It is easy to buy stocks, but the art of buying the right stock tests even the most seasoned investors.
Buying the right stock requires a time-tested strategy. You may be wondering what stocks to add to your watchlist at this time. Stocks such as Alphabet (GOOGL), Arista Networks (ANET), Nike (NKE), NXP Semiconductors (NXPI), and West Pharmaceutical Services (WST) are a few of those that are worth a shot this season.
Investors dreaded the pandemic bear market; however, stocks have rebounded quite powerfully. There is growing confidence that the economy will recover fully from the coronavirus, which explains the intense action we are seeing.
Despite the appearance of the COVID Omicron variant, there are hopes that it only results in mild cases.
The weaker-than-expected jobs numbers for November ensured the stock market took a hit, even though the market made a positive return in a 39-year high inflation.
Best Value Stocks
These are the stocks to aim for to yield maximum gains.
1 – Alphabet
The search engine giant’s parent, Alphabet, has slipped under in its buy zone after it broke out of a flat base. MarketSmith analysis considers 2,925.18 a great place to buy, and it remains actionable as high as 3,071.44.
The stock may try to edge away from its 10-week line. It looks like a good entry and is actionable as much as 10 per cent above the line. Note that market correction increases the risks for all new buys.
The relative strength line is just below record highs, moving sideways as it consolidates. It measures a stock’s performance relative to the S&P 500.
Alphabet recently announced a $50 billion GOOGL stock buyback. After posting Q3 earnings, EPS stepped up 71 per cent to $27.99, including gains on equity investments. Gross revenue rose 41 per cent to $65.12 billion in the quarter ended September 30.
Analysts had estimated Google earnings of $23.73 per share on gross revenue of $63.5 billion.
2 – Nike
Nike is within whiskers of a new 179.2 buy point. It’s looking to support a 10-week moving average, and if it can steer clear of the key technical benchmark, that will be good enough.
Earnings for the sportswear maker are due December 20, which may be a catalyst. Shares got a boost after the company notched its 20th straight year of dividend hikes. It boosted quarterly dividends by 11 per cent to 30.5 cents per share. NKE investors are not worried about supply chain concerns for the holiday quarter from major Nike seller, Foot Locker (FL).
Nike’s strong Composite Rating of 85 makes it one of the top 15 per cent of all stocks overall.
Analysts expect company earnings to grow 1 per cent in 2022 before an explosive 31 per cent growth in 2023.
3 – West Pharmaceutical Services Stock
The ideal buy point is 458.09, with shares sliding down to the 10-week line, showing a possible rebound entry. The stock still trades tightly.
There is a strong IBD Composite Rating of 94, with earnings far better than stock market performance. Its EPS Rating is a whopping 98, and EPS growth has been an average of 67 per cent over the past three quarters.
Several notable funds own WST stock, including Baron Asset Retail Fund (BARAX) and the T. Rowe Price New Horizons Fund (PRNHX).
West Pharmaceutical is a leader in the integrated containment and delivery of injectable medicines. It makes no drugs but makes vials, syringes, and other products that support drug delivery to patients.
Nearly all companies developing COVID vaccines and treatments are West customers.
These stocks are excellent additions to any serious investor portfolio. They have many of the attributes of resilient stocks and have stayed strong for an extended period. Their fundamentals continue to be sound.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only.