Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Teva Phar Inds Lt (TEVA); SAP SE (SAP); 3M Co. (MMM); Meta Platforms Inc (META) and the Focus List deletions are Crowdstrike Holdings Inc (CRWD); Lilly(Eli) & Co (LLY); Pinterest Inc (PINS); United Rentals, Inc. (URI).

The dog days of summer may be perfect for a vacation at the beach (or in the mountains, as is the case with the Federal Reserve Board), but investors don't always get to enjoy the month of August. Indeed, our analysis of monthly returns going back to 1980 indicates that the eighth month of the year is ahead of only two other months -- February and September -- in terms of average return. Now there have been some hits. The month has a "win percentage" of 55%, although last year the S&P 500 fell 2.1%. And there have been some real clunkers, including 1981 (-6%), 1990 (-9.4%), 1998 (-14.6%), 2001 (-6.4%), and 2015 (-6.3%). August generally is a quiet month on Wall Street. The second-quarter earnings reports are (for the most) part finished in July. The IPO market, already quiet this year, often goes into a period of hibernation. Volume tends to be light -- which is perfect for higher volatility. This August, nerves are likely to remain on edge as the Federal Reserve debates upcoming changes to policy and the U.S. presidential race kicks into a higher gear. We continue to stress a focus on quality -- companies with strong earnings, balance sheets, and management teams -- as the markets approach what typically has been a difficult two-month stretch.

For a second week, we have a bearish pop in the insider-sentiment data from Vickers Stock Research. The short-term data was particularly bearish on the NYSE, with the Vickers NYSE One-Week Sell/Buy Ratio coming in at 11.87, up from 8.68 last week and representing its highest one-week reading since February 2023. Meanwhile, transaction volume remains very low because of earnings-season restrictions and stock indices are still in the area of all-time highs. But volatility is on the upswing (the VIX has moved higher by about 30% in the past few weeks), with political thunderbolts, technology meltdowns, ongoing military conflicts, non-stop interest-rate drama, and now August just ahead (the slowest trading month of the year, but when illiquid markets can add to volatility). Who can blame any investor -- an insider or a 'normal' trader - from taking a cautious stance? But we will keep an eye on the now two-week bearish burst from insiders, with particular interest in how the trend develops/diminishes as earnings season moves towards completion. On a sector basis, selling by insiders last week was greatest in Financials, with shares valued at $837 million sold versus less than $5 million bought, followed by Healthcare ($30 million sold). Selling was also evident in Industrials, Energy, and Real Estate. Meanwhile, buying outpaced selling in Consumer Staples and Information Technology. This week, analysts at Vickers highlighted insider transactions of interest at Schlumberger Limited (NYSE: SLB) and Bank of America Corp. (NYSE: BAC).

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The Nasdaq 100 (QQQ) rebounded to its 21-day exponential average and a 50% retracement of the recent pullback on Friday, April 26, and then stalled. As long as the index does not make a lower low, the next and more-important resistance is the breakdown level up at 435 -- which is also a 61.8% retracement and the location of the 50-day moving average. The two most-common pullbacks are a three-wave and a five-wave decline. It is still unclear what is currently in play, but we would lean toward a new pullback low.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Market Outlook for 2024

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

In this edition, Nasdaq, Intercontinental Exchange transformation is more than meets the eye; 3M faces critical but not existential PFAS threat; Valeo in the right parts at the right time; and PVH, Snowflake, and Maplebear (Instacart).

In this edition, 3M's moat narrows; cybersecurity firms shine; P&C insurers' outlooks differ; and Hanesbrands, Grab Holdings, and Evergy.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks were mixed on Friday morning following strong earnings from Amazon and generally positive inflation data. The Commerce Department said that its personal consumption expenditures price index, or PCE, rose 3.4% from the prior year in September, in line with the revised reading for August and the Bloomberg consensus forecast. Excluding food and energy prices, the core PCE, the Fed's preferred measure of inflation, rose 3.7%, down slightly from 3.8% in August and also in line with consensus. The Dow fell 0.4%, the S&P rose 0.2%, and the Nasdaq rose 1.1%. Crude oil rose to $84 per barrel, while gold fell $5 to $1992 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks were mixed on Wednesday morning as investors weighed a new round of earnings reports and awaited the Fed's policy statement and follow-up comments from Fed Chair Jerome Powell. A 25-basis-point hike is widely expected. On the earnings front, Alphabet shares rose 6% following better-than-expected 2Q results, while Microsoft shares fell, despite strong fiscal 4Q earnings, after the company offered disappointing first-quarter sales guidance. The Dow rose 0.1%, the S&P fell 0.1%, and the Nasdaq fell 0.3%. Crude oil fell slightly to $79.50 per barrel, while gold rose $11 to $1974 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

In this edition, innovation in diabetes devices; initiating Coverage of Porsche AG and Citizens Financial Group; and 3M, Regions Financial, and MongoDB.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

As of this writing, a massive week for tech stocks and the overall market is underway, with earnings reports from GOOGL, MSFT, META, AMZN, TXN, KLAC, NOW, SPOT, KO, PEP, MCD, WHR, UPS, MRK, CAT, CMG, BA,V, MA, FSLR, XOM, and GE. It likely will be the largest market-cap week of the EPS season.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Monday Tee Up: Heavy on Earnings, Light on the Economy

Stocks Rally in October, but Fed, Elections Threaten Gains

In this edition, Food Service Firms Make Strong Recovery, a New Dawn For Solar Manufacturing, 3M Shareholders and Neogen Stock, and Intron, Starbucks, and Veeva

Monday Tee-Up: No Summer Doldrums on Wall Street

Market Slumps as Earnings Roll On

This edition features Kogan shares at a bargain, how patience could pay off with Tyler Technologies, Hoshizaki's brewing growth targets, and Ecolab, British American Tobacco, and 3M.

We recently lowered our intermediate-term technical outlook to bearish from bullish. The major indices have been cutting through important support levels. The condition of most individual stock charts is ugly, with many losing their 50-day averages and then cratering through their 200-day averages. This is definitely a change of character: absent the pandemic, it is something we have not seen since September 2018 (and 2015 and 2016 for some of the higher-beta indices). We have not had a decent-sized correction since the pandemic swoon, so we are certainly overdue.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks rose strongly on Thursday as investors weighed new GDP and employment data along with 3Q earnings reports from a range of major companies. The Commerce Department said that 3Q GDP rose just 2.0%, down from 6.7% in 2Q and below the Reuters consensus of 2.7%. First-time unemployment claims fell to a new pandemic-era low of 281,000, down from 291,000 a week earlier and below the consensus forecast of 288,000. Continuing claims dropped to 2.243 million from 2.480 million a week earlier, and were also below consensus. The Dow rose 0.68%, the S&P 0.98%, and the Nasdaq 1.39%. Crude oil rose to $83 per barrel, while gold rose slightly to $1800 per ounce.

This edition features a framework for measuring human capital risk; Asia reporting; inflation and supply chain issues in upcoming earnings; and notes from Verizon, VMware, and new coverage EML Payments.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Value stocks are outperforming growth in 2021 (for the first time since 2016), though a recent rally in growth stocks has narrowed the performance advantage for value. But in an environment of historically low interest rates, many investors are still searching for high levels of income, which often can be found in value stocks. During recent years, the performance record has favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 450%, compared to an advance of 180% for the Russell 1000 Value Index. In eight of the past 10 years, growth stocks have topped value stocks. That hasn't always been the case. In the previous decade, including the Great Recession, value stocks were better performers than growth stocks, advancing an admittedly low 8%, but still better than growth, which declined 15% during the decade. Value investors trace their roots to the famous "Security Analysis" textbook, written by Ben Graham, an economics professor at Columbia University. Warren Buffett was one of his students. The tide may now be turning. Progress on COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and banks) that have lagged in recent quarters, and value stocks have kept pace with growth stocks in the past year. In any event, value is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 1.6%, compared to the 0.5% current yield on the iShares Russell 1000 Growth Index ETF. This is important, as the current yield on the 10-year Treasury bond is 1.30%. For our list this week, we have screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have an Argus Financial Strength rating of at least Medium, and have a yield of 3.0% or higher. New stocks in our portfolio include the following.

Value stocks are outperforming growth in 2021 for the first time since 2016. While a recent rally in growth stocks has narrowed the performance advantage for value in the year to date, an environment of historically low interest rates is one in which many investors are still searching for high levels of income -- which often can be found in value stocks. When we look for attractive high-yield/deep-value stocks at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield, and price/cash flow. We also look for companies with clean balance sheets, high levels of profitability, high-quality earnings, and experienced management teams. We seek to avoid companies in industries that are in secular decline, or with dividend yields that are so high that the payout is clearly at risk. Based on numerous requests from clients, we have designed a portfolio of companies that are BUY-rated at Argus Research, have a Financial Strength rating of at least Medium, and have a yield of 3.0% or higher.

Stocks kept momentum going in July and August. Our analysts have been progressing through earnings season and have come across many stocks that have approached target prices. We set targets through our valuation framework, which includes analysis of historical multiples, peer multiples, and future dividends and cash flows. After adjusting for the latest information, here are some of the stocks on which we raised target prices over the past month. All of the following stocks are rated BUY at Argus.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The July 19 trading week began with somber discussions of an overdue correction, and stocks wobbled - but investors bought the dip and shares raced to new all-time highs. Although stocks suffered a drubbing on Monday of that week, with the benchmark S&P 500 down 1.6% for the session, they clawed back on Tuesday through Thursday and then staged a big-finish Friday.