5 Stocks Ready to Climb This Fall

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stocks to buy - 5 Stocks Ready to Climb This Fall

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The final four months of the year are a crucial time on Wall Street. Everybody is looking for the perfect stock to take them through to the next year, but it can be a difficult time to negotiate the market.

5 Stocks to Buy This Fall (AMZN CVX NVDA UPS CVX)

September has historically been the worst performing month for the major market indices, and October has seen its fair share of volatility and market crashes — think 1929, 1987 and 2008 — but November and December have always been a time of hope that Santa Claus might bring a rally for both the naughty and the nice traders on Wall Street.

While uncertainty is a characteristic of the market we always have to live with — especially with all of the hand wringing that is going on as to whether or not the Federal Open Market Committee is going to aggressively raise interest rates — and there is no guarantee history will ever repeat itself, there are a few trends that look promising now that Labor Day is behind us.

Let’s take a look at those trends and five stocks that are positioned to take advantage of them.

Fall Stocks to Buy: Amazon.com, Inc. (AMZN)

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For years, analysts wondered if the huge investments Amazon.com, Inc. (NASDAQ:AMZN) has in infrastructure and slashing product and shipping costs to increase the company’s market share would be worth it.

That question has been answered with a resounding “yes!”

AMZN has been a 2016 darling, as the company has proven time and time again that it can make money both on its front-end retail endeavors and its back-end Amazon Web Services business.

This has made AMZN stock an attractive target for nervous investors who believe the days are numbered for strong growth in the market.

As we head into the crucial holiday-shopping season, Amazon is poised to garner even more market share as an increasing number of consumers shift to online purchases, regardless of whether the FOMC raises interest rates or not. This should continue to apply bullish pressure to a stock that enjoys a strong long-term uptrend. At SlingShot Trader, we’ve had success with AMZN mini options, and that’s always a strategy for cost-conscious traders to consider here.

Fall Stocks to Buy: United Parcel Service (UPS)

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At SlingShot Trader, we also like to trade United Parcel Service, Inc. (NYSE:UPS) to ride AMZN’s coattails higher, and we expect that to be the case during the holidays.

The more shoppers move toward online retailers and away from brick-and-mortar retailers, the more packages are going to need to be shipped. That means UPS is going to have its scheduled packed this holiday season.

As demand for package shipping picks up, we also anticipate oil prices are going to remain stable. This means the cost of fuel needed by UPS airplanes and trucks to get holiday packages from Point A to Point B should remain relatively stable, allowing UPS to maintain healthy margins on its business.

The stock has been consolidating in the middle of its uptrend, but with traders wanting to get a jump on the bullish holiday move that is likely to occur, UPS could easily break up through resistance and challenge the highs it established in early 2015.

Fall Stocks to Buy: Chevron Corporation (CVX)

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Stable oil prices should provide a continued boost to Chevron Corporation (NYSE:CVX). Major integrated oil companies like these do a fantastic job generating profits in stable economic environments.

Their diversified portfolios and the global economy’s consistent thirst for oil enable them to adjust to current market pressures. It’s when oil prices become too volatile to the downside that CVX and others struggle.

One benefit CVX has over other major integrated oil companies is its dividend yield. Currently at 4.2%, this high dividend yield should make the stock an attractive investment even if baseline interest rates start to rise as the FOMC nears raising the Federal Funds rate.

CVX has moved solidly higher as oil prices have risen this year, and it has remained relatively resilient when oil prices have momentarily moved lower. So long as oil prices remain stable, CVX could move back up to its April 2015 highs.

Fall Stocks to Buy: Nvidia (NVDA)

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Back in the day, investors used to talk about utilities, consumer staples — like toothpaste and shampoo — and health care companies as defensive stocks.

Well, it’s time to update the map a bit. While all of those sectors are still filled with good defensive stocks (as we’ve noted in SlingShot Trader), we need to expand our list of consumer staples stocks.

We consider Nvidia Corporation (NASDAQ:NVDA) to be a consumer staples growth stock. When you look around you, one thing should be abundantly clear: Computers, mobile phones and tablets are everywhere, and they are only becoming more popular. Within many of those electronic devices, you will find a processor created by Nvidia, because video processing is vital in many devices.

The reason we’d consider NVDA to be a consumer staples stock is because many younger people, if push came to shove, say they would choose to pay for their mobile device even if they had to miss a rent payment. We think it is a growth stock because the company continues to expand into more and more devices that are in high demand themselves. Watch for NVDA to keep its uptrend intact.

Fall Stocks to Buy: Goldman Sachs Group Inc (GS)

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Goldman Sachs Group Inc (NYSE:GS) has been working hard to keep its share price up in the low-interest-rate market environment we have been operating in for the past few years.

While we’ve traded GS successfully on the bearish side at SlingShot Trader in years past, we now think it is finally starting to turn the corner. The stock is breaking through key resistance levels and has quite a bit of upside potential.

The bullish boost GS has been waiting for could come from the FOMC. If the FOMC raises rates again in 2016, chances are good the U.S. Treasury yield curve is going to steepen … and a steep yield curve is good for banks.

It means GS can borrow money at lower interest rates and lend money at higher interest rates. The difference between the low interest rate the bank borrows at and the higher interest rates it lends at is called “net interest margin.”

A narrow net interest margin means lower revenues for the bank, while a wider net interest margin means higher revenues for the bank. We expect higher revenues are in store for Goldman Sachs as Wall Street adjusts its interest-rate expectations and the yield curve starts to steepen after a prolonged period of flattening.

This should be good news for GS shareholders.

InvestorPlace advisors John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next trade and get 1 free month today by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2016/09/stocks-to-buy-amzn-cvx-nvda/.

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