Based on the S&P 500 and the Dow Jones Industrial Average, we are undoubtedly in a bull market, and all market trends are up for now.
Last week closed with a modest loss for the major indices but the biggest monthly gain in over two years.
Yet, only time will tell what’s in store next this time around. Will investors initiate a round of selling?
For now, here are five stocks to buy based on good-looking charts:
Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
In 2016, Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) plans to roll out a fast-casual restaurant chain utilizing the Cracker Barrel brand. Fast-casual restaurants aim to provide better quality food without full table service.
The best known fast-casual restaurants in America are Chipotle Mexican Grill, Inc. (NYSE:CMG) and Panera Bread Co (NASDAQ:PNRA). Faster service options could be a major boon to Cracker Barrel, where 80% of locations are near interstate highways.
My relative strength chart shows a strong upward trend for Cracker Barrel in the last five years:
Southern Co (NYSE:SO)
You can see a drop in Southern Co’s (NYSE:SO) price on my chart. Quarterly-earnings-focused Wall Street speculators have driven SO stock’s price down after Southern Co missed its earnings guidance by a hair.
Let the Street’s short-term alarmism benefit your long-term focus. Buy shares of Southern Co today, and look at the chart below to see why:
Avista Corp. (NYSE:AVA)
Rumors are circulating that Avista Corp. (NYSE:AVA) is in talks with potential buyers. The potential acquisition is no surprise as Avista is a small utility in an industry that has seen considerable consolidation in recent years.
In 1995, there were 98 shareholder-owned electric utilities in operation in the U.S. By August of 2012, there were only 51. Whether or not Avista is acquired, it remains a strong business with dividend growth between 4% and 5%.
My price chart shows Avista’s strong and steady trend. Buy AVA stock.
Boeing Co (NYSE:BA)
In February of 2011, Boeing Co (NYSE:BA) was awarded a contract to build a new refueling tanker for the Air Force.
In what amounted to a coup, the contract had initially been given to Boeing’s arch rival, the European Aeronautic Defense and Space Company (EADS) and its partner, Northrop Grumman Corporation (NYSE:NOC). After a political uproar and an official protest by Boeing, the bidding process was restarted, this time without Northrop Grumman as a partner.
Today, Boeing is ready to begin work on the $15.6 billion deal. It looks as though the contract has bipartisan support and will be fully funded. Boeing managed to snatch victory away from EADS and land the huge contract.
My price chart shows Boeing reaching new all-time highs. Buy BA on the bullish breakout in share prices.
ABM Industries, Inc. (NYSE:ABM)
You can see on my long-term trend chart that ABM Industries, Inc. (NYSE:ABM) is edging closer to a new all-time high. However, ABM stock price is still below trend and quite attractive with a 2.12% yield.
ABM’s board has appointed Scott Salmirs to succeed ABM Industries’ current CEO Henrik Slipsager this month. Slipsager will remain onboard as a consultant to help Salmirs transition into the role. Salmirs has plenty of experience in facilities management and shouldn’t have any trouble taking the helm at ABM Industries.
Take a look at ABM stock’s long-term trend in the chart below:
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.