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Aggressive Growth Stocks Rise as the Stock Market Bounces Back

Today — April 25, 2022 — stocks declined at the open of trading, then rallied higher into the close. The S&P 500 was up 0.6% to close at 4296 while the NASDAQ increased 1.3%.

Strength was seen in aggressive growth stocks throughout the session, with value stocks starting the day down, then turning higher as the day passed.

Cybersecurity Stocks Saw Good Gains

Cybsersecurity stocks had a good day overall, with SentinelOne (S) up 8%, Fortinet (FTNT) up 6%, Palo Alto Networks (PANW) up 5% and Zscaler (ZS) up 5% on the day.

The School of Hard Stocks seperates cysbersecurity stocks within categories.

  • Growth stocks include Palo Alto and Fortinet as they make good profits (EPS).
  • Aggressive Growth Stocks include Crowdstrike (CRWD), Zscaler and SetinelOne as these companies have high P/E ratios as they are spending to grow at rapid rated.

Chart of the Day

Today’s chart of the day is this one-year beauty of Johnson & Johnson (JNJ). JNJ stock has been a winner this year, and shares hit a 52-week high today.

Unfortunately, the stock has no upside to our Fair Value as the P/E is now 18. My Fair Value price for 2022 is $185 a share and the stock closed the day at $186. Last qtr, the stock was $173 and it had 10% upside to my Fair Value.

Last week we updated our data on UnitedHealth (UNH) with the stock had just 1% upside for 2022, versus 10% upside when we updated our charts and tables last qtr.

So it seems like investors have flocked into safe stocks, and that’s zapped near term upside fo these two healthcare names. Perhaps its time to shift funds into growth stocks?

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