There’s no other way to say this: The market is in full melt-up mode. Everyday feels the same, a low volume/low volatility surge with minimal fuss or drama. Is this what heaven feels like?
Still, the uptrend isn’t being equally participated in. Not that that really matters.
This bull market has repeatedly shown that bad breadth numbers are just another oddity to be ignored. But it does mean that investors need to carefully choose where they are putting their money. For example, are you thinking about General Electric Company (NYSE:GE)? Bad idea.
Here are five stocks to buy that are leading the charge higher:
Stocks to Buy: Netflix (NFLX)
Netflix, Inc. (NASDAQ:NFLX) shares are launching higher on Thursday, bounding up and over four-month resistance near $190 to push to new highs. The result is a gain of one-third from the trading range seen during the spring. The catalyst for the move was reports of looming subscription price increases.
NFLX will next report results on Oct. 16, after the close. Analysts are looking for earnings of 32 cents per share on revenues of nearly $3 billion. When the company last reported on July 17, earnings of 15 cents missed estimates by a penny on a 32.3% rise in revenues.
Stocks to Buy: PayPal (PYPL)
Paypal Holdings Inc (NASDAQ:PYPL) shares are continuing their grind higher on Thursday, up more than the 50-day moving average from the mid-April lows. The boost comes as the company announces it will expand its digital partnership with Mastercard Inc (NYSE:MA). Analyst coverage has been positive as well, with Buckingham Research establishing a price target of $74 on Oct. 2.
PYPL will next report results on Oct. 19, after the close. Analysts are looking for earnings of 43 cents on revenues of $3.2 billion. When the company last reported on July 26, earnings of 46 cents per share beat estimates by 3 cents on a 18.3% rise in revenues.
Stocks to Buy: Biogen (BIIB)
Biogen Inc (NASDAQ:BIIB) shares are bounding higher after positive drug results data showed earlier initiation of treatment with Spinraza may improve motor function outcomes in infants and children with spinal muscular atrophy. Also helping was an upgrade to overweight at Morgan Stanley. Overall, shares are up nearly 33% from their late May lows.
BIIB will next report results on Oct. 24, before the bell. Analysts are looking for earnings of $5.65 per share on revenues of $3 billion. When the company last reported on July 25, earnings of $5.04 per share beat estimates by 67 cents on a 6.4% rise in revenues.
Stocks to Buy: Citigroup (C)
Citigroup Inc (NYSE:C) shares are extending to new highs on Thursday, extending a 15% rally off of its early August lows and a 36% rally off of its early February lows. Big bank stocks in general have been well bid in recent months on the expectation that Federal Reserve policy tightening will push up long-term interest rates — the desired outcome, after all — and thus boost net interest margins that underpin financial sector profitability margins.
C will next report results on Oct. 12, before the bell. Analysts are looking for earnings of $1.31 per share on revenues of $17.8 billion. When the company last reported on July 14, earnings of $1.28 beat estimates by 7 cents on a 2% rise in revenues.
Stocks to Buy: Microsoft (MSFT)
Microsoft Corporation (NASDAQ:MSFT) shares are lifting up and out of a three-month topping pattern after Canaccord Genuity analysts upgraded the stock to Buy and assigned an $86 price target. This upgrade comes on the belief investors have underestimated the virtuous cycles that the company has created in office productivity, gaming, marketing and Azure’s platform as a service — all of which should underpin a period of accelerating growth.
MSFT will next report results on Oct. 26, after the close. Analysts are looking for earnings of 74 cents per share on revenues of $23.7 billion. When the company last reported on July 20, earnings of 75 cents per share beat estimates by 4 cents on a 9.1% rise in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
