Best Growth Stocks to Buy Now for June 2022

Markets overall continued to trend downward recently on heavy selling action. Geopolitical tensions and uncertainty due to a host of factors, inflation being a big one, caused investors to flee.

However, we’re now seeing an uptick. Markets may have turned a corner. In fact, we recently hit an incredibly bullish indicator that historically has preceded big future returns.

Markets and Big Money in the Last Six Months

At MAPsignals, we follow the Big Money because it tends to produce outlier stocks and drive markets. When price movements occur on big volumes, it’s often intuitions, pension funds, and other “whale” investors influencing the swings. We created the Big Money Index (BMI) to track this activity and help show where markets could go.

When it’s hit oversold in the past, big returns followed. Well, the BMI recently hit oversold levels (the green horizontal line), but as you can see, it’s quickly snapped back:

That’s due to a decrease in selling and more sustained buying:

We’re seeing lots of buying in the energy sector. The materials, real estate, and industrials sectors are expected to grow too based on earnings, per FactSet. This shows how growth stocks not always tech related. They can be in any in any industry that’s growing.

The best outlier stocks (regardless of sector) have three common traits: strong fundamentals, great technicals, and a history of Big Money activity in the shares. At MAPsignals, we believe Big Money trading can alert you to the forward fundamental picture of a stock. And we want the odds on our side when looking for the highest quality stocks.

Focusing on quality is critical when markets are under pressure. Using the MAPsignals database, we’ve filtered for strong fundamentals and future growth to identify five ideas for potential long-term investment: PXD, COP, ADM, VRTX, & META.

Pioneer Natural Resources Company (PXD) Analysis

Up first is Pioneer, an oil and gas exploration company focused on Texas that pays a current dividend of more than 4.3%.

Even though great stocks can be volatile, like PXD this year, these companies are worthy of attention, especially when they grow earnings and return lots of cash to investors. Check out PXD:

• 1-month performance (+5.6%)
• Historical Big Money signals

Just to show you what our Big Money signals look like, have a look at the top buy signals PXD has made over time 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, I call it the stairway to heaven:

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, PXD’s sales and profits have been strong:

• 1-year sales growth rate (+154.4%)
• Profit margin (+11.8%)

ConocoPhillips (ODFL) Analysis

Next up is ConocoPhillips, the huge, global energy company with a nearly 1.6% current dividend.

Check out these technicals for COP:

• 1-month performance (+13.9%)
• Historical Big Money signals

Let’s look longer-term. This is the Big Money action on ConocoPhillips since 2016, and it’s clear that if you bought when Big Money was selling, you’d be doing quite well:

Source: www.MAPsignals.com

Now let’s dive deeper. As you can see, ConocoPhillips has had double-digit growth in sales and big profits:

• 3-year sales growth rate (+30.8%)
• Profit margin (+17.5%)

Archer-Daniels-Midland Company (ADM) Analysis

The third growth stock idea is Archer-Daniels-Midland, the agricultural commodities processor.

Strong candidates for growth usually have Big Money buying the shares. Archer-Daniels-Midland has that. Also, the stock has fallen recently:

• 1-month performance (-0.2%)
• Historical Big Money signals

Below are the Big Money signals ADM has made since 2016. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s look under the hood. Archer-Daniels-Midland’s sales growth is solid. And given its strong sales, valuation, and current 1.8% dividend, I expect more growth in the coming years:

• 3-year sales growth rate (+10.9%)
• Forward price-to-earnings ratio (8.2x)

Vertex Pharmaceuticals Incorporated (VRTX) Analysis

Number four on the list is a health care giant and long-time Big Money favorite, Vertex. It creates treatments for the world’s most serious diseases, like cystic fibrosis and muscular dystrophy.

Here are the technicals important to me:

• 1-month performance (+7.1%)
• Historical Big Money signals

It’s a hugely successful stock. Below are the Top 20 Big Money buy signals for VRTX since 2018 – it’s been a Top 20 buy more than 20 times since then:

Source: www.MAPsignals.com

Let’s examine a bit more. Vertex has been growing sales nicely and expects earnings to grow too, likely due to its profit margin:

• 1-year sales growth rate (+22.5%)
• 2-year vs. 1-year EPS growth estimate (+7.9%)
• Profit margin (+30.8%)

Meta Platforms, Inc. (META) Analysis

Our last growth candidate – Meta, the parent company of Facebook and Instagram – is a beaten-down giant in the technology industry. Meta helps connect people worldwide and is a huge player in advertising.

Check out these technicals:

• YTD performance (-42.0%)
• Historical Big Money signals

META is more than 270 days from its 52-week high, but believe me, it’s still a high-quality stock. It’s made the MAPsignals Top 20 report many times since 2015:

Source: www.MAPsignals.com

Now look under the hood. META has been growing sales and earnings at big rates, its outlook is solid, and the valuation is attractive:

• 1-year sales growth rate (+37.2%)
• 3-year EPS growth rate (+26.4%)
• 2-year vs. 1-year EPS growth estimate (+19.4%)
• Forward price-to-earnings ratio (16.7x)

Bottom Line and Explanatory Video

PXD, COP, ADM, VRTX, & META represent top growth stocks to buy now for June 2022. Strong fundamentals and historical Big Money buy signals make these stocks worthy of extra attention for long-term investors, despite being in non-traditional growth sectors or suffering recent dips.

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

Disclosure: the author holds no positions in PXD, COP, ADM, VRTX, or META.

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