5 Blue-Chip Stocks to Buy in January

U.S. equities are showing no signs of slowing their incredible vertical ascent, kicking off 2018 with a two-day push to new record highs. The Nasdaq Composite has risen above the 7,000 level for the first time. Energy stocks are on the move thanks to a persistent gain in oil prices. The list goes on.

Nor is this happening in a vacuum. Animal spirits are everywhere to be seen, from the ongoing mania in cryptocurrencies to excitement about the Trump tax cuts.

Still, the risk of a pullback cannot be dismissed as the second-half of January has typically seen some market weakness according to the folks at the Traders Almanac. Moreover, SentinenTrader notes that trading years that begin with a record push typically give way to near-term selling pressure.

If so, keep an eye on these five stocks — focused on energy, which kicks off a period of seasonal strength in January — for entry points:

Stocks to Buy in January: Exxon Mobil (XOM)

Exxon Mobil Corporation (NYSE:XOM) shares are surging higher on Wednesday, rising nearly 2% to hit levels not seen since early January. This comes as crude oil prices push past the $60-a-barrel level for the first time since the summer of 2015 on growing unrest in Iran and reports of attacks on Iranian oil infrastructure.

The company will next report results on Feb. 2 before the bell. Analysts are looking for earnings of $1.00 per share on revenues of $74.33 billion. When the company last reported on Oct. 27, earnings of 93 cents per share beat estimates by six cents.

Stocks to Buy in January: Chevron (CVX)

Chevron Corporation (NYSE:CVX) shares are pushing to new highs, rising some 7% from their mid-December trading range to push to fresh record highs well above the prior resistance near $120 set back in the summer of 2014, before the energy price war started in the first place.

Shares are enjoying a lift not only from the rise of crude oil priced but also from an upgrade by analysts at Cowen on free cash flow performance.

The company will next report results on Jan. 26 before the bell. Analysts are looking for earnings of $1.30 per share on revenues of $38.59 billion. When the company last reported on Oct. 27, earnings of $1.03 beat estimates by six cents on a 20.1% rise in revenues.

Stocks to Buy in January: ConocoPhillips (COP)

ConocoPhillips (NYSE:COP) shares are pushing to fresh highs, rising above its late-December resistance, continuing a strong uptrend from its late August lows resulting in a 33%-plus gain.

Evercore ISI’s oil analyst recently discussed a bullish outlook for the sector, highlighted shareholder friendly integrated companies like COP.

The company will next report results on Feb. 1 before the bell. Analysts are looking for earnings of 35 cents per share on revenues of $7.6 billion. When the company last reported on Oct. 26, earnings of 16 cents per share beat estimates by eight cents.

Stocks to Buy in January: Schlumberger (SLB)

Schlumberger Limited. (NYSE:SLB) shares are up another 2.2% on Wednesday, pushing further away from its 200-day moving average to return to levels not seen since May.

This exits a long consolidation range that capped an excursion below the 200-day average that started last March.

The company will next report results on Jan. 19 before the bell. Analysts are looking for earnings of 45 cents per share on revenues of $8.1 billion. When the company last reported on Oct. 20, earnings of 42 cents per share matched estimates on a 12.6% rise in revenues.

Stocks to Buy in January: Halliburton (HAL)

Halliburton Company (NYSE:HAL) shares have popped up and over the $50-a-share threshold for the first time since April 2017, rising a third from the lows hit last August. A “golden cross” is underway, as the 50-day moving average crosses up and over the 200-day average — pointing to continued gains.

The company will next report results on Jan. 22 before the bell. Analysts are looking for earnings of 46 cents per share on revenues of $5.6 billion. When the company last reported on Oct. 23, earnings of 42 cents per share beat estimates by four cents on a 42% 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.

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