Suddenly, all is right in the world again for Wall Street traders. President Donald Trump and Chinese President Xi Jinping agreed to a temporary trade tariff truce over the weekend, opening the door to a permanent deal. Trump also tweeted that China had agreed to end its import tariffs on automobiles, creating a number of stocks to buy in the industry.
Separately, last week, Federal Reserve Board Chair Jerome Powell suddenly sounded a dovish note when he said he believed short-term interest rates were near the neutral level, which was a walking back of more hawkish commentary just weeks ago.
As a result, U.S. large-cap indices are zooming back to test the highs set in early November and are threatening to break up and out of a multi-month funk led in large part by trade sensitive stocks.
Here are seven stocks to buy that are worth a look right now:
Shares of Boeing (NYSE:BA), one of America’s most critical strategic exporters, are rising more than 5% in mid-day trading on Monday to return to their early November highs — capping a rise of early 24% off of its recent panic low.
The recent excursion below the 200-day moving average was the first such one since late 2016, making a rare “buy-the-dip” opportunity. Watch for a resumption of the slight upward grind BA stock demonstrated earlier in the year.
The company will next report results on Jan. 23 before the bell. Analysts are looking for earnings of $4.51 per share on revenues of $27.02 billion. When the company last reported on Oct. 24, earnings of $3.58 beat estimates by 11 cents on a 3.8% rise in revenues.
Shares of Caterpillar (NYSE:CAT) are challenging their 200-day moving average for the first time since October to mark a rise of roughly 20% from the late October lows.
Shares have been tipping lower since peaking in January, so watch for a break of the pattern with a move above the $150-a-share level. CAT stock was recently upgraded to buy by analysts at Bank of America Merrill Lynch, making it one of the top stocks to buy now.
The company will next report results on Jan. 22 before the bell. Analysts are looking for earnings of $2.98 per share on revenues of $14.4 billion. When the company last reported on Oct. 23 earnings of $2.86 beat estimates by a penny on an 18.4% rise in revenues.
Automaker stocks to buy like Ford (NYSE:F) have been at the epicenter of trade concerns, with Trump recently turning his attention to auto tariffs imposed by other countries and threatening countervailing duties on imports coming into the United States.
The fear was that trade partners would retaliate, reducing the market competitiveness of U.S. automakers. Moreover, many “domestic” car companies are increasingly manufacturing in places like Mexico and Canada — which means import tariffs would hurt them, too.
The company will next report results on Jan. 23 after the close. Analysts are looking for earnings of 33 cents per share on revenues of $36.3 billion. When the company last reported on Oct. 24, earnings of 29 cents per share beat estimates by a penny on a 3% rise in revenues.
General Motors (GM)
Like F stock, shares of General Motors (NYSE:GM) are enjoying a huge lift on hopes Trump is going to back off his auto import tariff threats amid the thaw with China.
GM stock is up roughly 2.4% as I write this, pushing shares well up and over their 200-day moving average. The company was recently in the news for announcing a restructuring that would result in 15% headcount reduction as the company pivots away from slow-selling cars to focus on trucks and crossovers.
The company will next report results on Jan. 30 before the bell. Analysts are looking for earnings of $1.20 per share on revenues of $36.6 billion. When the company last reported on Oct. 31, earnings of $1.87 beat estimates by 62 cents per share on a 6.4% rise in revenues.
General Electric (GE)
Shares of General Electric (NYSE:GE) have been bombed out in recent months as nagging worries over new management and a lukewarm restricting plan have turned into outright panic. After bonking on the 200-day moving average shares plummeted by roughly 50% from the early October highs. Not good. Down roughly 75% from the highs seen in late 2016, a relief rebound is in order as the company is poised to benefit from the trade thaw.
Earnings will next be reported on January 24 before the bell. Analysts are looking for earnings of 22 cents per share on revenues of $32.2 billion. When the company last reported on October 30, earnings of 14 cents per share missed estimates by six cents on a 3.6% decline in revenues.
Shares of Honeywell (NYSE:HON), a diversified manufacturer, have popped over both their 50-day and 200-day moving averages in recent days to break up and out of a multi-month downtrend pattern that started in October. Watch for a return in HON stock to those prior highs, which would be worth a gain of 7% from here.
The company will next report results on Jan. 18 before the bell. Analysts are looking for earnings of $1.88 per share on revenues of $9.7 billion. When the company last reported on Oct. 19, earnings of $2.03 beat estimates by 4 cents on a 6.3% rise in revenues.
Shares of heavy equipment maker Deere (NYSE:DE) are launching higher, up 4.4% in mid-day trading on Monday to return to levels not seen since early in the year. This marks a breakout from the year-to-date down channel in DE stock and sets the stage for a run at the February high near $173. This would be worth a gain of roughly 7% from here.
The company will next report results on Feb. 20. Analysts are looking for earnings of $1.76 per share on revenues of $6.8 billion. When the company last reported on Nov. 21, earnings of $2.30 missed by 15 cents on a 17.6% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.