10 beaten-down names that have started to turn

The largest drawdowns in the index that are now rising again, so this edition takes a ranked look at S&P 500.

The ranking measures names furthest below their own highs that have started to turn. Every candidate is scored against the others in the same group on the same day, using depth of the 1-year drawdown (34%), 1-month return (30%), 3-month return (22%), 1-year volatility (14%). Names below $20M in median daily dollar volume are excluded, a ranking is worthless if you cannot get in and out of it.

Context: the broad tape is risk-on, cyclicals leading defensives with the index above its 200-day average. In that setting a high momentum score is partly a reading of the market itself, not only of the company.

The list

IT sits at #3 on -20.3% over the past year with volatility of 54.7% and a worst drawdown of -52.4%. It trades 7.8% above its 200-day average, so the trend is confirming the move.

Across the 496 eligible names the one-year spread runs 377.5% at the top against 18.0% at the bottom, which is the dispersion this ranking is sorting through.

What the ranking is not telling you

These scores read price history. They do not read the order book, the balance sheet, the litigation docket, or the reason a stock moved. A name near the top has gone up in a way the formula rewards; that is a description of the past, and momentum-style measures are at their least reliable exactly when a run is ending.

Nothing here is tailored to your situation, and nothing here is a recommendation to buy or sell.