Today is Thursday, and you know what that means.
I’ll be reviewing the stocks that recently passed the “Bullish” threshold on my Green Zone Power Ratings system.
Have you ever seen a list of highly-rated stocks and asked yourself, “How did that one make the cut?”
Well, we’re going to explore that theme today.
But first, let’s get things started with the newly “Bullish” stocks in the S&P 500 Index.
S&P 500 New Bulls
I ran my usual screen for S&P 500 companies that popped up as “Bullish” this week, and this is what I came up with:
This week’s list looks remarkably similar to last week’s.
We have health insurers represented by Humana (HUM), financial services by T. Rowe Price (TROW) and technology by Fortinet (FTNT) and NetApp (NTAP). Each of these follows the trends of the past several weeks.
One interesting new addition is W.W. Grainger (GWW).
Grainger isn’t the sort of company that would normally get your blood pumping. It sells things like safety gear, tools, lighting, motors and cleaning equipment. Think of it like a giant hardware store, but for factories, hospitals, schools and office buildings instead of homeowners.
Still, it’s exactly the sort of hidden gem that my Green Zone Power Ratings excel at finding.
Grainger does exceptionally well in its profitable niche and rates a “Strong Bullish” 98 on its quality factor. That’s the kind of rating I would typically expect to see in a software monopoly.
Grainger also rates a “Strong Bullish” 84 on its growth factor, and the shares have more than doubled since the beginning of 2023.
This isn’t anyone’s idea of a sexy company. It sells maintenance and repair supplies, for crying out loud. But it does it well, and its shareholders have profited handsomely.
New Bulls Outside of the S&P 500
Let’s cast the net a little wider and look at the newly “Bullish” stocks outside of the S&P 500.
I ran a screen for the top 20 stocks with the largest score increases over the past month, and this is what popped up:
Green Zone Fortunes readers will immediately recognize one newly “Bullish” addition: Argentine oil and gas producer YPF SA (YPF). It’s up about 970% since I recommended it back in 2022, and its “Bullish” rating suggests it still has a lot more upside.
But instead of telling you what to buy today, I want to focus on what not to buy.
Jaws Mustang Acquisition Corp (JWSMF) is a reminder that quantitative systems like my Green Zone Power Ratings can be incredible tools for identifying potential investments… but you still need to roll up your sleeves and research what the company actually does.
Jaws Mustang doesn’t actually do anything. It’s a SPAC, or a “blank check company,” looking for something to do.
So, how did a shell company with no actual operations end up with a “Bullish” rating?
It comes down to how the score is calculated. The Green Zone Power Rating is a mixture of three core technical factors – momentum, size and volatility – and three core fundamental factors – value, growth and quality.
As you can imagine, Jaws Mustang has virtually non-existent fundamental factors. It doesn’t do anything. But by lucky accident, it scores well on its technicals.
Since the stock has a tiny market cap, it scores a “Strong Bullish” 98 on its size factor. And because there’s no real business, the stock tends not to move much. It scores a 98 on its volatility factor, too.
And here’s the lucky accident…
The stock price cratered back in November 2024 when its planned merger with a Starwood real estate entity fell through. The market overshot to the downside, leading the shares to rally hard throughout 2025 as they recovered to fair value.
This fluke “tricked” the system into giving Jaws a “Strong Bullish” momentum rating of 91, which was enough to raise its overall score into “Bullish” territory.
So… should you buy Jaws Mustang Acquisition?
Of course not!
That would be absurd. But I give this example to make an important point. Quantitative systems like my Green Zone Power Ratings are insanely powerful tools for finding hidden gems. They also allow you to analyze companies in an objective, analytical way that’s free of emotion.
But they also represent the start of the research process. To consistently win in the stock market, you still need to dig into the details. You need to be confident that there’s real substance there.
That’s how I operate in Green Zone Fortunes. I use my Green Zone Power Ratings system to identify strong companies well positioned to benefit from durable megatrends. And I also look for specific real-world catalysts – what I call the “X factor” – that could turbocharge returns.
We currently have five open positions with gains to date of more than 400%. And I can assure you that no blank-check companies made the list!
To good profits,
Adam O’Dell
Editor, What My System Says Today
