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Top 5 Stocks to Buy for February

Financials, builders and cloud computing stocks could provide better-than-average-returns

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The stock market exploded higher on Jan. 2 with a broad-based breakout that was sustained by higher-than-average volume. But after three strong weeks, the underpinnings of the rally are beginning to weaken as noticed by our internal indicators. Momentum is sagging, as is the MACD indicator and the stochastic.

However, after one of the most successful starts to a new year, a consolidation is normal and investors and traders alike should position their cash to take advantage of any pullbacks by investing in sectors that should benefit from a slow economic upturn.

Sectors that appear capable of providing better-than-average-returns this year include financials (including banks), builders and cloud computing. This month’s list of stocks to buy is focused on those sectors.

Here are your top stocks to buy for February: 

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