Start the conversation
Best stocks to buy for the week ending Feb. 7, 2010: A robust two-day rally late last week helped the Dow Jones Industrial Average and the S&P 500 Index post their best week of the year, with gains of 0.6% and 0.8% respectively.
Despite the solid showing, the 30-stock index remains down 4.72% year to date. The S&P 500 is off 2.78% since the start of the year. And the Nasdaq, which rose 0.54% last week, is lower by 1.21% so far in 2014.
Indeed, this year has been marked by volatility, with the Dow swinging up or down at least 100 points in intraday trading on 25 out of 26 days since the start of the year.
Money Morning continues to guide investors through the ups and downs, bringing readers the latest news, smartest investment strategies, and best stocks to buy now. Following is a recap from last week.
- IBM is one of the most successful computer firms in U.S. history, but its revenue has fallen seven straight quarters in a row. Money Morning Defense & Tech Specialist Michael A. Robinson has identified the company expected to replace IBM, with Big Blue's help no less, as the leader of the computer industry. He also predicts this company's stock will soar 50% over the next year. Find out why the next king of the computer industry is one of the best tech stocks to buy now.
- A corporate "spin-off" occurs when a company splits off one of its divisions as a separate business entity. Spin-offs generally outperform the market for up to three years after the transaction. A Lehman Bros. study found that spin-off companies beat the S&P 500 by up to 45% in the first two years, and a Penn State University study revealed a three-year return of 76% – beating the S&P 500 by 31%. That's why Robinson is alerting investors to this upcoming spin-off now – he even shares a way to play more than 30 of the best spin-offs at one time.