The Sochi Olympics might just be the thing to take investors’ minds off a worrisome year for stocks so far. The S&P 500 is off roughly 4% so far this year, and it’s getting more difficult to target quality stocks to buy.
True, after such a hot run in 2013, no one was expecting the same kind of crazy gains this year. Indeed, the consensus forecast has the broader market putting up a gain of 7% to 10%, with most of the year ahead of us.
Unfortunately, even if we do have another up year in the market, what’s happened so far is probably a trading pattern we’ll see more and more in 2014 — weeks of sideways to sliding markets, followed by a slow grinding higher to gains.
No, it won’t be fun, but you can rest easier if you own some high-quality stocks that are not only beating the market for the year-to-date, but have actually put up some solid gains.
Any stock that’s up on the year, has a return on equity of greater than 20% and is actually cheaper than the S&P 500 on a forward earnings basis definitely deserves a gold medal in this crummy market. But screening the S&P 500 for stocks that possess such attributes yields a very short list.
With that, here are three of the most promising gold medal stocks to buy now: