With the second quarter off to a great start for the market, Piper Sandler reshuffled its list of best ideas for stocks that have good fundamental prospects and an attractive entry point going by the charts.
The firm's "Alpha Alignment" Index, which outperformed the broader market in the first quarter, is made up of buy-rated names that Piper Sandler believes are strong companies (fundamentals) that are ripe for purchase (technicals).
Piper Sandler screened the 900 equities in its coverage universe and filtered for stocks with a buy rating, a market value over $750 million and a minimum of 10% upside based on its 12-month price target.
Then, the technical filter weeded out the stocks without momentum, uptrends and strong improvement relative strength.
The Alpha Alignment Index generated a total return of 9.6% in the first quarter of 2021, outperforming the S&P 500 by 2.6%.