With Thanksgiving and Black Friday nearly upon us, with 2018 lingering just beyond, it’s time for investors to consider new portfolio additions for December and the year to come.
Just as retailers are pumping out screaming deals on 4K televisions and video game consoles, the stock market is carrying a number of discounted issues these days after a multi-week pullback.
Many are still in long-term uptrends, but merely “went on sale” recently.
Here are seven to watch:
Stocks to Buy for December: Verizon (VZ)
Verizon Communications Inc (NYSE:VZ) shares have been under pressure in sympathy with regulatory pushback against the proposed tie-up between AT&T (NYSE:T) and Time Warner (NYSE:TWX) and a breakdown in M&A talks between Sprint Corp (NYSE:S) and T-Mobile (NASDAQ:TMUS).
But after falling near its June lows, shares found support and are now rising back up toward its 200-day moving average.
Watch, at the least, for a return to its October highs near $50, which would be worth a 10%-plus gain from current levels. The company will next report earnings on Jan. 23.
Analysts are looking for earnings of 88 cents per share on revenues of $33.2 billion. When the company last reported on Oct. 19, earnings of 98 cents per share beat estimates by a penny on a 2.5% rise in revenues.
Stocks to Buy for December: Procter & Gamble (PG)
Procter & Gamble Co. (NYSE:PG) shares have been under selling pressure since September amid investor nervousness about disappointing branded product sales activity amid the rise of store brand alternatives (both on the high-end and the low-end), especially by retailers like Amazon.com, Inc. (NASDAQ:AMZN) and Wal-Mart Stores, Inc. (NYSE:WMT).
Watch for a break above the 200-day moving average.
The company will next report results on Jan. 18. Analysts are looking for earnings of $1.14 per share on revenues of $17.4 billion.
When the company last reported earnings on Oct. 20, earnings of $1.09 beat estimates by a penny on a 0.8% rise in revenues.
Stocks to Buy for December: IBM (IBM)
International Business Machines Corp. (NYSE:IBM) is consolidating after its post-earnings pump-and-dump, continuing the grinding uptrend from its August low.
Now that the emotions have passed, investors are likely to view the turnaround in the company’s fundamentals — with new business lines enjoying nice top-line growth — positively, pushing up shares back to levels last seen in March. That will be worth a 16% gain from current levels.
The company will next report results on Jan. 18 after the close. Analysts are looking for earnings of $5.15 per share on revenues of $22.1 billion. When the company last reported on Oct. 17, earnings of $3.30 per share beat estimates by two cents on a 0.4% drop in revenues
Stocks to Buy for December: Disney (DIS)
Walt Disney Co (NYSE:DIS) shares lost some 15% from their late April high this year amid worries about the company’s media business in the context of a rise of “cord cutting,” the NFL protests, and an uncertain future for the company’s planned over-the-top streaming service.
But with another Star Wars movie about the hit the silver screen, and with park revenue solid, the narrative is shifting positive.
The company will next report results on Feb. 6 after the close. Analysts are looking for earnings of $1.60 per share on revenues of $15.5 billion. When the company last reported on Nov. 9, earnings of $1.07 missed estimates by five cents on a 2.8% drop in revenues.
Stocks to Buy for December: Tesla (TSLA)
Tesla Inc (NASDAQ:TSLA) shares have been under pressure, down 23% from their September high, amid growing worries about tepid Model 3 production. CEO Elon Musk changed the subject over the past week, however, with the well-received rollout of the Tesla Semi and the surprise unveiling of a new Roadster.
The Tesla Semi has already attracted the attention of Wal-Mart (NYSE:WMT) and others interested in a lower costs-per-mile offered by the electric truck.
The company will next report results on Feb. 21 after the close. Analysts are looking for a loss of $3.03 per share on revenues of $3.3 billion. When the company last reported on Nov. 1, a loss of $2.92 missed estimates by 63 cents on a 29.9% rise in revenues.
Anthony Mirhaydari is the 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.
