We’re halfway through the year and it seems things are just getting interesting.
Britain has voted to exit the European Union and that has sent world markets and financial stocks in particular, on a wild ride.
Britain had to pump massive amounts of money into the system to keep the markets going. The EU immediately dumped as much money into the system as the U.S. did when the financial crisis hit in 2008.
The point is, these are uncertain times.
And that’s why it’s crucial to look for stocks that are either hooked into strong sectors or those detached from traditional market forces. These seven A-plus stocks to buy for the rest of 2016 are just those kinds of stocks.
These stocks will continue to grow because they have found a way to navigate these tough markets. Some are riding a trend, others are getting traction for significant long-term growth. Regardless, they are all going to finish 2016 a lot better off than they started it.
A-Plus Stocks to Buy: Facebook (FB)
Year-to-Date Gain: 9%
It should be no surprise that Facebook Inc (NASDAQ:FB) is in this list. The social media giant continues to expand its user base, adding more users to its other social media applications — like WhatsApp Messenger and Instagram — and growing its advertising power.
FB now has 1.65 billion monthly users. Think about that. That’s more than 25% of the entire population of humans on the planet. According to Statista.com, WhatsApp recently crossed 1 billion users. Instagram hit 500 million.
What’s more, FB has found a way to make advertising work, so now it can monetize these billions of users. That is a massive potential market.
And this doesn’t include FB’s move into virtual reality with its Oculus Rift system. The goal isn’t to just attract gamers. No, the plans are to integrate VR into the social media experience, which will further deepen the value of Facebook for users.
There is little that can stop this stock’s momentum, aside from a global power outage that lasts for six months. And then, we’d have a bit more to worry about than FB stock.
A-Plus Stocks to Buy: Patrick Industries, Inc. (PATK)
YTD Gain: 41%
Patrick Industries, Inc. (NASDAQ:PATK) has been around since 1959 and it’s the country’s leading manufacturer of building products and materials for the recreational vehicle and manufactured housing sectors.
At first you would assume PATK was a small stock that is hitting its stride. Actually this stock has a nearly $1 billion market cap. And it’s up 41% year-to-date.
Some of the pop is the growing popularity of RVs now that baby boomers have some extra time on their hands. It also doesn’t hurt that gas prices are at multi-year lows and will remain there for some time.
Many of PATK products are used in other housing as well, so it also generates some solid revenue when the housing market is in a growth cycle.
But it’s the boomers that are making the largest impression. As long as oil remains relatively inexpensive, we’re looking at a trend that has some serious legs.
A-Plus Stocks to Buy: Drew Industries (DW)
YTD Gain: 40%
Drew Industries, Inc. (NYSE:DW) is in a real growth sector. And with a market cap of $2 billion it’s a real player in its niches.
Since 2010, according to its own numbers, DW has compounded annual growth rates of 31%, 35% and 24% for three of its five major markets. And analysts see no end of growth in sight.
DW is one of the nation’s top manufacturers for recreational vehicles (including towables), trailers, camping equipment and other complementary markets. Last year, towables made up 73% of DW’s net revenue in its RV segment.
The RV trend is a combination of a rising number of retirees — either voluntary or involuntary — lower gas prices, and a growing interest in “making” your own vacation and having a comfortable place to stay, regardless of where you go.
As long as gas prices stay below $4 a gallon — an industry yardstick — this is growth industry few people are even aware exists … for now.
A-Plus Stocks to Buy: NetGear (NTGR)
YTD Gain: 13.5%
NetGear, Inc. (NASDAQ:NTGR) is practically the Coca-Cola of networking hardware firms.
The stock is up 23% in the past three months and has beaten earnings expectations for the past four straight quarters (through Q1 2016).
NTGR has been very smart about expanding its networking business — routers, WiFi hotspots, distributed networking, security — to more consumer-facing products. In this new digital age, people want bandwidth whether they’re at home, a restaurant or in a hotel room.
Personalizing the connectivity of billions of people is a very big market and NTGR is dominating that market.
Much of NetGear’s growth is driven by the Americas and Asia. While it’s growing at a nice clip now, as Asia stabilizes, growth there will strap a booster rocket to NTGR growth. Plus, NTGR doesn’t have a huge amount of organized competition in the consumer sector, and that’s where much of the ongoing growth is.
A-Plus Stocks to Buy: BWX Technologies (BWXT)
YTD Gain: 11%
BWX Technologies Inc (NYSE:BWXT) is a very unique company with the Mt. Everest of barriers to entry into its space.
That is a very good thing for investors.
It is the go-to source for the U.S. Navy’s nuclear reactors for its submarines and ships. It also provides the fuel for the reactors. But the reality is, this equipment has to be highly reliable, incredibly well engineered and functional in very tight spaces.
Given its long record of success in this sector, it highly likely that BWXT will be a major player in The Next Wave of nuclear power for the defense sector — portable reactors for ground forces.
Also, on the public side, BWXT developed mPower, a small, scalable light water nuclear reactor that can be installed individually or in groups, depending on the energy needs of the community. This is going to be a big player in nuclear energy since it reduces the needs — and risks — of massive nuclear power plants.
A-Plus Stocks to Buy: Five Prime Therapeutics (FPRX)
YTD Gain: 1%
Five Prime Therapeutics Inc (NASDAQ:FPRX) is in one of the hottest spaces in the biotech sector. It is working on immuno-oncology drugs.
Basically, this means that researchers are finding great results from working with a combination of drugs to stimulate patient immune systems, instead of bombarding them with chemicals and radiation as in the past. The old approach actually wiped out the good and bad cells together with the hope only the non-cancerous cells would come back.
Immuno-oncology operates in almost the exact opposite way. If you want a more in depth explanation, click here.
The fact is, this new approach would be revolutionary in the treatment of cancers. And right now, there are firms like FPRX that are swapping drugs to see what combinations work best. This will be a volatile stock, but its long-term trajectory is up.
A-Plus Stocks to Buy: BG Staffing (BGSF)
YTD Gain: 22%
BG Staffing Inc (NYSEMKT:BGSF) is in the business it sounds like it’s in: temporary staffing.
But this is a major growth industry now that we are well ensconced in the “gig economy,” where employers aren’t interested in investing in full-time workers. And some workers like the flexibility to work when they want to.
Generally, it’s the former that wags the dog, and that kind of corporate thinking isn’t going away anytime soon. Most forecasters have already cut the expected growth rate of all the industrialized nations for the rest of the year. That means companies are looking to build up their ranks, but run as lean as possible.
That’s good news for BGSF. According to the research organization Staffing Industry Analysts, BGSF was the fastest growing staffing firm in the US and the largest staffing firm in the U.S. in 2015. Those are both very good qualities heading into the final quarters of 2016.
Plus, the stock throws off an impressive 5% dividend, which is an added bonus to growth.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.