The two-week stock market rally “ is part of the ‘non-recession bottoming’ process of the Bear Market, which opens the door for certain stocks to provide value to investors. Margin debt has dropped in 2022, mergers and acquisitions have revived, corporate share buybacks are “stronger than ever,” and so far, earnings estimates for this year and next year. The latter has yet to drop significantly, with Street consensus and Evercore’s own call for 9%+ growth in both years, that’s the view of analysts led by Evercore ISI strategist Julian Emanuel , who told clients earlier in the week to manage volatility by selling strength and buying weakness, keeping cash and possibly using options; look for stocks whose valuations have fallen and could enjoy Profits from shifting market leadership to stock valuations from growth names Two other metrics that Emanuel included in the stock screen were measured for “ strong free cash flow and a urn profiler exit rate, “both have the effect of reducing volatility. Sorted by market capitalization, the result is close to two dozen stocks – ranging from Meta Platforms to PulteGroup. Emanuel emphasized that Facebook’s parent Meta “is about to become a Value stock.” After Meta, the top five stocks on the Evercore list are rounded off by Bank of America, Morgan Stanley, Charter Communications and Marathon Petroleum. Twelve of the stocks that pop up on the screen are rated better by Evercore ISI, four are appropriately rated, and seven are not rated by the company. Organized by sector, financials dominate the list that Evercore calls Three V stocks, offering Value, Compression Valuation and Volatility Reduction, to seven names. They were followed by five consumer discretionary companies, three media providers, three materials, two energy, two healthcare and one industrial stock. As part of his call, Emanuel reiterated his advice to buy bullish call options on the iShares Russell 2000 ETF (ticker IWM) and sell bearish, “to achieve the outsized performance of the Small Cap. Small Caps is rated attractively both absolute and relative to the S&P 500.”