While enough evidence exists that justify a pessimistic view of the market – in particular, high inflation and high borrowing costs – it’s also possible that a hot November could rejuvenate previously embattled stocks to buy. And that’s not an entirely speculative proposition.
First, let’s get the not-so-pleasant news out of the way. Recently, the October jobs report came in and while the economy added 150,000 new employment opportunities, the workforce also cooled. That’s because the headline print came in lower than expected, per The New York Times. But that also warrants a closer look at stocks to buy.
How so? Simply, if the jobs market cools too much, the Federal Reserve might reconsider its aggressively hawkish monetary policy. Subsequently, sentiment for risk-on assets may rise.
Second, all eyes are on a hot November because it happens to be the best month for equities. Not only that, CNN reports that so far, circumstances look positive for a continuation of the trend.
Of course, you always want to conduct your own research. Nevertheless, these may be the stocks to buy for a potentially hot November.
Agnico Eagle (AEM)
As a gold producer, Agnico Eagle (NYSE:AEM) might not seem like a great idea, even if we’re talking about a hot November. Here’s my take on the situation. Under normal conditions, rising interest rates don’t bode well for commodities at all. You won’t find any disagreement from me. However, with the combination of fear (related to uncertainty) and a possible pivot in monetary policy, AEM could be one of the speculative stocks to buy.
While the Fed would love nothing more than for disinflation to become the dominate theme, between two bullets – inflation or a terrible labor market – I believe policymakers would rather choose the former. With high inflation, people bitterly complain but more dollars would be chasing after fewer goods. However, under a deflationary (i.e. high unemployment) framework, social order could be at risk.
Therefore, it’s possible that the Fed will do everything it can to protect the jobs market. If so, that should bode well for AEM. Analysts agree, rating it a unanimous strong buy with a $60.34 price target, projecting 22% upside potential.
Another conservative idea for stocks to buy in a hot November, Corteva (NYSE:CTVA) is an agricultural chemical and seed company. Thanks to its core business units, the company plays a vital role in the global food supply chain. While that’s more of a defensive idea, renewed sentiment for equities should push CTVA higher.
For starters, Corteva offers investors a relative discount. Since the January opener, CTVA slipped almost 15%. In the trailing one-year period, the security gave up more than 23% of equity value. However, sentiment has been picking up lately. Last week, CTVA returned over 4%. That’s a good sign considering that the company will soon release its third-quarter earnings report.
At the present juncture, CTVA has been de-risked. For example, shares now trade at 1.36x book value. In contrast, the sector median value is 1.65x. Also, for the industry, Corteva enjoys solid stability in the balance sheet. Analysts peg CTVA as a strong buy with a $64.19 target, implying nearly 28% growth.
Simultaneously a compelling and controversial enterprise, Mobileye (NASDAQ:MBLY) specializes in driver assistance systems. However, it attracts eyeballs mostly for its innovations in autonomous vehicle technology. Still, this directive represents a massively ambitious undertaking. As a result, MBLY gained roughly 13% since the beginning of the year; that’s decent, not particularly great.
Fundamentally, what has started to cloud the narrative is the practical viability of autonomous platforms. While heralded as the next generation of mobility, news articles are now highlighting accidents associated with artificial intelligence-powered vehicles. Indeed, the data is piling up, which may impugn upon the good work that Mobileye does.
However, if a hot November materializes, MBLY may rank as one of the stocks to buy. Certainly, the company did some good for itself, posting earnings per share of 22 cents in Q3 against a consensus target of 17 cents. With renewed vigor, MBLY could get interesting. Analysts rate MBLY a strong buy with a $50.92 target, implying over 38% upside.
Based in Billerica, Massachusetts, Quanterix (NASDAQ:QTRX) focuses on medical diagnostics technologies. Specifically, it facilitates ultrasensitive biomarker detection protocols which management claims could transform the future of healthcare. Per its website, Quanterix empowers researchers to bring new discoveries in disease and treatment to the forefront. Because of its highly tuned nature, the underlying biomarker identification platform set the gold standard in blood, serum, or plasma detection.
Naturally, the company enjoys enormous scientific relevancies. As a result, QTRX soared this year, returning stakeholders over 78% of equity value. However, in the trailing month, shares slipped almost 13%. For those who missed the first boat, the current juncture may provide an attractive entry point, especially if a hot November materializes.
Interestingly, in recent sessions, QTRX has been swinging higher ahead of its Q3 earnings disclosure. It’s fair to point out that Quanterix offers decent stability in the balance sheet.
Lastly, analysts peg QTRX as a unanimous strong buy with a $33 target, projecting 44% growth.
An online provider of aftermarket auto parts, CarParts.com (NASDAQ:PRTS) both intrigues and imposes high risks for speculators. Nevertheless, under a hot November, PRTS just might rank among the stocks to buy. However, so far, it’s been one of the securities to sell. Since the January opener, PRTS gave up 50% of equity value. Thus, you must believe that it’s a discounted play as opposed to a value trap.
Since Halloween, however, PRTS has been marching steadily higher. I like to believe that this is so for more than just technical rumblings. As I reported earlier this year, the average age of vehicles on U.S. roadways hit 12.5 years. That’s an all-time high according to S&P Global Mobility. Primarily, this statistic underscores the pain that many households endure.
They’re not buying new cars; rather, they’re holding onto their old ones for as long as possible. Cynically, this backdrop should benefit PRTS as one of the stocks to buy. Also, the financials encourage, with the company’s three-year revenue growth rate coming in at 15.9%, above 77.29% of its peers.
Analysts rate PRTS a unanimous strong buy with a $6.60 target, projecting nearly 111% upside.
Aspen Aerogels (ASPN)
Based in Northborough, Massachusetts, Aspen Aerogels (NYSE:ASPN) may be an enticing wager for a hot November. According to its website, Aspen helps top energy infrastructure companies design and operate more efficient, safe, and profitable process facilities. It achieves this lofty goal by producing quality insulation materials. Further, the company states that its insulation products promote the adoption of electric vehicles and energy efficiency enhancement.
Unfortunately, Aspen is one of those companies that make you play “Where’s Waldo?” regarding the “how” question. Nevertheless, it’s clear that the enterprise plays a stagehand manager role in the wider infrastructural narrative. In other words, Aspen might not be a household name. However, industry experts look to the firm for productive synergies.
Since the start of the year, ASPN slipped almost 11% of equity value. However, in the trailing month, it popped up over 23%, thanks in large part to a strong Q3 earnings performance.
In closing, analysts peg ASPN a unanimous strong buy with a $20.33 target, implying 125% growth.
A biotechnology company located in Foster City, California, Geron (NASDAQ:GERN) is an oncology specialist. Specifically, it explores the broad potential of imetelstat and telomerase inhibition across multiple hematologic malignancies. The former is a first-in-class telomerase inhibitor that may change the course of blood cancers.
As for telomerase, the company makes me go on a journey through the internets which I’m not particularly happy about. After all, a business should be able to tell you the basics of what it does. Anyways, telomerase is an enzyme responsible for maintenance of the length of telomeres, per the National Institutes of Health website.
For investors, the bottom line is that Geron is conducting advanced research which may hold the key for addressing certain cancers. It’s a speculative idea, meaning that you shouldn’t invest more than you can afford to lose. However, if we have a hot November, this could be interesting.
Analysts certainly love it, rating GERN a strong buy with a $5 target, implying almost 153% upside potential.
On the date of publication, Josh Enomoto did not have (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.