Back on Saint Patrick’s Day, I talked about using dips in the market to accumulate some of the very best stocks and the necessity of using Portfolio Grader to review your portfolio.
I even gave you a list of stocks to buy when the market pulls back.
Since then the markets have traded back and forth on news from the Ukraine, continued weak economic reports from China and Janet Yellen’s slip of the tongue about future interest rate hikes.
As market volatility seems to be picking up a little, it’s more important than ever to focus on the very best stocks to buy for your portfolio. Here’s a look at three stocks to eyeball as we enter the second quarter:
Wynn Resorts (WYNN)
Wynn Resorts (WYNN) has two casinos in Las Vegas and has two locations in Macau — the hottest gaming market in the world today. The company is showing extraordinary growth this year, with earnings up 48% so far. The latest quarter was up 98% year-over-year so the pace is accelerating as results from the Macau locations have been exceptionally strong.
There have been fears about Chinese economic weakness spilling over into the casino business but Wynn has a huge market-share advantage with the high-rolling VIP gamblers who are less likely to feel the sting of slower growth.
Portfolio Grader has been tracking the strong performance of company and upgraded it to a buy in December and a strong buy in January. WYNN remains a “strong buy” and I would look to buy on any pullbacks in the market.
A year ago shares of electronics company Garmin (GRMN) was rated a “strong sell.” Now that everyone has a smartphone with an accurate GPS, demand for Garmin’s satellite-based navigation systems had pretty much evaporated. But management has turned this company around by developing devices for the sporting markets used by hunters, hikers, cyclists, and golfers. Garmin also started selling things like dog tracking systems and expanded its offerings for the marine and aviation markets.
The plan is working and the fundamentals have improved steadily. Portfolio Grader upgraded the stock to a “hold” in September, and upgraded it all the way to the very best ranking of “A” back in February. The stock is a “strong buy” and is another one I would be buying on a pullback.
Magna International (MGA)
Magna International (MGA) provides services ranging from vehicle engineering and assembly to production of exterior trim and building interior door panels to the leading auto manufacturers. As car sales have rebounded since the depths of the recession, this company has been a major beneficiary. Its most recent earnings report saw profits grow 34% year over year, exceeding analyst estimates by more than 30%.
The strong quarter was the fourth consecutive positive earnings surprise, and analysts have jacked up their estimates for both 2014 and 2015. Portfolio Grader upgraded the stock to a “strong buy” back in January — this is a stock I would love to be buying in a market pullback.
Markets may be a little more volatile this year than last, especially considering all the geopolitical tumult so far in 2014. Investors who use weak periods to identify superior stocks to buy should navigate the rough waters in profitable fashion.
Louis Navellier is editor of Blue Chip Growth.