BofA’s stocks for the January ‘dash to trash’

Posted on by wpadmin

Lower-quality stocks have historically outperformed quality in a “dash to trash” in January, according to BofA.

Quality stocks have factors such as consistent earnings growth, strong cash flow, high profitability, stable demand, strong brands and good management.

“Since 1987, the lowest quality stocks (C&D by S&P Quality Ranks) have outperformed the highest quality stocks (A+ rated) nearly 80% of the time in January,” they said, adding that funds are entering into January with elevated levels of quality stocks.

BofA screened for low-quality stocks that are underweight by long-only funds and Buy-rated by BofA fundamental analysts.

  1. Amcor (AMCR), S&P Quality rank B-, long-only fund relative weight 0.00, long-only % funds owning 1%

  2. Camden Property Trust (CPT), B, 0.06, 2%

  3. Healthpeak Properties, Inc. (DOC), B-, 0.09, 2%

  4. Smurfit Westrock PLC (SW), NA, 0.10, 3%

  5. Cincinnati Financial Corporation (CINF), B, 0.09, 4%

  6. Everest Group, Ltd. (EG), B, 0.01, 4%

  7. BXP Inc (BXP), B-, 0.12, 3%

  8. Devon Energy Corporation (DVN), B-, 0.07, 4%

  9. Host Hotels & Resorts, Inc. (HST), B, 0.12, 3%

  10. Hasbro, Inc. (HAS), B, 0.17, 2%

  11. Gen Digital Inc. (GEN), B, 0.10, 4%

  12. Digital Realty Trust, Inc. (DLR), B, 0.10, 4%

  13. Hewlett Packard Enterprise Co. (HPE), B, 0.18, 3%

  14. Arch Capital Group Ltd. (ACGL), B, 0.10, 5%

  15. Targa Resources Corp. (TRGP), NA, 0.09, 5%

  16. Edison International (EIX), B, 0.16, 5%

  17. Newmont Corporation (NEM), B-, 0.04, 9%

  18. Ventas, Inc. (VTR), B-, 0.14, 5%

  19. Carvana Co. Class A (CVNA), NA, 0.19, 5%

  20. Generac Holdings Inc. (GNRC), B, 0.39, 4%

  21. Henry Schein, Inc. (HSIC), B, 0.51, 2%

  22. VICI Properties Inc (VICI), NA, 0.30, 4%

  23. Nucor Corporation (NUE), B, 0.26, 6%

  24. NiSource Inc (NI), B, 0.39, 4%

  25. Coterra Energy Inc. (CTRA), B, 0.45, 4%

  26. Williams Companies, Inc. (WMB), B, 0.18, 9%

  27. Jabil Inc. (JBL), B, 0.27, 8%

  28. Bunge Global SA (BG), B, 0.87, 2%

  29. Fortinet, Inc. (FTNT), B, 0.12, 11%

  30. Mosaic Company (MOS), B, 0.40, 5%

  31. IQVIA Holdings Inc (IQV), B, 0.29, 7%

  32. Dell Technologies, Inc. Class C (DELL), NA, 0.24, 11%

  33. AT&T Inc (T), B-, 0.14, 13%

  34. Expedia Group, Inc. (EXPE), B, 0.27, 10%

  35. KeyCorp (KEY), B, 0.87, 4%

  36. First Solar, Inc. (FSLR), B-, 0.47, 9%

  37. Labcorp Holdings Inc. (LH), B, 0.53, 6%

  38. Seagate Technology Holdings PLC (STX), B, 0.68, 5%

  39. Cardinal Health, Inc. (CAH), B, 0.28, 13%

  40. Corning Inc (GLW), B, 0.47, 10%

  41. PPL Corporation (PPL), B, 0.72, 7%

  42. Altria Group, Inc. (MO), B, 0.36, 13%

  43. Palantir Technologies Inc. Class A (PLTR), NA, 0.27, 32%

  44. Take-Two Interactive Software, Inc. (TTWO), C, 0.72, 8%

  45. Western Digital Corporation (WDC), C, 0.45, 11%

  46. Advanced Micro Devices, Inc. (AMD), B-, 0.28, 31%

  47. International Business Machines Corporation (IBM), B-, 0.30, 17%

  48. Diamondback Energy, Inc. (FANG), B-, 0.62, 9%

  49. DexCom, Inc. (DXCM), B-, 0.47, 12%

  50. Chevron Corporation (CVX), B-, 0.36, 27%

  51. Freeport-McMoRan, Inc. (FCX), B, 0.61, 10%

  52. Allstate Corporation (ALL), B, 0.61, 11%

  53. Cooper Companies, Inc. (COO), B, 0.98, 7%

  54. PG&E Corporation (PCG), D, 0.91, 9%

  55. SLB Limited (SLB), B, 0.50, 13%

  56. Bristol-Myers Squibb Company (BMY), B-, 0.49, 17%

  57. NXP Semiconductors NV (NXPI), B, 0.91, 11%

  58. Palo Alto Networks, Inc. (PANW), B-, 0.52, 27%

  59. Walmart Inc. (WMT), B, 0.47, 36%

  60. EQT Corporation (EQT), B-, 0.98, 11%

  61. Robinhood Markets, Inc. Class A (HOOD), NA, 0.84, 14%

  62. Workday, Inc. Class A (WDAY), C, 0.91, 16%

  63. Salesforce, Inc. (CRM), B, 0.92, 39%

Quality stock ETFs: (QUAL), (SPHQ), (IQLT), (JQUA), (VFLO)

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