The final earnings season of the year has begun and this is a big week for tech companies. With some of the biggest companies reporting earnings this week, we will see a lot of movement in the stock market. While I am a typical buy-and-hold investor, I do not think it harms to take in some profit when the time is right. This has led to the emergence of stocks to sell for October.
There are a few companies very close to their 52-week highs, and what better time than now to cash in and take home a profit? While these stocks are the ones to hold forever, if you are looking for cash, it is time to sell these three stocks while they are at their best. Alternatively, you might want to sell a part of your position and take home some profit while you hold the remaining.
Let’s dig deeper into the three stocks to sell at their 52-week highs.
Alphabet (GOOG, GOOGL)
While I always recommend stocks that are a buy-and-hold for the long term, several investors like to cash in when their stocks are high and buy them when trading low. One such stock is Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), it is one of the biggest tech companies today and is enjoying a dominant position in the industry.
The company has some of the biggest internet properties and has easily beat Wall Street expectations in the second quarter results. It reported a revenue of $74.6 billion and an EPS of $1.44. GOOG stock is up 52% year to date and trading at $136 today. Its 52-week high is $142, and I am sure it will hit there very soon.
The company will report results tomorrow, taking the stock higher. Wall Street expects the results to be robust and the company’s momentum to continue. It is anticipated that Search will gain traction in the quarter and Cloud will continue showing high profitability. Revenue expectations for the quarter are $75.76 billion, about a 9.5% rise.
Currently, Alphabet is one of the top tech stocks to own, and the business has a stronghold on a large part of the digital advertising industry. Google’s search engine is also a company cash cow, holding over 90% of the search market share. It already enjoys a thorough presence in the industry and is only expanding its reach. The stock will hit a new 52-week high, and the results will catalyze it. It is difficult not to like this stock but now is your chance if you want to take home cash.
Shell (SHEL)
Inching closer to the 52-week high is oil company Shell (NYSE:SHEL). As crude oil prices trade over $85 a barrel, Shell is making the most of the upside and soaring high. It reported record profits in 2022 when the oil prices went as high as $122 but struggled earlier this year when prices dropped.
However, the company has regained control and is walking strong to hit a new high. SHEL stock is trading at $67 today, up 19% year to date and close to the 52-week high of $68. The stock hasn’t been able to go beyond $68 in the last five years, and this could be an opportunity for you to make the most of the upside. Once the company reports results, we could see the stock move upwards, which could be your chance to cash in. SHEL is one of the stocks to sell and take home a profit.
In the second quarter results, the company reported a 56% drop in profit due to the volatility in crude oil prices. It reported earnings of $11.5 billion and announced a share repurchase plan of $3 billion. In the recent pre-Q3 earnings, the company revealed that its upstream production has increased by 2.9% and expects an output ranging between 1,700 to 1,800 barrels of oil daily.
It expects operating expenses to be around $2.35 billion. The company is set to benefit from the rally in oil and gas prices, which will substantially impact the stock. While these numbers can only be confirmed when the company reports results, the stock is showing positive momentum, and I believe it will finally hit a new 52-week high, which is an ideal time to sell and take home profit.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is a forever tech stock to own, but it is also moving very close to the 52-week high, and if you want to take home some cash, now is the time to do so. The tech giant will be reporting the third quarter results this week, which could take the stock upwards. In the second quarter, it saw a 16% rise in net income and improved advertising revenue and user engagement.
Meta’s journey hasn’t been easy, and the company has had to make significant changes this year. It has recovered now, and the future looks bright. However, the company has been spending a lot on the Metaverse project, and we do not know if it will ever materialize into something. If the company can handle the cash burn, it could achieve a better position in the coming quarters.
One of the “Magnificent Seven”, the company is already betting on smart glasses and constantly works to improve the social media apps. Meta has recently launched generative AI tools for Facebook and Instagram advertisers and will help with the content creation process.
The stock is up 147% year to date and trading at $308 right now. Its 52-week high is $330, and I believe the quarterly results will give a solid push to the stock and take it there. The stock has been steadily moving upward in the past year, and there is no chance for the momentum to stop.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
