The market opened the second quarter with such serious and extended selling that it’s hard to believe there are any stocks with price momentum left. But … some blue chips still very much qualify as stocks to buy.
The S&P 500 notched an all-time closing high on April 2, but since then, stocks have struggled to maintain. The broader market is off more than 2.5% since then, led down by high-flying momentum stocks and sectors.
Of course, it’s always important for the market to bleed off some steam after an extended run. After all, it’s the backfilling — the buying by investors looking for better prices — that sets the foundation for new highs later. And with the S&P 500 rising nearly 10% in about two months … well, it was probably time for a breather.
However, as tempting as a selloff like this can be for anyone looking to get some deals on price, there’s no sense in buying a bargain with broken technicals. Cheap stocks can always get cheaper, and cheap stocks stuck in a downtrend can be a very expensive mistake.
When markets are wobbly, there’s nothing quite like the comfort to be found in blue chips. Happily, there are a number of these stalwart stocks — even components of the Dow Jones Industrial Average — that have both price momentum and seasonal strength.
Against this market backdrop, here are the top five stocks to buy in April: