Shares of Nvidia (NASDAQ:NVDA) have been hammered since the start of October. The rout in Nvidia stock pained a lot of long-term investors and shaken out, or caused severe losses for, a lot of recent buyers.

NVDA stock suffered a 50% decline in just 35 trading sessions from its early-October highs. Others, like Advanced Micro Devices (NASDAQ:AMD) have fared better, but have also been under pressure.

Despite the beating, Nvidia’s stock price is more a case of a broken stock than a broken company. Admittedly, it has a few issues, but they are more temporary than anything else and it still has several secular tailwinds at its back.

Evaluating Nvidia Stock

Current estimates call for 50% earnings growth this year and nearly 26% sales growth. However, those estimates drop considerably next year, calling for flat earnings growth and just 6% revenue growth. Now, inaccurate estimates can hurt both the bulls and the bears here, but consider how far off analyst estimates were for the upcoming quarter.

Management guided for $2.7 billion in Q4 sales, way below expectations for $3.4 billion. With that kind of miss, we can’t rule out that revenue could come under further pressure through the year. We also can’t rule out that analysts cut their estimates too much over the next five quarters.

That said, Nvidia has its share of issues. Mainly there was a false sense of demand for graphics chips thanks to cryptocurrency mining. Even though Nvidia had crypto-specific options, these miners were using all the chips they could get their hands on. That led to management, analysts and investors believing that demand was much strong than it really was. Once that crypto-fueled demand faded, it left NVDA with a glut of inventory, which will hurt business over the next few quarters.

For short-term investors, that likely takes Nvidia stock off their watchlist. For long-term investors though, that opens the door to opportunity. Nvidia is still a leading force in the artificial intelligence revolution and its new ray-tracing technology is unrivaled. It has solid growth in gaming and monstrous growth in the datacenter. Its professional visualization segment is no slouch and while small now, its automotive unit continues to churn out impressive growth, too.

Trading NVDA Stock

Click to Enlarge Trading at 21 times this year’s earnings isn’t expensive when we have 50% growth. However, with flat growth next year, that valuation may concern some investors.

When in doubt, I side with the company’s quality, which is top notch. Further, my outlook for Nvidia stock isn’t the next five to eight quarters, it’s the next five to eight years.

With that said, the valuation is only part of the equation. What do the charts say?

Nvidia stock has been locked in a costly downtrend that it’s still not out of. That sets up the first level we need to watch. Over the 21-day moving average and downtrend resistance, and NVDA stock may be able to get some bullish momentum.

If it can, look to see if it can hurdle its November high and make a push back to $194. At that level, Nvidia will fill its earnings gap and hit its 38.2% Fibonacci retracement level from the October highs to the November lows (that’s also the 2018 high/low range).

The other level to watch comes on the downside. Specifically, let’s see how Nvidia does in this $140 to $145 level. Although it shot below it last month amid its post-earnings pummeling, it’s been serving as a level of stability for the name.

If it can hold up there, long-term investors may add to their position. Should it fail as support, the $134 lows are in play. Below that and perhaps $120 becomes possible, a big breakout level in 2017.

This morning stocks are rallying on the back of good news from the G20 meetings. China and the U.S. struck a deal to halt the tariff rhetoric so that they can negotiate a long-term trade deal between the two countries.

The fear that the U.S. and China would bog down global growth with tariffs has driven a lot of market volatility this year. There is a lot on the line for all economies and this morning’s news is a relief to the markets.

Year-to-date — while not a financial disaster — equities have been under pressure and in see saw from one headline to the other. This is especially disappointing to financial stocks. This year was supposed to be when bank stocks flourished. The U.S. Fed is in a rate hike cycle and the idea was that banks would profit from the higher rates. This hasn’t worked out that way so far. In fact, coming into today the Financial Select Sector SPDR (NYSEARCA:XLF) is down 3% in 2019, lagging behind the S&P 500 and the Nasdaq which are up 4% and 11% respectively.

As a result, bank stocks are now even cheaper, so there is value in most of them, and they should be part of a healthy portfolio.  At some point this general macroeconomic malaise will pass and the sentiment selling will abate. There is a lot to like in these financial stocks and they are worth accumulating.

The Value Investment: Bank of America (BAC)

First on my list of financial stocks is Bank of America (NYSE:BAC). BAC sells at a trailing P/E of 13.6 — a ratio which is cheap in both absolute and relative terms. At these levels, BAC stock sells at almost price-to-book, meaning that investors give it no credit beyond the assets on its books.

Buying BAC here is likely very safe. Bank of America has a strong management team. They were able to navigate out of the worst financial disaster and save a few other banks along the way. In short, if the stock markets move higher in the next few years, then BAC stock will too. In addition, it mainly operates in the U.S. so it has little exposure to China headlines.

The Momo Run: Square (SQ)

Momentum stocks rarely give investors clear entry points. That is the case with Square(NYSE:SQ). Unlike Bank of America stock, SQ stock is far from cheap. But this is a fintech stock so I don’t give the same amount weight to value as I would for a standard financial center. Case in point, even though SQ has fallen 20% in the last three months, it’s still up 80% in 12 months.

This is a stock that should to be part of a complete portfolio. SQ has solid fundamentals as it begins to compete with the likes of Visa (NYSE:V) and Mastercard (NYSE:MA). Recently SQ stock was dragged lower by the bitcoin crash. Part of the rise of Square was tied to its foray into the blockchain arena. So like Nvidia (NASDAQ:NVDA), SQ suffers on the way down with bitcoin too.

Both BAC and SQ are financial stocks technically poised for spikes. They are now re-approaching pivot zones and if the bulls can prevail in retaking them they can shot 7% higher on momentum alone. Since SQ is a fast mover, its breakout will be faster and longer than that of BAC, but they should both do well.

The Gamble: Goldman Sachs (GS)

Last on my list of financial stocks to buy today is Goldman Sachs (NYSE:GS) . GS stock has grossly under-performed in absolute terms  and relative to the sector. GS is down 24% in 12 months.

Recently Goldman Sachs has been in the news over issues with their potential involvement in the Malaysian bond fraud event. I don’t now how this scenario is going to play out but it’s worth a small bet for a positive resolution. Usually Wall Street is too quick to overreact and it’s too early to call GS stock dead for good. As a result of its massive fall, GS now sells at an 8x forward P/E.

Nevertheless, Goldman Sachs stock still carries a high ticket price at $190 per share. So one can use options to speculate on a rebound into the first quarter of 2019 instead of risking the face value of the stock. Options offer lower entry costs for a chance to profit on a rebound. In addition to the fundamental news, GS stock is also at a technical disadvantage. Losing the $220 level triggered a bearish pattern that may still be unfolding. There is further risk below if $185 zone also fails.

Everyone is stressing about the FAANG stocks right now. But there are some other stock plays that are looking very attractive even in this choppy market. Not only that but you don’t have to pay three-digit sums to make some sweet returns. It’s time to look outside the box at some cheap stocks you won’t regret. The best way to find these stocks is to use a screener, that way you can open up your investing horizon to a much wider stock pool.

Here I used TipRanks’ Stock Screener to find these 10 cheap stocks. Essentially, I looked for 1) stocks with a ‘Strong Buy’ top analyst consensus; 2) serious upside potential (i.e. over 20%). And on top of this each one of these stocks comes in at under $30. Basically a bargain! Note that the consensus is based on ratings from the last three months, so the consensus is pretty up to date.

Let’s take a closer look now:

Cheap Stocks to Buy: First Data Corp (FDC)

“You Can’t Be Serious; Shares Too Cheap To Ignore” exclaims five-star Oppenheimer analyst Glenn Greene (Track Record & Ratings) on this financial stock. One of the largest payment processing companies in the world, First Data Corporation (NYSE:FDC) offers retailers card and mobile payment acceptance capabilities for online and point-of-sale transactions.

Greene reiterated his Buy rating on the stock on November 14. His $27 price target indicates upside potential of over 50%.

“After reviewing 3Q18 results, and speaking with management, we remain optimistic regarding FDC’s growth trajectory and believe the post-quarter stock reaction (-17% since 10/26 vs. +2% for S&P 500) has been largely overblown” the analyst wrote. Both FDC’s intermediate term growth/profitability outlooks and deleveraging thesis remain intact.

At these levels he views shares as ‘very compelling’, with a roughly 35% discount to peers.

Overall FDC- a ‘Strong Buy’ name- has received 17 recent buy ratings vs just 3 hold ratings. This comes with an average analyst price target of $27 (51% upside potential). Interested in FDC stock? Get a free FDC Stock Research Report.

Stocks to Buy: ANGI Homeservices Inc (ANGI)

Chances are you know of ANGI Homeservices Inc. (NASDAQ:ANGI) — the world’s largest digital marketplace for home services. The company is the result of a major tie-up between Angie’s List and IAC’s HomeAdvisor.

The big news is that ANGI has just reported its best quarter since the merger. “ANGI’s 2017 [earnings] goal of $270 million initially faced investor skepticism,” wrote Raymond James analyst Justin Patterson (Track Record & Ratings) on November 9. “Yet management delivered on its goal while driving revenue outperformance.”

“Having demonstrated the margin potential, management believes it is prudent to reinvest organically and via M&A (i.e. the Handy acquisition) to drive the next phase of growth in a $400 billion total addressable market” the analyst wrote. Handy Technologies Inc is a New York-based startup offering small tasks at fixed prices.

Patterson has a buy rating on the stock and a $23 price target. With shares down over 5% in the last five days, his price target suggests 24% upside potential lies ahead. (However note that the stock is still up 60% year-to-date.) In total this ‘Strong Buy’ stock has received 5 recent Buy ratings and 1 hold rating. Get the ANGI Stock Research Report.

Cheap Stocks to Buy: Altice USA Inc (ATUS)

Cable stock Altice USA Inc (NYSE:ATUS) is currently trading at ‘frankly ridiculous’ levels argues top Pivotal Research analyst Jeff Wlodarczak (Track Record & Ratings). Indeed, his $25 price target translates into juicy upside of over 40%.

The logic for the fall in cable stocks in 1H was fundamentally flawed, says the analyst. “As these concerns reasonably have cleared up the stocks have rebounded substantially a trend we expect to continue into the seasonally strongest results of the year (4Q/1Q).”

Plus, you have to remember that cable’s best-in-class, high-margin data product (70% EBITDA margins) gives them the ultimate hedge against competition and most anything else that rears its head (including a potential slowing economy).

And as for ATUS specifically, the Pivotal analyst says “investors seem to think that weakness at former parent Altice Europe’s French operations mean the Altice operating strategy cannot work in the U.S. when the reality is that France remains, arguably, the most competitive market in the world.”

He isn’t alone in this bullish take on the stock: ATUS scores 100% Street support. This is with a $25 average analyst price target (40% upside potential). Get the ATUS Stock Research Report.

Cheap Stocks to Buy: Williams Companies Inc (WMB)

Williams Companies Inc (NYSE:WMB) boasts 33,000 miles of pipelines — including America’s largest-volume and fastest- growing pipeline — providing natural gas for clean-power generation, heating, and industrial use.

According to the company, demand for natural gas is tremendous and continues to grow. This is because gas is cleaner, less expensive and more efficient than other fuels capable of meeting around-the-clock energy demand.

“We think Williams is well positioned to benefit from demand-driven Northeast gas projects around Transco, solid NE G&P volume and cash flow growth, low-capex GOM upside, and more control of liquids downstream the Rockies” opines Top 50 RBC Capital analyst T J Schultz (Track Record & Ratings).

He has a Buy rating on the stock with a $36 price target (43% upside potential). Looking forward, Schultz believes Williams can grow EBITDA by 10% in 2019. After 2019, he forecasts mid-to-high single digit growth, supported by new projects coming online and growth on legacy assets.

Overall, 7 analysts have published Buy ratings on WMB in the last three months, vs just 1 hold rating — giving the stock its ‘Strong Buy’ analyst consensus. This is with a $33 average analyst price target (31% upside potential). Get the WMB Stock Research Report.

Cheap Stocks to Buy: Smartsheet Inc (SMAR)

Smartsheet Inc (NYSE:SMAR) calls itself the leading work execution platform. Essentially, it helps organizations move from idea to impact — fast. Shares are already up 35% over the last six months. But don’t worry there’s still plenty of upside lined up ahead.

When you consider the market opportunity SMAR faces, you understand why this stock still looks cheap. Apparently there are now 865 million “knowledge workers”, which is a big TAM [total addressable market] for a company with “only” 4.2 million users.

“We remind investors that when growth software stocks are at the foothills of a large TAM opportunity the stocks almost always work for the simple reason that you don’t have any contravening evidence that says the company won’t scramble its way to the top” notes Canaccord Genuity’s Richard Davis (Track Record & Ratings).

Fresh from the company’s upbeat user conference and analyst day, he calls execution ‘exemplary’ and cites the new $1 billion revenue target in 4-6 years.

Overall this ‘Strong Buy’ stock has received only Buy ratings in the last three months. These six analysts have an average price target of $36 (34% upside potential). Get the SMAR Stock Research Report.

Cheap Stocks to Buy: Trupanion Inc (TRUP)

Everyone loves pets, and one stock out there is benefiting from our growing pet obsession.

Welcome to Trupanion (NASDAQ:TRUP), a pet insurance provider for cats and dogs in the U.S., Canada and Puerto Rico. Trupanion has just smashed Q3 earnings results, earning it a full set of Buy ratings from the Street. “Off the leash” cheered RBC Capital’s Mark Mahaney (Track Record & Ratings) on November 9. He continued: “We view TRUP’s top-line results as encouraging, with EBITDA and pet growth continuing to outperform expectations.”

In short, Trupanion ticks all the boxes for the RBC analyst. Here’s a stock with a large growth opportunity (estimated to be about $3-5B+) in an under-penetrated market (less than 1%) with a robust growth profile, a differentiated business model, and a very strong management team.

The conclusion: Trupanion shares represent an attractive investment absent a significant, unexpected slowdown in pet policy growth. As a result Mahaney reiterated his Buy rating on the stock with a $44 price target (70% upside potential). This comes in slightly above the average analyst price target of $42 — which still indicates compelling upside potential of 61%. Get the TRUP Stock Research Report.

Cheap Stocks to Buy: American Eagle Outfitters (AEO)

True, retail stocks are facing challenging circumstances right now. But could American Eagle Outfitters (NYSE:AEO) be the exception? Both Citigroup and Wedbush firms have just upgraded AEO from Hold to Buy. They are predicting sizable upside potential of 33% and 43% respectively.

Right now AEO is down ~30% since reporting 2Q earnings at the end of August. The stock has been painted with the same brush as most other retail stocks. But according to the Street, investors are missing a big factor in the AEO bull story.

“But AEO has something that others don’t — one of the most attractive growth concepts in retail (Aerie)” argues Citigroup’s Paul Lejeuz (Track Record & Ratings). “Aerie is taking market share in the lingerie market with consistent double-digit comps and significant growth potential… And with the recent sell-off, we believe the market is not giving AEO the credit it deserves for Aerie.

He believes Aerie is worth ~$2BN, implying the core AE biz is valued at 3.1x EV/EBITDA, which is overly pessimistic. Indeed, six analysts have published recent Buy ratings on AEO stock. So no sell or hold ratings here. Get the AEO Stock Research Report.

Cheap Stocks to Buy: Pattern Energy Group Inc (PEGI)

Renewable energy stocks are perfectly positioned to capture the ongoing transition from carbon-based power systems. A transition estimated to be worth a whopping $10 trillion. And Pattern Energy Group Inc (NASDAQ:PEGI) is one of these stocks. The company owns and operates 12 wind power projects in the U.S., Canada and Chile.

Plus the stock is currently looking super cheap — especially when you factor in that this is a top-quality dividend stock. “With a dividend yield of ~9%, we continue to believe PEGI is significantly undervalued” cheers Oppenheimer’s Colin Rusch (Track Record & Ratings).

He believes the stock is set up for ‘superior performance.’ Moreover, “We believe its underwriting practices are in line with industry best practices and its wind resource modelling capabilities are among the industry leaders.”

With 100% Street support, analysts are predicting upside potential of 20% from current levels. Get the PEGI Stock Research Report.

Cheap Stocks to Buy: Evolent Health Inc (EVH)

Evolent Health Inc (NYSE:EVH) sells software and consulting services to help healthcare providers, like hospital systems, offer care at lower costs. This is particularly important given the ongoing shift to value-based payments systems. From a Street perspective, this is a first-class stock with a lot of potential.sup

In the last half year, EVH has received only buy ratings from the Street. And in the last three months alone, we are looking at 8 top analyst buy ratings. The best part: with an average price target of $33, analysts see prices spiking over 38% in the coming months.

“We continue to be encouraged by the momentum in the transition toward risk-based reimbursement and by EVH’s position to gain from it” says five-star Oppenheimer analyst Mohan Naidu (Track Record & Ratings). He reiterated his buy rating with a $31 price target on November 7. Plus the recent acquisition New Century Health adds nicely to numbers and moves estimates higher for Q4.

He says: “Evolent is one of the few vendors well positioned to help health systems that intend to transition to risk-based reimbursement models. The systems need significant help… While there is competition, we believe EVH is differentiated in its proven ability, technology offerings, service and credibility in helping organizations make the switch successfully.” Get the EVH Stock Research Report.

Cheap Stocks to Buy: The Medicines Company (MDCO)

Last but not least on our cheap stocks list we have The Medicines Company (NASDAQ:MDCO). This is a company with the potential to deliver a blockbuster drug for cholesterol management.

B Riley FBR analyst Madhu Kumar (Track Record & Ratings) recently initiated coverage of the stock with a Buy rating citing the firm’s lead drug, PCSK9 RNAi drug inclisiran (developed in conjunction with Alnylam Pharma (NASDAQ:ALNY)).

He says inclisiran “has the potential to disrupt the management of high cholesterol and cardiovascular disease.” This helps explain the analyst’s very bullish $70 price target. From current levels this means shares could explode 250% from current levels!

Kumar recommends keeping an out for results from the ongoing Phase III ORION-9/10/11 trials for inclisiran, guided for 2H19. If the data meets expectations, these results could serve as key positive catalysts for MDCO shares.

Pay Your Bills for LIFE with These Dividend Stocks

Get your hands on my most comprehensive, step-by-step dividend plan yet. In just a few minutes, you will have a 36-month road map that could generate $4,804 (or more!) per month for life. It's the perfect supplement to Social Security and works even if the stock market tanks. Over 6,500 retirement investors have already followed the recommendations I've laid out.

Click here for complete details to start your plan today.

Source: Investor Place

The Thanksgiving holiday — a time for investors to take time off to be with family and friends, celebrating all that we have to be thankful about. But it’s also a time to begin thinking about the winning stocks to buy for 2019.

After a month like October that saw the S&P 500 lose 7%, there are certainly a lot more stocks to consider given the pullback. By comparison, November has been roughly flat so far.

When planning for 2019, it makes sense to consider stocks to buy that have momentum heading into the final six weeks of the year. So, I would recommend stocks that are up 20% over the past month.

According to Finviz.com, there are 145 stocks with a market cap greater than $2 billion that are up 10% over the past month. Here are my seven winning stocks to buy heading into 2019 from that group.

Canada Goose (GOOS)

If you own Canada Goose (NYSE:GOOS) stock, you’re no doubt pleased with the company’s returns both in 2018 and halfway through November. Of course, when you’re blowing through analyst estimates and raising your guidance for the year, you’re bound to get a nice updraft in your stock price.

In the second quarter, which ended Sept. 30, Canada Goose had revenue of CAD$230.3 millionand an adjusted profit of CAD$0.46 a share. Revenues were up 34% year over year while adjusted earnings per share were up 59% in the quarter.

More importantly, Canada Goose raised its revenue growth for the year from 20% to at least 30% and adjusted earnings per share growth of 40%, 15 percentage points higher than its earlier guidance.

Equally exciting, Canada Goose announced on Nov. 14 that it’s getting into footwear, acquiring Canadian-based Baffin for CAD$32.5 million.

A triple-threat business with wholesale, retail and e-commerce, Canada Goose is easily one of the top three stocks to buy in North American apparel.

Tesla (TSLA)

Okay, so Tesla (NASDAQ:TSLA) stock isn’t tearing it up in 2018 like Canada Goose, but the fact that it’s up for the year is great news for longtime shareholders. After all, it was trading as low as $252 as recently as Oct. 22, 29% lower than today.

That’s what I’d call a recovery.

There’s no doubt that 2018 has been a trying year for the company, but Elon Musk is both a visionary and resilient as all get out, two characteristics necessary to deliver new technology to the world.

“Tesla certainly endured a summer of discontent, what with its troubled Model 3 launch and CEO Elon Musk’s failed go-private scheme and subsequent SEC action and fines,” wrote Business Insider’s Matthew DeBord on Nov. 17. “But the company snapped its season of self-inflicted bad luck in time to turn a rare profit in the third quarter. As it turns out, the timing was excellent, given the impending tech-industry meltdown.”

Indeed it was.

I’ve had my doubts about whether Elon Musk could bring Tesla to the promised land without having a breakdown; he’s proven me wrong and that’s great news if you own TSLA stock.

Heading into 2019 on a high, TSLA stock might be the best investment you can own at this point in the bull market.

Noah Holdings (NOAH)

Noah Holdings (NYSE:NOAH) is a Chinese wealth management company. It’s also one of my favorite Chinese stocks. I’ve been recommending NOAH regularly since 2013.

“In Q2 2018, the company’s ‘Other Financial Services’ grew by 73% to $6.9 million. While that pales in comparison to its wealth management and asset management segments, it’s the future potential of services such as lending and online trading that’s got my attention,” I wrote on Nov. 9. “Eventually, I could see a business that act’s like a three-legged stool, with each division delivering profitable growth.”

The fact is, as China continues to grow, whether we’re talking 8% or 3% GDP growth, Chinese affluent and near-affluent are going to need financial advice.

Noah Holdings has $24.4 billion in assets under management, a network of 1,495 relationship managers, and 287 branches spread across China serving more than 220,000 clients.

As long as China doesn’t give up on some form of quasi-capitalism, Noah Holdings will continue to be a reliable long-term play in my opinion.

HMS Holdings (HMSY)

Businesses that make or save people time or money, as a rule, tend to do well. HMS Holdings (NASDAQ:HMSY), a Texas-based data analytics company that helps save big health plans billions of dollars annually, is no exception.

HMS announced its Q3 2018 earnings report November. Revenues were up 5.1% from Q2 2018 and 22.8% from Q3 2017. Regarding adjusted earnings per share, HMS had sequential growth of 24.0% and year over year growth of 63.2%.

”The record third quarter revenue reflects progress we have made throughout the year on a number of growth initiatives related to our coordination of benefits and payment integrity offerings, as well as the important contribution of our new care management and consumer engagement products,” stated Bill Lucia, chairman and CEO.

Is it any wonder then that HMS stock is up 119% over the past year and 108% year to date? It sure isn’t.

As a result of the strong results announced in early November, HMS raised the low end of its revenue guidance for the year by $20 million to $595 million while increasing the top end by $15 million to $600 million.

If you’re looking for a healthcare stock to bet on in 2019, HMS ought to be at the top of your list.

Autohome (ATHM)

If you live in China and you’re looking to buy a car or truck, new or used, Autohome (NYSE:ATHM) is the information provider to help you make that decision.

Autohome went public in December 2013 at $17 a share. If you bought its stock in the IPO and are still holding, you’re up 327% in the five years since.

I’ll take that kind of return every day of the week and twice on Sundays. Interestingly, Telstra Corporation (OTCMKTS:TLSYY), the Australian telecom company that took it public, sold much of its stock for $1.6 billion in April 2016. Today that would be worth almost three times as much.

However, don’t feel sorry for Telstra. It paid less than $76 million for 55% control of Autohome’s parent back in 2008. As for Autohome itself, its business is doing splendidly.

In Q3 2018, announced Nov. 12, Autohome’s revenues were 34% higher year over year to $275 million while adjusted earnings rose 55% to 90 cents a share. It finished the third quarter with 279 million mobile users, 48% higher than a year earlier.

As I said earlier in November, Autohome might be the best Chinese stock to buy on recent weakness.

Fox Factory (FOXF)

November Return: 40.0%

Fox Factory (NASDAQ:FOXF) is a stock that I wish I would have bought when it first went public at $15 a share in August 2013.

Back then, the maker of bike, ATV and motocross shocks was owned by Compass Diversified Holdings (NYSE:CODI), a Connecticut-based investment company that’s part private equity, part asset manager, definitely patient capital.

While Compass Diversified did well on its investment in Fox Factory — it initially invested $78 million — today, if it had hung on to its 19.6 million shares after the IPO, they would be worth $1.4 billion. That’s about half the holding company’s current market cap.

Would’ve. Could’ve. Should’ve.

Fox Factory announced its Q3 2018 results Oct. 31. They were solid with revenues up 38% in the quarter while adjusted net income rose 56% in the quarter.

Investors liked the results, pushing FOXF stock up 18% on the news. It’s now up 32% since Oct. 31 as investors get on board what could be the best momentum play of these seven stocks in 2019.   

Newell Brands (NWL)

In early September, I recommended that investors buy Icahn Enterprises (NYSE:IEP), because its stock was down but not out, having lost 13% in just five days of trading.

My rationale for buying it was that it was oversold with a relative strength index (RSI) of 21 and numerous interesting investments, including a significant stake in Newell Brands (NYSE:NWL), a company that owns Rubbermaid and many others, that’s lost its way.

Carl Icahn has a way of shaking up establishment CEOs and boards to the point where changes are made to extract value for shareholders. In the case of Newell Brands, Icahn brokered a truce between fellow activist investor Starboard Value, himself, and the company.

That was in April.

Although Newell’s board has yet to replace CEO Michael Polk, who has delivered woeful returns since becoming CEO in July 2011, its latest quarterly report released Nov. 2 was much better than analysts were expecting, hence the 36% return in November.

As long as Carl Icahn’s a significant shareholder, NWL has a good chance in 2019.

As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.

Buffett just went all-in on THIS new asset. Will you?
Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
Click here to find out what it is.

Source: Investor Place

The market had a pretty terrible October. And so far, November isn’t looking a whole lot better. A bunch of previously hot trends, from FAANG stocks to marijuana and crypto are all struggling as of late. The recovery in oil has abruptly reversed; crude prices are now in freefall.

Add it all up, and things have gotten downright ugly from a sentiment perspective. It has felt like there has been no place to hide during the recent selloff. Investors have plenty of worries, including higher interest rates, oil prices, China’s economic health and a changing political outlook following the elections.

But there is some good news. Earnings growth remains strong. The unemployment rate is low; remember, the Fed is hiking aggressively to keep the economy from overheating. Consumer confidence is elevated, and as such, we should expect a strong holiday season, particularly with gas prices dipping. On top of that, we’re entering the historically strongest portion of the year for the stock market.

While others are worried, it’s the time to go shopping for stocks ahead of the holidays. Here are seven stocks to buy today.

JD.com (JD)

JD.com (NASDAQ:JD) is having an unpleasant 2018 due to three factors. For one, its revenue growth rate has slowed down significantly. Second, the whole Chinese tech sector has plummeted thanks to escalating trade war tensions. Finally, JD’s CEO, Richard Liu, was involved in a sexual assault scandal that rattled some investors’ nerves.

To be clear, these are all legitimate concerns. JD stock is a high-risk, high-reward stock. But with the share price down from $50 to $22, it’s time to get aggressive as others are panicking.

JD stock is now down to 0.5x sales. That’s an absurdly cheap ratio for a fast-growing e-commerce play.

Amazon (NASDAQ:AMZN), by contrast, tended to trade at three times that level during its post-recession growth phase, and that’s before its valuation surged even higher as the cloud business took off. Unless you think Chinese trade concerns will send their economy into a deep recession, or that the company’s business model has broken down, it’s hard to see a case where JD stock doesn’t trade back to 1x sales sooner or later.

Figuring that revenues grow 30% next year, and you’re looking at JD stock trading north of $50 per share again in due time.

Transcanada (TRP)

The oil bears are back in full force. WTI crude prices have plummeted from $76 in early October to just $56 now. The decline was capped by a punishing 9% decline on Tuesday as rumors of Saudi production changes and potential hedge fund wipeouts led to capitulation selling.

For investors seeking stocks to buy at a discount, this sort of action is great. Traders tend to sell anything related to oil during a major decline in crude. They’re making a big mistake with Transcanada (NYSE:TRP), however. TRP stock, owner of the Keystone pipeline, along with various natural gas pipelines, energy generation facilities and energy storage units, is now on deep sale.

The company, which has produced 13% compounded annual returns since 2000, is a true North American blue-chip stock. Although its Canadian headquarters makes it less known to American investors, the $35 billion market cap firm is one of the leaders in our energy industry. And with TRP stock near 52-week lows, it now yields more than 5.4%, with management suggesting that there will be 8% to 10% annual dividend hikes through at least 2022.

Given Transcanada’s exposure to natural gas investors should look past short-term oil weakness and buy TRP stock on this dip. This is particularly true when you consider that the price of natural gas has surged 50% in recent months.

Schlumberger (SLB)

Here’s a fun fact. At the bottom of the 2015-16 oil crash, when WTI crude hit $27 per barrel, Schlumberger (NYSE:SLB) stock bottomed at $65 per share. Now crude is sinking again, but is still at $56, or double where it was at the nadir of the previous crash.

SLB stock, by contrast, is at $48. That’s a 25% discount to its previous low.

Has Schlumberger’s business position gotten that much worse? No, it hasn’t. It remains the world’s leading oilfield services company, with roughly 100,000 employees working in more than 85 countries. It also has stayed solidly profitable and continues to pay its dividend despite the rough times for the oil industry in recent years.

Value investing pioneer Benjamin Graham put it well in his classic book The Intelligent Investor. There, he suggested that during a crash in a sector, the prudent patient investor could simply buy the industry’s leader, assuming it had a reasonable balance sheet and hold on for the inevitable recovery when the sector became hot again.

We don’t know when oil will bounce back. We do know that Schlumberger will still be in business when it does. In fact, the longer the sector downturn goes on, the more SLB stock may benefit as its weaker peers go bankrupt and it can buy up their assets and hire their employees on the cheap.

In any case, SLB stock is one of the more appealing stocks to buy, given that it’s at a 25% discount to the worst of its 2016 levels, even with oil way up from then.

Goldman Sachs (GS)

I’m generally not a huge proponent of the too-big-to-fail banks. In general, a discriminating investor can find better value in smaller local banks. That said, a market overreaction of this magnitude is hard to ignore … yes, Goldman Sachs (NYSE:GS) should rebound quickly in coming weeks.

GS stock plummeted from $230 last week to $205 on the basis of a scandal in Malaysia. Malaysia’s finance minister is demanding a $600 million refund of fees. Goldman Sachs earned that amount in return for underwriting bonds of the controversial 1MDB fund.

Reports claim said fund stole money and that Goldman Sachs “cheated” in its dealings in the matter. Assuming the worst is true and Goldman refunds $600 million, that would amount to a hit of less than $2 per share of GS stock.

Thus, the stock market has punished GS stock roughly 10x the amount of market cap that is implicated in this scandal. Sure, it’s possible that the damage spreads. But investment banks end up in this sort of mess all the time; the generally safe assumption is to expect fines, a regulatory slap-on-the-wrist and then business carrying on like usual.

And business as usual is looking pretty great for Goldman Sachs here. Thanks to the recent selloff, the stock is trading at 8x trailing and 8x forward earnings. That’s right, this $205 stock is earning more than $25 in annual earnings-per-share. I know investment banks are risky, but that’s a pretty huge margin of safety.

Once this scandal blows over, expect traders to rediscover the strong fundamentals for the U.S. financial industry and bid GS stock back up.

British American Tobacco (BTI)

For higher yield dividend investors, British American Tobacco (NYSE:BTI) should be near the top of your radar. The $90 billion market cap firm has seen its stock plunge in 2018, putting it firmly in the “stocks to buy at a major discount” category. In fact, BTI stock is down from $70 to $37 in recent months.

That’s a truly massive drop for a defensive company like British American. Usually vice stocks, such as beer, liquor and cigarette names hold up well through market volatility. In fact, over the past 80 years, those sectors have historically been No.1 and No. 2 in total market returns.

However, BTI stock is in freefall now. That’s partly due to higher interest rates knocking down many higher-yielding stocks. The bigger risk has come with the threats to the menthol cigarette market.

The Food and Drug Administration is reportedly looking at banning the popular product. British American has led this product category, and a ban would certainly hit profits. But it’s estimated that only 25% of its profits come from menthol products; that’s hardly reason enough to trigger a nearly 50% selloff in the BTI stock price this year.

In the meantime, shareholders now get a juicy 6.9% dividend yield for owning BTI stock. And with the P/E ratio at just 9x, even an unfavorable resolution to the menthol issue would still leave the stock at a reasonable valuation.

Qualcomm (QCOM)

The ups and downs continue for Qualcomm (NASDAQ:QCOM). The company remains a controversial one. Since its NXP Semiconductor (NASDAQ:NXPI) merger blew up, investors have quickly had to reassess their outlook for Qualcomm as an independent entity. Initially QCOM stock declined, but shares advanced 40% off the lows as investors warmed up to the company’s prospects. In particular, the company’s announcement of a gigantic $30 billion share buyback seemed to put a floor under the stock.

Unfortunately, the combination of the October tech rout and weak quarterly results have sent QCOM stock tumbling again. For people looking for stocks to buy, however, the sell-off is an opportunity.

Qualcomm’s licensing franchise on 3G and 4G patents should continue to deliver strong and stable cash flow for many years to come. And while there is much more uncertainty, Qualcomm should earn strong profits in future years from 5G as well. And the tide in the patent litigation battle against Apple (NASDAQ:AAPL) appears to be turning in Qualcomm’s favor. Once that is resolved, it will lift an overhang on QCOM stock.

In the meantime, enjoy a greater than 4.5% dividend and a robust share buyback policy.

A.O. Smith Corporation (AOS)

Looking for a lower risk way to play the recovery in China-related stocks? While JD stock has more upside, A.O. Smith (NYSE:AOS) is a safer way to take advantage of a thaw in trade relations between China and the U.S. A.O. Smith, for those unfamiliar, is an $8 billion market cap leader in water heaters, boilers and water treatment products.

While the business may sound boring, its returns have been rather dramatic. Prior to the financial crisis, AOS stock was priced at $6. It’s now at $45, and it had recently hit $65 before the China worries started.

AOS stock has managed such spectacular growth because the emerging markets have huge demand for water products. As billions of people come into the middle class, they can finally afford AOS’ products, which has led to near double-digit revenue growth for the firm.

At 16x forward earnings, AOS stock looks reasonably priced for a defensive company that also supports surprisingly strong growth prospects.

Here’s another thing to love: A.O. Smith treats its shareholders well. It has raised its dividend every year in a row dating back to 1984. With the recent stronger growth in emerging markets, it has been raising the dividend at more than 10% annually in recent times, including an impressive 22% hike this most recent year.

Combine that with a stock that has recently dropped 30% on China worries, and this is a great stock to buy during this correction.

Pay Your Bills for LIFE with These Dividend Stocks

Get your hands on my most comprehensive, step-by-step dividend plan yet. In just a few minutes, you will have a 36-month road map that could generate $4,804 (or more!) per month for life. It's the perfect supplement to Social Security and works even if the stock market tanks. Over 6,500 retirement investors have already followed the recommendations I've laid out.

Click here for complete details to start your plan today.

Source: Investor Place