Micron, Intel among new ideas in BofA's Alpha Surprise screen

Sep. 02, 2022 6:00 PM ETMicron Technology, Inc. (MU), INTCSPY, DIS, AEE, AEP, CMS, CNP, DTE, ETR, LNT, SO, SRE, XLU, RSP, XLE, XLB, XLI, GOOG, SCHW, CSCO, F, COP, NRG, AMGN, GRMN, XOM, EA, ADP, MAR, LLY, MGM, GD, ADM, SHW, SPG, MHK, TDG, WST, APD, URI, ESS, AVB, WAT, WBD, IFF, FMC, ALB, WRK, GOOGL, XLRE, XLC, SP500, CTVA, VTRSBy: Kim Khan, SA News Editor19 Comments

Micron Technology Inc. One of american leader in semiconductor devices, dynamic random-access memory, flash memory, USB flash drives, solid-state drives.

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Chip stocks featured in additions to BofA's quantamental Alpha Surprise Portfolio for September, while deletions outnumbered new names.

The portfolio's return was -2.9% in August, outperforming the S&P 500 (SP500) (SPY) -4.2% and the equal-weighted S&P 500 (RSP) -3.6%.

The list is based on an Alpha Surprise score that "is a 25%/75% weighted combination of the decile scores from two proprietary models, our Dividend Discount Model (the value or 'alpha' portion of the model) and our BofA vs. Consensus Forecast Earnings Surprise Model (the growth or 'surprise' portion of the model)," strategist Savita Subramanian wrote in a note. "A decile rank of 1 is most attractive, and a decile rank of 10 is least attractive."

The portfolio is most overweight Utilities (XLU), Communication Services (XLC) and Materials (XLB). It is most underweight Real Estate (XLRE), Industrials (XLI) and Energy (XLE).

Alphabet (GOOGL) remains the stock longest on the list at 59 months.

The additions, including their Alpha Surprise Score where 1 = most attractive:

  1. NRG Energy (NRG), 1.25
  2. Micron (NASDAQ:MU), 1.50
  3. American Electric Power (AEP), 1.75
  4. General Dynamics (GD), 1.75
  5. Alliant Energy (LNT), 2
  6. Archer-Daniels-Midland (ADM), 2.25
  7. Sempra Energy (SRE), 2.25
  8. Southern Co. (SO), 2.25
  9. Amgen (AMGN) 2.50
  10. International Flavors and Fragrances (IFF), 2.50
  11. Mohawk Industries (MHK), 2.50
  12. Simon Property Group (SPG), 2.50
  13. West Pharmaceutical Services (WST), 2.50
  14. Air Products (APD), 2.75
  15. Albemarle (ALB), 2.75
  16. Automatic Data Processing (ADP), 2.75
  17. Intel (NASDAQ:INTC), 2.75
  18. Sherwin-Williams (SHW), 2.75
  19. Waters (WAT), 2.75

Deletions from the portfolio:

  1. Ameren (AEE)
  2. AvalonBay Communities (AVB)
  3. CME Energy (CMS)
  4. CenterPoint Energy (CNP)
  5. Cisco Systems (CSCO)
  6. ConocoPhillips (COP)
  7. Corteva (CTVA)
  8. DTE Energy (DTE)
  9. Disney (DIS)
  10. Electronic Arts (EA)
  11. Entergy (ETR)
  12. Essex Property Trust (ESS)
  13. Exxon Mobil (XOM)
  14. FMC (FMC)
  15. Ford (F)
  16. Eli Lilly (LLY)
  17. MGM Resorts (MGM)
  18. Marriott (MAR)
  19. Schwab (SCHW)
  20. TransDigm (TDG)
  21. United Rentals (URI)
  22. Viatris (VTRS)
  23. Warner Bros. Discovery (WBD)
  24. WestRock (WRK)
  25. Garmin (GRMN)

Check out what's ahead for earnings next week.

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