Market Preview: Markets Rally, But Still Face the Fed, Trade Wars, and Global Slowing Headed into 2019

Markets ended 2018 with something of a whimper after all the volatility in the fourth quarter. While there were no extreme swings, it was still an up and down day for the averages which all managed to close in positive territory. The DJIA was up 1.15%, the S&P 500 climbed .85% and the Nasdaq finished the day up .77%. This placed all the averages down on the year, with the final numbers coming in at the DJIA down 5.63%, the S&P 500 off 6.24% and the Nasdaq wrapping up 2018 down 3.88%. It was an unusual year for the markets in many ways. But, one of the most unsettling for investors, was the fact that at the end of the third quarter the markets were handily in positive territory, only to finish negative for the year.

For the first time in history the S&P 500 finished the third quarter in positive territory and then ended down on the year. At the end of September, the DJIA was up 8%. The swiftness of the decline has been attributed to algorithmic and automated trading by many pundits. But, the genesis of the negative action is clearly attributable to an interview given by Federal Reserve Chairman Powell. In the interview, he noted interest rates were a “long way” from neutral, the Fed’s target rate. Following Chairman Powell’s declaration on October 3rd, markets turned negative and never could find solid footing, even with a few extreme rallies, not uncommon in a bear market.

The questions for investors now is, where are markets headed in 2019. Market analysts are all over the map, predicting large rallies in some camps, and urging continued, or additional, caution in others. Some are pointing to historical markers, there have only been four back-to-back down markets since 1929, and others are focused on valuations. Barring a further deterioration in earnings, many believe markets are slightly undervalued here and the selloff represents a buying opportunity headed into the new year.

Whichever camp you favor, the issues facing markets as we head into 2019 remain unchanged from those that brought the market to its knees in the fourth quarter. The Fed, though softening its stance slightly, is still predicting two rate increases in 2019, and perhaps more importantly seems bent on improving its balance sheet and moving full steam ahead on quantitative tightening (QT). Though there were positive tweets from President Trump on the trade situation with China over the weekend, most believe the trade war between the two countries will at best be resolved late in the first quarter of 2019, and at worst may linger on into the summer. And finally, global economies, namely China, are clearly slowing. The major question is whether QT by other global banks will bring about a global recession.    

No economic data nor earnings will be released on Tuesday as the markets take a break to celebrate the New Year holiday. No earnings are currently scheduled for Wednesday.

Economic data to be released Wednesday includes Redbook retail data and the PMI Manufacturing Index. The comparable store sales data for chain stores, discounters, and department stores is expected to show a 7.8% year-over-year increase. While other economic data, such as regional Fed manufacturing surveys and housing numbers, have pointed to a weakening economy, the retail numbers have been very strong this holiday season. The PMI Manufacturing Index is expected to show no changes from the earlier flash number and settle at 53.9 for December. This is a slight decrease from the November PMI of 55.3.

A Pizza Company More Profitable Than Amazon?
Forget Tesla, Amazon, Netflix and Google! A Pizza Company has beat every single one of these tech giants... and made its investors over 2,500% since 2010.
It's all thanks to a $100 Trillion ‘Digital Helix’ and it could make YOU 2,537% profits if you act before November 29.
Click here to find out more...

10 Stocks That Are Screaming Buys Right Now

Editor’s Note: This story originally appeared on March 2018 but has since been updated and republished to reflect new developments.]

Buckle up — the market is looking jittery right now. If it’s not the threat of further Federal interest rate hikes, it’s the possibility of a full-blown prolonged trade war with China and Europe. As James Brumley notes, however, if geopolitical risks were actually a deterrent to investing in today’s best stocks to buy, “nobody would ever put a penny in stocks”.

For investors prepared to put in the work, there are plenty of gems to be found. I set out to pinpoint the best stocks to buy right now using the best analysts on Wall Street as guidance. TipRanks tracks and measures the performance of over 4,700 analysts enabling investors to identify consistently outperforming experts.

Analysts are ranked based on two crucial factors: success rate and average return-per-recommendation. Following top analysts is an easy way to identify stocks that experts believe have strong investing potential. That’s why I’m only including companies with a ‘Strong Buy’ top analyst consensus based on the past three months of ratings.

Using this consensus, investors can be reassured that these stocks are the crème-de-la-crème as far as the Street is concerned.

Bearing this in mind, let’s dive in and take a closer look at the top 10 best stocks to buy right now:

Facebook (FB)

Best Stocks to Buy: Facebook (FB)

Source: Shutterstock

Social media giant Facebook (NASDAQ:FB) is one of the best stocks to invest in right now. Shares are cheap at $131. And now we have a clear buying opportunity on our hands according to two top analysts.

Looking at TipRanks best-performing analysts, FB stock is expected to see upside of 43%, with prices spiking to $188.10. Meanwhile, top-100 analyst KeyBanc analyst Andy Hargreaves adds, “We believe this provides an opportunity to purchase above-average growth at Facebook for a price that is well below average.” He believes investors are heavily discounting FB’s growth prospects and extraordinary core momentum. His $245 price target suggests even greater upside potential with FB rising to $195.

Boeing (BA)

One of the world’s largest aerospace companies, shares in Boeing (NYSE:BA) slipped this year on trade war fears. But Head of Research at Fundstrat Tom Lee believes the market overreacted.

He has calculated that Boeing actually has a trade war exposure of just 35.2%. To calculate this figure, Lee looked at the company’s overseas sourcing as a percentage of cost of goods sold and exports as a percentage of sales. A percentage under 40% means the company has a low trade war exposure, according to Lee.

And in this case, despite all the trade war noise, I would recommend carefully considering Boeing right now. After all, BA stock has received 11“buy” ratings in the past four months, with three analysts on the sidelines. With a $436 average price target, upside potential stands at 38%. But some analysts are much more bullish than consensus.

For example, five-star Cowen & Co analyst Cai Rumohr singles out BA as one of the best stocks to buy. He has a bullish $445 price target.

Alexion Pharmaceuticals (ALXN)

Best Stocks to Buy: Alexion Pharmaceuticals (ALXN)

Source: Alexion Pharmaceuticals

Alexion Pharmaceuticals (NASDAQ:ALXN) is a U.S. pharma company best known for its development of Soliris, a drug used to treat rare blood disorders. And top Oppenheimer analyst Hartaj Singh selected ALXN as his top stock to buy for February-March. Bear in mind this is a five-star analyst with a top-200 ranking on TipRanks (out of over 4,700).

Singh is confident that Alexion can explode more than 40% from just $116 to $165. He says the stock’s risk/reward profile is oriented to the upside making this a top stock to invest in right now.

He concludes: “With a robust rare disease platform, a slowing yet cash-generating asset in Soliris, and two newly launched products in Strensiq and Kanuma, we believe that it is not a question of if, but rather when, the shares positively re-rate.”

In total, Alexion has scored seven buy ratings and only two hold ratings from best-performing analysts in the past three months. These analysts predict that Alexion will rise roughly 41% to reach $164.44.

Pioneer Natural (PXD)

Best Stocks to Buy: Pioneer Natural (PXD)

Source: Shutterstock

Texas-based Pioneer Natural Resources (NYSE:PXD) is on the cusp of great things. The company is divesting all non-Permian assets. This asset sale should raise PXD about $1 billion and it transforms PXD into a pure-play on the Permian Basin. Given that this is one of the world’s most lucrative oil fields, that’s no bad thing.

B. Riley FBR analyst Rehan Rashid applauds the company’s “strategic realignment.” He says the move will enable PXD to ramp up its investment in its Permian assets.

“We believe this platform and the substantial resource base it has to offer are simply not replicable. We reiterate our ‘buy’ rating and $305 price target and add PXD to the B. Riley FBR Alpha Generator list” says Rashid. He calculates “new” resource potential of nearly 20 billion BOE (barrels of oil or equivalent).

TipRanks shows that Pioneer has received 11 buy ratings and one hold ratings from analysts. Considering that the stock is now at $151, analysts are projecting (on average) upside potential of 58%.

Vertex Pharmaceuticals (VRTX)

Best Stocks to Buy: Vertex Pharmaceuticals (VRTX)

Source: Shutterstock

Global biotech stock Vertex Pharmaceuticals (NASDAQ:VRTX) is a prime investing pick right now with a growing portfolio of cystic fibrosis (CF) drugs. This is a genetic disorder that causes severe damage to the lungs, digestive system and other organs in the body.

The company scored a key approval from the FDA for its third CF drug, Symdeko, earlier this year. The approval came two weeks earlier than expected and “potentially speaks to the FDA’s growing comfort with the suite of VRTX medicines” says JP Morgan’s Cory Kasimov. Management is now anticipating a “strong launch” for Symdeko with E.U. approval on track for the second half of 2018.

“We continue to believe that VRTX’s dominance in the CF space, compelling bottom-line growth trajectory (43% CAGR through 2022), and significant free cash flow generation could potentially allow the company to substantially expand the breadth of its investor base” cheers Kasimov. So watch this space.

Overall, this “strong buy” stock scored 13 top buy ratings and just one “hold” rating in the past few months. Meanwhile, the average analyst price target of $208 works out to 30.7% upside from current share levels.

Raytheon (RTN)

Best Stocks to Buy: Raytheon (RTN)

Source: Shutterstock

Defense giant Raytheon Company (NYSE:RTN) is the world’s largest producer of guided missiles. As with Boeing, you may be concerned that this stock would suffer in the event of a trade war. However, you can rest easy.

According to research firm Fundstrat, it actually has a trade-war exposure percentage of 35.2% (again, anything under 40% is considered low). And from a Street perspective, the outlook on RTN is also very bullish right now.

“Strong broad order momentum, a large Patriot backlog, and untapped financial firepower give RTN extended EPS and cash flow per share growth potential” cheers five-star Cowen & Co. analyst Cai Rumohr. He notes that the Harpoon replacement missile bid, a massive $8 billion opportunity, could be decided as soon as fall 2018.

With a strong outlook for 2018 and the subsequent years, RTN has received four buy ratings from the best analysts in the last three months. In this same period, two analysts have remained on the sidelines. The average analyst price target indicates 27% upside potential from the current share price.

Alibaba (BABA)

Best Stocks to Buy: Alibaba (BABA)

Source: Shutterstock

Chinese e-commerce giant Alibaba (NYSE:BABA) has a “moderate buy” analyst consensus rating with big upside potential of 30%. The Street is unanimous in its take on BABA as one of the best stocks to invest in right now.

I say that because in the last ten months, this stock has received no hold or sell ratings from the Street. Just 100% buy ratings.

Key growth drivers to keep a close watch on include rural/cross-border/cloud/logistics. For example, AliCloud (Alibaba’s answer to Amazon Web Services) revenue is soaring with triple-digit year-over-year growth.

Skechers USA (SKX)

Best Stocks to Buy: Skechers USA (SKX)

Source: Shutterstock

Skechers (NYSE:SKX) is primed for significant expansion. Even after a 60% rise last year, the company remains notably undervalued compared to its athletic retail peers. Top Susquehanna analyst Sam Poser recently reiterated a target of $29. The new target indicates a further near-20% upside from the current share price.

Following a blowout fourth-quarter earnings report, Poser is confident that the stock’s solid momentum is here to stay. “Another significant earnings beat reinforces our belief that SKX is at the beginning of a multiyear run of superior earnings growth and outsized investor returns,” he said.

According to Poser, SKX is now seeing strength in “all its businesses.” The company’s domestic wholesale business is inflecting while the potential for growth in international markets is robust. He predicts that strong Chinese growth will enable management to meet its targeted $6 billion in revenue by 2020. This suggests an impressive CAGR rate of roughly 13%.

“A premium multiple is warranted as we are confident that the SKX business is on the verge of a material positive inflection,” Poser concludes in his Feb. 9 report. On Skechers specifically, Poser has a 75% success rate and 37.6% average return across 43 stock ratings.

In the last three months, Skechers has received five buys and five holds, and an average price target of $31.

2U Inc (TWOU)

Best Stocks to Buy: 2U Inc (TWOU)

Source: Shutterstock

Online education platform 2U (NASDAQ:TWOU) received a slew of price target increases from the Street this year. On May 3, the company reported Q4 results ahead of expectations. This marks its sixteenth consecutive quarter of outperformance. 2U’s Q4 organic revenue growth accelerated to about 30% year-over-year, and 2018 guidance implies another year of “Tier 1” industry revenue growth.

But for top Oppenheimer analyst Brian Schwartz it’s not just about 2018 — it’s about the changes sweeping through the education industry. He sees a “high migration” likelihood toward the digital channel for students and learning over the next decade.

“We believe long-term investors will be rewarded over the years as 2U disrupts and transforms the post-secondary education landscape with little credible threat over the medium term” states Schwartz. This top-10 analyst has a $70 price target on TWOU.

In the last three months, this stock to buy boasts five buy ratings from the Street’s best analysts.

MasTec (MTZ)

Best Stocks to Buy: MasTec (MTZ)

Source: Shutterstock

Last but not least of all the best stocks to invest in for 2018, we have Florida-based specialty contractor engineer MasTec (NYSE:MTZ). The company’s work spans electric power infrastructure, oil and natural gas pipelines, renewable energy facilities and wireless networks. Strength across the board has resulted in 100% Street support with four top analysts publishing recent buy ratings. These analysts spy near-60% upside potential for MTZ.

The company has released very strong Q4 results last month. Notably, cash flow and liquidity remained strong, giving MTZ flexibility for organic and acquisitive growth.

“Guidance for 2018 was solid and suggests another record year for the company, with strong market trends across all of its segments. We believe MTZ is well positioned across all of its end markets to benefit from multiple opportunities for long-term growth” states top B.Riley FBR analyst Alex Rygiel.

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: Investors Place

Market Preview: Markets Rally Then Close Mixed as President Trump Threatens to Close Border

Markets were on track to finish higher Friday, when the rhetoric between the President and Democrats around the partial government shutdown heated up, with jabs being thrown by both parties. President Trump, in a tweet, threatened to close the border with Mexico, abandon the newly minted USMCA trade deal, and cut off aid to several Central American countries he has criticized for not stopping caravans of immigrants headed to the U.S. border. A spokesman for incoming House Speaker Nancy Pelosi returned fire saying the Democrats had offered solutions to the ongoing shutdown but would not fund the President’s “immoral, ineffective, and expensive wall.”  Markets were once again derailed by the headlines as the DJIA rally vanished and the index finished down .33%. The S&P was off .12%, and the Nasdaq bucked the trend to advance .08%. Most traders are ready to throw in the towel on 2018, as this December will likely go down as one of the worst in history for stock market returns.

Investors will be watching the Dallas Fed Manufacturing Survey closely Monday after a major drop in the Richmond Fed Manufacturing Index on Wednesday. The fall in the Richmond numbers was very unexpected, and caught analysts by surprise. The Dallas Fed numbers have been on the decline for several months now. Tuesday markets will be closed for the New Year holiday.

Redbook retail data and the PMI Manufacturing Index will be released Wednesday. The index tracks private sector output, new orders, and inventory levels to give investors an idea of how manufacturing industries are performing. Analysts will be parsing the data to determine if it ties with the Richmond and Dallas Fed releases.

The first earnings releases of 2019 begin Thursday when Unifirst Corp. (UNF) and The Simply Good Foods Company (SMPL) report. Simply Good Foods has recently shifted its marketing and branding message for its Atkins line from a diet product to a wellness product. The company has ramped marketing spend to get the word out, which has hampered earnings. RPM International (RPM), Lamb Weston Holdings (LW) and Cal-Maine Foods (CALM) all report earnings Friday.

Thursday, will see the release of motor vehicle sales and MBA mortgage applications. Mortgage applications fell sharply last week with the purchase index down 7%. The Challenger job cut report, ADP employment report, and jobless claims will also be released on Thursday. Jobs have remained a bright spot to this point in the economic cycle, and investors are counting on good numbers to kick off 2019. The ISM manufacturing index and construction spending numbers are slated to be released at 10 am Thursday.

The first Friday of 2019 will bring out Fed Chairman Jerome Powell to participate in a panel discussion at the American Economic Association in Atlanta, Georgia. Markets have been shaken recently by the Fed’s attempts to communicate policy, and investors will likely be hanging on Chairman Powell’s every word. Economic data released Friday includes the employment situation report and PMI services numbers.

This ‘Overlooked’ Sector Produced the Biggest Winners of the Last Decade
Wall Street is oblivious to it, yet you can earn 2,537% profits from an overlooked "blue chip" sector. The same group of stocks that has produced some of the biggest winners of the last 10 years.
Investors have earned 618%, 834%, and up to 2,500% - performing better than Amazon, Netflix and Facebook.
Click here to get in on your own 2,537% windfall.

Apple (AAPL) Could Get Back To $200 In A Year

When we’re in a bear market (defined by a 20% correction from the top), it’s not unusual to see investors scrambling for value. Looking for good stocks that have been dropped into the bargain bin is at least one way to feel optimistic about the future. After all, it’s not like there’s much in the way of good news when stock prices are plunging.

Nevertheless, patient investors can often find good deals. And, if you’re willing to wait for a recovery, bear markets can be great times to pick up that stock you’ve always wanted at a heavily discounted price.

Of course, that doesn’t mean these stocks aren’t first going to drop further. But, timing the market is the hardest thing to do in investing. If you find a stock you want at a price you like, then there’s nothing wrong with buying it if you plan on holding for the long-term.

In my opinion, Apple (NASDAQ: AAPL) is one of those stocks that’s trading at a very attractive price. Even if the company’s recent product launches aren’t breaking records, it doesn’t mean the business isn’t making boatloads of cash. And, AAPL has a way of beating expectations.

What’s more, the stock is trading at a forward P/E of just 10.7x, which is extremely low. Unlike some other high-flying tech companies, AAPL isn’t at some lofty valuation solely based on future potential.

As I said before, that doesn’t mean the stock isn’t going to fall further. It’s a part of many fund holdings, so when investors sell funds during bear markets, it pulls down all the components – both good and bad. That’s why I suggest a longer-term view.

Here’s the thing…

At least a few options traders agree with me. This week, I’m seeing a lot of action in the January 2020 expiration, almost all of it bullish. Traders are buying long-term (in terms of options anyhow) options strategies that suggest AAPL has plenty of upside.

As I write this, the stock is trading at about $151, well off the highs of $233 in September. But, one trader thinks $200 could be in range over the next year.

This trader purchased the January 2020 190-200 call spread. That means the 190 strike was purchased while the 200 strike was sold. The total cost of the trade was $2.00, which means breakeven is at $192 by January 2020 expiration.

Max gain is at $200 or higher, where the trade makes $8 in profit at expiration. That’s 400% profits for those counting at home. Granted, $200 is almost $50 higher than where we are now. But, there’s over a year of time built into this trade, so plenty of opportunities for AAPL to get its groove back.

The trader purchased this spread 1,000 times, so spent in premium $200,000 on the trade. That’s also the max loss potential. Of course, max gain is $800,000 if the trade works out.

I think $2 per spread is a reasonable price to pay for over a year of bullish exposure to AAPL stock. While the stock has a ways to go to get to profitable levels in this trade, the chance to earn 400% makes it a bet worth taking if you’re bullish on AAPL over the next year.

  [FREE REPORT] Options Income Blueprint: 3 Proven Strategies to Earn More Cash Today Discover how to grab $577 to $2,175 every 7 days even if you have a small brokerage account or little experience... And it's as simple as using these 3 proven trading strategies for earning extra cash. They’re revealed in my new ebook, Options Income Blueprint: 3 Proven Strategies to Earn Extra Cash Today. You can get it right now absolutely FREE. Click here right now for your free copy and to start pulling in up to $2,175 in extra income every week.

Source: Investors Alley

Ignore the Market Crash: Here’s When It’s Really Time to Sell a CEF

With market volatility kicking into high gear, now is the perfect time to talk about one of the biggest questions CEF investors face: how do you know when it’s time to sell a closed-end fund (CEF)?

Unfortunately, there’s no simple answer to that question—and often investors who use conventional sell signals, like a falling market price, will end up selling at the worst time.

That leads me to my cardinal rule with CEFs: it’s easier to know when to buy than when to sell. If the fund is well managed, has a strong track record, is deeply discounted and has a relatively safe dividend, it’s generally a screaming buy. Signs to sell aren’t always so obvious, but they are still there. You just need to know what to look for.

With that in mind, here are three key points to consider when deciding whether to sell a CEF.

No. 1: The Premium is Too High

The first clue that it’s time to sell a CEF is the most obvious: when the fund is overbought, it’s time to dump it.

For instance, take the BlackRock Enhanced International Dividend Trust (BGY), which I recommended to members of my CEF Insider service in March 2017. I chose BGY at that time because its discount had suddenly widened, despite the fact that changes in its portfolio indicated it was well positioned to surge.

The fund did this over the following eight months:

A Fast 20% Return

A big reason for this return: BGY’s unusually large discount of 12% in March steadily closed to a more normal 6.7% in November, when I urged subscribers to sell.

After my sell call, the fund did this:

A Steady Drop

The lesson? Keep track of the discount, and when it gets too narrow (or becomes a premium) relative to its historic average, it’s time to get out of this crowded trade.

No. 2: Pressure on an Entire Sector

Sometimes some outside force will pressure the type of assets the fund invests in. When this happens, sell as fast as possible.

The great thing about CEFs is that, in large part because of their small size and retail-investor base, they react more slowly and over a longer period to bad news than more popular ETFs. This means anyone who keeps up with the news and invests in CEFs has more leeway to respond to the market and sell.

A clear example of this happened with a municipal-bond fund in late 2017: the Invesco PA Value Municipal Income Trust (VPV).

I recommended this fund to CEF Insider members in March 2017 for familiar reasons: a great and reliable dividend yield, strong management and an unusually big discount. And the fund delivered over the next few months, even outperforming the municipal-bond index ETF that tracks VPV’s benchmark:

Cheap VPV Beats the “Dumb” Index Fund

Then a major news event happened in September 2017 that prompted me to release a sell alert: S&P Global Ratings downgraded Pennsylvania’s bonds, and the state did not immediately respond to the market’s concerns.

The combination of a downgrade and lawmakers’ refusal to address it was a crystal-clear sell signal. VPV did this in the five months after we unloaded it:

VPV Takes a Fast Dive

For a municipal-bond fund, this is a big move in a short time. And all it took to avoid this short-term pain was to follow the news and react in a timely way.

No. 3: Get Defensive in a Bear Market

My third point is something that hasn’t yet happened since we launched CEF Insider, although I do believe it is a couple years away: a recession and bear market.

Every investor dreams of avoiding plunges like 2008/09. No one can steer clear of losses all the time, of course, but it is possible to defend your portfolio while continuing to collect the 7%+ dividend streams our CEF Insider picks hand us.

The key is to keep a watchful eye for four economic warning signs: rising unemployment, slower wage growth and consumer spending and, above all, the so-called “inverted yield curve.” That’s when the spread between 2-year and 10-year Treasury yields goes negative; in the past, it’s correctly indicated a recession within the following 12 months.

Below the Black Line Means Danger Ahead

The financial press has spilled a lot of ink about the inverted yield curve recently, because in the last year it’s tanked to its lowest point since just before the 2008/09 meltdown.

But we haven’t seen an inverted yield curve yet. When we do, it’s time to emphasize defensive CEF sectors, especially if it’s accompanied by rising unemployment and falling wages. The appearance of an inverted yield curve is also a very good time to prune weaker CEFs from your holdings, such as those with flaws like the ones I showed you in points 1 and 2.

Michael Foster has just uncovered 4 funds that tick off ALL his boxes for the perfect investment: a 7.4% average payout, steady dividend growth and 20%+ price upside. — but that won’t last long! Grab a piece of the action now, before the market comes to its senses. CLICK HERE and he’ll tell you all about his top 4 high-yield picks.

5 Low-Priced Stocks Under $10 for the New Year

Source: Shutterstock

As Warren Buffett likes to say, “price you what you pay, value is what you get.” It’s the reason why a $300-per-share stock can be cheap, while a $3 one can be expensive. With that said, there’s something about low-priced stocks that captivates investors’ imaginations. After all, there’s nothing like being able to buy a ton of shares for dirt cheap and having them take off. And there is some method to this madness.

For example, the Fidelity Low-Priced Stock Fund (MUTF:FLPSX) has managed to return nearly 15% annually over the last 10 years. That return has managed to beat both the small-cap-focused Russell 2000 and Russell Midcap Index over that time. Low-priced stocks can be a big source of additional alpha and returns.

The key is that many low-priced stocks are cheap for a reason. Finding the ones that have the potential for greatness or overcoming their issues is vital. They are a gamble, but the payoff can be big for portfolios. The idea is to keep your bets small and broad.

For investors looking to put some risk capital to work, here are five low-priced stocks that have great potential in the new year.

Low-Priced Stocks Under $10 for the New Year: Dova Pharmaceuticals Inc (DOVA)

Source: Shutterstock

Dova Pharmaceuticals Inc (DOVA)

Closing Share Price on Dec. 19: $6.07

Over the summer, Dova Pharmaceuticals (NASDAQ:DOVA) was riding high. The biotech firm had scored an approval for their drug Doptelet. The drug is used to treat thrombocytopenia — which is a low-blood-platelet disorder. With that disease, patients find it hard to form blood clots and suffer major bleeding from even a small injury. The drug has plenty of blockbuster potential. Unfortunately, that potential hasn’t lived up to expectations.

Management recently cut sales guidance for the drug down to just $2.4 million. That’s about half of what Wall Street is looking for. At the same time, several key executives have recently left the company. Naturally, investors are spooked and shares have nose-dived, dropping from a recent high of about $30 per share down to under $7.

But that could be a great buying opportunity for this low-priced stock.

For one thing, the potential for Doptelet is there. DOVA is looking to fast-track Doptelet for other indications of thrombocytopenia. That will expand the usage of the drug and bring in more revenues. Secondly, Dova has replaced many of its outgoing managers with executives from winning biotechs like United Therapeutics (NASDAQ:UTHR) and Vertex (NASDAQ:VRTX).

With that, analysts still have price targets in the $20 to $30 range on this low-priced stock.

Low-Priced Stocks Under $10 for the New Year: Trivago (TRVG)

Source: Shutterstock

Trivago (TRVG)

Closing Share Price on Dec. 19: $5.81

Internet travel websites are known for their profitability, as their margins remain crazy high. However, for hotel booking site Trivago (NASDAQ:TRVG) that hasn’t been the case over the last year or so. TRVG has spent much of the last few quarters disappointing investors and has lost money. That’s sent shares tumbling and below $6 per share.

However, TRVG may be a bargain among low-priced stocks.

For one thing, the bleeding seems to have stopped. While revenues continue to drop, profits have come back to the travel site. Trivago managed to post net income of 10.1 million euros or around 0.03 euros per share last quarter. Analysts were looking for another loss.

And other things have gotten better for TRVG as well. Returns on advertising spend jumped by 25 percentage points to reach 135.9%, while the firm continues to see improvement/demand from its mobile site. Additionally, Trivago continues to see huge listing numbers — over a million places — from so-called alternative accommodations, including private apartments and vacation rental properties. This is great considering this is the fastest-growing section of travel booking. All in all, analysts expect the firm to continue to see profits in 2019.

When it comes to low-priced stocks, Trivago’s turnaround is one to bet on.

Low-Priced Stocks Under $10 for the New Year: Goldcorp. (GG)

Source: Shutterstock

Goldcorp (GG)

Closing Share Price on Dec. 19: $9.23

With volatility and uncertainty rising, gold has been riding high over the last few quarters. That surge in gold prices hasn’t exactly reached former gold stock kingpin Goldcorp (NYSE:GG), though. In fact, the GG share price currently places it among the low-priced stocks and castaways of the mining sector. The gold miner’s stock has now fallen to levels not seen since 2002!

And part of that decline is justified.

Goldcorp continues to be hit on several fronts. During the spring, the miner reported lower production and rising all-in costs. This trend continued during the fall. Last quarter, Goldcorp once again showed a decline in production — by roughly 20% — and saw its all-in sustaining costs surge higher. That’s terrible. Essentially, GG hasn’t been able to capitalize on the higher gold prices and is now earning less on what it does mine.

But there may be some hope for this low-priced stock.

Goldcorp mentioned that drop in production was a short-term dip due to lower one-time output at the company’s Penasquito mine. Meanwhile, the firm has made significant progress on its 20/20/20 plan, which will see production rising by 20%, costs falling by 20% and asset reserves growing by 20%. Ramped-up production at its Eleonore and Cerro Negro mines have helped here. Moreover, GG is producing decent cash flow and has resumed its dividend payment.

If management can execute on its plan, GG stock should regain much of its former glory. That makes it one of the best low-priced stocks to snag in the mining sector.

Low-Priced Stocks Under $10 for the New Year: Barclays PLC ADR (BCS)

Barclays PLC ADR (BCS)

Closing Share Price on Dec. 19: $7.46

One of the biggest shadows on the entire market happens to be the dreaded Brexit. Naturally, the U.K.’s exit from the European Union hasn’t gone smoothly. Heck, at this point, an exit might not happen even at all. Because of that, it has thrown plenty of uncertainty over stocks in the United Kingdom. This includes U.K. banking giant Barclays PLC ADR (NYSE:BCS).

BCS never fully recovered from the financial crisis, and the latest Brexit woes have put a hurt on its share price, which currently rests below $8 per share. But that low price does offer some bang for the buck.

For one thing, Barclays is dirt cheap and can be had for a forward P/E of around its share price. At the same time, it has a price-to-growth ratio of less than 1. That means would be investors are not paying much for its current earnings nor its future projections. Those future projections are coming from its continued moves to court more international high-net-worth investors from the Middle East. Additionally, recent moves into Fintech have improved BCS margins.

All of this is starting to pay-off. Last quarter, BCS saw some big jumps to its profits and revenues- despite the Brexit mess. The firm reported EPS of £0.07 and total net income of £5.13 billion. This was roughly double what analysts expected it to earn per share. The hope is that Barclay’s can keep it going with the world’s economy getting a bit rocky.

But with its rock-bottom P/E and PEG, the bank is a prime example of value among low-priced stocks today.

Low-Priced Stocks Under $10 for the New Year: VEREIT (VER)

Source: Shutterstock

Vereit (VER)

Closing Share Price on Dec. 19: $7.49

Sometimes low-priced stocks are being punished for things that happened years earlier. Case in point, real estate investment trust Vereit (NYSE: VER). VER’s issues started back in 2016 when it was called American Realty Capital Properties. American Realty was created by combining several non-traded REITs, and it quickly became one of the largest single-property REITs in the country. At its peak, it held more than 4,600 different properties. Unfortunately, executives at the firm weren’t so great and it turned out that they used all sorts of questionable accounting tricks.

Naturally, shares of VER sank like a stone when the news came out. Several lawsuits, jail time, a dividend cut and a name change bring us to Vereit. And that’s actually a good thing.

The new management at the firm has worked to reduce and prune its portfolio of underperforming and “flat” leased properties. Debt reduction and bolstering its balance sheet have also been a priority. These efforts have helped and VER finally started to turn the corner. Cash flows continue to be robust and the firm is able to pay its juicy 7%-plus yield.

The problem remains the overhang of lawsuits from shareholders. But with many shareholders already settling, VER is getting closer to being 100% free from its past. With the end in sight, the real estate firm could be one of the most sure things when it comes to low-priced stocks.

Disclosure: At the time of writing, Aaron Levitt did not have a position in any of the stocks listed, but may initiate a position in DOVA.

This ‘Overlooked’ Sector Produced the Biggest Winners of the Last Decade
Wall Street is oblivious to it, yet you can earn 2,537% profits from an overlooked "blue chip" sector. The same group of stocks that has produced some of the biggest winners of the last 10 years.
Investors have earned 618%, 834%, and up to 2,500% - performing better than Amazon, Netflix and Facebook.
Click here to get in on your own 2,537% windfall.

Source: Investor Place 

6 Stocks Set for Monster Growth in 2019

Although stocks have experienced a rough ride in 2018, some stocks still have a big chance to shine through year-end. The best stocks to buy now go above and beyond the normal growth prospects. While looking for these kinds of investments, I examined six of the best stocks to invest in, all with huge upside potential and support from the Street’s top analysts.

The best way to find these stocks is with TipRanks’ Top Analyst Stocks tool.

Why? Well, the tool reveals all stocks with strong buy ratings from Wall Street’s best-performing analysts. You can then sort the stocks by upside potential to pinpoint compelling investing opportunities.

At the same time, I was careful to avoid stocks that have big upside potential simply because share prices have crashed recently. Check the price movement over the last three months to be sure shares are moving in the right direction.

With that being said, let’s get straight down into taking a closer look at these six stocks to buy now — all of which I believe look undervalued.

Stocks to Buy Now: Cloudera (CLDR)

Stocks to Buy Now: Cloudera (CLDR)

Big-Data cruncher Cloudera (NYSE:CLDR) has upside potential of 100% say the Street’s top analysts! Currently, the stock is trading at $11.37 but analysts see it hitting $22.88 in the coming months. The stock has experienced some volatility this year, but it is now in a very promising setup. Indeed, since its downturn in April, Cloudera has surged 50%!

Michael Turits, a five-star analyst from Raymond James, reiterated his Cloudera “buy” rating yesterday at $24.

We can see from TipRanks that this ‘Strong Buy’ stock has a lot of Street support. Indeed, in the last three months, CLDR has received five buy ratings, including an upgrade from D.A. Davidson.

Stocks to Buy Now: Dave & Busters (PLAY)

The hybrid game arcade and restaurant chain Dave & Buster’s Entertainment (NASDAQ:PLAY) scored a rebound this year, but more upside is to come. Specifically, analysts expect 20.5% from the current share price — all the way from $59.18 to $71.29.

However, Maxim Group’s Stephen Anderson is more bullish than consensus — he believes the stock can soar to $71. Even though the stock has experienced some short-term sales volatility, he says that valuation remains very compelling.

Ealier, Anderson described PLAY stock as “deeply inexpensive relative to Casual Dining Peers” and ultimately: “Our core thesis on PLAY, which is comprised of; (1) high-margin entertainment revenue growth; (2) robust unit expansion; and (3) longer-term comp growth of at least 2%, remains intact.” PLAY should also benefit big-time from the upcoming tax reform.

In the last three months, PLAY has received an impressive seven consecutive buy ratings. As a result, the stock has a ‘Strong Buy’ analyst consensus. Out of these ratings, five come from best-performing analysts.

Stocks to Buy Now: CBS Corp (CBS)

Media stock CBS Corporation (NYSE:CBS) can climb nearly 20% in the next 12 months, say top analysts. This would see the stock trading at nearly $70 versus the current share price under $60.

Just a couple of days ago, Imperial Capital’s David Miller reiterated his “buy” rating. This was accompanied with a very bullish $71 price target. Miller expressed positivity in the outlook following strong fundamentals from “positive initiatives” put in place by the former CEO.

Previously, Benchmark’s Daniel Kurnos said, “that the demise of Network ad revenues is greatly exaggerated.” He even says that this bearish talk is overshadowing “the positive traction CBS is seeing in its ancillary revenue streams.” The underlying business model is very strong and “the pressure on the media sector has created a buying opportunity for the content leader.”

Meanwhile, out of nine recent ratings on CBS, six are buys. This means that in the last three months only three analysts have published hold ratings on the stock.

Stocks to Buy Now: Neurocrine (NBIX)

Source: Shutterstock

Stocks to Buy Now: Neurocrine (NBIX)

Neurocrine Biosciences’ (NASDAQ:NBIX) top analysts believe this biopharma still has serious growth potential left to run in 2019. Specifically, the Street sees NBIX rising from $87.17 to $137, or 57.16% upside.

The Street is buzzing about Neurocrine’s Ingrezza drug. This is the first FDA-approved treatment for adults with tardive dyskinesia (TD). A side effect of antipsychotic medication, TD is a disorder that leads to unintended muscle movements. Stifel analyst Paul Matteis is very optimistic, reiterating his recommendation with a price target at $140.

Encouragingly, the stock has received no less than 10 consecutive buy ratings from analysts in the last three months. Seven out of the 10 of these buy ratings are from top-performing analysts.

Stocks to Buy Now: Sinclair Broadcast (SBGI)

Source: Shutterstock

Stocks to Buy Now: Sinclair Broadcast (SBGI)

Sinclair Broadcast Group (NASDAQ:SBGI) is one of the U.S.’s largest and most diversified television station operators. SBGI stock has had a rough 2018, but top analysts see strong upside potential ahead.

Benchmark Capital previously named SBGI as one of its Best Ideas for 1H18. Five-star Benchmark analyst Daniel Kurnos says “We see SBGI as one of the best values in the entire media landscape.” He is now eyeing $38 as a potential price target, a double-digit gain from its current perch of $30.37.

According to Kurnos, Sinclair has multiple upcoming catalysts over the next six months. This includes the pending mega-deal between Sinclair and Tribune. Sinclair is currently waiting for regulatory approval for the $3.9 billion takeover that would give Sinclair control of 233 TV stations.

Top analysts are united in their bullish take on this strong buy stock. In the last three months, five analysts have published buy ratings on Sinclair.

Stocks to Buy Now: Laureate Education (LAUR)

Source: Shutterstock

Stocks to Buy Now: Laureate Education (LAUR)

Laureate Education (NASDAQ:LAUR) is the largest network of for-profit higher education institutions. This Baltimore-based stock owns and operates over 200 programs (on campus and online) in over 29 countries. Analysts believe impressive upside is on the way. Currently, this is still a relatively cheap stock to buy at just $14.99.

Barrington analyst Alexander Paris, just today, reiterated his “buy” rating on LAUR stock at $20, meaning upside of 34%!

Previously, Stifel Nicolaus analyst Shlomo Rosenbaum notes that Chile’s election result is a “material positive” for Laureate. He says new President Sebastian Pinera is less likely to support legislation for free post-secondary education- the prospect of which has dampened prices to date. Rosenbaum currently has an $18 price target on the stock.

Overall, Laureate certainly has the Street’s seal of approval. The stock has scored four top analyst buy ratings recently. This includes a bullish call from one of TipRanks’ Top 20 analysts for 2017, BMO Capital’s Jeffrey Silber.

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.

Market Preview: Dow Sets Single-Day Point Gain Record as Volatility Ratchets Higher

Following another large drop on Monday, and after being closed for the Christmas holiday Tuesday, markets staged a massive rebound Wednesday. The DJIA put up its largest single-day point gain in history, gaining 1,086 points, or 4.98%. The Nasdaq, which is down the most of the major averages this quarter, posted a 5.84% gain. And, the S&P 500 stormed to a 4.96% one day advance. Volatility is often high in the final week of the year, but this week has mirrored the final quarter of the year only with amplified ups and downs. Investors are struggling with conflicting economic news, as housing numbers and the recent Richmond Fed manufacturing data looked horrific, but retail sales are setting records. At the same time, the Federal Reserve is trying to get back to a “normal” stance on interest rates, and political tensions, both domestic and international, seem to whipsaw markets daily with headlines of government shutdowns, slowing global economic growth and trade tariffs. Even attempts to reassure the markets, such as Treasury Secretary Mnuchin’s calls to major banks on Monday to ensure “ample liquidity is available,” raise new concerns around issues that haven’t been on analyst’s radar to this point.

Richmond Fed manufacturing data released Wednesday showed unexpectedly sharp decreases in several key areas. Analyst had predicted the index would come in at 14, unchanged from November, but the index fell 22 points to -8. Both shipments and new orders fell precipitously to levels not seen since 2009. Capacity utilization numbers also dropped 25 points to -16. Conversely, Redbook retail data showed some of the strongest retail growth in almost 13 years. The weekly growth jumped .7%, coming in at a red hot 7.8% year-over-year increase in same store sales. Amazon (AMZN) reported record sales as holiday shopping wound down.

Thursday, investors will pour through weekly jobless claims, the FHFA house price index, and new home sales. The consensus view has new home sales increasing in November to 560K from October’s 544K report. The house price index, which fell sharply in March, and then remained tepid for the rest of the year, is expected to increase just .2% month-over-month. Consumer confidence numbers will also be released Thursday. The number is expected to drop slightly to 134 from near all-time highs of 144.7. It would not be surprising, given the historic declines in the final quarter of the year, to see the number come in below consensus.

International trade in goods, retail and wholesale inventories, Chicago PMI and pending home sales data will all be released Friday. Analysts will be paying close attention to November export numbers, which dropped .6% in October. Advanced retail inventory numbers are expected to rise .9% for November. This early number is the precursor to final numbers which will be released in a few weeks. The EIA Petroleum Status Report will also be released Friday as well. Given the steep declines in oil prices the past few months, analysts are watching closely to determine where the bottom may be in oil. Crude inventories dipped slightly last week, but gasoline supply jumped upward by 1.8 million barrels.

There are no major earnings reports on tap this week. Earnings season will pick back up after the new year arrives early next week.    

This ‘Overlooked’ Sector Produced the Biggest Winners of the Last Decade
Wall Street is oblivious to it, yet you can earn 2,537% profits from an overlooked "blue chip" sector. The same group of stocks that has produced some of the biggest winners of the last 10 years.
Investors have earned 618%, 834%, and up to 2,500% - performing better than Amazon, Netflix and Facebook.
Click here to get in on your own 2,537% windfall.

Will Aurora Cannabis Be Next to Secure a Big Partnership?

There’s a rush for companies to get exposure to the cannabis industry and it has left many wondering what company will be next. Will it be Aurora Cannabis (NYSE:ACB) and its $5.3 billion market cap?

At that valuation, that’s smaller than some of the more well-known players like Tilray(NASDAQ:TLRY) and Canopy Growth (NYSE:CGC), but larger than Cronos Group(NASDAQ:CRON) and New Age Beverages (NASDAQ:NBEV). Following a string of partnership and equity stakes, it’s unlikely that the deals are going to stop. With the cannabis space growing rapidly, there’s no reason for larger companies seeking growth to ignore the space.

In fact, it’s a match made in heaven. Many of these companies — ranging from pharmaceutical to alcohol and tobacco companies — already have experience navigating a sea of regulations. They also have the financial muscle to leverage these opportunities, as well as the distribution network in place to take advantage of it.

Is a Deal Next for Aurora?

Canopy Growth received a $4 billion investment from Constellation Brands (NYSE:STZ) and Altria (NYSE:MO) sunk $1.8 billion into Cronos. Tilray grabbed a deal with Sandoz, a unit of Novartis (NYSE:NVS), and also locked into a $100 million partnership with Anheuser-Busch(NYSE:BUD).

To think that the deals will stop there is crazy. Obviously we don’t know who will step in next, when they’ll do it or which cannabis partner they’ll select. But at some point, I wouldn’t be surprised to see ACB have its name called.

The tough part here becomes valuation and momentum. Think if alcohol were illegal, but the world (and more specifically the U.S.) were trending toward legalization. We would want a piece of the action, right? Names like Bud, Molson (NYSE:TAP), Diageo (NYSE:DEO), etc., would come to mind. But if everyone had the same thought and started buying ahead, would it still be worthwhile to get in, particularly as other big-name companies — say PepsiCo (NYSE:PEP) and Coca-Cola (NYSE:KO) for instance — were doing it too?

Depending on one’s time frame, then yes, it’s probably advantageous. But no one wants to hold onto a dead-money investment for years on end. So we have to try to balance these companies’ current valuation with their future opportunities.

Trading ACB and Valuing Its Growth

Aurora is experiencing strong growth. In the fourth quarter of 2018, sales came in at $19.1 million. In Q1 2019, sales ballooned 55% quarter-over-quarter to $29.7 million and grew 260% year-over-year. Put simply, the growth for ACB stock and many other cannabis companies is simply astronomical. It’s a gold rush, if you will.

That said, expenses are growing quickly too. Production jumped more than 100% year-over-year, while operating costs of $119.9 million last quarter were vastly higher than the $10.2 million in Q1 2018. While gross margins of 70% were down from the 74% in Q4, it’s up significantly from the 58% in Q1. That’s likely as larger volumes and more efficiencies drive stronger bottom-line results.

Still, I understand investors’ hesitancy to get long a name at a $5+ billion market cap when it has $30 million in quarterly sales. Certainly ACB and others are not for everyone and I would only consider it a speculative position. That said, cannabis acceptance is only gaining momentum over time and that’s likely to remain the case going forward.

chart of ACB stock price

What do the charts look like?

Unfortunately, unlike the cannabis movement, ACB stock is not gaining momentum. I would like to see ACB get back over $5.50, clearing level support (black line) downtrend resistance (purple line) and the 21-day moving average.

Investors who want a low-risk entry opportunity can buy on a test of uptrend support (blue line), but right now, I need the technicals to play ball. If not, getting bullish is too hard in this environment given the high valuation.

A Pizza Company More Profitable Than Amazon?
Forget Tesla, Amazon, Netflix and Google! A Pizza Company has beat every single one of these tech giants... and made its investors over 2,500% since 2010.
It's all thanks to a $100 Trillion ‘Digital Helix’ and it could make YOU 2,537% profits if you act before November 29.
Click here to find out more...

Source: Investor Place 

Buy These 3 High-Yield Stocks to Survive the Bear Market

Last week the Federal Reserve Board announced the expected 0.25% increase in the Fed Funds interest rate. Despite doing the expected, the stock market swung from a 1.5% gain for the day to down as much as 2.5%. That’s an 800 point swing by the Dow Jones Industrial Average. Bloomberg noted “…no matter what the Federal Reserve and Chairman Jerome Powell did and said at the final monetary policy meeting of the year, they couldn’t make stock investors happy.

It appears we have a battle between the stock market traders and investment firm heavyweights against the Fed. The Federal Reserve Board based their decision on forecasts the economy will grow in 2019 at 2% to 3%, inflation will stay below 2%, and employment will continue to improve.

Those who work in the financial industry use the fact that the stock market has gone down as “proof” that what the Fed sees for 2019 is wrong. The financial market pundits believe (or at least publicly say so) that there will be a recession because they believe in one, even though the usual signs a recession is coming are nowhere to be seen.

It seems that the stock market is going down because investors are selling. I am sure that computer trading programs are pushing prices down with short-selling strategies. As of December 20, its safe to say the stock market has fallen into bear market territory. However, it’s a bear without a reason to be one. It is possible that the negativity of the financial markets will spill over to Main Street, leading to an economic slowdown. However, there is not anything in the financial world that will lead to a crisis such as we experienced in 2000-2002 or 2007-2008. This bear market may go for a few months, but it won’t go deep.

Bear markets are not to be feared. They are the times when you get to “buy low”.

It’s a time when disciplined investors take advantage of fear in the markets that always is later shown to be over blown. Income focused investors get to buy in at very attractive yields and benefit from capital gains as the overall market recovers into the next bull market.

In these days of falling stock prices you want to find dividend paying stocks that are built for tougher economic times. Here are three to consider.

Starwood Property Trust (NYSE: STWD) is a commercial finance REIT. This means it originates mortgage loans for commercial properties, such as office buildings, hotels, and industrial buildings. Starwood has two commercial lending businesses. One is to make large dollar loans to retain in its portfolio.

The company also operates a fee-based CMBS origination business. To further diversify the company as acquired a portfolio of stable returns real estate assets and has added an infrastructure lending arm.

The final piece of the pie is a special servicing division, which will turn very profitable if the commercial real estate sector experiences a downturn.

Investors can expect to earn the dividend, which currently gives the shares a 9.5% yield.

Self-storage REITs are the place to be when the economy gets rough for home ownership. Extra Space Storage (NYSE: EXR) is a large-cap, geographically diversified self-storage REIT.

The self-storage business is counter-cyclical to the economy. When the economy is booming, developers bring a lot of new inventory into the market. When the economy slows, the inventory growth stops and demand increases.

Extra Space Storage is possibly the best managed REIT in the sector. Investors can expect high single digit annual dividend growth.

Current yield is 3.7%.

Utilities are supposed to be the safe sector when the stock market goes into a correction. This time utilities are down right along with the rest of the market sectors. Now is a great time to pick up shares of the Reaves Utility Income Fund NYSE: UTG).

This is a closed-end fund that owns utility and other infrastructure stocks. UTG has paid a steady and growing monthly dividend since it launched in 2004.

The dividend has never been reduced and the fund has never paid return-of-capital dividends.

Current yield is 6.9%.

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.