Insider buying has been proven to have significant predictive power for stock prices - which is why we like to make a list of possible "insider" stocks to buy.
No one knows more about the condition and prospects of a business than the chief executive officer (CEO) and chief financial officer (CFO). When insiders like them buy stocks in the open market of the companies they control, the stock often outperforms the broader market for the next several years.
According to Nejat Seyhun, a professor and researcher in the field of insider trading at the University of Michigan, when insiders are buying shares in their own companies, the stock tends to outperform the total market by 8.9% over the next 12 months.it's time for investors to go shopping...
Best Stocks to Buy Now: A Money Morning Weekly Roundup
Last week's best stocks to buy were influenced by several crises building on Capitol Hill - the 2014 fiscal budget and looming government shutdown, the debt ceiling, and mounting anxieties over the Federal Reserve's QE taper timing.
As a result of these factors, many concerned investors turned to cash.
But with money market instruments yielding next to nothing, you will miss out on 100% of market gains if you are just sitting on cash. Money Morning keeps reminding readers that savvy investors make money in all kinds of markets - and we found just the right stocks to buy to make the most of current conditions.
Here's a recap of our picks for the best stocks to buy now, culled from last week's Money Morning daily articles, videos, and insights from our in-house experts:To continue reading click here...
Best Stocks to Buy in South America
When investors think of Latin American stocks to buy, they usually first think of Brazil. Brazil is the largest country in South America and is part of the BRICs group of emerging nations that were once thought to be the world's premier growth opportunities. While many think that Brazil will eventually get its act together [...]
The Best Stocks to Buy Now: A Weekly Roundup
In case you missed last week's profiles of some of the best stocks to buy right now, here's an overview of the profit plays our Money Morning experts shared with members.
Two Cheap Growth Stocks To Buy Now
Many investors know how to take their first profitable step in the search for ideal stocks to buy: Look for extraordinary growth potential selling at a significantly low valuation.
Even with markets up double-digits this year, there are still stocks to buy that are trading at a discount to what they're worth.
How the Stock Market Today is Following Up Friday's Big Rally
Investors took a breather in the stock market today after driving the Dow Jones Industrial Average 207.5 points higher on Friday.
Friday saw the Dow's second-biggest gain of 2013, after investors cheered a "Goldilocks" jobs report: not too hot, not too cold. For the week, the Dow added 132.55 points, or 0.88%.
There was plenty of news to sway the stock market today despite its muted open.
The world's largest credit rating agency Standard & Poor's boosted its credit outlook for the United States to "stable" from "negative" and reduced the threat of further downgrades.
Citing receding fiscal risks, S&P said the chance of a ratings downgrade is now "less than one in three."
"It was a quite shocking event for the markets when the U.S. was downgraded to negative, so to have that rating repaired is meaningful," Lawrence Creaturea, a Rochester, NY-based manager at Federated Investors Inc. told Bloomberg News. "Economic data has been improving gradually and S&P's upgrade is a recognition of that."
Overseas news was mixed.
Stocks to Buy Now: Two Companies with Strong Insider Buying
Tracking insider buying and selling activity has been proven to be a very effective method of finding good stocks to buy.
Insiders usually buy when the stock price is down, since they are usually long-term investors by nature and are fond of bargain prices.
When they are buying into shares on the rise - especially when they're hitting 52-week highs - it demonstrates a high amount of confidence in the direction of the company they oversee and operate.
All insider activity is filed with the U.S. Securities and Exchange Commission, so interested investors can easily find out which stocks insiders love - and which ones they're dumping.
Tracking activity can be done using a stock screener like finviz.com, that lists the stock, the buyer's name, relationship to the company, date of sale, number of shares and total value.
This week we have a couple more stocks hitting our radar with high insider buying, making good stocks to buy now if you like to invest where the key officers put their money. Take a look.
Why Insiders Love these Stocks to Buy Now
One of the most powerful positive indicators of stocks to buy is insider buying by officers and directors of a publicly traded corporation.
There is often a good reason why an insider buys stock in the company he works for and it is the same reason you and I buy a stock: He or she thinks it is going to go higher in the months and years ahead.
The big difference is that insiders know more about the direction and finances of the company and are in a better position to make an informed decision. Both research and practice shows that following the insiders often leads to excess profits.
Following insiders when deciding on stocks to buy has been a reliable approach to selecting investments over the years.
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.
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.
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.