5 Fast Growing Businesses in Strong Uptrends

Short-Term Health is great at helping you avoid losses on stocks or other assets you’re holding as short- to medium-term trades.

It’s also great at signaling new short-term entry points.

So, let’s flip the Short-Term Health signal around and look for stocks flashing fresh Green signals.

Here are the top five most recent Short-Term Health buy signals for stocks in the S&P 500, the Dow, and the tech-focused Nasdaq 100. All five turned Green on Friday:

Those stocks are consumer goods titan Procter & Gamble (PG), building technologies and HVAC conglomerate Johnson Controls (JCI), wholesale drug seller Cencora (COR), construction and industrial supplier Fastenal (FAST), and multinational HVAC and security equipment company Carrier Global (CARR).

What sticks out about these stocks is the unsexy, un-techy nature of them. They’re positioned to better withstand the accelerating march of AI algorithms that quickly disrupted the software business over the last several weeks.

Maybe investors are flocking into Main Street-style businesses because they don’t seem to be under immediate threat of AI disruption, like many software companies are.

No matter the reason, the momentum is there. These stocks and others like them should be at the top of your watchlist as Wall Street continues to err toward “risk off” on tech.

But what if you want fast-growing businesses in strong uptrends?
That’s a rhetorical question – of course you do.

Anyone who’s watched the last decade of market action wants these stocks, because they’re where the biggest money has been made.

Think about the Magnificent 7. All of them have benefitted from fast fundamental growth rates and strong technical price action. That’s why they’re multi-trillion dollar companies today – and were a fraction of their current size just 10 years ago.

Finding great stocks means laser focusing on these two factors. And nothing focuses on these two factors better than Jason Bodner’s Quantum Score.

Before joining TradeSmith, Jason served as Head of Equity Derivatives at Cantor Fitzgerald. There he executed multimillion- and even billion-dollar trades for Wall Street’s wealthiest investors… while expertly concealing their buying activity to prevent other traders from driving up prices ahead of them.

Now he uses those same skills to detect when institutional investors are taking unusually large positions in stocks. And he alerts his subscribers to these money flows through his Quantum Score system.

The Quantum Score first ranks thousands of stocks by fundamentals like revenues, profits, and margins. Then it evaluates the top performers’ technicals – where a high technical score indicates heavy institutional buying.

This combination produces a simple 0-100 rating – higher numbers indicate better buying opportunities.

Using the Quantum Score, let’s revise our earlier search for Short-Term Health Green stocks with a simple filter – we want stocks with a Quantum Score of 90 or above – placing them in the top 10% of stocks in the market on the most important metrics.

We’ll also expand our search to the S&P 400 mid-cap and S&P 600 small-cap indexes, to look for smaller companies with big potential:

Those stocks are industrial equipment distributor MSC Industrial Direct (MSM), animal nutrition and medicine company Phibro Animal Health (PAHC), major pharmaceutical player McKesson (MCK), Euro and Asia-Pacific soft drink bottler Coca-Cola Europacific Partners (CCEP), and water management and bottling company Zurn Elkay Water (ZWS).

What do you notice here? Once again, not an AI or tech firm in sight.

It’s all real, Main Street-style businesses – and ones hitting on high fundamental growth rates, strong price performance, and the telltale signs of Big Money.

Combining TradeSmith signals like this has such high potential to lead you to the best trades.

And with this focused study, we can see that not only is the price action leaning toward stocks outside of tech – the Big Money is leading it.

Keep these stocks on your watchlist, especially as the latest AI disruptions continue blowing holes through the stocks Wall Street has flocked to in recent years.

To building wealth beyond measure,

Michael Salvatore

Source: TradeSmith