Added Corteva To Our Model Portfolio (Technical Analysis)

Summary

• Corteva, Inc. added to "First Call" Model Portfolio because signals are indicating to us that analysts are recommending buying the stock.
• Seeking Alpha articles support our improving SID signal, with recent Buy ratings.
• Chart shows “golden cross” price breakout above long-term downtrend, and insider buying is pointing to further improvements.

We added Corteva, Inc. (NYSE:CTVA) to our “First Call” Model Portfolio. Stocks going into this portfolio are reversing our SID Sell Signal, and we believe analysts are making their first calls to portfolio managers to jump aboard and buy the stock. About 20 of the 25 Wall St. analysts have a Buy rating on the stock.

Naturally, we check our improving signal with Seeking Alpha’s articles and Quant ratings. Also in the chart below, you can see the price breakout above the long term downtrend.

SA shows that the recent two articles by SA analysts have Buy ratings. The SA Quant rating is a Hold and that agrees with the almost Hold signal we have with our SID system. The SA Quant ratings are good for Growth, Profitability and Momentum. The poor ratings in Valuation and Revisions must improve if the change in price trend is to continue. The chart below is anticipating improvements and so is insider buying.

However, the news we like to see is a new move up in SID as the SID Sell signal fades and the SID score keeps improving. We also want to see the Relative Strength in an uptrend on the chart below, telling us that CTVA has become a new Outperformer, beating the Index.

At the top of the weekly chart below is our SID signal, and you can see that it has improved from a Sell signal to almost a Hold signal. Also on the chart, you can see the big pop in price as it breaks out above the downtrend, squeezing the shorts into panic buying. Now that the shorts are covered, price is dropping back. That will trigger the “buy on weakness” calls as price comes down to retest support. Investors can wait for that to happen and buy it cheaper.

As soon as the first calls go out again from 20 Wall St analysts to portfolio managers, you will see support holding and the start of a bounce up. Our computer is calculating a 12-month return, including dividends, of 25%. Also our SID score has a “+” tag that tells us there is insider buying. As you know, insider buying is the earliest, leading indicator, that a stock is moving higher. Of course, we always wait for confirmation of that signal, and CTVA has given us that confirmation.

We have 3 Model Portfolios for different styles of investing. Our “2024 Model Portfolio” is for momentum investors. Our “Buy Weakness Portfolio” is for bargain hunters, We added CTVA to our “First Call Model Portfolio” which is for investors that like to bottom fish. All of our Model Portfolios have the objective of beating the Index! We believe that CTVA’s projected return of 25% will beat the Index in 2024.

Here is the weekly chart on CTVA showing all the sell signals improving and a breakout in price that bottom fishers love: