Is the AI trade reaching the end of the line?
I don’t think so.
But even if it is, there’s always a bull market somewhere.
And this week, my system is spotting opportunities in the far-flung corners of the world – particularly in East Asia and Europe.
Today is Thursday, so we’ll be covering stocks that have been newly rated as “Bullish” on my Green Zone Power Ratings system.
That means their ratings just crossed the 60-out-of-100 threshold.
Historically, stocks with a “Bullish” rating have outperformed the market by double on average.
And this week’s list is especially intriguing.
Of course, not every New Bull is headquartered overseas.
Even with U.S. stocks sitting near all-time highs, my system is still finding plenty of “Bullish” opportunities stateside.
So, let’s dig in, starting with the newest additions 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:
Zimmer Biomet Holdings (ZBH) and Williams-Sonoma (WSM) have shown up on the New Bulls list more than once in recent months.
It’s noteworthy that even in an extremely difficult environment for retailers, a high-end home furnishings company like Williams-Sonoma can still thrive. It rates a “Bullish” 66 on its growth factor and a “Strong Bullish” 98 on its quality factor.
Given the demographic challenges we face as an aging society, Zimmer Biomet is an interesting play.
This medical technology company specializes in orthopedic implants and surgical equipment.
It manufactures artificial knee, hip, and shoulder joints, as well as robotic-assisted surgical systems that improve precision in joint replacement procedures.
And there’s a bigger trend working in its favor.
As workers age out of the workforce faster than they can be replaced, getting more mileage out of the people already in the workforce becomes increasingly important.
That makes mobility more than just a health issue. It’s an economic one, too.
By restoring mobility, reducing chronic pain and helping people stay active later in life, Zimmer Biomet is addressing a pressing need among an aging population.
The longer people can remain healthy, mobile, and independent, the longer they can continue working and contributing to the economy.
And with the population of older adults continuing to grow, Zimmer Biomet should have a powerful demographic tailwind behind it for decades to come.
Right now, Zimmer rates as “Bullish” on its value, growth and quality factors.
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:
International stocks stood out this week. Over half of these New Bulls are headquartered overseas – with three in Japan and one each in Australia, Belgium, Hong Kong, Singapore, Spain, Sweden, Switzerland and Turkey.
Let’s focus on some of the more interesting names among those foreign stocks today.
Taisei Corporation (TISCY) is a major Japanese construction and engineering company specializing in large-scale infrastructure, commercial buildings, residential developments and civil engineering.
Its projects include skyscrapers, tunnels, bridges, transportation systems and environmentally sustainable construction. It’s a stable company, rating particularly well on volatility and value.
Square Enix Holdings (SQNNY) is a Japanese video-game developer and publisher best known for its Final Fantasy, Dragon Quest, and Kingdom Hearts franchises.
The company develops and distributes console, PC, and mobile games and operates digital entertainment and intellectual property licensing businesses.
As was the case with Taisei, Square Enix also rates well on its volatility and value factors and on size.
KDDI Corporation (KDDIY) is a major Japanese telecommunications company that provides mobile phones, broadband internet, enterprise connectivity, and digital services.
Continuing the theme, the stock rates well on its volatility and value factors and also on momentum. The shares are up strongly this year.
Sonova Holding (SONVY) is a Swiss hearing health care company manufacturing hearing aids, cochlear implants and audiological equipment.
As I mentioned with Zimmer Biomet, Sonova is addressing one of the most important challenges of our era by improving the quality of life of an aging society (as well as its “useful life” as productive workers).
Ramsay Health Care (RMYHY) is an Australian health care company operating private hospitals, surgical centers, and mental health facilities.
It provides elective surgery, specialized medical treatments, rehabilitation, and other health care services across Australia and international markets. RMYHY shares have been blasting higher all year and rate a 97 on their momentum factor.
D’Ieteren Group (SIETY) is a Belgian investment company with interests in automotive services, vehicle distribution and industrial businesses.
Its holdings include Belron, the parent company of Safelite AutoGlass, and D’Ieteren Automotive, a major Belgian vehicle distributor. The company also holds an interest in luxury notebook manufacturer Moleskine.
China Merchants Port Holdings (CMHHY) is a Hong Kong-based port operator and infrastructure investor.
It owns and operates container terminals, bulk cargo facilities and related logistics infrastructure across China and international markets.
Globalization may be under attack, but CMHHY’s business just keeps plugging along. It rates as “Bullish” on its volatility and value scores.
Jardine Matheson (JCYGY) is a Singapore-based investment holding company with significant interests in Southeast Asian automotive businesses and other industries.
Its investments include Astra International, which operates in automotive distribution, financial services, heavy equipment, mining and infrastructure.
It’s one of the most attractively priced stocks on the market today, with a value factor rating of a perfect 100.
Finally, Akbank T.A.Ş. (AKBTY) is one of Turkey’s largest private-sector banks, providing retail, commercial, corporate, and investment banking services.
Turkey is an emerging market right at Europe’s doorstep, and Akbank provides direct access to its growing consumer economy. The company rates particularly strongly on its value and volatility factors.
To good profits,
Adam O’Dell
Editor, What My System Says Today
