With the third-quarter earnings season largely over, we turn to seasonality to boost the stock market in the weeks ahead. As we’ve discussed before, we’re now in the "happy time of year," when Main Street’s positive mood and holiday spirit tends to spread to Wall Street. And I look for this seasonality to spur on a nice yearend rally. In today’s blog, I’ll reveal 15 stocks to help you harness this seasonal power for your own portfolio…
Third-quarter earnings announcement season overall was a boon for the stock market. Of the S&P 500 companies that have released results, average annual earnings growth came in at 6.1% and average annual sales growth was 5.8%. That was nicely higher than analysts’ estimates for 3.1% annual earnings growth back in September.
As such, today and tomorrow heading into this week’s holiday are great buying windows. In fact, this week is the safest time to invest, since the stock market tends to take off before Thanksgiving as we gather for friends, family, football and food.
That means you need to know which stocks are set to soar right now. Here are 15 A-rated stocks to help you head into Thanksgiving in a position of strength:
|BABA||Alibaba Group Holding Ltd.||A||A||A|
|HD||Home Depot, Inc.||A||B||A|
|RDS.A||Royal Dutch Shell Plc||A||B||A|
|UNH||UnitedHealth Group Incorporated||A||B||A|
|WMT||Wal-Mart Stores, Inc.||A||C||A|
Remember, you can always check your stock ratings in Portfolio Grader. When you run your holdings through this screening tool, take note of each stock’s Quantitative Grade (the current level of institutional buying pressure) and each stock’s Fundamental Grade (a weighted blend of eight financial metrics). Also check which of your stocks are rated as Conservative, Moderately Aggressive or Aggressive. Shoot to have 60% of your holdings in Conservative stocks, 30% in Moderately Aggressive and 10% in Aggressive. I can’t stress this last point enough because aggressive stocks will be the first ones to take a beating during a correction.
With the holiday this Thursday, I’ll be back tomorrow with an early dose of your economic news for the week.