10 Stocks to Buy in October

These stocks to buy are all making significant returns to former glory

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities are on the rise again on Wednesday as the Federal Reserve’s interest rate decision looms. Another 0.25% hike is widely expected with a further 0.25% rate increase likely in December. This comes as inflation pressures bubble up and the labor market tightens. Yet investors are taking things in stride, focusing instead on the fundamental strength of the U.S. economy.

Investors also don’t seem too perturbed by the fact we’re cruising through the 10th anniversary of the global financial crisis, with September and October of 2008 when things went really wrong really fast. Nor do they seem concerned about the fact that September and October are two of the weakest months of the years for stocks, generally speaking.

With the Dow Jones Industrial Average finally pushing up and over its January highs last week, further upside gains look likely. Historically, stocks in the consumer discretionary, technology and industrial spaces have performed best this time of year.

Thus, here are 10 stocks to buy heading into October:

GoPro (GPRO)

Stocks to Buy in October gpro

Shares of GoPro (NASDAQ:GPRO) are surging higher out of a multi-month consolidation range on Wednesday after shares received an upgrade from analysts at Oppenheimer on positive steps management has taken to implement a focused turnaround strategy. Shares also enjoyed a “golden cross” back in August, the first such move since late 2017.

The company will next report results on Nov. 1, after the close. Analysts are looking for a loss of 14 cents per share on revenues of $272 million. When the company last reported on Aug. 2, a loss of 15 cents per share beat estimates by 7 cents on a 4.7% decline in revenue.

Bed Bath & Beyond (BBBY)

Stocks to Buy in October bbby

Shares of Bed Bath & Beyond (NASDAQ:BBBY) are rising up out of a base of support going back to April, recently enjoying an upward cross of its 20-day moving average above its 50-day average. Furthermore, BBBY is closing back in on overhead resistance near its 200-day moving average. The stock was recently upgraded by analysts at Raymond James on Sept. 17.

The company will next report results on Sept. 26, after the close. Analysts are looking for earnings of 50 cents per share on revenues of nearly $3 billion. When the company last reported on June 27, earnings of 38 cents per share beat estimates by 6 cents on a 0.4% rise in revenues.

Best Buy (BBY)

Stocks to Buy in October bby

Best Buy (NYSE:BBY) shares are riding higher on support near their 50-day moving average, setting the stage for an upside breakout of a consolidation range going back to January. Shares have been benefiting from indications that consumer confidence and the tight job market are bolstering purchases of things like televisions and smart speakers. Indeed, management highlighted strength in the home theater segment recently when it reported results.

The company will next report results on Nov. 27, before the bell. Analysts are looking for earnings of 85 cents per share on revenues of $9.5 billion. When the company last reported on Aug. 28, earnings of 91 cents per share beat estimates by 8 cents on a 4.6% rise in revenues.

Six Flags (SIX)

Stocks to Buy in October six

If consumers have more money in their pockets, they’re more likely to do fun things like theme park visits. It should be no surprise then to see Six Flags (NYSE:SIX) on this list of stocks to buy for October. After all, SIX shares are lifting back toward their record highs for another breakout attempt above the $72-a-share level — continuing a relentless uptrend that has been in play since the company IPO’d in 2010.

The company will next report results on Oct. 24, before the bell. Analysts are looking for earnings of $2.32 per share on revenues of $630.2 million. When the company last reported on July 25, earnings of 88 cents per share missed estimates by 5 cents on a 5.5% rise in revenues.

3M (MMM)

Stocks to buy in October MMM

Shares of 3M (NYSE:MMM) are rounding higher out of a multi-month base of support going back to late April, setting up a breakout above the 200-day moving average that’s been weighing on the stock since March. The company has been caught up in worries about the potential impact the U.S.-China trade tensions will have on raw material prices and thus on profitability, pushing shares down roughly 17% from the highs seen in January. But those fears are fading now, being replaced by excitement over the ongoing health of the U.S. economy.

The company will next report results on Oct. 23, before the bell. Analysts are looking for earnings of $2.70 per share on revenues of $8.4 billion. When the company last reported on July 24, earnings of $2.59 per share missed estimates by a penny on a 7.4% rise in revenues.

Terex (TEX)

Stocks to buy in October tex

Shares of Terex (NYSE:TEX), maker of aerial cranes and other work platforms, have been mired in a consolidation range going back to February. TEX looks ready for another breakout attempt above its 200-day moving average. This would coincide with a move above the 50-week moving average as well — a level that this stock to buy rallied above during its consistent uptrend between 2016 and early 2018. Another reason why TEX belongs on this list of stocks to buy? Shares were recently upgraded by analysts at Robert Baird.

The company will next report results on Oct. 30, after the close. Analysts are looking for earnings of 73 cents per share on revenues of $1.28 billion. When the company last reported on July 31, earnings of 98 cents per share beat estimates by 6 cents on an 18.7% rise in revenues.

Nokia (NOK)

Stocks to buy in October NOK

Shares of Nokia (NYSE:NOK), the once-great cellphone maker that’s in turnaround mode, are rallying after finding support back near the lows set in April. With a fresh focus on networking solutions to enterprise clients and others, the company is exposed to the expected uptick in capital expenditures as the corporate sector looks to boost investment and increase productivity after years of focusing on dividends and share repurchases. The stock was upgraded by analysts at Credit Suisse on Sept. 19.

The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of 6 cents per share on revenues of $6.6 billion. When the company last reported on July 26, earnings of 3 cents per share missed estimates by a penny on a 5.5% drop in revenues.

Skyworks Solutions (SWKS)

Stocks to buy in October SWKS

Shares of Skyworks Solutions (NASDAQ:SWKS) are rallying off of the double-top bottom formed near $85. The rally comes as semiconductor stocks enjoy a turnaround after some unpleasantness in August and early September on concerns over demand and growing inventories. Excitement over the new lineup of Apple (NASDAQ:AAPL) iPhones is alleviating much of this.

The company will next report results on Oct. 18, after the close. Analysts are looking for earnings of $1.78 per share on revenues of $1 billion. When the company last reported on July 19, earnings of $1.64 beat estimates by 4 cents on a 0.7% decline in revenues.

IBM (IBM)

Stocks to buy in October IBM

IBM (NYSE:IBM) shares are breaking higher, pushing above multi-month resistance near their 200-day moving average to return to levels not seen since early April. The company recently benefited from an update by UBS analysts on a belief the market was being unrealistic by essentially assigning no value to the company’s hardware business. They are looking for the share price to push toward the $180-a-share level, making this one of the more intriguing blue chip stocks to buy.

The company will next report results on Oct. 16, after the close. Analysts are looking for earnings of $3.4 per share on revenues of $19.1 billion. When the company last reported on July 18, earnings of $3.08 beat estimates by 4 cents on a 3.7% rise in revenues.

McDonald’s (MCD)

Stocks to buy in October MCD

McDonald’s (NYSE:MCD) shares are rising up to test resistance from their early June highs, setting the stage for a run at the January high near $175, which would be worth more than a 4% rise from here. Analysts at Cowen recently sang the company’s praises touting it as one of the key stocks to buy. The reason for this praise? Things like the potential to grab market share and comfort with comp-store sales growth estimates through 2019.

The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of $2 per share on revenues of $5.3 billion. When the company last reported on July 26, earnings of $1.99 per share beat estimates by 7 cents on an 11.5% decline 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.


Article printed from InvestorPlace Media, https://investorplace.com/2018/09/10-stocks-to-buy-in-october/.

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