10 Must-Own Stocks With Great Earnings, Sales and Guidance

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Third quarter earnings are all but over, with more than 450 of the S&P 500’s components already releasing Q3 profit and sales numbers.

triple play stock

There are many ways to slice and dice the profit and sales data to find the best stocks to buy now based on the results. But the folks over at Bespoke Investment Research have identified a pretty good indicator of future success — the so-called “triple play” where a stock beats expectations on sales, beats expectations on profits, beats expectations on forward guidance.

The analyst group has been tracking triple play stocks since the mid-2000s, and its most recent batch of stocks includes a number of large-cap names that you’ll know.

According to Bespoke, “So far this earnings season there have been 136 triple plays, which is a very high number compared to most earnings seasons.”

That bodes very well for the S&P 500 broadly if so many stocks are topping expectations … but which stocks among that group of more than 100 should you buy?

I’ve narrowed in on 10 of the best stocks to buy from this group of Bespoke “triple plays,” based on both their strong results and based on strong share performance in the last month or so:

Apple Inc. (AAPL) — Consumer electronics giant Apple Inc. reported on Oct. 20, and Apple earnings impressed Wall Street big-time thanks in large part to strong iPhone sales. AAPL stock is up 10% in the last month on the strong report.

AbbVie Inc. (ABV) — Abbvie Inc. saw strong sales of its arthritis drug Humira, giving investors optimism in the wake of a failed merger with Shire earlier in the year. ABBV stock  is up 16% in the last month.

Alexion Pharmaceuticals, Inc. (ALXN) — Another high-flier in healthcare, Alexion posted a “triple play” of strong earnings, sales and guidance. The results have prompted some speculation that ALXN could embark on a buying spree to continue its growth going forward. Alexion stock is up 16% in the last month.

Amgen, Inc. (AMGN) — Rounding out our health plays that begin with the letter A, Amgen saw strong earnings as a result of some recent restructuring efforts that have increased profitability and rejuvenated the product pipeline through acquisitions. AMGN stock is up over 20% in the last 30 days.

Caterpillar Inc. (CAT) — This machinery giant had fallen on hard times, in part thanks to a focus on mining equipment that hasn’t been selling during falling prices for both precious and base metals. However, cost-cutting and some improvements in CAT sales resulted in a strong Q3 report. CAT stock is up double-digits in the last month as a result on optimism that increased spending in China could lift its Asian operations going forward.

Cummins Inc. (CMI) — Cummins also saw a strong quarter, too, thanks in part to acquisitions of some distributors for its engines as well as stronger demand as the economy improves. CMI stock is up 15% in the last month.

General Dynamics Corporation (GD) — One of the major aerospace and defense companies out there, GD posted strong earnings based on brisk Q3 business as well as a good backlog of orders for ships, tanks and jets. GD has been flying high for the last year or two, and is up another 17% in the last month alone.

Hospira, Inc. (HSP) — We come back to healthcare via Hospira, a company that focuses mainly on injectable drugs to fight cancer and other acute conditions. Thanks to growth in its clinical software business, among other things, the company posted strong Q3 numbers and HSP stock is up 15% in the last month.

Prologis Inc. (PLD) — A REIT that is focused on industrial real estate around the globe, Prologis serves both manufacturers and shippers looking for warehousing and transportation hubs. Growing demand amid an improving global economy has resulted in strong numbers for PLD – and also adds up to a nice 3.2% dividend. Shares are up 11% in the last month.

Time Warner (TWX) — The media and entertainment company is now free of cable TV operations that have been parceled into Time Warner Cable (TWC). And while you may not think that print publishing or TV programming would be doing a brisk business, TWX results do include hit content provider HBO — and that network continues to drive strong results. TWX stock is up 8% in the last month.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP.


Article printed from InvestorPlace Media, https://investorplace.com/2014/11/10-must-own-stocks-earnings/.

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