Good Stocks to Buy Now

Why Income Investors Will Love These Preferred Stocks to Buy Now

velvet rope

If you're looking for new types of stocks to buy now to ramp up your portfolio yield, have you considered preferred stocks?

Preferred stocks ("preferreds") trade like regular stock but they are more like bonds in that they provide a higher fixed-dividend payment than their common stock counterparts and they generally have less upside potential.

They're called "preferred" because they have higher claim on the assets and earnings of the company.

Preferred stocks are an oft-overlooked option for snagging income in today's yield-challenged markets, but several preferred stocks in industries like banking, real estate and energy can bring stability to a portfolio. And preferred stocks that have been issued recently in this lower rate environment can provide better value.

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How to Find the Best Undervalued Stocks to Buy Now

Gemstones Q

When looking for the best undervalued stocks to buy now, you can't just consider those that have lagged the broader market.  

Many companies that are down for the year in what has been a strong stock market have declined for solid reason and the near and intermediate-term outlook is still weak.

While there is a tendency for these undervalued stocks to eventually revert to the mean, you can increase your odds of a successful contrarian investment by selecting those that are also cheap on one important valuation measure.

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Stocks to Buy: This Cheap Metals Play Has 10-Bagger Potential

slices of copper

The recent selloff in metals has made some opportunities for investors to scoop up stocks to buy at record discounts, and it's not just in gold and silver-related plays.

Although it is not as heavily traded as the shinier metals or treated as a safe haven asset, copper has also been slipping.

Copper prices recently fell to a 17-month low as more efficient mining practices has increased supply and demand has slowed. According to the Bureau of Metal Statistics copper supply will top demand by 97,000 tons in 2013.

The rise in the dollar has also pressured prices as copper is priced and traded in dollars.

This has caused a price plunge in copper-related stocks, giving some huge upside potential.

In fact, this tumble may be creating a huge opportunity in a special situation stock that is owned by some of the world's most successful investors. It's a chance to own a company with large reserves of copper that are worth far more than the current stock price.

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Three Stocks to Buy Now

Shah Apple Money Morning Capital Wave Strategist Shah Gilani just came out with three investments he thinks are good buys right now. One is an oversold stock that Gilani thinks could possibly double in 18 months, another is "unloved" but ready to rebound, and a third will deliver gains as metals prices rise. Take a look at […]

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Stocks to Buy Now, or Just Another Fad?

After being one of the hot stocks to buy a few years ago, Lululemon Athletica (Nasdaq: LULU) has hit a rough patch.

The company this week had to recall yoga pants made with fabric known as Luon because it was overly transparent - meaning Lululemon customers were walking around with see-through pants.

The products make up about 17% of all "bottoms' sold by the company. According to The New York Times, the recall is expected to account for about $60 million in lost sales.

Lululemon investors saw the stock take a 10% hit this week after the pants debacle.

And now, with some of its most popular products off shelves, the company has opened up the window for another "trendy" fitness chain to play to pantsless consumers.

That's one of the dangers of investing in a fad stock - it's not going to be popular forever.

And even though Lululemon's shares have soared more than 340% in five years - beating returns of both Apple and Google - its success isn't based on solid company fundamentals, but on trends and investor hype.

Here are a couple other "fad" stocks that might not be able to deliver for investors on consumer enthusiasm alone.

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Stocks to Buy Now Ahead of Major Bank Industry Takeovers

bank

There has been a lot of discussion among investors over the past few years about whether the banking industry offers any quality stocks to buy now.

The big banks brought the economy to its knees in 2008 and had to be bailed out by the federal government with taxpayer dollars. The disastrous decisions at large banks spilled over to the smaller banks and caused severe economic distress for many of them.

Many banks were forced to close with 140 banks failing in 2009 and another 157 in 2011.

Although the numbers have tapered off some we still saw more than 50 banks fail last year as a result of residual problems from the housing boom and ensuing credit crisis. This type of carnage is reflected in the price of many small banks, which are just now starting to see their balance sheets and stock price show signs of improvement.

We now face an environment much like the aftermath of the savings & loan debacle in the late 1980s and early 1990s.

You see, during the economic boom from 2001 to 2007 many new banks opened across the United Sates to take advantage of the cheap money from the Fed and the high demand for housing and home equity loans.

Now in the aftermath of the implosion of housing prices, we find ourselves with too many banks even after all the failures. We have seen some bank mergers in 2012 but this is just the start of what will be a massive wave of bank and thrift consolidation activity.

While we have seen some economic recovery, we continue to operate in a better but not good economy. Loan demand is still fairly tepid and is well below pre-crisis levels. It is difficult for many banks to gain market share and maintain profitability.

As we enter 2013 banks face new regulation and compliance costs that may further crimp operating profits. Smaller banks in particular are experiencing high levels of frustration at their inability to remain profitable and grow their franchise. Shareholders are unhappy after several years of poor share-price performance and want to see a return on their investment.

For many the best path is going to seek a suitor and sell out to a larger competitor.

For investors this creates an enormous opportunity for long-term profits, if you know the right stocks to buy now.

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