<\/p>\n
(This is The Best Stocks in the Market, brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.)<\/span><\/span><\/span><\/p>\n Josh \u2014 Gut check time!<\/strong> Last Friday marked an unusual day for the major averages, especially after President Donald Trump\u2019s weekend remarks suggesting everything was “fine.” The renewed tariff threats seemingly emerged from nowhere, impacting manufacturing stocks, consumer discretionary stocks, and even AI stocks. This situation highlighted the true strength of the market when faced with adversity. When the market experiences a sharp decline, as it did on Friday, we often see some stocks drop off The Best Stocks in the Market list. This is expected; stocks can violate their uptrends as sellers overwhelm buyers, allowing us to identify which stocks rebound the quickest for new setups. Most importantly, we gain insight into the companies and sectors where buyers remain undeterred. Stocks that are heavily accumulated and manage to stay green amidst a sea of red certainly catch our attention.<\/p>\n Sean \u2014<\/strong> Before Friday’s announcement of new tariffs on China, the S&P 500 had experienced an unprecedented 33 consecutive trading days without a 1% movement, marking the longest period of low volatility since 1976. The announcement of a 100% tariff on all Chinese imports, effective November 1, was a direct response to Beijing’s expanded export controls on rare earth materials and advanced tech components. This escalation in the trade war has raised concerns, yet surprisingly, we haven\u2019t seen significant negative impacts on consumers as many economists predicted. Instead of speculating on the broader implications for the economy, let\u2019s focus on a few stocks from our Best Stocks list that demonstrated resilience.<\/p>\n When a stock remains flat or even increases on a broadly negative day, it signals strength and underlying demand from investors. These are the stocks that investors are reluctant to sell, or even eager to buy when volatility spikes. The top five performing stocks from our list on Friday were:<\/p>\n AZO, ORLY, and SO ranked among the top five performers in the S&P 500, with DUK coming in sixth (SPOT is not part of the S&P 500). These stocks rose nearly 2% on a day when the S&P 500 fell by 2.7% and the Nasdaq dropped a staggering 3.5%. All five stocks exhibit strong fundamentals. SPOT anticipates 107% EPS growth next year, while AZO and ORLY expect 17% and 12% growth, respectively. DUK and SO are slower growers, with projected EPS growth of 6% and 7%, but they trade at reasonable valuations of 25x and 21x, respectively, while contributing significantly to the AI theme and offering dividends over 3%.<\/p>\n In the past month, deals in the AI sector are expected to consume 16.1GW of energy, equivalent to the monthly energy usage of 20 million U.S. households. This combination of resilience and robust fundamentals is reflected in stock prices. Now, let\u2019s check in on our regular Monday data drop regarding the Best Stocks list, followed by Josh\u2019s insights on the technicals of these five stocks that defied the trend on Friday.<\/p>\n Sector Leaderboard<\/strong><\/p>\n As of October 13, there are 201 names on The Best Stocks in the Market list.<\/p>\n Top Sector Ranking:<\/strong><\/p>\n Top Industries:<\/strong><\/p>\n Top 5 Best Stocks by Relative Strength:<\/strong><\/p>\n Spotlight on Stocks:<\/strong><\/p>\n AutoZone, Inc. (AZO):<\/strong> Josh \u2014 AZO has transitioned from technically overbought to oversold since early September. I trust Friday’s bounce. My critical support level is $3,900, which was resistance earlier this year. Below that on a weekly closing basis, I would lose interest.<\/p>\n O’Reilly Automotive, Inc. (ORLY):<\/strong> Josh \u2014 ORLY is a bit erratic but found support at $100 per share, the breakout level from late July. However, this proximity is too risky for me, so I\u2019d avoid this stock.<\/p>\n The Southern Co. (SO):<\/strong> Josh \u2014 SO’s relative strength on Friday was impressive. We previously highlighted this stock as a utility-turned-growth stock, and it looks even better now. I recommend buying dips until the AI theme potentially falters.<\/p>\n Duke Energy Corp. (DUK):<\/strong> Josh \u2014 DUK appears poised for a breakout. If you\u2019re considering this trade, use $120 as a stop, risking seven bucks for a potential surge.<\/p>\n Spotify Technology SA (SPOT):<\/strong> Josh \u2014 SPOT has been consolidating since June after a significant rally. I favor buying during these consolidation periods as new breakouts approach. While we\u2019re not quite there yet, keep this stock on your radar. If you must enter now, consider $620 as your risk management level.<\/p>\n DISCLOSURES:<\/strong> (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC Universal, their parent company, or affiliates. This content is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult your financial advisor before making investment decisions. Investing involves risk. The views expressed are those of the contributors and do not necessarily reflect the official policy or position of Ritholtz Wealth Management, LLC. Josh Brown is the CEO of Ritholtz Wealth Management and may hold positions in the securities discussed.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" (This is The Best Stocks in the Market, brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh \u2014 Gut check time! 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