3 High-Growth Stocks to Buy for 2014
Put this familiar name and two smaller companies on your radar
The best growth stocks aren’t always the hot consumer tech companies — Apple (AAPL) and the like — that Wall Street likes to rave about. Sometimes, they’re names you already know and trust, but don’t really equate with exciting, and they often play in much duller businesses than hocking iPhones.
I use a complex combination of combination of technical analysis and fundamental research to determine which stocks are poised to move quickly, and have found three stocks to buy before they charge higher in 2014.
Boeing (BA) recently announced a ton of new customer orders and commitments for its 777 jets. This is great news for the entire aerospace/defense sector, but especially for the $105 billion manufacturer of commercial and military jets. Boeing shares have been on a tear this year and are just on the verge of recovering from a rare pullback.
BA stock was the subject of end-of-year profit taking but should start flying again as 2014 gets started.
Note that earnings will be reported on Jan. 28. Boeing has a history of positive surprises, and analyst estimates have stayed steady at $1.55 per share. I expect shares to climb steadily ahead.
WageWorks (WAGE) is a company that provides employee benefits (such as flexible spending accounts, health savings accounts and parking/transit benefits) through a cloud-based service.
As conventional techs have struggled to remain innovative and suffered lower margins, younger companies like WAGE have carved out a successful niche by creating cloud-based networking and software solutions that allow managers and employees to access sales, benefits, training, data and other analytics and information on the go — creating a world where all data is always synced on every device.
WageWorks is able to count fully 50% of Fortune 100 companies and 36.8% of the Fortune 500 companies among its clientele; it’s no surprise that large client companies have welcomed the cloud networking trend as it helps them save money and makes key data more easily accessible.
WAGE shares have been in a nice uptrend for several months, spurred on by the U.S. Treasury’s replacing the “use it or lose it” rule for flex spending accounts with a new ability to roll over $500 into the next plan year.
Olin Corp. (OLN)
Among the “cool kids” that posted new highs during the December post-“taper” announcement rally, Olin Corp. (OLN) is definitely a keeper. It is one of the oldest chemical manufacturers in the U.S., but still is a leader in just about every one of its markets: the No. 1 supplier of chlorine in North America, top producer of industrial bleach, third-largest supplier of caustic soda, and the second-largest supplier of potassium hydroxide in the Western Hemisphere.
Olin also participates in the ammunition business; it purchased Winchester Co. in 1931, and the Winchester segment produces all major gauges and calibers of shotgun shells and ammunition for pistols and rifles, as well as reloading components, for both sporting and military use. Across its chemicals and ammunition segments, the company is well-diversified. No single client makes up more than 7% of its sales, and even the U.S. government agencies only account for 5% of Olin’s sales in total.
As for the shares, OLN stock is up nearly 200% since the late-2008 drop, including a nearly 35% increase in 2013 alone — and in addition to the capital appreciation, Olin has consistently distributed a quarterly dividend since the late 1980s.
I’m looking at Fortegra Financial (FRF) as a breakout candidate for 2014 thanks to its strong business, predictable earnings model and potential as a takeover target.Continue Reading