5 High-Value Stocks to Buy While They Start to Rally
U.S. equities are attempting to move to the upside on Tuesday, with the S&P 500 trying to hang onto support from its October low. The move looks largely technical in nature, although there have been a few positive headlines that have put some stocks to buy in the spotlight.
The Chinese seem to be making good on a promise to cut import tariffs on American cars, as President Trump boasted about last week. U.K. Prime Minister May is also delaying a vote on Brexit, buying time to shore up support for the deal.
As a result, there has been a return of risk-on appetites with value hunters sniffing around the most beaten-down and forgotten names in hopes of a “V-Shaped” recovery in equity prices. Here are five such stocks to buy:
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SiriusXM (SIRI)
SiriusXM (NASDAQ:SIRI) shares look ready to break up and out of a four-month inverted head-and-shoulders reversal pattern that traces a rise back to the September high, which would be worth a gain of roughly 13% from here. The company has been in focus ahead of a planned merger with Pandora (NYSE:P).
The company will next report results on Jan. 23 before the bell. Analysts are looking for earnings of 6 cents per share on revenues of $1.5 billion. When the company last reported on Oct. 24, earnings of 7 cents per share beat estimates by a penny on a 6.4% rise in revenues.
Twitter (TWTR)
Twitter (NYSE:TWTR) shares are exiting a six-month consolidation range with a challenge of the $36-a-share threshold. Already up nearly 40% from their October low, watch for a run at the summertime highs, which would be worth a further gain of 33% from here. Shares were recently initiated with a Buy rating at Guggenheim.
The company will next report results on Jan. 24 before the bell. Analysts are looking for earnings of 16 cents per share on revenues of $843 million. When the company last reported on Oct. 25, earnings of 21 cents beat estimates by 7 cents on a 28.5% rise in revenues.
Barrick Gold (ABX)
Barrick Gold (NYSE:ABX) shares are on the move again after consolidating a big 40% rally off of its September low. A recent bout of risk aversion as well as growing evidence of budding inflation pressure is attracting new interest to the precious metals. An extension of the recent rise from here would represent a breakout from the downtrend that’s been in place since 2016.
The company will next report results on Jan. 23 after the close. Analysts are looking for earnings of 12 cents per share on revenues of nearly $2 billion. When the company last reported on Oct. 24, earnings of 8 cents per share beat estimates by 2 cents on a 5% decline in revenues.
MGM Resorts (MGM)
Shares of MGM Resorts (NYSE:MGM) have been consolidating within the confines of a four-month consolidation range but look ready to perk up as higher wages and lofty consumer confidence boost vacation and casino spending. Already, competitor Wynn (NASDAQ:WYNN) is challenging its post-summer downtrend. MGM should follow suit.
The company will next report results on Jan. 29 after the close. Analysts are looking for earnings of 11 cents per share on revenues of $3 billion. When the company last reported on Oct. 30, earnings of 24 cents per share beat estimates by 3 cents.
Tesla (TSLA)
Shares of everyone’s favorite electric car maker — Tesla (NASDAQ:TSLA) — are once again bumping up against the upper-end of a two-year-long consolidation range, challenging resistance near $380. The Model 3 “production hell” is largely behind the company as focus shifts instead to new products (Roadster, Model Y), new factories (Shanghai) and hopefully a new change of tactics for its CEO Elon Musk (less Twitter posts please).
The company will next report results on Jan. 23 after the close. Analysts are looking for earnings of $1.38 per share on revenues of $6.4 billion. When the company last reported on Oct. 24, earnings of $2.90 beat estimates by a whopping $2.97 per share (analysts expected a loss) thanks to somewhat aggressive accounting practices.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
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