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There are so many stories flying around the media, it seems everybody has a stock tip for us. It can be hard to discern what stocks to buy right now.
But we have it covered. The background for stocks is changing…
The best stocks to buy in February will get a jolt from a reopening economy.
The vaccine is starting to roll out across the United States. All indications say the market's pace will accelerate nicely in the coming weeks, and we will move closer to normalcy in our day-to-day.
These stocks are starting to show price momentum as the new normal approaches. They have each outperformed the S&P 500 over the past month.
Insiders recently bought the stocks as well, indicating a future pop.
Here they are…
One Stock Just Got a Massive Insider Buy Alert
Sally Beauty Holdings Inc. (NYSE: SBH) is an excellent example of a stock that should fly higher as the economy fully reopens this year.
Sally Beauty has more than 500 stores in the United States and around the world. Many of its stores have had to deal with lockdowns and restrictions during 2020, which hurt sales and profits.
Sally Beauty fought back by offering online ordering with pickup in-store, curbside pickup, and ship–from–store options to its customers. It also was able to grow its e-commerce business by almost 50% in 2020.
During 2020, it didn't have to spend as much in inventory, so it detoured some of that cash toward paying down debt. It also invested in its e-commerce platform and upgraded and improved its supply chain.
This stock should explode in 2021. Analysts expect earnings to double and average more than 30% annually for the next five years. Investors are starting to notice as the stock is outpacing the S&P 500 over the last month.
Those investors include insiders, as they have been buying the stock. The most recent purchase was last week, when the CEO picked up another 10,000 shares of the company.
Despite all this, the stock is trading at less than six times free cash flow, so Sally Beauty Holdings shares are a bargain with the potential for a huge price move.
A Retail Rally Will Push This Stock Higher
Tile Shop Holdings Inc. (OTCMKTS: TTSH) should make a huge move due to the end of the pandemic. Tile Shops has 142 retail stores around the United States. As you can imagine, from the name, it sells floor tiles and setting materials.
Back in 2019, management decided to cut costs by delisting the stock and suspending the dividend. The stock cratered from above $20 to single digits. The same folks who made that decision then bought up a considerable chunk of the company at bargain prices.
They did not get away with their planned shenanigans as they lost lawsuits and were removed from the company.
Due to the pandemic, Tile Shops had significantly reduced business hours and cut back the number of days per week it was open.
WARNING: It's one of the most traded stocks on the market every day – make sure it's nowhere near your portfolio. WATCH NOW.
It also has not yet relisted the shares on an exchange. That will change in 2021 as two major shareholder activists are pushing Tile Shops to relist the stock. This will bring institutional buyers back into the stock and push the shares much higher.
That institutional buying power and stronger sales with COVID-19 behind it should drive huge gains in the stock in 2021.
Activist and other large shareholders have been increasing their position in recent weeks in anticipation of a big move in the stock.
The Best Real Estate Stock to Buy Now
Finally, UMH Properties Inc. (NYSE: UMH) is a unique real estate investment trust that is uniquely positioned to benefit from the growing demand for single-family homes during the pandemic. There is a great need for housing in the United States. There was a shortage of homes before the pandemic, and the flight from big cities increased the demand in 2020.
There is an even bigger demand for homes that folks can afford. As one of the leading owners of manufactured home communities in the United States, UMH can help meet that demand.
UMH has 124 manufactured home communities containing approximately 23,400 developed homesites in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, and Maryland.
In manufactured housing communities, homeowners own the house but rent the lot from the owner.
UMH has also been expanding its portfolio of rental homes and has over 8,000 units available for rent. It views rentals as a growth opportunity since the rental value of a home is almost $800 a month, while renting just the site generates only about $455.
The rental homes also have a higher occupancy rate than the lot rentals at 95% to 86%.
Several of its communities are in or close to the Marcellus and Utica Shale Regions, the large natural gas fields located beneath much of Pennsylvania, Ohio, West Virginia, and New York. As oil and gas operations pick back up and the economy opens, the growing workforce will need housing, and UMH will be able to help meet those needs.
According to management's in-house estimates, the value of the assets owned by UMH could be almost double the current stock price.
The Complete List of Best (and Worst) Stocks for 2021
Wall Street insider Shah Gilani says 2021 could be a gold mine for Americans.
He's showing his subscribers exactly which stocks to buy and which to sell.
But you're getting it all for free – no sign-up or credit card required.
Prices, tickers, and company names will be coming your way fast.