Stocks have made some strides over the past two weeks but let’s be honest, most charts still stink. Such a reality might be making it difficult to find quality stocks to buy. Yes, many have staged valiant recovery efforts, but most remain in downtrends.
Given the hefty amount of technical deterioration we’ve seen, it’s going to take more than two weeks of upside to right the ship.
And yet, not all equities have fallen prey to the bears’ ire. Some have escaped the selling altogether, while others have capitalized on the recent rally by soaring back to bullish territory amid strong accumulation.
If there’s one theme tying together today’s trio of stocks to buy, it’s relative strength. These three beauts boast some of the best-looking charts in the market right now. And if the market recovery can continue, I suspect buyers will continue to flock to them.
Behold, three shining stocks to buy in a dull market.
Shining Stocks to Buy: First Solar, Inc. (FSLR)
Topping our list is First Solar, Inc. (FSLR), the king of solar stocks. Since bottoming in late September at a lowly $40, FSLR has gained about 70%. Not bad considering the drubbing stocks have taken over the past quarter.
The trend of First Solar is pointing higher on virtually all time frames.
Its uptrend is supported by rising 20-day, 50-day, and 200-day moving averages. FSLR’s latest pop was driven by an earnings announcement cheered by investors. The earnings beat delivered a high-volume rocketship ride to new 52-week highs.
Consider FSLR a prime stock to buy.
Shining Stocks to Buy: Priceline Group Inc (PCLN)
Priceline Group Inc (PCLN) was knee-deep in bearishness just a month ago. It was one of the hardest hit momentum stocks during the recent market turmoil.
So why the inclusion in today’s list? Earnings.
Anticipation of a solid earnings report as well as the actual delivery on said earnings was able to save PCLN stock in one fell swoop.
Believe it or not, PCLN is up about 30% in the past three weeks alone. And despite such a gargantuan gain, the stock has seen little giveback amid any type of profit taking. Following a bit of digestion, PCLN has the potential to continue its trek higher, eventually retesting its highs in the $1,475 region.
PCLN deserves a top spot in your stocks to buy list.
Shining Stocks to Buy: Paypal Holdings Inc (PYPL)
Rounding out our group of hot stocks to buy is Paypal Holdings Inc (PYPL). For much of its public life, PYPL has found its home in a range. The $30 zone has provided support while the $38 level has kept a lid on multiple rally attempts.
Until now that is.
This week, PYPL was able to burst from its rangebound prison in true bullish form. The breach was accompanied by high volume, confirming the legitimacy of the breakout as well as increasing the likelihood it sticks. Watch for PYPL to retest its all-time highs around $42 in the coming weeks.
With its trend now pointing higher, PYPL is yet another attractive stock to buy.
At the time of this writing Tyler Craig had no positions in any of the aforementioned securities.
