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 Jan. 24, 2014: Stocks tumbled last week as investors fled global markets amid soft data out of China, and traders dumped crumbling emerging market currencies.
Disappointing Q4 earnings from a number of U.S. companies, including Johnson & Johnson (NYSE: JNJ) and Coach Inc. (NYSE: COH), also weighed on markets.
For the week, the Dow dropped 3.5% or 580 points, falling back below the 16,000 level to end at 15,879. The S&P shed 48 points, or 2.6%, slumping below 1,800 to end at 1,790. And the Nasdaq slipped 1.7%, or 69 points, to 4,128.
But Money Morning never slips - investors can always count on us to interpret the big market-moving events, sift through earnings reports, and share the best stocks to buy now. Here's a recap from last week:
Netflix Inc. (Nasdaq: NFLX) shares soared 15% last week following strong Q4 earnings. It was a tremendous triple beat for the streaming video provider: NFLX solidly beat analysts' estimates on earnings, revenue, and new subscriber count. Get all the details on Netflix's outstanding quarter here. MoneyMorning Defense & Tech Specialist Michael A. Robinson calls Netflix a "game changer." He shared why he was so bullish on Netflix - and how high he sees the NFLX stock price going - in this visit to FOX Business' "Varney & Co."
A severe cold snap gripping a good part of the United States means higher heating bills for many consumers, but this only partially explains why natural gas prices soared above $5 last week for the first time in more than three years. Another reason is that investors are betting natural gas prices will keep rising even when the weather warms. That's because demand for natural gas - a cleaner burning, plentiful, and cheaper alternative fuel - continues to grow in both the United States and abroad. That means plenty of opportunity for investors. Money Morning Global Energy Strategist Dr. Kent Moors explains how to pick the best oil and gas stocks to buy now.
Insiders may sell their shares for several reasons, but they buy them for just one: They think the price is headed higher. Insiders have intimate knowledge of their industry and their company - which is why insider buying is a key gauge of a stock's future movement. In fact, University of Michigan research shows that a stock associated with insider buying tends to outperform the total market by 8.9% over the next 12 months. Money Morning highlighted three stocks with substantial insider buying that look poised to deliver profits to investors.
Fortunes have been made (and yes, lost) investing in penny stocks. The potential for outsized profits continues to lure investors, and a few of Money Morning's best picks last year surged 440%, 231%, and 214%. Investors must first recognize the risks that can come with such stellar reward potential, as highlighted in Money Morning's primer on how to invest in penny stocks.Money Morning also shared five of our best penny stocks from the past few years, one of which rewarded investors with a 453% gain - find out which of those picks still have room to run in 2014. Finally, we featured 10 of the hottest penny stock movers from last week.