Stocks to Buy Today: Stock Market Top Stocks
Hi friend! I dedicate this blog post to a handful of top stocks to invest in and/or trade at the top of my list. I either own them, or am about to in some cases.
You can either trade them, or hold them for the long term, although my preference is to keep them in my portfolio. As always, do your own homework before making any investing/trading decisions.
If you are looking for the best stocks to buy right now or the best stocks to invest in right now, you have come to the right place.
This calculation looks at the market’s current price, as it relates to a multiday trailing average.
A ratio higher than one indicates that the market is rallying higher.
The theory suggests that the prediction is stronger the higher the ratio.
Take Monday, September 11/17, for example.
The VOO Vanguard S&P 500 ETF NYSE stock exchange read 228.87 at the close.
Its 200-day exponential moving average settled in at 216.17.
The resulting ratio of 1.06 is indicative of a modest bullish signal.
See chart below.
*** Further Highs ***
If you are at all curious as to where the market will be next year, give this idea a try.
Not what you would exactly call a stock market outlook next 5 years, but I’ll take one year at a time.
The only proviso is that it does not anticipate market turns.
(Info via Nir Kaissar, Dec. 28/16, The Globe and Mail)
And, why shouldn’t the market keep going up?
Earnings and growth are good.
Fundamentals are strong.
Interest rates are low.
Where else are people going to put their money?
BTW, the VOO ETF is at the very top of my list.
It is covered in John C. Bogle’s excellent book, ‘The Little Book of Common Sense Investing’ – a read recommended by Warren Buffett.
This is a ‘buy-and-hold-forever ETF.’
I already own it.
Chart via http://www.stockcharts.com/
Okay, what stock should I start with?
The opening image at the beginning of this blog post (dollar tree) should give you a clue.
I’ll keep you guessing till the very end.
Warren Buffett’s Berkshire Hathaway just bought this stock.
Has the world’s biggest tech company just become a value stock?
Buffett has a history of sleuthing for undervalued companies with dominant industry positions and strong fundamentals.
After all, that’s how he made his fortune.
The company I am referring to is well on its way to becoming the world’s first US$1-trillion company.
Its shares are up 45 percent this past year alone.
Berkshire has about 130 million shares – a US$20.2-billion stake.
The Street figures Berkshire has made almost US$3-billion from this investment.
The stock is a value stock, in that it fits perfectly with Buffett’s investing style, as delineated in the book ‘Buffettology.’
The company has a durable competitive advantage.
Its brand is instantly recognizable.
It has a firm command of consumer pocketbooks.
It also passes several other Buffett smell tests, including predictable profits, reliable growth, and a bargain share price.
The company has experienced two earnings declines in the past seven years, but it still demonstrates predictable earnings, with long-term historical earnings-per-share growth of 12.3 percent and future EPS growth of 11.3 percent, based on analyst forecasts.
The company manages its cash flow well.
Based on earnings, it could pay its US$89.8-billion of debt in two years.
It doesn’t have to invest heavily.
It generates more cash than it uses, given its free cash flow per share of $7.30.
It generates returns of 21 percent on its retained earnings.
It’s reducing its share count to 5.3 million from 6.6 million a few years ago by buying back its shares.
Buffett looks at growth trends.
For the past 10 years, this company’s return on equity averages 31.5 percent, never falling below 20 percent during that time.
In the most recent three years, its return is 37.2 percent.
Its return on capital, which is net earnings divided by the money it invests in its business, is 27.8 percent – way above Buffett’s 12 percent threshold.
If there is any question about the shares being over-valued, Buffett’s model evaluates this consideration from different vantage points.
In the final analysis, it is considered that these shares have more breathing room.
The model considers two different methods to determine future returns.
Bottom line… the average of these two methods translates into a 15.6-percent annualized return on the stock out into the future.
In sum… great management, growth across all categories, balance sheet and cash pile.
And, the stock is?
You guessed it – Apple (AAPL).
See chart below.
(Info via John Reese, as reported in The Globe and Mail, August/17)
Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) bought Apple (NASDAQ:AAPL) stock in early 2016 for the first time.
At that time, this represented a relatively small investment for Berkshire, coming in at less than $1 billion.
Since then, Berkshire’s stake has dramatically increased to more than $20 billion, what with aggressive buying by Buffett and co., as well as the strength of Apple stock.
Now, before you disappear on me, let me throw some more stocks and ETFs at you that are hot ticket items.
These are for your consideration, but I don’t want you to just rush out and buy/trade them without doing your own digging and grunt work.
This is my list of stocks/ETFs that I keep an eye on with a view to either investing in them or trading them.
Stocks to Buy Today: Stock Market Top Stocks (& ETFs):
AAPL Apple, Inc. Nasdaq
ADBE Adobe Systems, Inc. Nasdaq
ABBV AbbVie Inc. NYSE
ATVI Activision Blizzard Inc. Nasdaq
BNS The Bank of Nova Scotia NYSE
C Citigroup, Inc. NYSE
CMCSA Comcst Corp. Nasdaq
CME CME Group Inc. Nasdaq
DHI DR Horton Inc. NYSE
ENB Enbridge, Inc. NYSE**
EXAS EXACT Sciences Corp. Nasdaq
FB Facebook, Inc. Nasdaq*
GILD Gilead Sciences, Inc. Nasdaq
HD Home Depot, Inc. NYSE
KSU Kansas City Southern Corp. NYSE
KXS.TO Kinaxis Inc. TSE
MA Mastercard NYSE
MEOH Methanex Corp. Nasdaq
MNST Monster Beverage Corp. Nasdaq
MRK Merck & Co., Inc. NYSE
NVDA NVIDIA Corp. Nasdaq
ORCL Oracle Corp. NYSE
QQQ PowerShares QQQ Nasdaq
TD Toronto Dominion Bank NYSE (reports 17-percent profit gain)
UNP Union Pacific Corp. NYSE
VOO Vanguard S&P 500 ETF NYSE
V Visa Inc. NYSE
XSP.TO iShares Core S&P 500 ETF (CAD-Hedged) TSE
* Facebook has dramatically improved its advertising tools, the lifeblood of its revenue, and is seeing incredible growth coming from mobile users.
It has apps for both business and pleasure.
Some Facebook features only work on mobile devices.
For example, you can stream live video into a private Facebook group or to fans of a Facebook page, but this live-streaming can only be done from a mobile phone, not a computer.
It’s clear that Facebook is heavily focussed on video, virtual reality, and helping businesses communicate with its customers.
It is giving businesses the tools they need to reach their global customer base.
All of this makes the Facebook platform valuable and a big source of time investment for the general public.
All of this translates into great news for a business that depends on advertising revenue.
(Info via Chris Umiastowski, as reported in The Globe and Mail, April 12/16)
** Enbridge is the largest energy-infrastructure company in North America.
Ninety-six percent of its cash flow is either regulated or backed by long-term contracts.
This underpins dividend increases of 10 percent to 12 percent a year through 2024 – in addition to an anticipated 15-percent increase in 2017.
Enbridge has raised its dividend twice this year, raising the quarterly payout to 61 cents a share from 53 cents a share, representing a 15.1 percent increase.
Its dividend yield is approaching five percent, close to its highest level over the past decade and about double what it was just three years ago.
The company tops Canada’s S&P/TSX energy index, coming in at more than 20 percent.
It and the index tend to move in remarkably similar directions.
(Info via David Berman, as reported in The Globe and Mail, August 22/17)
For the record, as at this writing, I own AAPL, ADBE, ENB, MA, V, and VOO.
The others are also on my radar screen.
If you would like to add to this list or, if you have any questions about any of the above entries, please contact me here.
Paying attention to stock market news on a regular basis will give you more ideas as to the best stocks to invest in or trade.
For information on how to pick/trade stocks, please visit my previous blog posts:
Please do me a favour, and do your own due diligence before you act on any of the above stocks/ETFs or any of the ones you are looking at.
I hope this Stocks to Buy Today: Stock Market Top Stocks segment has helped you get your head around which stocks/ETFs to invest in/trade.
Chart via http://www.stockcharts.com/
Settling bond and stock trades in the U.S. has accelerated, as regulators cut the after-trade wait to two days from three, freeing up capital that would otherwise be in limbo.
The purchase of stock trades and corporate and municipal bonds settle in two days effective September 5, down from the three-day standard that went into effect in the 1990s.
As of the same date, equities in Mexico, as well as Canadian bonds and stocks, also shifted to T+2 settlement – the industry parlance for the practice.
“Not everything that counts can be counted, and not everything that can be counted counts.” Einstein
“We criticize by creating.” Cicero
“Seeing what everybody sees, but thinking what they don’t.” Anon
“If you want to travel fast, go alone. If you want to travel far, go together.” Chinese proverb
“Perfection is not attainable but, if we chase perfection, we can catch excellence.” Vince Lombardi
“There are two ways of spreading light: be the candle or the mirror that reflects it.” Edith Wharton
“A true champ is disciplined and responsible.” Floyd Mayweather
“I am a problem-solver.” Donald Trump
“Being a Christian is more than just an instantaneous conversion – it is a daily process whereby you grow to be more and more like Christ.”
“My home is in Heaven. I’m just traveling through this world.”
“When wealth is lost, nothing is lost; when health is lost, something is lost; when character is lost, all is lost.”
Alpha and beta are both risk ratios used by investors to calculate, compare, and predict returns.
You are more than likely to see alpha and beta used in reference to mutual funds.
Both ratios incorporate benchmark indexes, such as the S&P 500, comparing them against an individual security to identify a particular performance tendency.
Alpha and beta are two of the five standard technical risk calculations.
The other three are the standard deviation, R-squared, and Sharpe ratio.
NAIRU is an acronym for ‘non-accelerating inflation rate of unemployment.’
It refers to a level of unemployment below which inflation rises.
First introduced as NIRU (non-inflationary rate of unemployment) by Franco Modigliani and Lucas Papademos in 1975, it was an improvement over the ‘natural rate of unemployment’ concept, which was proposed earlier by Milton Friedman.
Monetary policy conducted under the assumption of a NAIRU entails allowing just enough unemployment in the economy to prevent inflation from rising above a certain target figure.
Prices are allowed to rise gradually, and some unemployment is expected.
The U.S. Dollar Index (USDX, DXY) is an index (or measure) of the value of the U. S. dollar in relation to a basket of foreign currencies, often mentioned as a basket of U.S. trade partners’ currencies.
Images courtesy https://pixabay.com/
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I hope you found this Stocks to Buy Today: Stock Market Top Stocks blog post to be instructive, and that you are now armed with some ideas as to where to put your money to work.
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About Peter R. Bain
Peter R. Bain
I am a speaker, trader, writer, aviator, car nut, Harley enthusiast but, above all else, I am here for you at TradingSmarts, which I founded some 15 years ago.
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