3 Stocks to Load-Up On Before Autumn Arrives    

  • These stocks to buy for autumn look like bargains at current prices and valuations. 
  • Murphy’s USA (MUSA): The retail gas station chain has been a long-term winner for investors. 
  • Dick’s Sporting Goods (DKS): This retailer’s stock is up more than 500% over the last year. 
  • Abercrombie & Fitch (ANF): The clothing company’s stock is 30% below its 52-week high, presenting a buying opportunity. 
stocks to buy for autumn - 3 Stocks to Load-Up On Before Autumn Arrives    

Source: Public Domain Images

As we enter August, it’s time to start thinking about autumn. Back-to-school sales are on and it won’t be long before the days get shorter and the temperature grows colder. Of course, the stock market has been anything but tranquil this summer. Volatility continues to rule as investors shift money around and equities swing from highs to lows and back again.

But amid the stomach-churning market selloff, there are some great bargains. Plenty of stocks are seeing a pullback that is not only lowering their share price but also improving their valuation and dividend yield. This presents a golden opportunity for investors to pick up great stocks for a bargain. Nobody knows how long the current market churn will last, so investors would be wise to act soon.

Here are three stocks to buy for autumn.

Murphy’s USA (MUSA)

Murphy USA gas station and convenience store located on an out parcel of a Walmart Supercenter
Source: Lawrence Glass / Shutterstock.com

For a great stock, Murphy’s USA (NYSE:MUSA) doesn’t get much attention. The retail gas stations and convenience stores chain has quietly outperformed the market for years. MUSA stock is up 40% this year, has risen 65% in the last 12 months, and has gained 490% over the past five years. That’s a better performance than most technology stocks.

Despite its run, Murphy’s USA still trades at a decent multiple of 21 times future earnings estimates. It also pays a quarterly dividend of 44 cents a share, giving the stock a yield of 0.35%. The company repurchased $107.1 million of its stock in this year’s second quarter, helping keep the share price aloft. With a market capitalization of $10 billion, Murphy’s can best be described as a mid-sized stock. However, some analysts consider it to be a small-cap. However it’s classified, MUSA is an outstanding stock to buy for autumn.

Dick’s Sporting Goods (DKS)

Exterior of Dick's Sporting Goods retail store including sign and logo.
Source: George Sheldon via Shutterstock

With back-to-school approaching, now is a good time to take a position in retailer Dick’s Sporting Goods (NYSE:DKS). The company specializes in selling sports equipment and apparel and consistently produces strong financial results and shareholder returns. The company most recently announced an EPS of $3.30 versus the $2.95 expected by analysts. Revenue of $3.02 billion beat expectations of $2.94 billion. Sales were up 6% from a year earlier.

The strong print sent DKS stock up 7%. So far this year, the company’s share price has increased 41%. Through five years, Dick’s stock is up 510%, making it one of the best-performing retail stocks. Like Murphy’s USA, Dick’s Sporting Goods continues to trade at a reasonable valuation of 17 times future earnings estimates. The company also pays a strong dividend of $1.10 per share each quarter, which is good for a yield of 2.13%. Dick’s has steadily increased its dividend in recent years, rewarding shareholders.

Abercrombie & Fitch (ANF)

The front of an Abercrombie & Fitch (ANF) location.
Source: Paul McKinnon / Shutterstock.com

Another good stock to buy for autumn is clothing retailer Abercrombie & Fitch (NYSE:ANF). After a blistering rally last year, ANF stock has pulled back hard, opening up a buying opportunity. In the past month, the company’s share price has come down 23%, nearly 30% below its 52-week high reached in mid-June of this year. As with the other names on this list, Abercrombie & Fitch is trading at a fair 17 times future earnings estimates.

There’s no dividend with the stock, and with a market cap of $7 billion, Abercrombie & Fitch is the type of small-cap stock that investors appear to be seeking out right now. Also, despite the stock’s pullback, there’s nothing wrong with Abercrombie & Fitch’s business. At the end of May, the company reported an EPS of $2.14 versus the expected $1.74 on Wall Street. Revenue totaled $1.02 billion compared to the forecast of $963.3 million. Sales were up 22% from last year and profits were nearly seven times higher than a year earlier.

With the current pressure, ANF stock is still up 260% over the last 12 months, including a 55% gain this year.

On the date of publication, Joel Baglole 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


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