Best Stocks to Buy Now: A Money Morning Weekly Recap
By Diane Alter, Contributing Writer, Money Morning•
Last week's best stocks to buy started out D.C. driven. But when the drama on Capitol Hill subsided - for now, at least - focus turned to third-quarter earnings.
Google Inc.'s (Nasdaq: GOOG) better-than-expected quarterly results and upbeat outlook helped markets move sharply higher.
The S&P 500 Index and the Nasdaq logged their best weekly gains in three months, up 2.42% and 3.23% respectively. It was the Nasdaq's best close since September 2000.
The Dow gained 1.07% on the week, held down by weak Q3 results from International Business Machines Corp. (NYSE: IBM).
This week the government releases a number of economic reports delayed by the recent shutdown. This could bring some volatility our way, so check out Money Morning Chief Investment Strategist Keith Fitz-Gerald's interview with Bloomberg TV on how to invest in turbulent times.
But Money Morning has all the right moves for investors to make in any market conditions. Here's a recap of our picks for the best stocks to buy and investing tips from last week:
According to Money Morning Defense & Tech Specialist Michael A. Robinson, we've entered an era of ultra-broadband technology. Network demands are growing exponentially, as suppliers scramble to meet the mounting needs for higher bandwidth. Several big-name companies are involved in this explosive arena, but some of the biggest opportunities come from a small cap. Robinson reveals this pint-sized leader among giants that has already handsomely rewarded investors. Up some 300% year to date, Robinson says it still has plenty of room to run - so hurry here to read the rest.
Money Morning shared a good bet with readers last Monday: Las Vegas Sands (NYSE: LVS). In making a case why investors should put some chips down on the stock ahead of third-quarter earnings, we cited its lucrative Macau operations, its recent rally, new multi-year highs, $2 billion stock repurchase program, cushy cash reserve, and 2.5% dividend yield. Thursday LVS reported a 70% jump in Q3 earnings and a 32% revenue surge. The news sent shares up 3%, disproving the old adage that what happens in Vegas stays in Vegas. Find out why LVS remains in play.
Everybody loves a good comeback story - especially one that helps you turn a hefty profit. It's a well-known investing challenge to find names that have fallen out of favor and seen their shares suffer, yet are poised to soar to new highs. Called turnaround stocks, these shares can deliver some astounding returns. Since these comeback plays can be volatile, investors must have the stomach for some short-term hiccups before reaping long-term rewards. Money Morning featured two turnaround plays that could really turn heads.
Money Morning Global Investing & Income Strategist Robert Hsu began his career at Goldman Sachs. Through wise investments and modest living, Hsu amassed a seven-figure nest egg before he was 30. In "The (Simple) Secret to an Early Retirement," Hsu writes that one way to make sure you have enough money to retire comfortably, or early, is by accumulating a big dollar amount in your investment account. But even more important is having the right income-generating investments, which combine growth and income. This is one story you can't afford to skip.
Smart investors never dismiss buy signals, and Money Morning's Michael A. Robinson has just received a strong buy signal for one stock on his Watch List (a roster of companies whose shares he'd like to own but don't currently meet his stringent criteria). Robinson, who will wait years to get the right company at the right time and price, says now is the time to jump on this San Diego-based biopharmaceutical company whose shares "could easily double in just two short years." The company has a niche market, is well run, and has a high growth rate - making it one of the best stocks to buy now.
For sixteen more investment opportunities we covered last week, keep reading...
There's an old saying that "everything I like is either immoral, illegal, or fattening." No wonder "sin stocks" are a favorite among portfolio owners. These companies manufacture products that are considered bad for you. They also tend to be recession proof, because people buy them even in a shaky economy. Not only are they engaged in "can't do without" businesses and hold up in good times and bad, but they're also apt to boast attractive dividends. Money Morning highlighted five sin stocks you might not forgive yourself for if you pass them up. Find them here.
It's been a banner year for initial public offerings (IPOs), with the number of companies going public at more than 47% ahead of last year's pace. The IPO calendar remains red hot heading into November, with Twitter Inc. (NYSE: TWTR) set to debut Nov. 14 (we remain skeptical about the micro-blogging company's offering). Some of the best new issues may have already gone public, but they may still have some nice upside left. According to IPOScoop.com, more than 70% of this year's IPOs are trading above their offer price. Moreover, the 10 best of the year are up at least 140% over their offer price. The top 10 for 2013 can be found here.
We here at Money Morning are big believers in the benefits of gold and silver in your portfolio. We explained last week why we remain bullish on the yellow and white metals. Additionally, Money Morning Resource Specialist Peter Krauth wrote about "another metal that could blast past both of these, virtually overnight" - palladium. Thirty times rarer than gold, palladium is unique because there is no substitute for it in its myriad uses, which range from dental equipment to electronics to automobiles. Find out why Krauth calls palladium the "double your money metal" and how to play the lucrative metal.