Turmoil has struck the Street, and months of profits have been ripped away by a torrent of selling. Take your pick on the catalyst: weak oil, weak China, slowing earning growth. Right now, the fear mongers have an ever-growing stable of spooky stats to use during their daily drumbeat of doom.
But while many stocks have succumbed to the selling pressure, others are thriving under the bears’ regime. The three such stalwarts highlighted today are exhibiting mega relative strength.
Like the proverbial diamond in the rough, these beauts stand out like Dikembe Mutombo in a crowd of Girl Scouts.
One just tagged an all-time high on an epic earnings beat. Another just scored a buying signal worth heeding. And the final one is beckoning to safety seekers one and all to come find shelter from the selling storm.
Behold, three strong stocks to buy in a weak world:
Stocks to Buy: Facebook Inc (FB)
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Topping our list is the mighty Facebook (FB), king of social media.
After stumbling out of the gate at the turn of the new year, the studly steed has regained its footing and is galloping higher at breakneck speed. And what can we thank for the sudden recovery? An earnings blowout.
Veterans of the trading game will tell you earnings announcements are the ultimate power for driving stock turnarounds. If a suffering stock can fight back with a better than expected earnings release, buyers will swoop in to save the stock. Such a dynamic played out nicely in FB last week.
The up-gap has since followed through with a pair of sizable up days accompanied by high volume. FB is one of the best stocks to buy on any and all dips.
Stocks to Buy: Starbucks Corporation (SBUX)
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The Starbucks (SBUX) story is a bit more subtle than Facebook’s moonshot. While SBUX fell through much of December and January, it has since staged a nice little turnaround. While the holiday profit-taking delivered a mean dose of jitters to SBUX shareholders, they’ve since received their caffeine fix, and all is well in the world again.
The recent correction for Starbucks took the form of a descending channel, submerging the stock below the oft-watched 50-day moving average. During Friday’s stock surge, SBUX mustered a breakout above the descending trendline, taking out the 50-day average in the process.
Look for a retest of its all-time highs near $64 in the coming weeks. SBUX belongs on your stocks to buy list.
Stocks to Buy: Wal-Mart Stores, Inc. (WMT)
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Rounding out our trio of stocks to buy is Walmart (WMT). The consumer staple kingpin has a reputation for shining during bear markets. Its semi-recession proof business model coupled with its well-known status as a selling storm safe haven are boosting WMT’s share price.
The recent history of WMT is an interesting one. While virtually every other stock remained aloft in 2015, WMT was plumbing the depths month after month. It has already suffered through a bear market and, if recent technical signs are any indication, is ready to shine.
With an uptrend now firmly in place with a rising 50-day moving average to boot, WMT is definitely a candidate to keep atop your stocks to buy list. Walmart is a bit overbought in the short run, so watch for a dip or at least some consolidation in the coming days to provide a lower risk entry.
As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.
