Best Stocks to Buy Now: A Money Morning Weekly Recap
By Diane Alter, Contributing Writer, Money Morning•
Best stocks to buy for the week ending Dec. 6, 2013: After eight straight weeks of gains, the Dow Jones Industrial Average and S&P 500 Index finally took a breather, finishing last week modestly in the red.
The Dow dipped 0.41%, or 66 points, to 16,020.20. The S&P 500 slipped 0.04%, less than one point, to 1,805.09. The tech-heavy Nasdaq managed to eke out a 0.06% gain, or three-point increase, to 4,062.52, good enough for a fresh 52-week high.
Despite the muted weekly showing, markets staged a strong rally on Friday thanks to a better than expected jobs report. Coupled with a recent spate of encouraging economic data - including gross domestic product Q3 gains that exceeded expectations - the picture for the U.S. economy indeed looks brighter.
That's why Money Morning believes markets will continue to rally in 2014. And last week we shared some of the best stocks to buy now to maximize your profits as we head into year's end.
Here's a recap:
In June, Money Morning Defense & Tech Specialist Michael A. Robinson went against the grain and recommended tech stocks, saying they would surge in the second half of 2013. And since then, the tech-laden Nasdaq Composite Index has soared 16.73%, besting the broad-based S&P 500 Index's 11.5% gain. And Robinson remains a fan of tech. Here he names four tech stocks investors should put on their year-end shopping list. And in The Best Shadow Plays in Silicon Valley Right Now, Robinson discusses an innovative chip-design firm that has averaged 30% growth in earnings per share over the last three years and is poised for further growth.
While indeed a fan of tech, Robinson is also bullish about the overall stock market. He forecasts a 15% gain for the S&P 500 in 2014, with the index rising to 2,065. Such a rise will not only take the broad-based index past the psychologically important 2,000 threshold, it will also propel it to the highest level in history. In Robinson's Stock Market Forecast for 2014, you'll not only find his market predictions, but also one small-cap tech stock he believes "will trounce the market averages in the New Year."
Speaking of tech, Money Morning Capital Wave Strategist Shah Gilani recommended investors buy Apple Inc. (Nasdaq: AAPL) shares back in June. Since then, shares have risen a whopping 40%. In an appearance on FOX Business' "Varney & Co" last week, Gilani explained why he thinks shares of the iDevice maker will continue to surprise so-called industry "experts." Gilani made a prediction regarding Apple's shares next year that was so bold, host Stuart Varney asked him to repeat it. See the eyebrow-raising forecast here.
The Center for Strategic and International Studies reports that cybercrime accounts for $500 billion in losses annually. And as the world faces growing threats from cyberattacks, investing in cybersecurity becomes increasingly lucrative. Moreover, it's expected to remain a profitable play for years to come - corporate IT budgets are projected to grow from $65 billion in 2013 to $93 billion in 2017. Money Morning shows you how to turn our greatest threat into some hefty profits and highlights two great picks to get you started.
The art world has been recording some record profits for avid collectors. Last Wednesday, Norman Rockwell's beloved painting "Saying Grace" sold for a hefty $46 million at a Sotheby's American Art Auction. It marked a record for works by the late artist, as well as for a single American painting. But it's not art in particular that has Money Morning excited. It's auction dealer Sotheby's (NYSE: BID), one of Money Morning's best stocks to buy now. It allows the average investor to profit from a multi-billion-dollar hobby of the rich and famous. Sotheby's shares are up 77% over the last 12 months, and we found one huge reason why that's just the beginning. Read why we're still bidding for shares here.
The United States is on pace to become the world's biggest oil producer by 2015. U.S. oil production is forecast to rise from 9.2 million barrels a day in 2012 to 11.6 million in 2020. That makes a strong case for buying oil stocks. But it's not oil giants that have caught Money Morning's attention; it's a couple of small-cap oil stocks. Among their appeal is a prominent presence in America's emerging oil territories. Find out these two oil stocks to buy now.
The Boeing Company (NYSE: BA) has endured its share of bad press this year amid a number of problems with its 787 Dreamliner commercial aircraft. Yet its shares have shrugged off troubling news and risen 78% year to date. In its latest earnings report, the company delivered an 11% year-over-year revenue increase to $22.1 billon. Aircraft deliveries soared 14% and core earnings jumped 16%, handily beating Wall Street expectations. Demand for Dreamliners remains strong, and that should translate into future growth. The company is shareholder-friendly, with steady share buybacks and dividend increases. Money Morning details why shares will soar to new heights.
Master limited partnerships (MLPs) have long been revered for their reliable source of income. Over the last decade, income generated from MLPs has doubled, with distributions increasing at an average rate of 7.6% annually. According to Morgan Stanley, MLP distributions are set to rise 9% in 2014. And over the next several years, the MLP sector could deliver annual gains of 10% to 15%. That's welcome news to dividend seekers. Money Morning reveals one of the best MLPs to buy now here.