Technical indicators say these 9 growth stocks have upside in 2021, Fundstrat says
Lucas Jackson/Reuters
- Despite November's strong outperformance of value over growth, "growth stocks are not dead," Fundstrat's technical analyst Robert Sluymer declared in a note on Tuesday.
- Growth stocks have further upside into 2021 as they begin to break out of a range of sideways consolidation, according to Sluymer.
- Here are the 9 growth stocks investors should consider buying heading into 2021, according to Fundstrat.
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Following years of underperformance, value stocks posted a significant rebound over growth stocks in November as positive COVID-19 vaccine news led investors to begin buying the beaten down reopening trade, or stocks best poised to recover from a reopening of the economy.
But despite the strong showing for value stocks last month, "growth stocks are not dead nor are they completing longer-term tops," Fundstrat's technical analyst Robert Sluymer said in a note on Tuesday.
Instead, growth stocks are consolidating sideways and digesting their gains after reaching overbought levels following a strong multi-month rally amid the COVID-19 pandemic.
With many growth stocks stabilizing near their 200-day moving average and putting in signs of a bottom or potential breakout above consolidation ranges, Sluymer highlighted 9 stocks to consider buying into 2021.
Here are 9 growth stocks that have further upside potential into 2021, according to Fundstrat.
1. Activision Blizzard (ATVI)
"Gaming stocks bottoming intermediate-term at 200 day moving average," Sluymer said.
Fundstrat
2. Electronic Arts (EA)
"Gaming stocks bottoming at rising 200-day moving average," Sluymer said.
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3. Take-Two Interactive Software (TTWO)
"TTWO continues to accelerate from support. Accumulate near-term pullbacks," Sluymer said.
Fundstrat
4. Atlassian Corporation (TEAM)
"TEAM breaks out of its 2020 trading range - Use near-term pullbacks to accumulate," Sluymer said.
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5. Coupa Software (COUP)
"COUP's weekly momentum is bottoming. Use near-term pullbacks to accumulate," Sluymer said.
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6. MongoDB (MDB)
"MDB breaks out to new highs following 2H consolidation - Accumulate pullbacks," Sluymer said.
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7. Advanced Micro Devices (AMD)
"AMD's 2H consolidation maturing to the upside - Add exposure on near-term pullbacks," Sluymer said.
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8. Analog Devices (ADI)
"ADI remains early in a new long-term up cycle - Expect pullbacks to be shallow - Accumulate," Sluymer said.
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9. Keysight Technologies (KEYS)
"Similar to ADI, KEYS is early in a new upcycle after breaking out of its 2019-2020 trading range," Sluymer said.
Fundstrat