The Bespoke 50 Growth Stocks — 4/28/22
The “Bespoke 50” is a basket of noteworthy growth stocks in the Russell 3,000. To make the list, a stock must have strong earnings growth prospects along with an attractive price chart based on Bespoke’s analysis. The Bespoke 50 is updated weekly on Thursday unless otherwise noted. There was one change to the list this week.
The Bespoke 50 is available with a Bespoke Premium subscription or a Bespoke Institutional subscription. You can learn more about our subscription offerings at our Membership Options page, or simply start a two-week trial at our sign-up page.
The Bespoke 50 performance chart shown does not represent actual investment results. The Bespoke 50 is updated weekly on Thursday. Performance is based on equally weighting each of the 50 stocks (2% each) and is calculated using each stock’s opening price as of Friday morning each week. Entry prices and exit prices used for stocks that are added or removed from the Bespoke 50 are based on Friday’s opening price. Any potential commissions, brokerage fees, or dividends are not included in the Bespoke 50 performance calculation, but the performance shown is net of a hypothetical annual advisory fee of 0.85%. Performance tracking for the Bespoke 50 and the Russell 3,000 total return index begins on March 5th, 2012 when the Bespoke 50 was first published. Past performance is not a guarantee of future results. The Bespoke 50 is meant to be an idea generator for investors and not a recommendation to buy or sell any specific securities. It is not personalized advice because it in no way takes into account an investor’s individual needs. As always, investors should conduct their own research when buying or selling individual securities. Click here to read our full disclosure on hypothetical performance tracking. Bespoke representatives or wealth management clients may have positions in securities discussed or mentioned in its published content.
Chart of the Day: Historically Bearish Investor Sentiment
Meta (FB) Intraday Performance Following Strong Earnings
Yesterday, Meta Platforms (FB) reported earnings. In the report, the company noted a sequential rise in both daily and monthly active users in every region apart from Europe, which can be attributed to the effects of the war in Ukraine. This gave investors a sigh of relief, sending shares up over 14% in premarket trading.
FB has gapped higher by 5%+ in reaction to earnings fourteen times since its IPO. Historically, when this occurs, the stock’s performance from the open and close has been modestly positive, booking gains 57% of the time. The average performance was a gain of 64 basis points (median: 80 bps). The worst intraday performance came in 2014 when the stock traded down by 2.0% percentage points intraday after gapping up 16.05%. On the other hand, the best intraday performance in these time periods occurred in 2018, when the stock gained 4.5% after gapping up 6.0% at the open.
Today marks the fourth-best opening gap since FB went public. This is particularly interesting, as the y/y revenue growth rate in this quarter was the slowest seen since the company went public in 2012. Notably, the opening gap does not seem to be a determining factor for the opening to close performance. As you can see from the chart below, only 3.9% of the variation in the open to close performance can be explained by the size of the opening gap (for 5%+ opening gap gains on earnings). Click here to view Bespoke’s premium membership options.
Bespoke’s Morning Lineup – 4/28/22 – GD-Negative
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
Bespoke’s Quote of the Day: “Your time is limited, so don’t waste it living someone else’s life.” – Steve Jobs
Below is a snippet of content from today’s Morning Lineup for Bespoke Premium members. Start a two-week trial to Bespoke Premium now to access the full report.
Wouldn’t you just love to be on the Fed right now? As the FOMC is in the early stages of what is expected to be its most aggressive rate hiking cycle since the early 1980s, the first read on Q1 GDP not only came in weaker than expected but it actually declined more than 1.4%. Whether or not they put themselves in this position in the first place or not, we don’t envy the place they are in now. Other economic data this morning was mixed. Personal Consumption came in weaker than expected (2.7% vs 3.5%) while the GDP Price Index rose more than expected (8.0% vs. 7.2%). Jobless claims were right in line on an initial basis but came in ever so slightly higher than expected on a continuing basis.
In today’s Morning Lineup, we recap overnight events in Asia and Europe (pg 4), take a look at the collapse in the yen (pg 4), sentiment in Europe (pg 5), and then a look at 2%+ gaps higher in the Nasdaq 100.
Many of you liked it the last time we did it, so this morning we are bringing back our little game to test your chart reading abilities and see how good of a technical analyst you are. Take a look at the chart below. It’s a one-year stock chart of a US company in the period spanning August 2020 through August 2021. Looking only at the chart pattern do you think the stock was higher or lower six months later? Make a decision and click on one of the buttons below to find out if you picked the right trade (the answer will appear in a new window). Good luck!
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Daily Sector Snapshot — 4/27/22
B.I.G. Tips – 100-Day Periods Most Correlated to Today
Chart of the Day – 60/40 Turns to 53/37
Bespoke’s Morning Lineup – 4/27/22 – Happy Birthday Universe!
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium. CLICK HERE to learn more and start your trial.
Bespoke’s Quote of the Day: “I much prefer the sharpest criticism of a single intelligent man to the thoughtless approval of the masses.” – Johannes Kepler
Below is a snippet of content from today’s Morning Lineup for Bespoke Premium members. Start a two-week trial to Bespoke Premium now to access the full report.
6,999 years ago today, the Universe was born. At least that’s according to German astronomer Johannes Kepler who came to that conclusion in the 1600s. Kepler’s work has been ‘revised’ in the centuries since, and it is now widely agreed that he was off by at least 10 billion years. What’s a few billion amongst friends, though? It just goes to show that facts that people take for granted in one environment can look foolish in another.
Futures are looking to recoup some of yesterday’s losses, but even at their best levels earlier this morning, we weren’t even on pace to recoup half of Tuesday’s losses. Let’s just call it the ‘two steps backward, one step forward market’. There’s been a ton of earnings news since the close yesterday, and the pace will only intensify over the next two days.
The only two economic reports on the economic calendar this morning are Wholesale Inventories which came in higher than expected (2.3% vs 1.5%), and at 10 AM we’ll get the latest read on Pending Home Sales which are expected to show a decline of 1.0%
In today’s Morning Lineup, we recap overnight events in Asia and Europe (pg 4), take a look at the rising levels of volatility in the Nasdaq 100 (pg 4), and then highlight the dollar’s rip higher in recent weeks (pg 5).
While equities are looking to gain today, the Nasdaq has declined 8.3% over just the last five trading days. Relative to history, this move hasn’t been extraordinary by any means, but it still hurts. Looking more recently at just the period since COVID first surfaced in early 2020, there have only been three other periods where the Nasdaq saw steeper declines in a five-day period.
The first two were during the COVID crash while the third occurred in September 2020 right when the Nasdaq experienced a short-term peak. What’s interesting to note about the current period is that ever since the start of 2022, we’ve started to see the intensity of five-day sell-offs start to increase.
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