Stocks took a steep drop on Friday of last week with both the S&P 500 and the Dow Jones Industrial Average down over 3%.
We saw similar market behavior a year ago to kick off 2014 and still had a great year, but only time will tell what’s in store next this time around.
So far, fourth-quarter earnings results have been much weaker than expected, but there are still stocks out there that are looking like strong additions for your portfolio.
Here are five stocks to buy based on good-looking charts:
3M Co (NYSE:MMM)
I’ve recommended 3M Co (NYSE:MMM) before. 3M has a great record of paying dividends (every year since 1916) and of raising them (each year for the last 56 years). In December, 3M’s board announced a 20% increase.
3M is an innovation company that breaks new ground to maintain profits. One of the most exciting places 3M is innovating today is in matrix resins. 3M, along with bike maker Cervelo, developed resins using silica particles and carbon fibers to produce the lightest bicycle frame strong enough for the Tour de France. The 3M matrix resin technology is being used to produce super-light CNG tanks, America’s Cup yachts, advanced fishing rods and more.
My relative strength chart shows 3M’s power compared to the S&P 500 since the middle of 2012. 3M has been one of my most recommended picks over that time, and it is my top recommendation for you now.
Nestle (OTCMKTS:NSRGY)
If you follow medical and nutritional news, you may have heard of the “microbiome” — a collection of bacteria — living inside each human’s body. Nestle (OTCMKTS:NSRGY) recently invested in Seres Health, a start-up focused specifically on treating diseases in the microbiome.
Seres is beginning its work with a clinical trial of a drug to fight clostridium difficile, better known as C. diff. C. diff is a bacterium that invades the digestive tract after long-term antibiotic treatments kill off portions of the microbiome, leaving a power vacuum, and is linked to 14,000 deaths per year. Nestle is trading well below its long-term trend price.
Sysco Corporation (NYSE:SYY)
The food service business is highly competitive. Technology is one of the ways Sysco Corporation (NYSE:SYY) maintains its lead in the business.
Sysco’s warehouses are something from a sci-fi movie. Gadgets and displays dot the landscape, helping employees more efficiently process and move produce and merchandise. Using fuel-cell-powered forklifts keeps lead and other contaminants out of the warehouse. Motion-activated lighting keeps energy costs low. Robots add further efficiency. Competitors can’t match this technology, which gives Sysco an advantage.
My chart shows Sysco’s share price breaking away from its 200-day moving average.
TC Pipelines, LP (NYSE:TCP)
The network of natural gas pipelines operated by TC Pipelines, LP (NYSE:TCP) is one of North America’s largest, encompassing over 42,000 miles of pipe and carrying 20% of the continent’s demand.
At the same time, TC Pipelines runs a premier oil pipeline system. The oil network is made up of 2,600 miles of pipeline and carries 530,000 barrels per day or 18% of Western Canadian production. My chart shows a powerful upward trend in TC Pipelines share price.
E I Du Pont De Nemours And Co (NYSE:DD)
In the first major proxy battle of 2015, Nelson Peltz is advocating for a new board at E I Du Pont De Nemours And Co (NYSE:DD), which would include himself.
Shareholder battles like this tend to eke out every ounce of value from a company. Even if Peltz’s proxy war fails, current management must show shareholders why they deserve their jobs by generating greater returns. Look for DuPont to pull out all the stops for improvement going forward.
My chart shows DuPont’s price reaching for new highs.
To get the rest of Dick Young’s top stocks to buy this month for stability and long-term dividend growth, sign up for his newsletter, Intelligence Report.
