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Top 6 Stocks to Buy for November

This month's list includes some well-established industry leaders

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Top Stock to Buy #1 – Actavis (ACT)

I have recommended Actavis (ACT) several times this year. On April 3, at about $96.50, I revised my trading target to $110 from $100.

On May 28, following a pop to $133 the prior week, I suggested that investors “either take profits or engage in protective strategies, like options writing or the purchase of put options, which would limit losses but enable them to participate in further gains.”

With the stock now near $146, it is obvious that I was too conservative. Last week, Citigroup (C) initiated coverage of the stock with a target price of $172, saying that it was their “favored name amongst the multinational generic companies.” And Zacks reiterated its “buy” recommendation. The consensus median target is $160, but that will likely be revised upward.

The company just reported a decline in third-quarter earnings due to higher acquisition-related charges and other items, but posted double-digit revenue growth and raised its guidance for the year.

Technically, ACT is in a powerful bull channel. MACD recently triggered a fresh buy signal following a quick round of profit-taking that dropped the stock to its support at the 50-day moving average. Buy ACT at the market with a trading target of $172.

ACT Chart
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