Best stocks to buy for the week ending Feb. 21, 2014: U.S. stocks slipped last week as markets reacted to a string of disappointing data from housing to manufacturing.
For the week, the Dow Jones Industrial Average dipped 0.3% to close at 16,103.30. The S&P 500 Index lost 0.1% to end at 1,836.25. The Nasdaq tacked on 0.5% to end at 4,263.41.
Although stocks have regained most of the 6% drop that began in mid-January, markets remain volatile, a notable trend in 2014. So far this year, the S&P 500 has recorded nine daily advances or declines of 1% or more - more than twice the amount seen over the first 31 trading days of 2013, according to S&P Capital IQ.
Money Morning continues to help investors navigate market gyrations, sharing the best investing tips and best stocks to buy now. Following is a recap from last week.
Best Stocks to Buy Now
- Netflix Inc. (Nasdaq: NFLX) enjoyed a spike in viewership with the recent Season 2 premiere of its political drama "House of Cards," with up to 15% of all Netflix subscribers watching at least one episode in the first weekend, according to broadband tracker Procera. NFLX's growing presence, and a wave of new company developments, recently pushed shares to a 52-week high of $441.24. Money Morning Chief Investment Strategist Keith Fitz-Gerald remains a fan of the company's business model and told FOX Business' Stuart Varney where he believes NFLX shares are headed next.
- The hype over Alibaba's initial public offering (IPO) keeps growing, and for many investors, the IPO of China's largest e-commerce company can't come soon enough. In the meantime, investors can get a piece of the Alibaba action before shares hit the market. And it doesn't involve Yahoo! Inc. (Nasdaq: YHOO), which owns a 24% stake. Money Morning Defense &Tech Specialist Michael A. Robinson explained what moves to make to play Alibaba before its IPO.
- Biotechs have delivered a healthy dose of growth to investors, with the Nasdaq Biotech Index ETF (Nasdaq: IBB) up a whopping 65% year to date. But picking individual winners in this lucrative sector is tricky, unless you know what to look for. Money Morning BioScience Investment Specialist Ernie Tremblay revealed the most important company asset to focus on in order to hit it big with a biotech stock.
- Precious metals may get all the attention thanks to their beauty and history as a store of value. But industrial metals do all the really hard work - and for one, that hard work is about to pay off and hand investors double-digit gains. Money Morning Global Resource Specialist Peter Krauth discussed a common base metal used in a variety of settings, from rustproofing steel to health supplements. Here's why this "workhorse" metal is ready for a profit breakout.
- Insurance bills can put a huge dent in your available investing capital, and insurance costs in the United States are particularly high relative to other countries. But Money Morning Global Investing & Income Strategist Robert Hsu shared two strategies for converting these costs into profits - including an auto insurance company that's one of Warren Buffett's main sources of investable cash.
- Facebook Inc. (Nasdaq: FB) shelled out $19 billion last week to buy mobile messaging service WhatsApp. Many industry insiders balked at the hefty price tag and question whether the acquisition will eventually pay off. Money Morning explained why Facebook paid such an exorbitant price and listed two big reasons why the acquisition makes sense - and what it means for FB shares.
- Groupon Inc. (Nasdaq: GRPN) shares got hit big Thursday, plunging 12% after issuing downbeat forward guidance that warned expenses from recent acquisitions will pressure future results. On a positive note, the daily deals company reported record Q1 earnings that topped estimates. Get all the details here and find out why Groupon's future looks bright despite the company's cautious outlook.
- Worldwide demand for liquefied natural gas (LNG) is expected to double by 2025, and that has investors hunting for the best LNG stocks to buy now. But it's not just promising stock performance from the sector that's luring LNG investors. Many LNG stocks reward shareholders with hefty dividend yields as well - some close to 7%. Money Morning shared the best LNG stocks that pay a dividend.
Today's Top Story on Money Morning: Stay Ahead of This (Massive) Currency Shift