The Best Stock in the Best Sector for a Summer Rip

This superstar name puts the odds on your side… [TradeSmith Daily]( The Best Stock in the Best Sector for a Summer Rip Note from Michael Salvatore, Editor, TradeSmith Daily: Quick thing before we get to today’s excellent essay from Lucas Downey... We got a few great notes in from TradeSmith Daily subscribers over the weekend, all about Jonathan Rose and his commitment to training you – regardless of your experience level – to become a better trader. Here’s a note from Peggy: Just wanted to let you know how much I have learned and how much I appreciate Jonathan's 15-minute training. It’s absolutely invaluable information in an easy-to-understand way, if you have traded options for a bit. And if you are new, you’ll learn fast. Thank you for bringing this to us! :) And another from Deborah: I just wanted to say that I have thoroughly enjoyed Jonathan Rose and his daily trading advice. The big takeaways I’ve learned have been how certain stocks move together and the importance of when they diverge, the line in the sand concept, his creative way of thinking about earnings, his emphasis on the VIX, and of course I have thoroughly enjoyed his high energy and creativity. Thank you so much to Jonathan and TradeSmith for this information. The reviews are in... and Jonathan Rose’s daily training sessions are a hit. If you haven’t been following along, [go here to automatically enroll in]( a free three-part coaching session from Jonathan this week. He’s sharing these as part of a big announcement coming this Wednesday, about how Jonathan was able to go 7-for-7 on a recent profit streak with an average gain of 125%. For now, his training series is 100% free... but it won’t be available forever. [Click here to instantly claim your access](. By Lucas Downey, Contributing Editor, TradeSmith Daily Now that April is in the books, let’s get a game plan going for May… Seasonal volatility has markets jumping and dumping on a daily basis. But this shouldn’t come as a surprise. Two weeks ago, I alerted you to a strong seasonal trend that’s playing out today. [Late April through mid-May often brings weak markets](. That’s the bad news. But there’s great news, too. You see, this seasonal dip prefaces a monster rip kicking off later this month. Our message then was to “embrace the dip, then ride the rip.” That’s still very much the message today, except we’re going to take it a step further. We’ll study seasonal weakness by sector… and more importantly, highlight the groups poised to soar in the weeks ahead. Even better, I’ll alert you to a superstar stock that I know and love, primed to help you navigate the seasonal bumpiness… RECOMMENDED LINK [Buy Elon Musk’s New $1 Play before June 30]( Love him or hate it... I think we can all agree that Elon Musk already helped change the world with PayPal, Tesla and SpaceX... But Luke Lango believes [“Project Apollo” will be much bigger than all of those](. And if you buy this sub-$1 play before June 30... You could walk away with a windfall. [Click here to see the details]( Few Were Spared The “sell in May” adage started early this year. April’s 4.2% slump for the S&P 500 was the largest monthly decline since September: It’s notable that all sectors were in the red in April except for the defensive Utilities group. High-yielding Real Estate and growth-heavy Technology stocks were battered the worst – the former fell 8.62% and the latter fell 5.46%. At first glance, this could give you a worry-induced ulcer. But it shouldn’t. Reverting back to our seasonal study from two weeks ago, history proved that the April 19 to May 19 period produced an overall negative 1.44% return for the S&P 500 (SPY ETF), going back to 2010. TradeSmith’s Seasonality tool proves it – the April blues are what markets tend to do: And when you drill down into the sector level, we can see few are spared during this run-of-the-mill seasonal rout. Using the same time frame as above, check out how every sector produces a negative average return from April 19 to May 19. Notably, Health Care, Communication Services, and Information Technology tend to show very strong market-beating performance, while Real Estate is bottom of the barrel with a negative 1.77% performance: If your portfolio recently has a red tint to it, don’t fret. This is the first step before something magical tends to happen. Here’s where the tearful news shifts abruptly to cheerful news! Because these dips tend to give way to crowd-pleasing rips… Get Ready for a Big Summer Rip As we pointed out in our seasonal study, May 19 kicks off a powerful ripper though the end of July. Here’s that screengrab showing how the S&P 500 (SPY ETF) averages a sexy 4.57% average return from May 19 to July 28 over the past 14 years: That’s a lot of green if you ask me. What really gets me excited, though, is the sector returns during this same time frame. Betting on growth has really paid off. Information Technology cruises with an enviable 6.29% jump. Consumer Discretionary also does well with a 5.76% showing. I also need to call out how Real Estate puts in a very respectable 4.64% return: Now it’s starting to really come together… Embrace the dip. Ride the rip! It isn’t often that we get a high-probability buy-the-dip situation. And for my money, I’m going to wager that Technology is exactly how you want to tilt your portfolio in the coming days. RECOMMENDED LINK [Breaking News: Elon Musk Invents New Type of AI (Shocking)]( According to 30-year Silicon Valley and Wall Street veteran, Eric Fry... Who picked 41 plays that jumped 1,000%+... Elon Musk is about to shock the world again with this new type of A.I... Mining new millionaires in the process. [Click here to see the details]( One Superstar Technology Stock to Help You “Navigate” the Summer Rip It’s one thing to make a sector-wide bet. It’s another altogether to laser-focus on a top-quality business within that sector. GPS giant Garmin Ltd. (GRMN) – with its world-class smartwatches and other navigation products – has the profile worthy of your consideration as we approach the summer months. (Full disclosure: I’ve owned GRMN for many years.) When it comes to finding winning stocks, focus on leaders. Those tend to be stocks with rosy businesses. One look at the chart of GRMN the past year and you’ll see wicked market-beating performance since the October lows. Since Oct. 27, Garmin has nearly tripled the S&P 500, leaping 67% vs. a solid market performance of 24%: But a chart is only one piece of the investing puzzle. We need to size up the fundamental picture as well. As investors, we should only consider owning healthy, growing enterprises. Garmin fits the bill. Let’s start with revenue growth. In 2022, Garmin saw sales of $4.86 billion. In full-year 2023, revenues leapt to $5.22 billion… and are expected to settle in at $5.77 billion. Steady business growth like this is exactly what you want to see. Next, let’s do a quick test on the bottom line. Net income (what’s left after doing business and paying taxes) tells us how profitable a business is. In 2022, Garmin saw $973 million of net income. That number jumped to $1.29 billion in 2023. And 2024 is set to hold steady with estimates of $1.22 billion. Throw in the fact that the firm is light on debt with just $113 million… and is shareholder friendly, with a juicy dividend yield of 1.81%... and my quick napkin math says we have a winner. But I’d like to take it one critical step further… The Quantum Score Seals the Deal By using TradeSmith’s Quantum Score, I can get a real-time, in-depth analysis of any stock. And if you’re lucky enough to find one scoring well, beaming in the green “sweet spot” between 60 and 85, that’s the final checkpoint. Garmin has a super-strong 81 Quantum Score, which is made up of a rock-solid 75 fundamental ranking and 85.3 technical ranking. Few stocks ever get this quality of a score: This tells us that not only is GRMN a high-quality business and is trading well… but there’s evidence to suggest it’s seeing a flood of capital from the biggest investment houses on Wall Street. That’s a trifecta of factors that historically makes for great investing… So great, in fact, [it’s historically beaten the S&P 500 7-to-1](. So let’s recap today’s message. History says a fat rip is coming… Late May to July often kicks off a massive rally for stocks… Technology and Discretionary names benefit the most… And Garmin – a technology and discretionary company – shapes up as a leadership-quality stock with the blessing of TradeSmith’s Quantum Score. Keep this baby on your watchlist in the coming months and years. My bet is it won’t steer you wrong. And here’s where you can take the next step… Jason Bodner’s [Quantum Edge Pro]( introduced Garmin to readers many months ago, and they had the opportunity to grab this company at $106. Garmin is well past his buy-up-to-price now, so it’s not a recommendation to buy… just one to watch. But by subscribing to [Quantum Edge Pro]( not only will you get access to high-quality stocks poised to climb with seasonal strength… you’ll also get access to the Quantum Score – which will do a lot of heavy lifting for you! History says a monster rip is coming. Are you ready to take advantage of it? Regards, Lucas Downey Contributing Editor, TradeSmith Daily Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [3 Stocks to Build Your Wealth in 2024]( [5 Unapologetically Profitable Stocks for 2024]( [Download now on the Apple Store]( [Get It On Google Play]( [Customer Support: 866.385.2076](tel:+866-385-2076) | support@tradesmith.com [Request Customer Service](mailto:support@tradesmith.com) ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. TradeSmith is not registered as an investment adviser and operates under the publishers’ exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith’s content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results. TradeSmith P.O. Box 340087 Tampa, FL 33694 [Terms of Use]( [Privacy Policy]( To unsubscribe or change your email preferences, please [click here](. [tradesmith logo]