Best Stocks to Buy Now for April 2022

The market continues to slosh around, with defensive sectors remaining bullish, while growth’s “usual suspects” keep being sold. Investing in this kind of environment can make you skittish!

But I’m a bull at heart. I see reasons to be positive. For instance, even among the battered sectors, there is fundamental strength. And positive, recent Big Money action is making me take notice.

Markets and Big Money in the Last Six Months

My research firm, MAPsignals, measures Big Money investor activity. That includes institutions, pension funds, big individual investors, and so on. Our research shows Big Money moves markets.

In fact, we created the Big Money Index (BMI), which is a 25-day moving average of Big Money buy and sell activity. It tends to be a leading indicator of market movement. Here is the BMI over the last six months laid over SPY:

It’s been volatile this year. But the BMI is trending up of late. Looking deeper, we can see ample amounts of buying and selling underneath the surface:

Still, defensive sectors are where the bulls continue to run. Energy, utilities, and materials lead the way:

Notice though how there are still strong fundamental scores throughout, even in lowest ranking sectors. In this kind of market, it’s good to spread the love around. You never know which way the choppiness is headed, or in which direction. So, the top five stocks to buy for April 2022 cover different sectors: ULTA (staples), FANG (energy), TSCO (discretionary), LPLA (financials), and CHKP (technology).

Ulta Beauty Inc. (ULTA) Analysis

Up first is Ulta, which is a growing cosmetics and fragrance retailer.

Even though great stocks can be volatile, like Ulta this year, these companies are worthy of attention. Check out ULTA:

• Year-to-date performance (-2.0%)
• Historical Big Money signals

Just to show you what our Big Money signal looks like, have a look at the top buy signals ULTA has made the past few years in the chart below. Blue bars are showing it was likely being bought by a Big Money player according to MAPsignals.

When you see a lot of them, like ULTA has since 2010, I call it the stairway to heaven:

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, ULTA’s sales and earnings outlook are strong:

• 1-year sales growth rate (+40.3%)
• 2-year vs. 1-year EPS growth estimate (+9.9%)

Diamondback Energy, Inc. (FANG) Analysis

Next up is Diamondback Energy, which is a fossil fuel exploration and production company.

Check out these technicals for FANG:

• 1-month performance (+4.2%)
• Recent Big Money signals

Let’s look long-term. These are the top buy signals for Diamondback Energy since 2012. The Big Money has bought time and again:

Source: www.MAPsignals.com

Let’s dive deeper. As you can see, Diamondback Energy has had rock-solid growth and is reasonably priced:

• 1-year sales growth rate (+141.6%)
• Forward price-to-earnings ratio of 6.1x earnings

Tractor Supply Company (TSCO) Analysis

Another name we like is Tractor Supply, which is the largest rural lifestyle retailer in the U.S.

Strong candidates for growth usually have Big Money buying the shares, and TSCO has that. Also, the stock has slid slightly this year, meaning it could be an attractive entry point:

• Year-to-date performance (-1.0%)
• Historical Big Money signals

Below are the Big Money signals TSCO has made since 2010. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s look under the hood. Tractor Supply’s sales and earnings growth is impressive. I expect more in the coming years:

• 1-year sales growth rate (+19.9%)
• 3-year EPS growth rate (+26.7%)

LPL Financial Holdings Inc. (LPLA) Analysis

Number four on the list is LPL Financial, which is an investment services giant.

Here are the technicals important to me:

• 1-month performance (+27.7%)
• Historical Big Money signals

Below are the Big Money signals for LPLA since 2014:

Source: www.MAPsignals.com

Let’s examine a bit more. LPL Financial has been growing nicely:

• 1-year sales growth rate (+31.5%)
• 2-year vs. 1-year EPS growth estimate (+51.1%)

Check Point Software Technologies Ltd. (CHKP) Analysis

Our last growth candidate is Check Point, which is a cybersecurity software and consulting firm.

Check out these technicals:

• 1-month performance (+4.6%)
• Historical Big Money signals

While CHKP was beaten down in much of 2021, it’s still a high-quality stock, as it’s made the Top 20 report many times since 2010:

Source: www.MAPsignals.com

Now look under the hood. The company has had solid sales growth and the earnings outlook looks good too:

• 1-year sales growth rate (+4.9%)
• 2-year vs. 1-year EPS growth estimate (+10.1%)

Bottom Line and Explanatory Video

ULTA, FANG, TSCO, LPLA, & CHKP represent top stocks to buy now for April 2022. Strong fundamentals and historical Big Money buy signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds no positions in ULTA, FANG, TSCO, LPLA, or CHKP.

Contact

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