When investing retirement money in stocks, investors should consider simple trading strategies that work no matter what the market is doing. That means following the money to the best stocks to buy based on consumer trends. To help you cash in on this investing strategy, here are my five favorite guy stocks to buy right now – Playboy (PLA), Morton’s Steakhouse (MRT), Rick’s Cabaret (RICK), Cabela’s (CAB) and Anheuser Busch InBev (BUD).
After all, Sunday is Father’s Day, a holiday to show the men in our lives we care. And for investors, it’s time to think about how simple pleasures for guys reflect a growing trend among all American consumers — that is, folks spending more on some of the little things that help them make up for missing out on the big ones. Many Americans have cut back on vacations or have delayed buying a new car, so they don’t feel as guilty when they splurge on something small like a good meal or a cold beer.
Investors should take particular note of “guy stocks” that are seeing big growth right now. These companies with big brands that connect with male consumers have seen strong growth so far in 2010, and should continue to perform in the months ahead. This is a simple trading strategy that works no matter what Wall Street throws our way.
Without further ado, here are my five favorite guy stocks to buy right now.
Playboy Enterprises Inc. (PLA) – The Playboy bunny is one of the most world renowned symbols in the world. To most people, Playboy magazine means entertainment, fun — and of course pretty girls. From articles about politics to the best way to shave with a straight razor, Playboy offers content guys everywhere will read in between the eye candy. The company has been down on hard times lately, the publishing industry in general is having a difficult time because of the internet and online magazines and books. But the Playboy symbol alone will make the company money and will give them the opportunity to come back from the dead to become a successful money generating enterprise. While still not back in the black yet, PLA significantly narrowed its loss for the first quarter and could post a quarterly profit very soon – and that could send shares soaring.
Morton’s Restaurant Group Inc. (MRT) – What says “guys night out” more than a trip to a premium chop house? Morton’s Restaurant Group made its name selling hot steaks, but it’s also had a pretty hot stock recently. Fueled by rumors of a possible takeover Morton’s has seen shares nearly double in 2010. These takeover talks are more than idle chatter. As reported by Reuters, restaurant deal making has hit a two-year high in 2010, as firms like CKE Restaurants and chains like the On the Border Mexican Grill & Cantina have recently been sold. What makes these new deals special is that the focus is on taking over healthy businesses, not distressed assets. Morton’s fits right into the profile of a company ripe for acquisition. That means this could be more than just a great dinner stop for businessmen, but also a big money maker for investors who buy this sin stock
Rick’s Cabaret International Inc. (RICK) – Rick’s Cabaret owns and operates upscale adult nightclubs serving primarily businessmen and professionals across the U.S. Obviously, you can’t get more guy-oriented than a gentleman’s club. But lest you think that Rick’s is a seedy outfit, keep in mind that this publicly-traded sin stock has to follow the same rules as big blue chip stocks and has to answer to the same strict Wall Street demand for profits. And it just so happens that Rick’s is at the top its class. In April, Rick’s Cabaret reported a 21% jump in revenue over the previous year, and looking forward the recent acquisition of VCG Holding Corp. should only boost this stock’s performance.
Cabela’s Inc. (CAB) – Hunting or fishing is a great activity for guys to get together. That means Cabela’s could see a spike in store traffic around the Father’s Day holiday. But the rest of the year the cash registers are ringing constantly at Cabela’s — and profits are so big that this outdoor retailer has met or exceeded Wall Street’s profit forecasts for each of the last four quarters. In fact, for the most recent period Cabela’s topped estimates by posting earnings per share that were nearly triple what Wall Street had forecast! That’s growth you can bank on.
Anheuser-Busch InBev (BUD) -This guy stock is one of the most recognizable brands among male consumers. Almost every man in America has lounged in his special easy chair with an ice cold can of Budweiser after a hard day’s work or a few laps around the yard with the lawnmower. This iconic company has weathered the economic downturn of the past few years fairly well thanks to its loyal customers, and is showing signs of continued growth in 2010. Anheuser-Busch InBev has grown its profits in each of the last four consecutive earnings periods, and appears poised for continued success in the months ahead.
As of this writing, Hilary Kramer was recommending PLA and MRT in her ‘Breakout Stocks Under $5’ investment newsletter.
