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 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.
The threat of cyber-attacks is among corporations' most pressing concerns in 2014, but it could also be investors' biggest profit opportunity. Companies are projected to spend roughly $67 billion on information security this year, and security spending will grow by approximately 39% to $93 billion by 2017, according to research firm Gartner. Money Morning shares a trio of cybersecurity stocks that will help you tap into this lucrative sector - one is up 122% in the past year.
Every year, Money Morning Executive Editor William Patalon III calls on our team of in-house experts to share their best investment ideas for the coming year. In The 7 Best Investments for 2014, Money Morning's specialists in tech, defense, oil and energy, precious metals and commodities, and global and domestic markets offer up today's best investment opportunities. This is one read you can't miss.
General Motors Co. (NYSE: GM) shares slumped some 2.2% before recovering last week on lackluster earnings. But there's plenty to like in GM's Q4 numbers, which paint a picture not of a faltering company but rather one in transition. Money Morning broke down all the details and explained why GM shares will likely be driven higher this year.
Goldcorp Inc. (NYSE: GG) recently made a hostile $2.6 billion bid for Osisko Mining Corp. (TSE: OSK) in what is just one of many signs that top gold producers are on the hunt to acquire gold mines. It's also a "strong signal that gold prices may be heading upward," writes Money Morning Resource Specialist Peter Krauth. By watching early and often, Krauth explains there is great opportunity in staying ahead of this acquisition trail.
Liquefied natural gas (LNG) stocks have been outperforming the market by a wide margin in recent years, with companies like Cheniere Energy Inc. (NYSE: LNG) gaining 609% from January 2011 to January 2013. But investors holding LNG dividend stocks are even better positioned to gain, as dividend stocks tend to outperform non-dividend paying stocks over the long term. Last week Money Morning brought you seven high-yield LNG dividend stocks that are expected to continue their growth spurt and provide payouts up to 7%.