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Top 10 Stocks to Buy for February

From Boeing to Kimberly-Clark, here are some prime plays

Boeing Chart_Richard Young
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(NYSE:BA): The Obama administration has been approving billions of dollars of arms deals as of late, including the sale of 84 Boeing F-15SAs and associated equipment. The F-15 is an iconic American fighter jet that can carry a wide assortment of weapons and boasts 23,000 pounds of payload.

The jet, which weighs around 81,000 pounds, when fully loaded with gear and fuel, can travel at speeds greater than Mach 2.5. The two-seater aircraft can fly and fight at both low and high altitudes.

The political situation is getting hot in the Middle East and Asia. More and more countries are buying advanced armaments to build up their militaries. Since the F-22 is not being sold, even to America’s closest allies, and the F-35 is approved for only a short list, fourth-generation jets like the F-15 will be the best many air forces can get. Boeing’s price has broken out above its 200-day moving average, a bullish signal. Buy.

JM Smucker vs S&P
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J.M. Smucker
(NYSE:SJM): Take a look at my chart for J.M. Smucker. The relative strength chart is an index based on the price of Smucker shares divided by the S&P value each day. As the numerator (Smucker’s share price) increases, or the denominator (the S&P) sinks, the ratio becomes larger and the index rises. This chart astutely illustrates the benefits of a stable business like Smucker during volatile economic times. The stock surged in comparison to the S&P in 2008 when the market began to fail. But look at Smucker’s performance during the recovery. Savvy management and a good business model pushed Smucker ahead of the S&P. Buy Smucker today and lock in a 2.4% yield.

Alliance Resource Partners vs S&P
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Alliance Resource Partners
(NASDAQ:ARLP): The market storyline says coal will soon be run to extinction because of new EPA regulations curtailing pollutants and forcing upgrades to scrubbers on coal plants. But the real losers will be small coal power plants with no scrubbers. They’re simply not worth the cost of upgrading. But coal isn’t going anywhere. The driver of growth at U.S. coal mining companies may not be domestic demand, but rather rapidly increasing demand for coal from Asia. China and India are expected to double their energy consumption by 2035. Buy ARLP to gain exposure to the fourth-largest coal producer in the Eastern U.S. My relative strength chart shows ARLP’s long record of outperformance compared to the S&P.

Hershey Chart_Richard Young
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(NYSE:HSY): The world’s chocoholics are developing a finer palate, eschewing traditional chocolate companions like peanuts, caramel, almonds and coconut in favor of more far-flung fillings like goji, acai, pomegranate and blueberry. To reel in more discerning chocolate buyers, Hershey has purchased Brookside Foods of Abbotsford, British Columbia. Brookside creates unique, chocolate-covered fruit juice pieces that will expand Hershey’s flavor variety, as well as traditional chocolate treats. My price chart shows Hershey has broken out above recent resistance near $60 per share. Buy.

Vectren Chart_Richard Young
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(NYSE:VVC): My price chart shows the strong bullish trend developing in Vectren shares. The recent breakouts above its 50-day moving average and the psychologically important $30 mark show strong bullish sentiment for Vectren. The next resistance level for the stock is at its 2008 peak price of $32.10. Buy today.

Westar Energy vs S&P
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Westar Energy
(NYSE:WR): With a service area of roughly 10,130 square miles in Kansas, Westar Energy uses its 19 power plants to generate more than 27 million megawatt-hours of electricity per year. That electricity is deployed along 35,000 miles of transmission lines to 687,000 customers. My relative strength chart shows Westar’s strong outperformance of the S&P over the last four years. Buy.

Xcel Energy Chart_Richard Young
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Xcel Energy
(NYSE:XEL): With operations spread across eight states, Xcel has 3.4 million electricity customers and 1.9 million natural gas customers. Its infrastructure assets include 87,000 miles of transmission lines, 190,000 miles of distribution lines, 35,500 miles of natural gas pipeline and a variety of power plants. My price chart shows the sharp breakout in Xcel shares since mid-December. Buy.

Diageo vs S&P
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(NYSE:DEO): Diageo has had great success in Africa and is replicating that success in South America. In Brazil, nine out of 10 shots of Scotch served are Diageo’s brands. Fifty percent of Scotch served in Venezuela is Diageo’s. The potential in South America is attractive. Between 10 million and 15 million people are entering the middle class in Latin America every year. My relative strength chart for Diageo has reached a five-year high. Buy.

Verizon Communications vs S&P
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Verizon Communications
(NYSE:VZ): While AT&T (NYSE:T) has been fighting, and losing, the battle to get T-Mobile’s spectrum, Verizon has been piecing together spectrum from far-flung sources, allowing it to expand its 4G LTE operations. Verizon recently purchased more spectrum from a business consortium, and this month VZ bought more spectrum, this time from Cox — a cable provider. Verizon is inking the deals it needs to keep expanding. The company’s stock yields 5.1% today and has broken out of recent resistance on my price chart. Buy.

Kimberly Clark Chart_Richard Young
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(NYSE:KMB): The leading brands made by Kimberly-Clark are sold in more than 150 countries and purchased by 1.3 billion people each day. Kimberly-Clark has built excellent name brands like Huggies, Kleenex, Scott, Depend and Pull-Ups into a group that holds the first or second market share position in 80 countries. KMB yields 3.9% and has broken out to a new all-time high price. Buy.

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