It’s that time again…
Today is Thursday, and you know what that means. I’ll be highlighting stocks that have recently crossed the threshold into “Bullish” territory with a Green Zone Power Rating of 60 or higher out of 100.
As usual, it’s a diverse bunch this week, with everything from overstock retailers to fish farms. But as has been the case for the past several weeks, it’s distinctly low on technology names.
Does that mean the AI boom is over?
Absolutely not.
But it does tell us that my system is doing what it does best. It’s flagging “Bullish” opportunities that you’re simply not going to hear about elsewhere.
So, let’s jump in, starting with the New Bulls from 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:
Some of these names might look familiar.
Packaging Corporation of America (PKG) and AMETEK (AME) have both made the New Bulls list at various points this year. And Western Digital (WDC) was a big winner for my Infinite Momentum Tech Titans portfolio. My system got us into WDC in February and out in August for a quick 77% profit.
But I’ll admit that one stock took me by surprise: Southwest Airlines (LUV).
The woes facing the airline industry are well known. Fuel costs have skyrocketed following the war in Iran, and inflation has ground away at consumers’ budgets like sandpaper. Yet none of this has blunted Southwest’s uptrend, which has been in place since late 2023.
LUV’s stock is a bargain, too. It earns a “Strong Bullish” value factor rating of 83, and its growth factor rating isn’t far behind at 77.
If you’re looking for a strong contrarian value play, the shares are worth a closer look.
New Bulls Outside the S&P 500
Now, let’s 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:
There are some quirky names on the list this week… and none more than Norwegian fish farmer Mowi ASA (MHGVY). Mowi is the world’s largest salmon farmer.
Beef prices are prohibitively high due in part to a cattle parasite that decimated the American herd. It got so bad that President Donald Trump agreed to waive his prized tariffs on 80,000 metric tons of imported Argentine beef to keep a lid on prices.
Well, high beef prices don’t exist in a vacuum. When beef gets painfully expensive, demand shifts to alternatives like chicken or fish. And that’s good news for Mowi.
The shares have been trending higher since late 2022 and yield an attractive 3.4% in dividends. They also rate as “Bullish” on my volatility and value factors.
If you’re looking to diversify out of tech, Mowi is about as far from Silicon Valley – and from Wall Street – as you’re likely to get!
Another stock that caught my eye is discount retailer Ollie’s Bargain Outlet (OLLI).
As a true closeout retailer, Ollie’s thrives in a difficult economy, when other retailers are closing stores or clearing out inventory.
Here’s how it works…
The company buys whatever manufacturers and other retailers need to get rid of, such as discontinued products, overstock, items with outdated packaging, and inventory from bankrupt or closing stores. Then it sells it at deep discounts.
Its mix is much broader and less fashion-driven than an off-price chain like T.J. Maxx. Think things like housewares, food and snacks, books, toys, furniture, flooring and seasonal items. Selection is random. If you find something you like, you have to buy it right then because it may never come back.
Inflation has been brutal these past several years.
That’s why companies like Ollie’s help Americans buy things they like at great prices. Its slogan —“good stuff cheap”— says it all!
One last quirky company I’d highlight is specialty insurer Hagerty (HGTY).
Insurance is a wonderful business… and arguably the secret to Warren Buffett’s success.
Early on, Buffett turned Berkshire Hathaway (BRK-B) from a struggling textile company into a world-class insurer… and then used the insurance float to build a profitable portfolio of stocks and wholly owned businesses.
Well, Buffett never invested in Hagerty. But it’s just the kind of specialty insurer that would have caught the Oracle of Omaha’s eye.
The company’s niche is insurance for classic and collector cars. It also runs a members’ club, a car-valuation tool, and a collector-car auction and marketplace business.
My system rates Hagerty a “Strong Bullish” 86 on its momentum and a “Bullish” 76 on volatility.
So, again, if you’re looking to diversify out of a tech-heavy portfolio, a profitable insurer of classic cars might be just what you are looking for.
To good profits,
Adam O’Dell
Editor, What My System Says Today
