J.P. Morgan’s Chief Strategist Says to Buy the Dips

Lee Jackson

The stock market rallied to new highs last week on the strength of Federal Reserve Chairman Ben Bernanke's comments on the continuation of the easy money policies that are flooding the economy with liquidity. J.P. Morgan Chase & Co. (JPM) chief equity strategist Thomas Lee has pretty much gone all in, telling clients to buy equities and buy the dips, even as volatility in the credit markets remains a concern. Which would have been a great strategy following the almost 7% sell-off between May and June. He listed 21 stocks to buy now. We screened for the dividend paying-stocks not trading at 52-week highs, which may hold up better in the event of another quick selloff.

Iconic Brands That Just Vanished

Apple Inc. (AAPL) is certainly nowhere near a 52-week high, off almost 40% from last summer's all-time highs. With the iPhone 6 on the way, an Apple watch in the works and new tablets on the drawing board, analysts opinions are now firmly split on the iconic technology company. The Thomson/First Call price target for the stock is $530. Investors are paid a 2.9% dividend.

Countries Spending the Most on Health Care

Symantec Corp. (SYMC) provides security, storage and systems management solutions to various organization and consumers worldwide. It operates in four segments: Consumer, Security and Compliance, Storage and Server Management, and Services. The consensus price target for this timely stock to buy is $27. Investors are paid a 2.6% dividend.

Wyndham Worldwide Corp. (WYN) is a company with strong buyback activity that is also considered a compelling buy by numerous sell-side analysts on Wall Street. The consensus price target for this top lodging stock is $70. Investors receive a 2% dividend.

International Paper Co. (IP) is a nondurable stock to buy on the J.P. Morgan list. Net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but it is less than that of the Paper & Forest Products industry average. The net income increased by 69.1% when compared to the same quarter one year prior, rising from $188.00 million to $318.00 million. The consensus price target for the stock stands at $53.50, and investors are paid a 2.6% dividend.

Car Brands with the Most Loyal Drivers

Acacia Research Corp. (ACTG) is one of the top holdings at investment management firm Columbia Partners. The company enters into licensing agreements with various companies that seek protection from patent claims. Under such licensing agreements, Acacia partners with the patent owners and seeks to license patents to corporate users. The revenue generated is shared between Acacia and the original patent owner, depending on the covenant of the agreement. Consensus price estimates for the stock are at $40. Investors receive a 2.1% dividend. A move to the price target would represent a 60% gain for investors.

Carlyle Group L.P. (CG) is an excellent way for investors to be involved in private equity, direct investments and fund-of-funds investing while still having liquidity. The company is currently one of many bidding for aerospace telecommunications firm Arinc. The consensus price target for the stock is $32. Investors are paid a 2.6% dividend.

MPLX L.P. (MPLX) owns and operates a network of pipeline systems that include approximately 962 miles of common carrier crude oil pipelines and approximately 1,819 miles of common carrier product pipelines in nine states. The consensus price target for the stock is $39.50. Unitholders are paid a 2.9% dividend equivalent. MPLX is a master limited partnership (MLP), and the distribution may contain return of principal.

Portland General Electric Co. (POR) is a surprise utility stock to buy on the J.P. Morgan list. The company operates five thermal plants, seven hydroelectric plants and a wind farm located at Biglow Canyon in eastern Oregon, as well as approximately 1,100 circuit miles of transmission lines and 24,000 circuit miles of primary and secondary distribution lines that deliver electricity to its customers. The consensus price target for the stock is $33. Investors are paid a 3.6% dividend.

As money pours out of bond funds and investors realize that stocks are perhaps the only place to be, there is a good chance the markets will trade even higher. However the old Wall Street adage of “nobody ever went broke taking a profit” is one to remember. Investors with large gains may want to take some profits, hold them in cash and look for a better entry point after such a huge rally.

One other big bull market call that really stands out is for a secular bull market resurgence, which would take the S&P 500 Index up from 1,675 or so now up to 2,584 over the next cycle.

Related Articles

  • News

    Ford Recalls Over 88K Vehicles Due to Stalling Problem

    Ford is recalling more than 88,000 cars and SUVs in North America because the engines can stall without warning due to a fuel pump problem. The recall covers certain Ford Taurus and Police Interceptor sedans, Ford Flex wagons, Lincoln MKS sedans and Lincoln MKT SUVs from the 2013 through 2015 model years. All have 3.5-liter turbocharged six-cylinder engines. Ford says the fuel pump control modules can fail, and the engines may not start, or they could stall, leaving drivers without the ability to restart them. The company says it's not aware of any crashes or injuries from the problem. Dealers will replace the control module at no cost to owners.

    ABC News
  • News

    Please stop suggesting these inventions to Ford

    If you’ve ever had an idea that you think would change the way we get around, Ford would like to hear it. The company has a portal open to employees and the public where anyone can suggest an idea to Ford, and, if the company likes it, it may work with the person to help them secure the intellectual property. On the site, Ford has a list of a few suggestions that it would really prefer if you didn’t send them, because the company is either already working on similar ideas, or it’s just heard it a ton of times before and can’t do anything with. “We do not want you to waste your time submitting these ideas (or our time reviewing them), as we will reject your submission,” Ford says on the site.

    Quartz
  • Business

    The Collection Account That Just Won't Die

    Whatever the case, it was years ago and, try as you may, this old collection account keeps reappearing on your credit report. You're frustrated because you know that mistake all those years ago is still a red flag for lenders (and even landlords and utility companies) because it's lowering your credit scores. One thing to keep in mind is that there's little you can do to remove an accurate collection account from your credit reports before the collection account "ages out," which is typically seven years after the account first goes to collections.

    Credit.com
  • Entertainment

    Courteney Cox on ‘Running Wild’: ‘This is the Worst Thing I’ve Ever Done’

    On Monday’s Running Wild With Bear Grylls, Courteney Cox stopped running and started fearing for her life. Bear Grylls knew how to traverse the gap and explained that he would toss his ice pick over a boulder, rappel to the other side, and send a zipline back to Cox.

    Superfan
  • Business

    5 Dividend Stocks to Consider Selling Now

    With interest rates in the basement and likely to stay there for some time, investors have, for good reason, flocked to dividend-paying stocks. But demand has pushed up the prices of many popular payers to possibly unsustainable levels. These stocks could be vulnerable to steep declines. People who can live off of their dividend income and can ignore share-price fluctuations may not have to worry much about a market reversal. After all, given enough time, the price of a good company will eventually recover. But investors who can’t stomach a downturn—even if it proves temporary—may want to lighten up on some overpriced dividend stocks. We’ve identified five dividend payers that look overvalued

    Kiplinger.com
  • Business

    Lincoln, Honda, Toyota, BMW are tops in customer satisfaction (Acura, VW not so much)

    ACSI's 2016 Automobile Report polled 3,776 auto customers, asking them to evaluate their experiences with a wide range of car brands, using a scale of 0 (not at all satisfied) to 100 (over the moon). The 2015 ACSI survey saw continued declines in satisfaction, which was attributed to several years of high-profile recalls. On ACSI's 100-point scale, the average score in 2016 is 82, up 3.8 percent from last year.

    The Car Connection
  • Entertainment

    Former Fox News Host Andrea Tantaros Files Suit Alleging Sexual Harassment

    Andrea Tantaros, a former host of Fox News Channel program like “The Five” and “Outnumbered,” is the latest female staffer at the popular cable-news outlet to levy sexual-harassment charges at the 21st Century Fox-owned property. In a lawsuit filed Monday in the Supreme Court of the State of New York, Tantaros alleged that senior executives at the network retaliated against her after she complained about being inappropriate remarks made to her by Roger Ailes, the former chairman and chief executive of the network. Ailes left Fox News last month in the wake of an internal investigation that is believed to have turned up evidence of several female employees at the operation being harassed sexually during their time of employment.

    Variety
  • Business

    How to Get Serious About Building an Emergency Fund

    You’ve heard it time and time again: Everyone should build an emergency fund. Easier said than done, right? Saving can feel like an impossible task when you’re just getting by each month. But even if you’re living paycheck to paycheck, it’s still possible

    Money
  • News

    World's largest aircraft damaged on 2nd test flight

    The developer of the world's largest aircraft says the blimp-shaped airship sustained damage after it made a bumpy landing Wednesday on its second test flight in eastern England. Hybrid Air Vehicles said it is trying to figure out what caused the rough landing of the 302-foot (92-meter) Airlander 10 during its 100 minute flight Wednesday in Bedfordshire, north of London. "The Airlander experienced a heavy landing and the front of the flight deck has sustained some damage, which is currently being assessed," the company said.

    Associated Press
  • GWP.L

    Will GW Pharmaceuticals (GWPH) Crush Estimates at Its Next Earnings Report?

    Looking for a stock that might be in a good position to beat earnings at its next report? Consider GW Pharmaceuticals plc GWPH, a firm in the Medical Products industry, which could be a great candidate for another beat. This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports.

    Zacks
  • News

    Cramer: Yellen could trigger a historical decline. Here's...

    Jim Cramer provides his playbook for action in the event that the bears grip the market on Friday.

    CNBC Videos
  • Politics

    Lawmakers demand information on EpiPen price increase

    Sen. Charles Grassley, R-Iowa, wrote Mylan, the company that manufactures the devices, and asked for more information on why the prices have increased. Two other senators, Democrats Mark Warner of Virginia and Richard Blumenthal of Connecticut, also wrote the company about the high prices. Warner said in a letter Tuesday that the issue is personal for him.

    Associated Press
  • Business

    5 Ways to Avoid Taxes on Your Social Security Benefits

    How are taxes on Social Security benefits calculated? Are there any strategies that would help me avoid paying taxes on my benefits? Whether your Social Security benefits are taxed depends on your "provisional income." Your provisional income is your adjusted gross income, not counting Social Security benefits, plus nontaxable interest and half of your Social Security benefits. If it's below $25,000 and you file taxes as single or head of household, or less than $32,000 if you file a joint return, you won't owe taxes on your benefits. If your provisional income is between $25,000 and $34,000 if you're single, or between $32,000 and $44,000 if you file jointly, up to 50% of your benefits may be

    Kiplinger.com
  • SBUX

    No, Starbucks isn't cheating customers by adding ice to drinks, judge says

    It seems that Starbucks (SBUX) can put as much ice as it wants in your beverage. A judge in California dismissed a case that accused the coffee chain of under-filling its iced drinks, saying the plaintiff had "not alleged any viable claims" against the company. "If children have figured out that including ice in a cold beverage decreases the amount of liquid they will receive, the Court has no difficulty concluding that a reasonable consumer would not be deceived into thinking that when they order an iced tea, that the drink they receive will include both ice and tea and that for a given size cup, some portion of the drink will be ice rather than whatever liquid beverage the consumer ordered," wrote Percy Anderson, the U.S. District Judge presiding over the case in his dismissal of the lawsuit last Friday.

    CNBC
  • News

    Airlander 10: Longest aircraft damaged during flight

    The world's longest aircraft - the Airlander 10 - has been damaged after nosediving on landing during its second test flight. The 302ft (92m) long aircraft - which is part plane and part airship - was damaged during the flight from Cardington Airfield in Bedfordshire. The £25m craft sustained damage to its cockpit when it hit the ground at about 11:00 BST. HAV, the developer, said all the crew were "safe and well". A spokesman said: "The flight went really well and the only issue was when it landed." The company has denied claims from a witness that a line hanging down from the vehicle hit a telegraph pole about two fields away from its landing. In a statement, Hybrid Air Vehicles (HAV), said:

    BBC News
  • Business

    More U.S. retailers probing phony Egyptian cotton

    CHICAGO/NEW DELHI (Reuters) - U.S. retailer Bed Bath & Beyond on Wednesday said it ordered an external audit of textiles from Welspun India , after Target Corp last week accused the Indian manufacturer of passing off cheap sheets as premium Egyptian cotton for two years. This could compound the woes of Welspun, which supplies to several large U.S. retailers and has seen its shares plummet nearly 43 percent since Target's announcement on Friday. It also harms Indian Prime Minister Narendra Modi's efforts to spur global companies to increase manufacturing in India.

    Reuters
  • Business

    The unrelenting hunt for yield may end in tears, says James Grant

    Listening to Wall Street pundit James Grant ought to make investors feel uneasy. The prominent author of Grant’s Interest Rate Observer is starting to sound a lot like many permabears roaming this yield-parched world. Grant told Swiss business paper Finanz und Wirtschaft in a Q&A published on Monday that he’s scooping up shares of gold GCZ6, -1.40%  and gold miners GDX, -7.06% because he fears that the world will lose faith in central banks, or as he terms it “monetary management.” That call makes Grant sound a lot like Peter Schiff, chief executive of Euro Pacific Capital, who harbors a low opinion of the U.S. Federal Reserve, and central banks in general, and who has a longstanding love affair

    MarketWatch
  • Politics

    Campaign's rising rent at Trump Tower came as space expanded

    Donald Trump's campaign is taking up more space inside Trump Tower in New York -- and paying a lot more in rent. The Republican presidential nominee's campaign paid $35,457 per month for rent and utilities to Trump Tower Commercial LLC between last August and this April, Federal Election Commission reports show. The rent hike at the Manhattan skyscraper came as the Trump team expanded from using only the fifth floor to add two additional levels, according to a statement Tuesday from the campaign.

    Associated Press
  • Politics

    Will 15,000 New Emails Be Clinton’s ‘October Surprise’?

    In the latest chapter of the long saga of Hillary Clinton’s woeful mishandling of highly sensitive government documents and email, the government confirmed on Monday that the FBI uncovered nearly 15,000 previously undisclosed documents that Clinton sent or received during her four years as secretary of state. The 14,900 Clinton documents that the Justice Department revealed in federal court are nearly half again as many as the roughly 30,000 emails that Clinton’s lawyers assessed as “work related” and delivered to State in December 2014 as part of a federal probe into Clinton’s use of a private email server in her home. FBI Director James Comey said in July that investigators found “several thousand” more emails that were not included in the December batch.

    The Fiscal Times
  • Business

    Former IRS chief says Trump has no excuse to not release his tax returns

    Much has been said and written about Donald Trump 's refusal to release his tax returns. Tax returns paint a revealing picture of who we are. But nothing prevents us as taxpayers from choosing to release our tax returns — and those who aspire for the highest public office have done so for decades.

    CNBC
  • Technology

    U.S. banking regulators focused on cyber security after SWIFT attacks

    U.S. banking regulators said on Wednesday they are focused on cyber security risks and controls for U.S. financial institutions after attacks earlier this year involving the global financial network known as SWIFT. In a letter responding to questions from Representative Carolyn Maloney, a Democrat from New York, the regulators also said the U.S. Treasury Department's Office of the Comptroller of the Currency was drafting guidance on interbank messaging and wholesale payment systems. "As part of ongoing supervision activities, the OCC's onsite examination teams regularly address emerging issues, such as the recent reports of cyber-attacks involving SWIFT," said the letter from banking regulators including the Federal Reserve Board and Federal Deposit Insurance Corporation.

    Reuters
  • Business

    Photographer seeking $1 billion from Getty Images agency

    An accomplished photographer who lets the public use thousands of her images of America for free has sued the photo agency for more than $1 billion, saying it's improperly selling her work to customers and threatening those who don't pay. The photographer, Carol Highsmith, whose work has been featured in books, newspapers and magazines and on two postage stamps, said she became aware that Getty was selling her work in December, when she received a letter from an affiliated company accusing her of copyright infringement for using one of her own photographs on the website of her nonprofit group, the This is America! Foundation.

    Associated Press
  • Business

    EU, Portugal agree on 5 billion euro recapitalization for ailing bank CGD

    LISBON/BRUSSELS (Reuters) - The European Commission and Portugal have agreed in principle on the recapitalization, on market terms, of ailing state-owned bank CGD, envisaging an injection of up to 2.7 billion euros ($3 billion) in state funds and nearly as much in debt and equity. Portugal is still reeling from two bank rescues in 2014 and 2015 that have undermined investor confidence. Caixa Geral de Depositos, or CGD, its largest bank by assets, needs to bolster its capital because of massive bad loans on its books.

    Reuters
  • AAPL

    According to this chart, Apple shares are approaching a critical breaking point

    For Jonathan Krinsky, technical analyst MKM Partners, Apple's chart has become a heated battleground between bulls and bears. But he observes that Apple shares, which are up about 10 percent in the past month, have recently reached up to the top of this channel. The story of the $90 level on Apple's chart starts in April 2012, when the stock topped out at $92 — which was then actually $644, as it was before Apple's 7-to-1 stock split.

    CNBC