Investors make money by anticipating the market, both in the short and the long term. At times like this when many analysts are predicting a declining and volatile market there are commonly bargain stocks that been unjustly devalued. What stocks should you buy now when everyone one seems to be expecting a bear market? Stocks in the energy sector stand out as potential winners. The Chicago Tribune lists stocks to buy now in the energy sector.
Two bucks buys you a gallon of gas in many parts of the country these days. But if you think that’s a bargain, check out the deals on energy stocks. Collapsing crude prices have vaporized energy-company profits, pushing down stocks in the sector by 12 percent in the past year. But the sell-off may have gone too far. Even if the price of crude oil doesn’t recover, some energy companies can fare well.
Stocks listed in the article are two oil giants, ExxonMobil and Chevron. Both of these companies will survive depressed oil price and probably come out stronger in the end by buying out rivals at distressed sale prices.
Stocks to Buy in the
Investor Place looks at media stocks that you might consider buying now. They range from cable giant Time Warner Cable Inc. to Ballantyne Strong, Inc. which designs, develops, manufactures and distributes theater and lighting systems.
The grades of 6 Media stocks are on the rise this week on Portfolio Grader. Each of these stocks is rated an “A” (“strong buy”) or “B” overall (“buy”).
- Time Warner Cable Inc. (TWC)
- AMC Networks Inc. Class A (AMCX)
- Comcast Corporation Class A (CMCSA)
- Scholastic Corporation (SCHL)
- World Wrestling Entertainment, Inc. Class A (WWE)
- Ballantyne Strong, Inc.’s (BTN)
These stocks are graded as buy based individual fundamentals and not a sector decline like in the oil market. As such you will need to watch individual fundamentals if you are going to buy and hold these stocks.
P/E Ratios of Ten or Less
Kiplinger has 5 cheap stocks based on P/E ratios. Part of the argument here is that since quite a few good stocks took a hit at the first of the year many have turned into bargains.
Even after kicking off the New Year with a 6% slide in the first week of trading, the stock market doesn’t look cheap. Corporate profits have been slumping over the past few quarters, and Wall Street earnings estimates are falling-keeping a lid on the market’s price-earnings ratio. Companies in Standard & Poor’s 500-stock index on average trade at 15 times estimated 2016 earnings. That means investors are paying $15 for a dollar of profits, only slightly below the 25-year average, according to J.P. Morgan.
Suggested stocks include Apple (APPL), Gilead Sciences (GILD), Delta Airlines (DAL), Marathon Petroleum (MPC) and Air Lease (AL). As with the media sector stocks, you will need to look at individual fundamentals with each stock. These stocks fit our initial comments about stocks that become unjustly undervalued when prices fall across the board.