The big money might be feeling a bit queasy about overexposure to risk-on assets, presenting a framework to follow regarding the best stocks to buy in April.
As I’ve mentioned many times before, technology-related securities saw an outflow recently of $4.4 billion. That was the largest ever outflow over a one-week period. Effectively, the dynamic communicates that the smart money want to diversify their exposure.
If so, retail investors should also consider pivoting some of their weighting based on these shifting sands. Below are the best stocks to buy in April.
Sempra (SRE)
As a utility play, Sempra (NYSE:SRE) might seem awfully boring and I won’t disagree with that assessment. Still, an unexciting stature alone doesn’t mean SRE isn’t worth investigating. Indeed, I think it makes a strong case for best stocks to buy in April. That’s mainly because of the smart money’s inflows toward conservative investments like bonds and even cash.
However, I’d like to believe that many of the biggest investors are more adventurous than stuffing cash into pillowcases. If so, a utility-focused investment like Sempra provides a happy medium. Last year, the company put on a decent performance in fiscal 2023. In the past four quarters, its average positive earnings surprise came out to 5.1%.
For the current fiscal year, experts believe that earnings per share will reach $4.80 on sales of $16.79 billion. Last year, Sempra posted earnings of $4.61 on revenue of $16.72 billion. Interestingly, the most optimistic sales target calls for $18.63 billion.
Combined with Sempra’s forward dividend yield of 3.45%, SRE should rank among the best stocks to buy in April.
Exxon Mobil (XOM)
At first glance, the integrated oil and gas giant Exxon Mobil (NYSE:XOM) seems an anachronistic idea. With the political and ideological winds favoring clean and renewable infrastructure, XOM appears to be on its last legs. However, fossil fuels enjoy high energy density. That’s one of the key reasons why the world continues to run on hydrocarbons.
Another factor benefiting (albeit cynically) Exxon Mobil is the geopolitical backdrop. With military conflict likely not fading anytime soon in Europe, supplies could be artificially lowered. In turn, this dynamic should increase demand – especially if economic activity improves. So, I’m not particularly worried about Exxon’s choppy performance in fiscal 2023; that is, missing earnings estimates in the second and third quarters and beating in Q1 and Q4.
As for fiscal 2024, analysts anticipate EPS of $8.35 on revenue of $308.31 billion. Yes, these are disappointing stats, particularly since 2023 sales reached $319 billion. However, the high-side target calls for $351.69 billion.
Combined with Exxon’s forward dividend yield of 3.27%, XOM makes a solid case for best stocks to buy in April.
AbbVie (ABBV)
Listed under the broad healthcare sector, AbbVie (NYSE:ABBV) operates within the drug manufacturing subcategory. The company discovers, develops, manufactures and sells pharmaceuticals worldwide. It’s probably best known for offering Humira, an injection mainly for autoimmune diseases. As well, the enterprise offers solutions myriad other conditions, including blood cancers.
Fundamentally, AbbVie’s acquisition of Allergan – which gave the former entity control over the wrinkle treatment Botox – should represent a long-term winner. With social media making everyone focused on superficial elements, Botox enjoys a long relevancy pathway. While it’s not exactly lighting up the board performance wise, AbbVie has consistently met or exceeded EPS targets last year.
For fiscal year 2024, analysts believe that EPS will land at $11.19 on revenue of $54.56 billion. These are modest improvements over last year’s print of $11.11 on sales of $54.32 billion. However, at the highest estimate, revenue could rise to $55.38 billion.
In conjunction with a reliable business and a forward dividend yield of 3.44%, AbbVie could be one of the best stocks to buy in April.
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.
