The stock market moved into bear market territory in record time and continues to be the most volatile in memory. That has caused great upheaval in our momentum based POWR Ratings model.

To be more specific, we have seen a 55% reduction in Buy ratings while Sell ratings have more than doubled. That is just a sign of the times.

Long story short, it takes a truly special kind of stock to fight the enormous downward pressure of the market to emerge into the Strong Buy camp. So let’s dig in deeper on these 4 extraordinary stocks to understand what is behind their recent strength and what that means for the day ahead: Netflix (NFLX), Digital Realty Trust (DLR), DocuSign (DOCU) and Mellanox Technology (MLNX).

Netflix (NFLX)

You know why NFLX is doing so well in this environment. The more we have to stay home…the more we are all watching Netflix. And just in time for the Coronavirus is the great distraction of the Tiger King documentary. And one of my favorites, Ozark.

NFLX is only a notch under the 52-week high of $393.52, but still up 12% this year while most other stocks are down 25-50%. With Stay @ Home limitations pushed out to at least the end of April, it doesn’t look like anyone’s going to be giving up their binging habits anytime soon. NFLX is currently ranked #1 of all Internet stocks in our POWR ratings. Plus top analyst Michael Olson of Piper Sandler has reiterated a BUY guidance with a price target of $400 for NFLX. This was always one of the stocks to own as it holds firm to its position in the FANG acronym. But now NFLX rises above the pack given the unique attributes that come with the Coronavirus.

Digital Realty Trust (DLR)

It’s no surprise that DLR is on a lot of investors’ buy lists. With all of the increased data consumption with recent upticks in internet usage, it makes sense that DLR is in high demand. This REIT focuses on commercial property that is held by technology companies.  Their portfolio is heavily weighted toward data centers and other sites that keep the internet functioning. And that is currently the #1 rated group out of 123 in the POWR Industry Rank.

The key to buying any stock at this time is that they should be attractive inside the unique confines of the Coronavirus economy. PLUS they need to be attractive when life gets back to normal. DLR checks both of those boxes and thus a strong consideration for most portfolios.

DocuSign, Inc. (DOCU)

With more and more of today’s business being handled remotely, I think that it’s only logical that companies like DOCU are going to see a significant increase in use and demand. That’s because their digital signature approach allows people to handle contracts electronically online in a secure environment. Recently I have used it several times for contracts to take over Power of Attorney for my parents affairs and can tell you first hand it is very intuitive and effective.

DOCU is currently trading at $84.16 down from its 52-week high of $98.38. But still in much better shape than most stocks as it is up 10% this year on top of the impressive 85% gain last year. As more and more transactions occur digitally during this time of upheaval, it may just become the preferred method going forward. But as was seen in their growth in past years, they should continue to excel well past this time of crisis which is what makes DOCU such an appealing investment.

Mellanox Technology, Ltd (MLNX)

MLNX is well-positioned for the uptick in internet use as they provide end-to-end InfiniBand and Ethernet interconnect solutions. This hardware is essential as more and more companies look to shift as much work to the internet as possible. MLNX is well established, having formed in 1999 with many years of growth coming into this unique period in time.

I like that MLNX has enjoyed consistent and steady growth, and has the decades of experience necessary to meet the coming challenges head-on. Analysts expect this stock to continue on a steady growth trajectory, and are forecasting an increase of 20.89% and a target price of $145.

Want more great investment ideas?

POWR Rating Upgrades/Downgrades

All POWR Rating A (Strong Buy) Stocks

Free Access Pass to Wealth365 Online Summit– Join many of the world’s top investors to learn strategies to not just survive, but actually thrive in the midst of this bear market.

Reitmeister Total Return portfolio – Discover the portfolio strategy that Steve Reitmeister used to produce a +5.13% gain while the S&P 500 fell by -14.97%.

NFLX shares were trading at $362.23 per share on Friday morning, down $7.85 (-2.12%). Year-to-date, NFLX has gained 11.95%, versus a -22.16% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

More Resources for the Stocks in this Article