3 Non-Tech Stocks in TradeSmith’s Green Zone for Financial Health

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3 Non-Tech Stocks in TradeSmith’s Green Zone for Financial Health

Written by Jordan Chussler on March 9, 2026 

Computer monitor displaying a green stock health indicator gauge in a trading office, symbolizing strong momentum for energy stocks.

Key Points

  • As energy leads the market this year, shares of ExxonMobil are up 26% and its earnings are forecast to rise 21% over the next year. 
  • Analysts believe Citigroup, which hasn’t missed earnings since Q4 2022, should see share appreciation of 17% over the next 12 months.
  • Renewable energy utility company NextEra Energy’s financial health is so robust, its annualized five-year dividend growth rate stands at 10.15%.
  • Special Report7 High-Yield Dividend Stocks You Need to See (From TradingTips)

When it comes to evaluating stocks, there’s no shortage of indicators investors can turn to in the effort to determine fair market value, buy-sell signals, and future price movements. 

Those include commonly referenced technical indicators, such as the Relative Strength Index and Bollinger Bands, in addition to fundamental indicators including price-to-earnings (P/E) ratios, free cash flow, and profitability metrics like return on equity.      

No matter which ones investors prefer, they’re best used in combination with one another, thereby painting a more complete picture of a particular equity. Now MarketBeat users can add another to their arsenal: the TradeSmith Health Indicator, which assesses stocks’ health based on price action and volatility using the proprietary Volatility Quotient to set risk thresholds.

The result is a stoplight-based tool that classifies stocks as Green (financially healthy and in a strong uptrend), Yellow (hold or watch), or Red (financially unhealthy stock and in a downtrend). 

Based on backtesting, the indicator is rather effective. Stocks that find themselves in the Green Zone have shown a more than 23% average annualized return, while those in the Red Zone have annualized losses of 2.5%. 

Currently, the following three stocks are soundly within TradeSmith’s Green Zone, offering investors a chance to combine the indicator with others to determine if they’re a good fit for buy-and-hold portfolios. 

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ExxonMobil: +6 Months in the TradeSmith Green Zone

After years of lagging the market, the energy sector is outperforming the S&P 500, leading all 11 sectors with a year-to-date (YTD) gain of nearly 26% versus the index’s YTD loss of 0.4%. Part of that has been driven by oil major ExxonMobil (NYSE: XOM), whose shares have gained nearly 23% YTD. 

Its forward P/E ratio of roughly 20 is better than the broad S&P 500’s P/E ratio of 28 as well as an improvement upon its trailing 12-month (TTM) P/E ratio of 22, suggesting that, despite a nearly 43% gain over the past year, shareholders are likely to enjoy more earnings per dollar invested over the subsequent year. 

That is an alluring value proposition for a company that has beat analyst expectations for earnings per share (EPS) in six out of the last seven quarters, with ExxonMobil’s earnings expected to grow more than 21% next year, from $7.43 to $9.02 per share. 

Underpinning ExxonMobil’s financial health, over the past 10 years, the company has averaged stable gross margins of 32.75%. Over the same period, the company’s average annual debt-to-equity (D/E) ratio stands at just 0.22 (for context, a D/E below 1 suggests conservative financing and higher financial stability). Specifically in XOM’s case, over the past decade, for every dollar of equity invested by shareholders, the company has only carried 22 cents of debt. 

Citigroup: +8 Months in the TradeSmith Green Zone

Global financial services firm Citigroup (NYSE: C) has found itself in TradeSmith’s Green Zone since last July. Its forward P/E ratio of 14.45 is also an improvement upon its TTM P/E ratio of 15.62, both of which are better multiples than presented by the broad market.

The stock is down more than 8% in 2026 as the financials sector struggled with a nearly 6% YTD loss—the worst among all 11 sectors of the S&P 500. 

But analysts see strong upside over the next year, with an average 12-month price targetof $127.25, representing a gain of nearly 17% from today’s price. That notion is supported by the MarketRank™ analysis, with Citigroup scoring higher than 97% of the companies evaluated by MarketBeat and ranking second out of 62 stocks in the financial services sector. 

That high regard stems from sound underlying financials, including a run of earnings beats that has seen the company surpass analyst expectations in 11 out of the past 12 quarters dating back to Q1 2023. Citigroup’s earnings are expected to grow 25.5% next year, from $7.53 to $9.45 per share.

Over the past 10 years, Citigroup has had only one year of net income contraction, while averaging annualized profits of $10.8 billion. 

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NextEra Energy: +5 Months in the TradeSmith Green Zone

With a nearly 13% YTD gain, NextEra Energy (NYSE: NEE)—a regulated utility operations and competitive renewable energy generation business—has been securely in TradeSmith’s Green Zone for financial health since late last year. 

The company’s forward P/E ratio of 24.51 is an improvement upon its TTM P/E ratio of 27.42, and analysts rate the stock a Moderate Buy. NextEra Energy’s earnings are expected to grow 7.61% next year, from $3.68 to $3.96 per share.

But one factor that underscores the Tradesmith health indicator is NextEra’s dividend, which currently yields 2.73% but has undergone an annualized five-year growth rate of 10.15%. 

The company has achieved that dividend growth through substantial cash flow growth. Over the past decade, NextEra has seen its net cash from operating activitiesgrow from $6.36 billion in 2016 to $12.48 billion in 2025, good for an increase of more than 96%. Over the same period, net income has grown from $2.9 billion to $6.83 billion—an increase of more than 135%. 

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Silent bank run is happening (cash in quick)

Investing Ideas Daily

Dear Reader,

There’s a bank run on right now.

Not the old-school panic with folks clawing at the doors… nah, this one’s quiet, just numbers sliding across screens and private jets touching down in Zurich.

Governments, billionaires, the whole corporate circus, they’re yanking cash like it’s burning a hole.

Dumping bonds, shoving it into hard stuff, sneaking bets into the digital stuff.

They call it “diversification”

But when the Fed, the IMF, and BlackRock all do the same thing in the same damn quarter, that ain’t spreading risk.

That’s bailing water out with a bucket.

They see rates climbing, inflation digging in its heels, the dollar’s throne wobbling slowly.

TV drones on about a “soft landing.”

You and me? We feel the engine cough. This ain’t landing, it’s stalling at thirty thousand feet.

Most people are too stupid to understand that the same escape hatch the big dogs are using… still swings open for the rest of us.

You can move some of your own pile into the same corners they’re hiding in…. A little diversification…

Into a few tech-solid cryptos are playing digital gold: real use, real traction, none of that meme horseshit.

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Come get your map.

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Last Week’s Chaos Triggered Two Big Trade Signals

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Last Week’s Chaos Triggered Two Big Trade Signals

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BY LUCAS DOWNEY, EDITOR, TRADESMITH’S ALPHA SIGNALS

In retrospect, investors had it pretty good in 2025.

Sure, there was the Liberation Day crash in April… and a violent snap-back right after.

And there was plenty of volatility, bumps, and bruises along the way.

Remember Nvidia crashing on news of DeepSeek, a cheaper and more efficient AI model made in China?

Or the surge in international stocks?

Or the hemming and hawing about the Fed’s rate cuts?

But at the end of the year, stocks of nearly all shapes and sizes gained.

The S&P 500 was up 18% in 2025… and the small-cap Russell 2000 put up gains of nearly 13%.

Precious metals like gold and silver put up an even bigger winning year, rising 64% and 146%, respectively.

Then came 2026.

So far, we’ve dealt with a software stock crash… as AI cannibalization fears gripped investors. The iShares Expanded Tech-Software Sector ETF (IGV) is down more than 16% so far this year.

But that was just the tip of the iceberg for what was ahead.

Fast-forward to today, and traders are facing not one but two ultra-rare events.

First, crude oil has spiked to levels not seen in over three years in the wake of a U.S. conflict with Iran.

Second, the market fear gauge, CBOE Volatility Index (VIX), just surged to levels last seen in April 2025 coming out of Liberation Day.

No doubt, uncertainty is high right now.

But before you decide to sell it all, just review the facts and the evidence.

History suggests double-digit gains are coming for stocks in a matter of months.

Today, I’ll show you how to prepare for it with one top-ranked AI juggernaut.

Crude Oil Surge Whipsaws Stocks

The big news of the week is the violent surge in energy prices.

The U.S. and Israel attack on Iran has threatened transit disruption through the Strait of Hormuz.

This is a huge deal, as estimates peg the daily oil volume passing through this waterway at 20 million barrels or more. That represents nearly 30% of all seaborne crude supply.

Anytime there’s a drastic cut to oil supply, prices rocket. WTI crude oil futures soared over $100 per barrel.

By using the tracking ETF, the U.S. Oil Fund (USO), we can see how the ETF surged 36.4% in six trading sessions ending March 6:

chart

That’s a heck of a rally. In fact, in nearly 20 years of trading history, a USO 6-day surge of 20%+ has only occurred just 14 times prior to 2026:

  • Twice in 2009
  • Another two times in 2015
  • Eight times during the COVID-19 crash and rebound
  • And twice in the high-inflation period of 2022

If you’re thinking now’s the time to put the big bear suit on – think again. History has proven this to be a great opportunity to buy stocks.

Here at TradeSmith, one big focus this year is isolating rare trading conditions like these… and then looking at what happened when we saw them in the past.

Often, these signals can produce powerful trade setups.

Today’s are no exception…

In the past, when USO jumped 20%+ over 6 trading sessions, the S&P 500:

  • Gained 6.7% on average a month later
  • 12.5% three months later
  • 16% six months later
  • 33.6% 12 months after
  • 44.5% 24 months later
chart

And look at the hit rate along the bottom of the chart. Stocks were higher 92% of the time over the next month… 83% of the time over the next 12 months… and 100% of the time over the next two years.

That means buying stocks now seems like a solid move whether you’re looking at the short- or long-term.

Let’s keep going… because another rare signal is unfolding.

The VIX Pops to Nearly 29 as Stocks Fall

I’ve written extensively on why you want to buy stocks when volatility rips.

Back in April when talking heads told you to sell everything, I noted how the bear-killer signal flashed anew.

That signal is prime evidence of why you want to buy with both hands when the VIX rises and falls rapidly.

Today we see another unique and rare opportunity.

On Friday, the CBOE Volatility Index (VIX) soared to 29.49… the highest level since April of 2025, coming out of the Liberation Day crash.

chart

Going back to 2015, there’ve been 184 instances when the VIX closed above 29.

Memorable market moments causing this wicked volatility ramp include:

  • Late 2018 during rate hikes
  • The COVID-19 crash of 2020
  • The high-inflation bear market of 2022
  • And 2025’s Liberation Day crash

Here’s what happened afterwards. Since 2015, when the VIX closed above 29, the S&P 500:

  • Jumped 9.7% on average three months later
  • 14.8% six months later
  • 26.8% 12 months later
  • 39.4% 24 months later

Notably, in all timeframes, stocks were higher over at least 83% of the time:

chart

The evidence clearly points to a buying opportunity. Here’s a great pick to play the liftoff.

A Top-Tier AI Chipmaker

With market winds at our back, we should lean into leading companies.

This bodes well for leading semiconductor juggernaut, Taiwan Semiconductor (TSM).

TSM is the world’s largest semiconductor foundry. It manufactures high-performance chips for the largest companies in the world, including Apple (AAPL), Nvidia (NVDA), and Advanced Micro Devices (AMD).

Back in November, I highlighted this name as a bullish setup. I’m going to reiterate that stance today.

Over the past year, the stock has doubled, easily outpacing the S&P 500 (SPY):

chart

With gains like this, the company must be firing on all cylinders… and they are:

  • 2025 revenues leapt to $122.2 billion from $90.1 billion a year prior.
  • 2026 sales are set to surge to $158 billion.
  • Most impressive is the profit picture. In 2025, net income soared to $55.1 billion from $36.5B in 2024. 2026 estimates peg net income to rise to $74.2 billion.

When business is booming, odds are the stock will follow.

My favorite TradeSmith indicator, the Quantum Score, seals the deal for me. It’s an instant snapshot of the overall technical and fundamental health of a company.

Readings of 80+ are in the buy zone.

TSM clocks in with Quantum Score of 80.4, made up of a 91.4% fundamental grade and 72.7% technical grade.

It’s clear to see this all-star stock is only being penalized technically… and a lot of that has to do with overall market weakness.

From my vantage, this is exactly the type of buy-the-dip opportunity, given all of the market uncertainty:

chart

Look, there’s no guarantee what’ll happen in the future.

Fortunately, studying the past offers clues.

Don’t get sucked into the media-driven bear bait.

Rising oil prices and spiking volatility is a reason to invest… not panic.

TradeSmith software is geared to cut through the noise, offering signals you won’t find anywhere else.

Regards,

Lucas Downey signature

Lucas Downey
Editor, TradeSmith’s Alpha Signals

P.S. The two signals I walked you through today are exactly the kind of rare market conditions our tools are built to catch.

But there’s a bigger picture forming right now that I think every investor needs to see.

Our CEO Keith Kaplan has been tracking a broader set of warning signs in the market, and he recently put together a presentation laying out what the data says comes next – and how to position yourself ahead of it.

It all has to do with a new short-term indicator TradeSmith has developed and why it’s coming at the perfect time.

With it, any trader can make smarter moves ahead of major developing trends. Just as one example of countless more, this new indicator got bullish on oil stocks all the way back in November, before they ran up more than 25%.

Just click here to see all the proof for yourself.

In Case You Missed It

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