Stocks continue to inch off of their mid-January lows, fueled by hopes of fresh cheap money stimulus from the world’s major central banks as well as rumors of possible production cuts from Russia and OPEC.
The Dow Jones Industrial Average jumped up and over its 20-day moving average on Friday for the first time since late December — opening the door to a challenge of the 50-day moving average near 17,100.
Sentiment remains nervous, however, with measures such as the equity put-to-call ratio coming off of levels not seen since the financial crisis in late 2008. Caution still reigns.
Thus, it’s not surprising that the stocks leading the charge higher here are defensive in nature, focused on non-cyclical (or at least less cyclical) areas of the economy.
Here are four such stocks that are on the move with fresh uptrends.
Defensive Stocks to Buy Now: Procter & Gamble Co (PG)
Beauty-products maker Procter & Gamble (PG) is enjoying a move up and over resistance gains back to early 2015 — with the line in the sand near $80 — setting up a challenge of the late-2014 high near $90.
PG shares punched higher after reporting better-than-expected earnings on Jan. 26 of $1.04 per share. Organic revenues grew 2%, led by its grooming and healthcare divisions.
The move boosted the Feb $75 PG calls recommended to Edge Pro subscribers to a gain of 173% on Friday.
Defensive Stocks to Buy Now: AT&T Inc. (T)
Telecom giant AT&T (T) has broken up and out of a long trading range centered near $33 going all the way back to 2012. Investors cooled on the stock after losing Apple (AAPL) iPhone exclusivity, and were nervous about the buyout and rollup of DirecTV.
But quarterly results last week showed a rebound in DirecTV subscribers — evidence of possible synergies developing — and margin expansion.
Forward guidance included double-digit expected revenue growth and earnings per-share growth in the mid-single-digit range or better.
Defensive Stocks to Buy Now: Mattel, Inc. (MAT)
Toymaker Mattel (MAT) is primed for a breakout above its year-long resistance level near $28, putting an end to a downtrend that started in 2013.
The company will report results after the close on Monday, with analysts looking for earnings of 61 cents per share on revenues of $1.9 billion.
Mattel has been in the news after announcing it will introduce three new Barbie body types and more skin tones in response to consumer demands. It also announced the acquisition of Fuhu, maker of the Nabi kids tablet.
Defensive Stocks to Buy Now: Verizon Communications Inc. (VZ)
Telecom and content provider Verizon (VZ) is, like AT&T, pushing up and out of a long consolidation range going back years. In VZ’s case, back to 2013. Investors have been waiting for the acquisition of online content provider AOL to start generating results.
On Jan. 21, the company reported better-than-expected earnings of 89 cents per share on a 3.2% jump in revenues. What’s more, the company is rumored as a potential buyer of beleaguered Internet giant Yahoo! (YHOO).
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
