With fund managers chasing performance, it may come as a surprise to our readers who has been left behind. Fund managers continue to underweight high-quality mega-cap stocks, particularly those with foreign exposure. In a new research report from Merrill Lynch, the technical team combines their considerable talents with the equity strategists and comes up with four very unloved mega-cap stocks.
These four mega-cap stocks are rated Buy at Merrill Lynch, have technically positive charts and are all underweighted by fund managers. Again, one of the mains reasons cited for underweighting these top stocks is foreign exposure and strong dollar headwinds.
With the OEX index, which represents the S&P 100 showing near-term relative strength, and improving breadth, it may be time for investors to start buying these four top mega-cap stocks.
This company remains the world’s biggest and boldest technology company. Apple Inc. (NASDAQ: AAPL) has stayed in the limelight with the release of the Apple Watch, and while not generating the kind of in-store mania the iPhone 6 release did, reports indicated that 2.5 million orders for the new wearable device were taken by the company in the United States alone, and the growth continues.
Many Wall Street analysts say investors need to stay long the stock into second-quarter earnings. They see strong continued iPhone sales and numerous catalysts on the horizon. The company is also widening its lead over Google in the app marketplace. In fact, revenue at Apple’s global App Store was about 70% higher than on Google Play in the first quarter, compared with about a 60% advantage last year.