I expect tomorrow to be a big day for the market. That’s because this is when Automatic Data Processing Inc. (ADP) releases it payroll report for the month of January. This, along with Friday’s big Unemployment Rate report, indicate the direction of U.S. job creation. While I expect the January data to still be distorted by the severe winter weather, my money is on a big upward revision for December.
This just may be what is needed to shake Wall Street out of its doldrums, and I’m keeping my trigger finger ready to buy if the news is good. The fact is that Wall Street doesn’t seem to realize that much of the economic news has been distorted by weather and seasonal factors. But we’ll eventually put this bitterly cold winter behind us and the stock market should similarly thaw out a bit.
The question we should be asking is "when should we jump in feet first?"
I plan on jumping in sooner, rather than later, because this earnings season is in full swing and we’re seeing some trendous buying opportunities. Before I dig into five such opportunities, a word of caution: In this narrowing market, I’d first put my money in A-rated growth stocks and strong dividend stocks. I wouldn’t buy any B-rated stocks right now, not at least until we’re through the seasonally choppy month of February and things have truly warmed up a bit.
So, take a look at these five A-rated stocks in Portfolio Grader and see if any suit your investing strategy. I can tell you that I’m personally recommending two of these stocks in my top newsletters, and we’ve already a double-digit return on both of them in the few months since we’ve added them. But the way these earnings numbers look, I see plenty of upside left for each of these growth plays:
Five A-Rated Stocks to Buy on Dips
|Symbol||Company Name||Est. EPS Growth||Est. Sales Growth||Quantitative Grade||Fundamental Grade||Total Grade|
|LMT||Lockheed Martin Corporation||8%||-2%||A||B||A|
|QIHU||Qihoo 360 Technology Co.||96%||104%||A||A||A|
|STZ||Constellation Brands, Inc.||62%||85%||A||A||A|
|UA||Under Armour, Inc.||43%||27%||A||B||A|