Beststocks to buyfor the week ending July 18, 2014: Each week our experts give Money Morning Members a new batch of the best investment ideas - for free.
Last week, we gave readers four smart picks in the healthcare sector, a natural gas tech company that has already gained 105% since our expert recommended it in February, and a methane producer/distributor that is poised to cash in on the upcoming propane shortage this winter.
We also highlighted three semiconductor tech penny stocks with tremendous upside, 16 companies that just increased their dividend payouts, and three Bakken Shale enterprises to watch.
Get these, plus more, in our latest list of the best stocks to buy now...
Add These Picks to Your "Stocks to Buy" List
Obamacare remains one of the most polarizing pieces of legislation enacted in a generation. Consider that a new poll by Rasmussen Reports shows that just 39% of likely U.S. voters have a favorable opinion of the Affordable Care Act, while 54% view it unfavorably. But when you look beyond the politics of the moment, you'll see a huge investment opportunity. In fact, certain healthcare investments over the past two years have beaten the S&P 500's returns by more than 50%. Money Morning Defense & Tech Specialist Michael A. Robinson told readers why the healthcare sector is raking in profits right now and provided four stock picks that are the "best doors into a crowded room of choices"...
Robinson also revisited a stock pick that he'd recommended five months ago. It's already soared 105% since then, and he believes today's price (at a little over $58 per share) is still too cheap. This natural gas tech company has increased its earnings per share by an average of 78% over the last three years. Robinson's "conservative estimate" is that it'll grow by another one-third moving forward, giving investors an earnings growth rate of 24%. At that rate, profits and the stock price could double again in as little as three years...
Propane is about a lot more than just firing up the family grill - it heats more than 6 million homes, fuels equipment and vehicle fleets, and is instrumental on farms for drying grain for storage and keeping livestock warm in the winter. But like any fuel, it's susceptible to costly shortages. The last propane-related "energy crunch" hit in January and February, and rural households had to pay through the nose just to keep warm. Now, another tough winter for propane is taking shape. Shortages like these have the potential to create serious payouts - if you know how to invest. Money Morning Global Energy Strategist Dr. Kent Moors recommended a company in line for a windfall - it's a Vancouver-based methanol producer that has major domestic and foreign market exposure. In a propane crisis, supply problems will be a catalyst for increasing methanol prices, driving this pick higher and higher...
Money Morning experts love the semiconductor industry, which - as measured by the SPDR S&P Semiconductor ETF (NYSE Arca: XSD) - is up 22% so far in 2014. "Smartphones may be the main catalyst behind this semiconductor boom," Money Morning Defense & Tech Specialist Michael Robinson said. According to the International Data Corporation, more than 1 billion smartphones were purchased globally in 2013. That number is expected to jump 70% to 1.68 billion by 2017. And the Semiconductor Industry Association itself recently reported that worldwide sales of semiconductors reached $78.47 billion during the first quarter of 2014 - the highest ever total for the first three months of a year. But you can get in on this industry at a discount, with three penny stocks to buy now before their share prices soar...
The number of U.S. dividend stocks raising payouts this year has hit its highest number since 1979. That has encouraged more investors to pour money into dividend payers - which has helped the Standard & Poor's 500 Index to log 16 record closes in the second quarter of 2014. Data from S&P Dow Jones Indexes shows 696 dividend boosts were reported in Q2 2014 compared to 591 hikes posted in 2013's second quarter. We compiled a list of 16 companies that boosted their dividends during the week ending July 11 - including an energy company that's increased its distribution 49 times since its 1998 initial public offering...
Last week, the Bakken Shale formation of North Dakota and Montana made top financial news when Whiting Petroleum Corp.(NYSE: WLL)announced plans to purchase Kodiak Oil & Gas Corp.(NYSE: KOG) - the combined company produced more than 107,000 barrels of oil equivalent in the first quarter of 2014. What made the merger so important for energy investors is it underscored the huge production growth the Bakken is currently experiencing. According to the U.S. Energy Information Administration, production from the Bakken Shale will reach approximately 1,112,000 barrels per day in August. The region has helped catapult the United States to become the world's largest oil producer. Last week we identified three of the biggest Bakken Shale players capitalizing on the Bakken's explosive growth...
Recently, the price of gold has frenetically bounced over and under the $1,300-an-ounce mark. On Thursday, the yellow metal posted its steepest gains in nearly a month when Malaysian Airlines Flight MH17 crashed in Ukraine. Just three days prior, gold prices fell sharply by 2.3% for the biggest one-day drop in 2014. Even with this year's fluctuations, Money Morning Chief Investment Strategist Keith Fitz-Gerald thinks the case for owning gold has never been stronger. "Many investors are asking themselves if now is the time to buy gold. I think that's the wrong question," Fitz-Gerald told readers in May. "What they should be asking themselves is if they can afford not to buy gold." Last week, we highlighted four reasons why gold stocks should be part of any healthy investment portfolio right now.