Spring is finally here and we are well on our way towards summer. The nasty weather that has weighed on the economy and earnings for many companies is behind us at last.
There are, as there always are, lots of things to worry about in the stock market. The situation in the Ukraine still is not really stabilized and there is always the prospect of taper and higher rates to worry about. Wall Street loves to climb a wall of worry and ignore the good things that are setting up for the summer.
However, corporate stock buybacks are at an all-time high and corporate profits should increase every quarter in 2014. Pension funding continues until April 15th and that should help drive stock prices higher right into the heart of earnings season.
Investors who focus on the very best stocks should see their profits grow while others fret and worry.
Here are three stocks to buy that I believe will put a “spring” in your step:
United Insurance Holdings (UIHC) is a great example of a best of the best stock that should climb the wall of worry this summer. Writing homeowners and flood insurance might not be the most exciting business sin the word but the fundamentals of this company are really exciting.
Earnings in the most recent quarter were up a whopping 400% and they posted a 55% positive earnings surprise. The insiders at the company like what they see in the future as five of them have added to their stake in UIHC in the past month The stock was upgraded to an A back in November by Portfolio Grader and remains a strong buy at the current price.
Federated Nationals Insurance Company (FNHC) is another little insurance company that is showing huge profits right now. They also specialize in homeowners insurance as well as umbrella liability, workers comp and inland marine policies. Sales and profits were both up triple digits in the most recent quarter and posted an 84% positive earning surprise.
Analysts have been raising their estimates for this year and 2015 as the fundamentals for this company just keep getting better. The stock was upgraded to an A last June by Portfolio Grader last July and thanks to continued fundamental improvement the stock remains a strong buy at the current price.
While the tech companies get all the attention in Silicon Valley the banks who serve the region are seeing amazing growth as well. Bridge Capital Holdings (BBNK) is a bank with two branch offices in the Silicon Valley region, as well as five loan production offices in San Francisco and Pleasanton, California, Dallas, Texas, Reston, Virginia, and Boston, Massachusetts.
The bank recently posted a 43% earnings increase on record quarterly revenues. The bank has focused on broad range of financial solutions, enabling us to meet our clients’ varied needs across all stages, from inception to IPO and beyond and its working.
Portfolio Grader just upgraded the stock to A two weeks and the shares are a strong buy.