Best Stocks to Buy Now: A Money Morning Weekly Roundup
By Diane Alter, Contributing Writer, Money Morning•
Best stocks to buy for the week ending Jan. 31, 2014: A sharp sell-off in emerging markets, disappointing earnings from several key companies, and further tapering from the U.S. Federal Reserve left markets reeling last week.
The Dow Jones Industrial Average ended the week down 1.14%, or 180 points, to close at 15,698.85, making January its worst month since May 2012. The Standard & Poor's 500 Index slipped 0.43% over the week and shed 3.6% in January to end at 1,782.59. And the Nasdaq ended the week off 24 points, or 0.6%, at 4103.88, down 1.7% in January.
Despite the nosedive, investors still have plenty of opportunities for profit. Money Morning keeps readers current on the best stocks to buy now and the best investing moves to make for any market conditions. Here's what we covered last week:
Biotech is one of the most lucrative - and misunderstood - sectors today. Many Wall Street "analysts" covering biotech don't possess full knowledge of the industry: the science, the regulatory agencies, the doctors who will be prescribing new drugs in the pipeline. Misinformation spread by analysts can sometimes trigger unwarranted double-digit sell-offs... but herein lies opportunity. Money Morning BioScience Investment Specialist Ernie Tremblay found such a case last week and explained why this ingenious company will soar, despite an "analyst" claim.
Fears of a slowdown in China, the world's second-largest economy, rippled through global markets last week. But Money Morning Defense & Tech Specialist Michael A. Robinson cautions that investors who "just write off China are going to miss out on one the biggest profit opportunities in global technology." Robinson tells readers about this lucrative market and shares exactly how to play it for maximum gain.
Robinson also found the next tech wave for investors in connected cars. The average age of a car on U.S. roads today is 11.4 years, and this figure should propel new car sales for the next two to five years. He zeroed in on three ways investors can play the auto-tech boom with three different niche market players.
Money Morning's Global Investing & Income Strategist Robert Hsu brought yet another income investment to readers looking for the best high-yield investments of 2014. Hsu is particularly fond of alternative money management firms because their revenue comes from a "triple threat" of catalysts. Here are two companies he recommends for growth- and income-oriented investors.
The best returns for savvy investors this year could come from one of last year's worst performers: silver. Money Morning Resource Specialist Peter Krauth found two bullish signs that could propel the white metal to another spectacular 1,000% run, like the one logged in 2011. Krauth also names a standout player poised to benefit from silver's rally.
Amazon.com Inc. (Nasdaq: AMZN) may have missed Wall Street's aggressive expectations when it reported Q4 earnings last week, but Money Morning believes AMZN is the best stock to miss earnings all week. Net sales figures were healthy, and a record-breaking 1 million new subscribers signed up for its Prime service in just one week during the holiday season. Nonetheless, shares were punished and plunged 9%. But the slump actually gives investors a rare chance to buy.
The reaction to Google Inc.'s (Nasdaq: GOOG) earnings per share miss was the complete opposite: Shares soared 4.45%, or $50, midday on Friday. Money Morning advised investors not to worry about the earnings slip. Here's why Google will be heading even higher in 2014.
Corning Inc. (NYSE: GLW) shares fell some 6% last week after posting lackluster 2013 Q4 earnings. Also weighing on shares was word it will produce less display glass in Q1 of 2014 (a drop in line with normal seasonality). But while the Q4 report and guidance were disappointing, there were a number of bright spots. Money Morning still sees plenty of potential in Corning. GLW stock is up 49% over the last year, and here's why we expect Corning to better those gains in 2014.
Finding the most promising penny stocks to buy can be tricky. But finding small caps with big potential can pay off with double- and even triple-digit gains. That's why Money Morning continues to identify and share with readers the best low-priced companies to invest in today. Last week we featured three biotech penny stock buys and three tech penny stocks to watch.