The Bespoke 50 Growth Stocks – 4/7/22

Apr 7, 2022

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 were eight changes 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.

Sector Price and Breadth Update

Apr 4, 2022

In an earlier tweet, we highlighted some charts from our Sector Snapshot highlighting the new highs in multiple sectors’ cumulative advance-decline (A/D) lines as of Friday. The cumulative A/D line is used to signal confirmation of a trend by indicating broad participation of an index’s underlying stocks in a rally or decline. In the charts below, we show those same A/D lines updated through today with price also included on the opposite axis.

Utilities, Consumer Staples, and Energy are seeing their AD lines pull back from new highs, but price has been somewhat disconnected.  On the one hand, for Consumer Staples, unlike the A/D line, price never broke out above the late 2021/early 2022 levels. Energy, meanwhile, has seen breadth hold up fairly well while its price has been experiencing a more consistent decline in recent days. On the other hand, Utilities have seen price and breadth move more healthily in sync with one another. Communication Services has been somewhat the inverse of these three sectors.  While breadth is positive today, the cumulative A/D line is not setting any new short-term highs even as the price is. That is mostly a result of the huge gain in Twitter (TWTR) having an outsized impact on the sector.

Most other sectors have recently seen consistent moves between price and breadth without any sort of major new highs or lows.  Technology is close to moving above last week’s high on both a price and breadth basis while both readings for Financials and Industrials have been falling sharply.  For Materials, another cyclical sector, breadth and price have been moving in the same direction, but the decline in the cumulative A/D line stands out slightly more. Click here to view Bespoke’s premium membership options.

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