5 Technically Bullish Stocks Signaling Strong Buy, Backed by Solid Fundamentals (with Bonus Sell List)

The S&P 500 has bounced back from correction levels as the market digests Trump's tariff war, improved inflation/payroll data, and the Fed's confidence in the overall economy. These factors have created a short-term tactical bullish sentiment, and many stocks are already showing buying signals. Here are our top five picks that are likely to outperform during a market recovery. As Trump's new tariffs approach in April, investors should also hedge against potential shocks, either by using the dynamic hedge strategy we previously mentioned or by noting the bonus short stock list at the end.

Robinhood (HOOD)

Robinhood is showing clear technical signals of a potential reversal. The MA(3) has crossed above the MA(10), a key indication of trend reversal, while the MA(3,7) is turning upward. This suggests bullish momentum is building. The stock is also in the process of retrieving the gap created by its recent tumble, adding further conviction to the upside potential.

On the fundamental side, Robinhood continues to outperform in bullish market conditions due to its wide range of offerings, including equities, ETFs, options, and futures. The platform has expanded its tools to cater to retail investors looking for leverage while also integrating IRA accounts to accommodate various investment needs. Additionally, Robinhood's foray into the betting business provides another revenue stream that could support future growth. The addressable market remains massive as mobile-friendly interfaces attract a new generation of traders.

Block (XYZ)

Block's technical setup is improving, with the MA(3,7) trending upward while the MA(10) is on the verge of turning around. If the MA(10) successfully flips upward, it would confirm a full inflection point, setting the stage for a stronger uptrend.

Fundamentally, Block's Square payments ecosystem remains strong, maintaining a solid market share in digital transactions. Meanwhile, Cash App continues to gain traction, particularly with its latest Buy Now, Pay Later (BNPL) offerings, which cater to a growing segment of users looking for flexible payment options. The company's expanding ecosystem and increasing user engagement position it well for sustained growth.

Starbucks (SBUX)

Starbucks is exhibiting a bullish technical pattern, with the MA(3) crossing above the MA(7) and flipping to an upward trend. The stock is now approaching the critical $100 psychological resistance level, which, if broken, could pave the way for further upside.

On the fundamental front, U.S. consumer spending remains resilient, supporting Starbucks' strong position in the coffee chain industry. The company's leadership in the sector is reinforced by its brand loyalty and widespread store network. In China, business revival efforts are showing promise, adding another layer of potential growth. Additionally, Starbucks China is exploring potential divestments or strategic collaborations with local partners to optimize its operations in international markets.

Palo Alto Networks (PANW)

Palo Alto Networks continues its bullish trajectory, with the MA(3,7) maintaining an upward trend and a higher-low formation being established. This indicates strong buying interest and a solid technical setup for further gains.

From a fundamental standpoint, the increasing demand for AI and cloud-based applications is driving a parallel need for robust cybersecurity solutions. As the largest player in the cybersecurity segment, Palo Alto Networks is well-positioned to capitalize on this trend. The company's continued innovation in AI-driven security solutions ensures its relevance and dominance in an industry where demand is expected to surge over the coming years.

Oracle (ORCL)

Oracle has rebounded from its post-earnings low and is now testing a key resistance level. The MA(3) has moved above the MA(7,10), reinforcing the bullish trend and providing a buying opportunity.

On the fundamental side, Oracle stands to benefit from multiple growth drivers. Its collaboration with OpenAI, Arm, and the Oracle Stargate project highlights its expanding role in the AI infrastructure space. Furthermore, the TikTok deal is expected to be favorable for Oracle, particularly given Larry Ellison's close ties with Trump, which could result in policy advantages. These factors collectively provide a strong growth narrative for the stock moving forward.

Stocks Warning

Intel: The mania surrounding the incoming CEO is starting to fade, similar to the rise-and-fall pattern observed from Feb. 11 to March 10. The lack of real progress in chip fabrication and continued market share losses to AMD/Nvidia remain fundamental issues. The new CEO needs time to address these challenges, but as a former board member, his ability to turn things around remains uncertain.

Nvidia: Although bullish sentiment can support the stock, the GTC 2025 event was underwhelming, with more powerful GPUs introduced but no major surprises to further boost investor confidence and the growth story. Technically, the MA(3) is trending downward, while the MA(7) is still rising—signaling a slight sell indication.

Netflix: The stock typically tumbles after Q1 earnings due to seasonal fatigue. Investors should closely monitor how ad-supported user growth impacts the overall membership structure and whether the company can attract new members instead of relying solely on conversions.

RTX Technology: The stock has reached a record high, with an RSI of 83 and a higher-high formation on the chart. A short-term pullback is likely.