Technical analysis may still be a controversial idea to some of the old guard but it’s the only methodology I’m aware of that will give you stocks flashing buy signals. Sure, it’s more “factual” for lack of a better word to rely on corporate earnings reports. However, these disclosures only arrive every three months. In the meantime, there’s a lot of trading action going on.
Another factor that stymies the no-technical-analysis-before-marriage crowd centers on the well-known adage: by the time you read about it in The Wall Street Journal, it’s already too late. Having been a longtime student (metaphorically speaking) and follower of John J. Murphy, I know exactly what he would say. Price discounts everything. In a way, that’s an unassailable logic.
No one is saying that fundamental analysis isn’t valuable. But again, by the time you’re reading about it in the WSJ, the market has already responded to the news. However, by assessing certain dynamics ahead of time, one may perceive actionable patterns. And that’s what these stocks flashing buy signals are all about.
Microsoft (MSFT)
According to TipRanks’ technical analysis screener, Microsoft (NASDAQ:MSFT) represents the top security regarding stocks flashing buy signals. Overall, MSFT’s technical analysis score clocks in as a consensus “strong buy,” with the moving average signal pointing to a “strong buy” while its oscillators – which includes metrics such as the relative strength indicator (RSI) – points to a “buy.”
Regarding the analyst view, MSFT represents a consensus strong buy. This assessment breaks down into 32 buys, one hold, and one sell. Overall, the average price target comes in at $469.45, implying a bit over 14% upside potential. Further, the high-side target hits $600, projecting growth of nearly 46%.
Further, looking at MSFT’s point-and-figure (P&F) chart, I see no indication of a chart pattern that implies brewing pessimism. So long as Microsoft continues marching higher, it should perform well – until it doesn’t.
Fundamentally, Microsoft ranks among the newly designated MnM stocks, a new artificial intelligence group of Microsoft, Nvidia (NASDAQ:NVDA), and Meta Platforms (NASDAQ:META). As long as generative artificial intelligence remains popular, MSFT should be a solid long-term opportunity.
Amazon (AMZN)
Unsurprisingly, Amazon (NASDAQ:AMZN) landed in TipRanks’ screener for the best technical analysis scores. Like Microsoft, AMZN enjoys an overall technical consensus score of “strong buy.” Specifically, its moving average score rates highly – being well above its 50 and 200-day moving averages – as does its oscillating indicators.
On Wall Street, AMZN enjoys a unanimous strong buy rating. And we’re obviously not just talking about three or four experts but rather 39. In addition, the average price target lands at $204.29, implying upside potential of nearly 19%. That’s excellent considering that AMZN already shot up almost 15% since the beginning of this year. Further, the high-side target hits $230, projecting about 34% growth.
Interestingly, AMZN printed a pattern in its P&F chart called an ascending triple top breakout. According to Stockchart.com’s educational segment, this pattern demonstrates an underlying strength indicative of a fresh uptrend.
Fundamentally, e-commerce as a percentage of total retail transactions continues to march higher since the second quarter of 2022. Therefore, I believe AMZN represents a credible example of stocks flashing buy signals.
JPMorgan Chase (JPM)
While the broader financial industry suffered some question marks (to say the least) last year, you can’t keep the giants down for too long. Notably, TipRanks identified JPMorgan Chase (NYSE:JPM) as one of the stocks flashing buy signals. Specifically, its moving average score reached a designation of “strong buy.” In terms of oscillators, it landed at “buy.”
Analysts, not shockingly, endorse JPM stock with a strong buy consensus view. This assessment breaks down as 17 buys, five holds and zero sells. Overall, the average price target hits $193.95, implying an upside of 11%. Further, the high-side target reaches up to $238, which comes courtesy of Oppenheimer. This forecast projects growth of over 36%.
Looking at JPM’s P&F chart, I see no indication of a compelling upside indicator. However, I don’t see any negative signs either. Looking at a straight chart view, JPM trades robustly above its 50 DMA, which is encouraging. On a fundamental note, the implied economic stability stemming from the strong jobs print should be net bullish for JPM.
Coca-Cola (KO)
A popular soft-drink giant and an icon of American capitalism, you really can’t go wrong with Coca-Cola (NYSE:KO). With a predictable business and one that rewards its stakeholders through dividends, it’s no shock that technical indicators rate KO as one of the stocks flashing buy signals. According to TipRanks, KO’s moving average score rates as a “strong buy” while its oscillator score lands as a “buy.”
Analysts appreciate the KO, pegging it a consensus moderate buy. This assessment breaks down as six buys, three holds and no sells. Overall, the average price target lands at $64.88, implying growth of over 7%. While that might not sound like much, keep in mind that the company pays a dividend of 3.09%. In addition, the potential projected risk is limited, with a downside target of $60.
Looking at KO’s P&F chart, StockCharts notes that it’s showing a low pole reversal. Per the investment resource, this pattern “implies that the supply that was making the prices fall has been absorbed and demand is taking over. The pattern is an alert that higher prices could be seen in the future.”
Target (TGT)
A popular big-box retailing giant, Target (NYSE:TGT) incurred many troubles last year due to economic and social challenges. After some dark days, I’ve changed my tune on TGT. It’s good that I did because shares have been moving higher since then. Unsurprisingly, the TipRanks technical analysis screener identifies TGT as one of the stocks flashing buy signals. As with the other ideas, it features a “strong buy” moving average score and a “buy” reading regarding oscillators.
Analysts are also believers in the turnaround story, with the consensus view coming in as a moderate buy. However, it must be said that the average price target is conservative at $152.25. That implies only about 5% upside potential. Still, the high-side target clocks in at $180, projecting growth of nearly 24%.
Still, the experts may be too conservative. According to TGT’s P&F chart, it’s printing a triple top breakout. According to StockCharts, this pattern implies that “buyers are now creating more demand than there is supply and therefore the prices are breaking out.”
That’s a good problem to have if you’re a shareholder.
Dick’s Sporting Goods (DKS)
One of the top cynical beneficiaries of the Covid-19 crisis, Dick’s Sporting Goods (NYSE:DKS) soared following the doldrums of 2020. That may be because of the people’s concerns of their suddenly sedentary lifestyles. At least with Dick’s, the retailer could offer a fun mechanism for staying fit. Since September of 2021, though, DKS has been choppy.
But here’s the good news. Per TipRanks, DKS may be one of the stocks flashing buy signals. Its moving average score clocks in as a “strong buy.” Curiously, though, its oscillator score landed at only “neutral.” And while analysts are bullish on DKS with a moderate buy view, the average price target sits at $141.29. That implies more than 9% downside risk.
So, what gives? Well, the high-side target is $179, which would take DKS to 15% up. Also, its P&F chart shows an ascending triple top breakout. As stated earlier with Amazon, this pattern demonstrates an underlying strength that denotes a possible uptrend.
Fundamentally, the strong jobs report should boost discretionary spending. As a result, DKS could be an interesting dark horse.
Kimco Realty (KIM)
A real estate investment trust (REIT), Kimco Realty (NYSE:KIM) invests primarily in shopping centers. Now, that has caused some concerns among investors. Unfortunately, we’ve all heard about the end of the shopping mall as e-commerce becomes an ingrained component of our culture. Such a headwind puts KIM on the back foot. As a result, KIM is down more than 5% on a year-to-date basis.
Adding to the concerns, it slipped more than 10% over the past 52 weeks. However, TipRanks identifies KIM as a “strong buy” opportunity overall based on technical analysis. Individually, it rates very highly in terms of moving averages while its oscillator score comes in as “neutral.” At the same time, analysts rate KIM a moderate buy with an average price target of $23.33. That implies almost 16% upside potential.
Two factors make KIM even more compelling as one of the stocks flashing buy signals. First, its P&F chart reveals a possible bear trap in play. Per StockCharts, such a signal could mean a “quick reversal” with higher prices ahead. Second, Kimco offers a forward dividend yield of 4.76%, which is very enticing.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
