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BofA published its November report on the Alpha Surprise Model.
The model screens for inexpensive, out-of-consensus stock ideas using fundamental analysts’ earnings estimates by BofA Securities.
Its most overweight sectors were energy, communications services, and consumer discretionary, and its most underweight were information technology, real estate, and materials.
The most attractive companies, according to the model, were Amazon.com (AMZN), Huntington Ingalls Industries (HII), Progressive Corp. (PGR), and Warner Bros Discovery (WBD).
Some of its most notable deletions off the chart, as of Oct. 31, include Altria Group (MO), Cencora (COR), Bank of New York Mellon Corp. (BK), Boeing Co. (BA), CVS Health (CVS), Chevron Corp. (CVX), and Goldman Sachs Group (GS).
Some important additions include American International Group (AIG), CME Group Inc. (CME), Dexcom Inc. (DXCM), General Motors (GM), Enphase Energy (ENPH), Starbucks (SBUX), UnitedHealth Group (UNH), Welltower (WELL), and Domino’s Pizza (DPZ).
The model outperformed the S&P 500 index (NYSEARCA:SPY) with a price return of -1.4%, compared to -2.2% in October.