3 ‘A’ Stocks to Buy – Are They Still Buys for the Third Quarter?

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Back in March, I told you about three stocks that you should buy as we entered the second quarter of the year. As I said then, the markets were getting more volatile and investors needed to focus on the very best stocks.

quarterly review and outlookThe stock market actually been pretty solid since the article came out, with a gain so far of about 6.6% for the S&P 500. So I thought it would be instructive to take a look at see how our stocks have done in the last three months and take a look at what you should do with them now.

In addition to a review and look ahead, it is instructive to see how Portfolio Grader can keep us in the best stocks regardless of what the overall market is doing.

Stocks to Buy Checkup – Wynn Resorts (WYNN)

stocks to buy wynn stockOur first stock, Wynn Resorts (WYNN) is the laggard of our group of stocks to buy. WYNN stock was rated “A” back in March, but the company has hit a couple pf stumbling blocks since then — most notably increasing regulatory action from the Chinese government that is slowing growth in Wynn’s Macau casinos.

China has cracked down on lending practices that enabled gamblers to bring in more money that is allowed, and they also cracked down on transit visas to keep gamblers from staying more than a few days.

Wynn has had a strong earnings report since the original article with results that exceeded expectations. So, the fundamentals are still solid, but some investors are concerned about what is going on in China. Portfolio Grader took WYNN stock down a notch to a “B,” or plain “buy,” in May. We are down a little more than 10%, but we still recommend buying Wynn. As long as we don’t see any more downgrades, we should be OK going forward.

Stocks to Buy Checkup – Garmin (GRMN)

stocks to buy garmin grmn stockGarmin (GRMN) reported fantastic results for the first quarter of the year. Earnings were up by 38% year-over-year, and GRMN showed strong results from the outdoor, aviation, fitness and marine markets, delivering good revenue growth. The results were also better than expected, giving Garmin its fifth consecutive positive earnings surprise.

Outdoor and fitness-related devices are getting a great reception from consumers and should be a driver of continued growth for this company.

GRMN stock has outperformed the broader market, up 9% since making our list of stocks to buy, and still is a “strong buy” at the current price.

Stocks to Buy Checkup – Magna International (MGA)

stocks to buy mga stockAutomobile stocks have been improving all over the globe, and Magna International (MGA) continues to be a major beneficiary of this trend.

Magna supplies things like powertrains, driveline systems, exterior trim, seating systems and a host of other products for automobile manufacturing. As long as auto sales stay sturdy — and all signs point in that direction — then business at Magna should remain robust.

Portfolio Grader certainly thinks so, as MGA stock still is rated an “A” as fundamentals have continued to improve. Magna shares have handily beaten the market, returning more than 13% since the original article was published, and it should continue to outperform in the coming months.

Louis Navellier is the editor of Blue Chip Growth.


Article printed from InvestorPlace Media, https://investorplace.com/2014/06/3-stocks-to-buy-q3/.

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