The Top Stock to Buy When Earnings Season Volatility Strikes

top stocks to buy

October is usually the most volatile month for markets, but that wasn't the case this year. The S&P 500 did not see even a single 1% daily move the entire month – a far cry from the “crash” warnings that bears predicted.

But now earnings season is here again, meaning volatility can pick back up. Traders try to decide whether or not they want to buy or sell their favorite stocks based on newly released earnings information. However, the prices don't always line up… which means opportunity for investors who know the secrets.

Today, we're bringing readers the top stock to buy as earnings volatility picks up.

According to Money Morning Chief Investment Strategist Keith Fitz-Gerald, these three steps can make earnings volatility work in your favor...

  1. Start with a list of great companies
  2. Find companies that go “on sale” ahead of their earnings.
  3. Look for stocks that seem to always move higher when everything else moves lower.

Must See: This Great Depression-Era “Secret” Helped Transform Two Teachers into Millionaires. Read More…

Fitz-Gerald has told readers many times about the “Unstoppable Trends” that cannot be derailed by the market, the economy, or the government. Those sectors usually offer the best stocks to buy.

With that in mind, he has one stock idea that fits all of these criteria and is poised to continue outperforming the market this earnings season...

The Best Stock to Buy This Earnings Season

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Keith’s number one stock this earnings season is Visa Inc. (NYSE: V). He recommended it to paid subscribers of the Money Map Report, and the company already returned 39%, versus only 13% for the S&P 500.

The premise is simple - it makes money off of everyone else’s money. Here’s how:

  1. It's a global payments processor with no lending risk and a transaction volume of $43 million in the third quarter alone.
  2. The company operates in more than 200 countries around the world at a time when global growth is synchronized for the first time in a decade
  3. Total payment volume is around $7 trillion a year, which translates into roughly 10% of global GDP. Talk about an Unstoppable Trend!
  4. It’s aggressively pursuing new markets with incentives to use cards instead of cash on everyday purchases. It also partnered with Uber, which lets Visa-linked riders earn ride credits for buying goods at participating merchants.

Just ahead of its Oct. 25 earnings release, Visa was in a seven-day pullback. Consider that as just Visa stock being on sale. It was not much, at 1.5%, but it definitely showed that traders were nervous. Their nervousness is our opportunity.

Finally, Visa stock jumped 1.8% on Oct. 25, when the company revealed that its profit and sales came in ahead of analyst expectations. The rest of the market suffered its worst intraday sell-off in two months at the very same time. Clearly, money fled losing stocks and moved into winners like Visa.

Visa stock checks all the boxes. And since it already released its earnings, there are fewer uncertainties in the way of its rising trend.

Do not be afraid of stocks that seem to be high in price. What if you said that before the election, when economic uncertainty knocked the market down and took Visa stock down with it? You would have missed out on a 33% gain since the election.

Remember, as a member of the Unstoppable Trend group, market volatility cannot derail the rally. Buying high and selling higher is a good strategy when you have the right stocks, such as Visa.

This Stock Is Beating the Markets 16 to 1 – and It’s Just Getting Started

Investing should be profitable. But the average market index fund may hit 8% a year... if it's lucky.

A 401(k) or IRA may do 7%... if you've got good management. The average hedge fund... well, they've been clobbered lately.

Meanwhile, one of Keith Fitz-Gerald’s recent picks in his Money Map Report is beating the markets 16 to 1. It’s up more than 22% since June 20.

It’s just the latest winner from Keith, who regularly finds stocks set to rise on high-profit trends.

You can find out how to get that and all Keith’s Money Map Report recommendations here.

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