% |
| Hologic | HOLX | HOLD | 100% | 98% | 88% |
| Target Corporation | TGT | HOLD | 99% | 90% | 96% |
| Costco Wholesale | COST | HOLD | 98% | 95% | 86% |
| Lowe's Companies | LOW | HOLD | 98% | 93% | 87% |
| Teradyne | TER | HOLD | 97% | 82% | 95% |
| Garmin | GRMN | HOLD | 97% | 86% | 90% |
| Fastenal | FAST | HOLD | 96% | 93% | 81% |
| KLA Corporation | KLAC | HOLD | 96% | 79% | 96% |
| Tractor Supply | TSCO | HOLD | 96% | 82% | 93% |
| QUALCOMM | QCOM | BUY ☝ | 95% | 77% | 97% |
| Company | Industry | Cap (MM) | ROA | FCF2EV | FCF2D | PER |
|---|---|---|---|---|---|---|
| Apple | Consumer Electronics | 2'033'648 | 13.36% | 30.89 | 1.67 | 32.89 |
| Hologic | Medical Instruments & Supplies | 18'455 | 17.07% | 17.28 | 2.36 | 13.69 |
| Target Corporation | Discount Stores | 91'582 | 8.21% | 16.98 | 2.51 | 24.33 |
| Costco Wholesale | Discount Stores | 146'194 | 7.16% | 13.88 | 0.98 | 33.98 |
| Lowe's Companies | Home Improvement Retail | 116'663 | 13.99% | 17.77 | 3.40 | 20.61 |
| Teradyne | Semiconductor | 21'363 | 17.51% | 46.31 | 1.10 | 30.05 |
| Garmin | Scientific & Technical Instruments | 17'684 | 9.99% | 36.06 | 0.15 | 23.99 |
| Fastenal | Industrials | 26'531 | 18.36% | 35.05 | 0.84 | 31.12 |
| KLA Corporation | Semiconductor | 47'851 | 12.99% | 33.74 | 2.49 | 35.60 |
| Tractor Supply | Retail | 18'397 | 12.03% | 21.50 | 3.64 | 24.92 |
| QUALCOMM | Semiconductors | 154'449 | 13.68% | 31.22 | 3.12 | 23.28 |
Remark:
⚠️ Note that the “HOLD” status of most of those companies is due to the bad behavior of their prices during the last 2 weeks, which has flattened down a bit the SMA30. According to the RQM buying signal, caution should rule. Because they are the best quality companies, most likely this depressive episode will go by and everything will be recovered with a rebound. But should be then and not before the moment to go shopping. Precautionary principle holds. ⚠️
Now your turn:
- Has any of those companies a business model you fully understand?
- Do they have a competitive advantage with respect to their competitors?
- Do they operate in industries where you already have enough exposure?
- Are they diversified companies (country and currency wise)?
- Did they seize any advantage during the latest downturn?
Remember: You have the last word and the responsibility of your investments is up to you. The RQM System “only” suggests a set of stocks with a high probability of being long-term winners.
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