Stock market rebound events like Friday’s can leave investors looking for stocks that will rally when the recovery is complete, regardless of how brief. Evercore ISI attempted to identify such stocks by running an earlier screen that examined “Drawdown Reversal” stocks within the Russell 3000 index. The bank first looked at stocks with a market value greater than $2 billion and some of the worst performance since the S & P 500 peaked in January, usually down 30% to 60% since the top. It then narrowed down the list to those companies with the highest earnings growth and profitability in 2022. Evercore then screened out stocks with the most negative investor sentiment. What was the result? Which stock was the most popular? The top five stocks ranked in market capital were Cloudflare, Match Group, and Datadog. Evercore ISI, one of the companies expecting at least some slight stock gains soon, is also included. Eight weeks of Dow Jones Industrial Average losses have been recorded, which is the longest streak of losing in recent decades.
