UAA - BofA's Buy the Dip Screens: bear market rally stocks and beaten-down tech names

BofA strategists have names for investors looking to put cash back to work after the 2022 selloff. The equity strategy teams highlighted two Buy the Dip screens this week. Beaten-down tech "Tech and Growth stocks have been the biggest laggards YTD amid a hawkish Fed," strategist Savita Subramanian wrote in a note. "The Fed was not the only headwind for Tech - Tech earnings are lagging. Nasdaq 100 (QQQ) 2022 consensus earnings as a % of S&P 500 (SPY) earnings are now below where they stood at the end of 2020, implying to full reversal of COVID-driven demand pull forward." But free cash flow to enterprise value has been reliable factor for tech since 1985, she said. The team screened for Info Tech (XLK) and Communication Services (XLC), excluding telecom and media, that are down more than 20% from highs and with FCF/EV above the 10-year Treasury yield (TBT) (TLT)

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BofA's Buy the Dip Screens: bear market rally stocks and beaten-down tech names