Signs Of A Market Bottom (Technical Analysis)

Big stocks, especially tech names, led the market higher in 2021. Since then, they have been leading the way down. Here are eight high-profile companies that are showing signs of a major turnaround.

Chart 1. Apple Inc. (AAPL)

Stats

Forward P/E	22.6
5-year EPS growth estimate	9.9%
PEG ratio	2.7
Margin of safety	-8%
Value-Quality-Growth rating	86
Analysts’ consensus	Strong buy
Price target upside	19%

Margin of safety is the current price divided by consensus fair value.

All Value-Quality-Growth ratings are from Stock Rover. 100 is highest.

Apple is up 18.3% from its recent low and approaching its 100-day moving average.

Chart 2. Amazon.com, Inc. (AMZN)

Stats

Forward P/E	42.4
5-year EPS growth estimate	40.5%
PEG ratio	3.1
Margin of safety	26%
Value-Quality-Growth rating	74
Analysts’ consensus	Strong buy
Price target upside	46%

Amazon has made three consecutive higher lows since June 16th.

It is up 21.2% from its June 14 low.

Chart 3. Tesla, Inc. (TSLA)

Stats

Forward P/E	45.4
5-year EPS growth estimate	42.8%
PEG ratio	2.3
Margin of safety	-20%
Value-Quality-Growth rating	81
Analysts’ consensus	Buy
Price target upside	19%

Tesla has made three consecutive higher lows since May 21.

It is up 19.6% from its May bottom.

Chart 4. PayPal Holdings, Inc. (PYPL)

Stats

Forward P/E	16.3
5-year EPS growth estimate	14.3%
PEG ratio	1.8
Margin of safety	11%
Value-Quality-Growth rating	91
Analysts’ consensus	Buy
Price target upside	67%

PayPal is up 18.7% from its recent low.

Chart 5. UnitedHealth Group Incorporated (UNH)

Stats

Forward P/E	21
5-year EPS growth estimate	14.6%
PEG ratio	1.7
Margin of safety	-8%
Value-Quality-Growth rating	88
Analysts’ consensus	Strong buy
Price target upside	12%

UnitedHealth is up 15.5% from its recent low.

It is well above its 100-day moving average.

Chart 6. Meta Platforms, Inc. (Facebook) (META)

Stats

Forward P/E	13.3
5-year EPS growth estimate	8.5%
PEG ratio	2.1
Margin of safety	19%
Value-Quality-Growth rating	91
Analysts’ consensus	Buy
Price target upside	54%

Meta is up 17.7% from its recent low.

Chart 7. NVIDIA Corporation (NVDA)

Stats

Forward P/E	26.4
5-year EPS growth estimate	22.8%
PEG ratio	2.0
Margin of safety	-11%
Value-Quality-Growth rating	87
Analysts’ consensus	Buy
Price target upside	42%

NVDA is up 23.7% from its recent low.

Chart 8. Netflix, Inc. (NFLX)

Stats

Forward P/E	18.4
5-year EPS growth estimate	11.7%
PEG ratio	1.6
Margin of safety	-6%
Value-Quality-Growth rating	86
Analysts’ consensus	Hold
Price target upside	31%

Netflix is up 31.7% from its recent low.

Final thoughts

Nobody knows for sure whether we have already seen the bottom of this bear market cycle. In fact, the doomsday crowd is getting larger and louder, with calls for another major leg down before it’s over. I’m not in that camp. I think we might see a lower low before we put this bear behind us, but I don’t think it will be much lower than the 3666 S&P 500 print we had on June 16th.

The economy is slowing, the Fed is tightening, and earnings estimates will probably take a haircut. But investors are looking past all of that, and they are counting on a mild recession if we get one.

The time for selective bargain hunting is now.