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4 Turnaround Plays to Buy Now

William Roth

As the third-quarter earnings season continues, stocks to buy keep marching higher, helped by solid results, hopes surrounding a draft Brexit deal, and good economic data.

Ten of 11 S&P 500 sector groups are trading higher and the Dow Jones Industrial Average is challenging the 27,000 level once again.

A number of familiar but troubled stocks are rounding higher as a result. Here are four to watch:

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Gamestop (GME)

Gamestop (NYSE:GME) shares have been troubled in recent years as video game sales increasingly turn to the digital format and away from physical discs purchased in stores. But efforts to reorient the retailer into a lifestyle destination for video game and pop culture fans are starting to gain traction ahead of the critical holiday shopping season.

The company will next report results on Nov. 26. Analysts are looking for earnings of 17 cents per share on revenues of $1.6 billion.


Tesla (TSLA)

Tesla (NASDAQ:TSLA) shares are emerging from below their 200-day moving average for the first time since January as the company secures approval to begin manufacturing vehicles in China. The company is breaking ground on a battery factory there as well. This shrugs off the bad vibes from a downgrade by JMP Securities earlier in the month on worries surrounding delivery data.

The company will next report results on Oct. 23 after the close. Analysts are looking for a loss of 28 cents per share on revenues of $6.5 billion.


Sirius XM Holdings (SIRI)

Shares of Sirius XM (NASDAQ:SIRI) are emerging from a two-year consolidation range to return to levels not seen since the summer of 2018 — rising more than 15% off of their recent low. Coverage was recently initiated by The Benchmark Company, which noted that it is the largest audio entertainment company with 34 million Sirius XM customers and roughly 70 million Pandora users.

The company will next report results on Oct. 31 before the bell. Analysts are looking for earnings of six cents per share on revenues of nearly $2 billion.


Roku (ROKU)

Roku (NASDAQ:ROKU) shares are climbing back above their 50-day moving average, setting up a run back towards the prior high near $170, which would be worth a gain of more than 20%. Earlier this week, the company announced that Apple’s (NASDAQ:AAPL) Apple TV app would be available on its streaming devices with support for the Apple TV+ service coming in November.

The company will next report results on Nov. 6 after the close. Analysts are looking for a loss of 25 cents per share on revenues of $256.8 million.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.

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