Under the Radar: No Forecasts, No Guesswork—Just the Trend

When it comes to questions about the stock market, more often than not the correct answer is “I do not know.”

What will stocks do if we use a bunker buster in Iran?

I do not know.

Back during the lead-up to the first Gulf War, everyone just knew that the ground war would cause oil prices to explode higher and stocks to collapse. Once the first tank engine fired up, oil collapsed, and stock prices began climbing higher.

The consensus was that Barack Obama would be the worst thing that ever happened to the US stock market. The bear market of the Great Financial Crisis ended a few weeks after his inauguration.

Similarly, everyone was convinced that Donald Trump’s election in 2016 would lead to a massive market failure. It did not. The fear-driven selling in the overnight futures market was an epic buying opportunity.

On the morning of October 19, 1987, investors were afraid that we would see a market collapse and a 1930s-style depression and were dumping stocks. It was the dead-on bottom of the market. The market has never come anywhere near those prices again.

Everyone was sure that the downgrade of U.S. sovereign debt by S&P in 2011 would spook investors, trigger rising bond yields, and push stocks into a tailspin. The S&P 500 is up 6x since, while the QQQ is up 10-fold.

Opinions are prolific. With the internet, you apparently have gained the right to hear everyone’s opinion at high volume all the time. You will make a lot more money if you tune them all out and pay attention to value and trend.

One thing we do know for certain is that like everything else in the world, the price of stocks is set by supply and demand. If there is a rush to buy certain stocks, sellers will demand a higher price. We also know that rising prices attract attention and new buyers. There are a million logical reasons why this should not be the case, but there are a million and one behavioral reasons that it is true.

Finding that point where buyers begin to emerge and reverse the trend from negative to positive can lead to huge winners for investors.

Using the tools and ranking systems available at Benzinga Edge and Benzinga Pro, I looked at stocks that have been in a downturn and where bargain hunters have emerged. Thanks to that new source of buying pressure, the short-term trend has reversed higher. As the stock rises and triggers intermediate and long-term trend signals, more buying pressure will develop and could drive the stock a lot higher.

Here are three stocks that have established new short-term uptrends and could be on the verge of massive moves to the upside:

Infosys INFY

Infosys is a global leader in digital services and consulting based in India, serving Fortune 500 clients across cloud, AI, and IT modernization. With a legacy of cost discipline and delivery excellence, Infosys remains a key player in the outsourcing landscape, though it faces margin pressures as clients delay discretionary spending.

Infosys is the Indian IT company that everyone makes fun of as they are writing checks to outsource tech services. They are moving aggressively into using AI for marketing and helping companies automate and become more efficient.

Infosys is also a big player in the Internet of Things, cloud computing and storage, as well as cybersecurity. As India works to develop closer ties to the United States, it could pay huge dividends for Infosys and its shareholders.

Healthcare Realty HR

Healthcare Realty is a real estate investment trust (REIT) specializing in medical office buildings, primarily affiliated with hospital systems in growing Sun Belt and suburban markets. After its 2022 merger with Healthcare Trust of America, HR has been navigating elevated leverage and occupancy challenges, but its stable rent roll and long-term leases tied to healthcare demand offer defensive cash flow in a volatile REIT market.

I love real estate. Some of my biggest winners over the years have involved real estate and REITs. Medical office real estate should be a stable and growing market for a long time.

Healthcare Realty also owns a lot of outpatient facilities like surgical centers, labs, clinics, and rehab facilities. All in, the REIT has an occupancy rate of almost 90%. These shares are yielding about 8%, and it looks like institutional buyers are starting to move back into the shares.

Shark Ninja SN

Shark Ninja is a consumer products company known for its high-performance home appliances under the Shark and Ninja brands, including vacuum cleaners, air fryers, and blenders. With a reputation for design-driven innovation and aggressive product launches, the company has carved out a strong market position but operates in a highly competitive and promotional retail environment that demands constant reinvention to maintain growth and pricing power.

I am married to a neat freak who perfectly offsets my somewhat casual attitude towards cleaning. She tried several brands of vacuum cleaners under the sun and was never quite satisfied until she found this brand. Now we have a Shark for indoors and an older one she uses outdoors on the patio and deck area.

Judging by the strong sales and earnings growth Shark Ninja is experiencing, she is not the only one who loves this brand.

Catching a trend change early can lead to huge gains. No opinions necessary. Just use the tools to follow the price.