A number of Club stocks that were unloved on Wall Street earlier in the year have seen their fortunes rebound in recent months, including oilfield-services firm Halliburton (HAL) and industrial Caterpillar (CAT) — creating potential opportunities to lock in gains. It’s been the year of technology on Wall Street. But, as Jim Cramer said Wednesday stocks in other parts of the market have started to come “back from the dead.” But how should investors navigate their positions in these resurrected stocks? In that vein, we screened our 35-stock portfolio to isolate the companies that have underperformed the S & P 500 so far in 2023 — meaning that, as of Wednesday’s close, they had gained less than 18.9% year-to-date. This allowed us to focus on a universe of stocks that haven’t necessarily been red hot like technology names such as Nvidia (NVDA), which has more than tripled in value this year. From there, we calculated each stocks’ lowest closing price since May 1 — roughly a month before this year’s rally started to broaden beyond tech — and how much each has climbed since that low to determine which have had the strongest momentum. We found eight stocks with double-digit percentage gains off their recent lows: Halliburton, Caterpillar, Wells Fargo (WFC), Constellation Brands (STZ), Emerson Electric (EMR), Coterra Energy (CTRA), Morgan Stanley (MS) and TJX Companies (TJX). Between May 1 and Wednesday’s close, the S & P 500 advanced 9.6%. Here’s a look at where we stand on these eight Club stocks, starting with the biggest gainer, Halliburton, and concluding with the eighth-best performer, TJX Companies. HAL 3M mountain Halliburton’s stock performance over the past three months. Recognizing Halliburton’s recent strength, we trimmed our position in the oilfield-services firm last week , locking in a small profit. Its second-quarter earnings report Wednesday underscored the company’s cash-generation abilities, and drilling activity may pickup further if oil prices climb. Plus, the stock remains cheap on a historical basis. Taken together, we’re comfortable holding onto our Halliburton position. CAT 3M mountain Caterpillar’s stock performance over the past three months. Similar to Halliburton, we made a disciplined, 30-share Caterpillar sale on July 10 because the stock’s strong momentum allowed it to break above our cost basis. We wanted to make sure we didn’t give back any of that move higher in what’s proven to be a battleground stock. Still, our multiyear thesis around CAT as an infrastructure spending winner remains intact, and we’re willing to let the position ride here. WFC 3M mountain Wells Fargo’s stock performance over the past three months. Wells Fargo is finally getting the respect it deserves, after issuing better-than-expected second-quarter results and raising its 2023 net-interest income guidance. The stock remains attractively valued — trading at 9.6 times forward earnings versus its five-year average of 11.4, per FactSet…
Read More: These non-tech stocks are ‘back from the dead.’ Here’s where we stand