stocks to buy right now
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Why These Are Among the Best Stocks to Buy Now
One of the most successful long-term strategies when hunting for the best stocks to buy is contrarian investing.
It's a rather simple strategy: buy something when it is out of favor and everyone else is selling, which leads to bargain prices. Then wait for sentiment to turn, sell and pocket your profit.
Many contrarian investors are taking a long, hard look at one particular sector: gold miners. This is a sector that has not only been battered by falling prices for the gold they mine hurting profitability, but also a sector plagued by poor management at many companies.
But a closer look shows why some of these miners are among the best stocks to buy now when prices are low and potential is soaring.
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Stocks to Buy: These Returns Nearly Tripled the S&P 500's
Barron's recently published its annual list of the 500 top U.S. and Canadian companies based on sales growth, cash flow, and return on investment, delivering juicy choices for investors on the hunt for stocks to buy.
Apple Inc. (Nasdaq: AAPL) took the top spot, with Wesco International (NYSE: WCC) snagging second. Western Digital Corp (Nasdaq: WDC) grabbed No. 3. and DaVita HealthCare Partners Inc. (NYSE: DVA) was No. 4. C.H. Robinson Worldwide Inc. (Nasdaq: CHRW) rounded out the top five.
Landing a spot on the coveted roster is indeed an accomplishment. But it hasn't always been a reliable judge of how a company's shares will perform in the future.
So, for the second consecutive year, Barron's teamed with financial data and software company FactSet Research Systems Inc. to find the cheapest stocks among its 500 list. FactSet used price/earnings ratios based on earnings estimates for each company's current fiscal year.
Last year's "cheap" list of 30, tracked for a year, averaged a 42% return over the period ended April 26. That's nearly triple the 15.6% gain over the same period for the Standard & Poor's 500 Index.
A trio of energy refiners, all posting triple-digits returns, led the group to lofty gains: Tesoro Corp. (NYSE: TSO); Alon USA Energy Inc. (NYSE: ALJ); and Marathon Petroleum Corp. (NYSE: MPC).
Just two stocks, Hewlett-Packard Co. (NYSE: HPQ) and Exelis Inc. (NYSE: XLS), fell.
This year's bargains are a mixed lot. Here's a closer look at the lowest priced stocks to buy among the Barron's 500.
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Stocks to Buy: Why Warren Buffett Is Hunting in Europe
Investment guru Warren Buffett is looking for stocks to buy now in struggling Europe- a region many investors refuse to touch thanks to the destructive Eurozone debt crisis.
But the Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) CEO told CNBC he's bought a couple smaller businesses in Europe over the last 12 months and also took positions in some European equities.
"We've bought some European stocks," Buffett said. "And the fact that there are troubles in Europe, and there are plenty of troubles, and they're not going away fast, does not mean you don't buy stocks. We bought stocks when the United States was in trouble, in 2008 and it was in huge trouble, and we spent $15.5 billion in three weeks in between September 15 and October 10."
One reason for Buffett's interest in Europe: plenty of cheap buys.
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Stock Market Today: What's Next After Dow at 15,000
After record rallies last week took benchmarks to fresh highs, the stock market today took a breather.
Just before noon, the Dow Jones Industrial Average gave back 18.70, or 0.12%, to 14,955.26. The Standard & Poor's 500 Index inched higher by 1.55, or 0.10%, at 1,615.96. The Nasdaq eked out a 0.28%, or 9 -point gain, at 3,388.14.
Stocks surged Friday after the April jobs report handily beat expectations. The Dow broke 15,000 for the first time, and the S&P surpassed and finished above 1,600. For the week, the Dow added 261 points, or 1.8%, at 14,973.96. The S&P tacked on 32 points, or 2%, at 1,614.42. Helped by tech, the Nasdaq gained 99 points, or 3%, at 3,378.63.
"I think investors got a lift in their step from Friday's jobs report," Mark Luschini, chief investment strategist for Janney Montgomery Scott told CNN Money. "[But] this week, we're absent anything newsworthy."
Indeed, the week's economic calendar is quiet, and earning season is winding down. Notable reports this week include The Walt Disney Co. (NYSE: DIS) on Tuesday; Dish Network Corp. (Nasdaq: DISH) and Groupon Inc. (Nasdaq: GRPN) on Wednesday; and Priceline.com Inc. (Nasdaq: PCLN) on Thursday.
While the number of companies that have reported this season nearly doubled from 855 in 2009 to 1,655, the percentage that have beaten estimates remains at the same 59%. Moreover, just 52% have beaten revenue estimates, compared to the average of 60% since the bull market began in 2009, data from Bespoke Investment Group reveals.
That supports the consensus view that the Fed's market-friendly stimulus measures are driving stocks.
But will the gains stick?
For just the sixth time in 30 years, markets were up in January, February, March and April, according to Schaffer Investment Research. May got off to a robust start, but a cache of analysts are warning of a looming pullback.
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Stocks to Buy: Meet the New Defense Winners
One segment of the stock market that is widely ignored right now is the defense sector - but as contrarians know, that means there are hot stocks to buy now if you know where to look.
The reason defense is shunned is that future defense budgets will be cut to rein in government spending and hopefully reduce the U.S. budget deficit.
Some programs have been hit by the sequester. Other initiatives are winding down as the endless flow of dollars that has been seen since 9-11 is slowing.
The most recent budget proposals call for reducing defense spending by an additional $150 billion over the next 10 years. That's on top of the $487 billion of cuts already in place and the $41 billion spending cuts mandated by the sequester.
All of this has dampened enthusiasm for defense stocks. While some of the larger defense companies have rallied this year most of the sector has been moribund and is lagging the overall stock market. It is very difficult for analysts and investors to determine which stocks will make attractive opportunities when no one yet knows exactly how much may be cut from the overall budget.
But not all stocks will suffer.
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Buy, Sell or Hold: With 46 Million People on Food Stamps This Is The Stock To Own
With over 46 million Americans on food stamps, price-conscious shoppers have been flocking to the discount stores.
It's a profitable and steady niche in what has become a "food stamp economy."
It's lead by the big-box discounters such as Wal-Mart (NYSE: WMT) on one end and a trio of high-rising "dollar" stores at the other --Family Dollar Stores (NYSE: FDO), Dollar Tree (NASDAQ: DLTR) and Dollar General (NYSE:DG).
Since the start of the financial crisis, all of these discounters have seen their share prices skyrocket as consumers work overtime to stretch each and every dollar.
My favorite company in this group is Dollar General Corp., which has seen its share price climb by 129% since its IPO in November 2009.
The question, of course, is whether or not Dollar General still has what it takes to stay in Wall Street's good graces and keep on growing.
Part of that answer depends on what your perception is about the overall state of the U.S. economy. The data is certainly a mixed bag.
But what I can tell you about Dollar General is how it differentiates itself from the competition and how the discounter will be able to hang on to shoppers even when the economy turns.
Here's why I like this company so much...
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The 5 Most Shorted Stocks in the S&P 500
May's right around the corner and bears are piling on bets against the most shorted stocks - and the overall market - in preparation for the expected annual sell-off.
During the first two weeks of April, almost 60% of stocks in the Standard & Poor's 500 Index saw an increase in short interest, and the Nasdaq had an overall increase in short positions as well.
Right now, the most shorted stocks include a struggling retailer, a for-profit college and an alternative energy company - and one stock that's up a whopping 131% in 2013.
But don't be misled into going against the grain. These stocks are not "buys."
Rather, investors should steer clear of these risky stocks.
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This Dangerous "New" Energy Crisis is Crippling the Middle East
Don't look now, but there are some problems developing in the global energy network.
It's hardly reassuring that the epicenter of all this is the Middle East.
The primary problem is hardly new. Actually, calling it an "old" problem is more accurate because the culprit is a collapsing network of delivery and storage that has been deteriorating for decades.
Unfortunately, this is hitting areas already beset by broad, accelerating economic shortfalls the hardest. That they also happen to be areas of significant unrest hardly improves the situation.
The latest is in Pakistan. There a combination of lower-than-expected water availability and a government powerless to provide the diesel fuel essential for the planting season means a population already on the brink is staring at food shortages.
The picture is very grim.
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Stocks to Buy When South Korea Heads Higher
One of the biggest stories of the year so far has been the saber rattling coming from North Korea.
The communist nation's young leader Kim Jong-un has insisted that his nation is at war with South Korea and war is imminent. He has refused diplomatic talks with South Korea and the United States and raised tensions on the peninsula to heights not seen in many years.
All of this has weighed on the South Korean stock market and created what well may be a significant opportunity to find undervalued stocks to buy. The South Korean markets have sold off and are down on the year by about 6% when measured by the iShares South Korean ETF (NYSE: EWY).
The reality is that no matter how much saber rattling is done North Korea isn't likely to wage war on its Southern brethren. They simply cannot afford it. They don't have enough fuel and many parts of the country have no electricity and little food.
China may watch the rhetoric with a bemused eye but is unlikely to encourage a war.
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Stocks to Buy: There's a Huge Opportunity in this Metals Producer
Our latest report on stocks to buy focuses on a metals-related play that's highly undervalued - and about to introduce a game-changing development to its business.
As base metals and material stocks have sold off in recent weeks, most of the attention has fallen on the shinier metals like gold and silver.
Unnoticed by most traders is the fact that zinc has dropped as well, although not as sharply. Prices of zinc have dropped about 8% in the past month and this is setting up a major buying opportunity in this North American zinc producer.
Although rarely discussed with the same fervor or regularity as its metallic brethren, zinc is actually the fourth most used metal in the world, and will see sharp demand pick up when the economy improves.
Over 12 million tons of the metal is produced annually for a range of uses. Although not as widely discussed as other precious and industrial metals zinc is something we all use every day knowingly or not.
Zinc is part of several alloys including brass, aluminum solder and commercial bronze. Zinc is also the primary metal used in production of the U.S. penny coin and has been since 1982. The metal is used in pigments for paints, a catalyst for rubber production, a fire retardant and a rocket propellant.
Zinc is far more reactive than iron or steel and attracts oxidization so it is often used as a galvanizing agent with these metals. For example, zinc is regularly used in the boating industry to protect propellers and the rudder from oxidization caused by seawater.
All these mean zinc will continue to be important to a variety of industries. That's why we like the long-term potential of a U.S. zinc producer whose shares are trading at a discount.
The following company is making huge moves to be the world's lowest cost zinc producer, which should lead to higher earnings and a much higher stock price
