U.S. equities are moving powerfully higher on Monday, with the major large-cap indices testing recent record highs, after the United States reached a new trade deal with Mexico and Canada. Effectively “NAFTA 2.0”, the deal, which carries the moniker USMCA, will solve deficiencies in the original NAFTA deal and open new markets for U.S. farmers and manufacturers … at least according to President Trump.
Stocks are cheering the news, as it’s one of the first indications Trump’s aggressive trade tactics are starting to produce results instead of just escalation, as in the case with the ongoing tensions with China.
Investors are cheering the removal of a major source of policy uncertainty and are raising their hopes that previously imposed steel and aluminum tariffs will be rolled back to the benefit of manufacturers. As a result, a number of large-cap names are pushing to new highs. With that in mind, here are seven stocks to buy now:
Microsoft (NASDAQ:MSFT) shares are breaking out to a new record high, pushing away from the $115-a-share level and continuing a smooth and steady rise above their 50-day moving average going back to early April. The company has been enjoying a lift thanks to a dividend boost announced in late September, which included a rise from 42 cents per share to 46 cents per share. While this stock to buy isn’t directly impacted by the trade news, it’s enjoying the broad market tailwinds.
The company will next report results on Oct. 25. Analysts are looking for earnings of 96 cents per share on revenues of $27.7 billion. When the company last reported on July 19, earnings of $1.14 per share beat estimates by 6 cents on a 17.5% rise in revenues.
Heavy equipment manufacturer Caterpillar (NYSE:CAT) is at the epicenter of the ongoing trade disputes, as it is sensitive to both U.S. export activity as well as the price of steel and aluminum used to build its earthmovers and other machinery. Shares recently popped up and over their 200-day moving average, returning to a trading range last seen in June. Shares are also overcoming the negative impact of a downgrade from analysts at OTR Global on Sept. 21.
The company will next report results on Oct. 23, before the bell. Analysts are looking for earnings of $2.82 per share on revenues of $13.2 billion. When the company last reported on July 30, earnings of $2.97 cents per share beat estimates by 23 cents on a 23.7% rise in revenues.
Shares of Boeing (NYSE:BA) — one of America’s premier exporters, especially to China — are enjoying a 2.5% surge above triple-top resistance from February, and they are pushing to new record highs. This jump is coming after two tests of support at the 200-day moving average. The company’s order backlog continues to grow, as seen in BA’s announcement today of an order from United Airlines (NASDAQ:UAL) for nine 787 Dreamliners valued at $2.5 billion.
The company will next report results on Oct. 24, before the bell. Analysts are looking for earnings of $3.49 per share on revenues of $24.9 billion. When the company last reported on July 25, earnings of $3.33 per share beat estimates by 8 cents on a 5.2% rise in revenues.
Shares of Honeywell (NYSE:HON) are pushing to new highs, capping nearly a month-long consolidation range and resuming the uptrend that started in June. HON shares have experienced a total gain of nearly 20% so far. The company has many areas of exposure to trade and exports, acting as a supplier for BA and other aerospace companies as well as supplying products for home and building projects and advanced technologies like quantum computing.
The company will next report results on Oct. 19, before the bell. Analysts are looking for earnings of $1.99 per share on revenues of $10.7 billion. When the company last reported on July 20, earnings of $2.12 per share beat estimates by 11 cents on an 8.3% rise in revenues.
Danaher (NYSE:DHR) shares are extending their recent rise, pushing further away from the lows seen in late August for a move of roughly 10% so far. The company is a maker of medical and industrial products such as microscopes, filtration systems and purification solutions. The company has been a steady riser compared to some of the other companies on this list of stocks to buy, and it has risen without so much as a touch of its 200-week moving average since way back in 2010.
The company will next report results on Oct. 18, before the bell. Analysts are looking for earnings of $1.08 per share on revenues of $4.8 billion. When the company last reported on July 19, earnings of $1.15 per share beat estimates by 6 cents per share on a 10.4% rise in revenues.
Boston Scientific (BSX)
Boston Scientific (NYSE:BSX) shares have been a steady gainers as well, extending a 50% rise off of their late March lows to push to new highs. Analysts at Needham raised their price target to $43 after the company announced an agreement to acquire Augmenix, a developer of a treatment to reduce side effects of men recovering from prostate cancer radiotherapy.
The company will next report results on Oct. 24, before the bell. Analysts are looking for earnings of 34 cents per share on revenues of $2.4 billion. When the company last reported on July 25, earnings of 41 cents per share beat estimates by 7 cents on a 10.3% rise in revenues.
Shares of Cisco (NASDAQ:CSCO) are inching up and over recent congestion between $48 and $49 a share. CSCO is benefiting from a price target upgrade from analysts at Piper Jaffray who are now looking for $53. The stock has been on the move since August when the company reported an acceleration of revenue growth pushing the share price to levels not seen since dot-com bubble.
The company will next report results on Nov. 14, after the close. Analysts are looking for earnings of 66 cents per share on revenues of $12.9 billion. When the company last reported on Aug. 15, earnings of 70 cents per share beat estimates by a penny on a 5.9% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
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.