U.S. equities surged higher on Tuesday, aided by a positive outlook from Adobe (NASDAQ:ADBE) overnight. Traders focused in on extremely strong jobs data, with the JOLTS report showing more than seven million openings for the first time ever. Moreover, there are now more than a million more job openings than unemployed persons.
This suggests that despite things like rising interest rates and turmoil in some emerging market economies, the U.S. economy is poised to go from strength to strength. Furthermore, on a technical basis, breadth is starting to recover after the percentage of NYSE issues above their 50-day moving average hit a low of just 13.6% last week — an even deeper low than what was set back in February.
That suggests a powerful rebound is in order. Here are five stocks to buy as they’re ready to zoom higher:
Twitter (NYSE:TWTR) shares look set to rise up and out of a falling two-month consolidation range, setting up a run above the 200-day and 50-day moving averages to return to the highs set in late August. Such a move would be worth a gain of 20% from here. Last week, analysts at Pivotal Research upgraded TWTR stock on a valuation tailwind.
The company will next report results on Oct. 25, before the bell. Analysts are looking for earnings of 14 cents per share on revenues of $703.7 million. When the company last reported on July 27, earnings of 17 cents beat estimates by a penny on a 23.8% rise in revenues.
J.M. Smucker (SJM)
J.M. Smucker (NYSE:SJM) shares look ready to rise off solid downside support near $102, setting up another rise to the August highs near $115, which would coincide with a test of the 200-day moving average. Analysts at Bank of America Merrill Lynch resumed coverage on SJM stock with a neutral rating on Oct. 3.
The company will next report results on Nov. 20, before the bell. Analysts are looking for earnings of $2.39 per share on revenues of $2.4 billion. When the company last reported on Aug. 21, earnings of $1.78 beat estimates by 2 cents on a 9% rise in revenues.
Shares of Brinker (NYSE:EAT) are rising back to the recent highs set in July and again in September, which would be worth a 4% gain from here for the restaurant operator. An extension to the highs set in June would be worth a total gain of roughly 13% from here. Management is in the midst of a turnaround plan, including the revamping of Chili’s menu and improvements in the level of service and atmosphere in its locations.
The company will next report results on Nov. 13, before the bell. Analysts are looking for earnings of 43 cents per share on revenues of $758.6 million. When the company last reported on Aug. 14, earnings of $1.19 matched estimates on a 0.8% rise in revenues.
Anglogold Ashanti (AU)
Gold stocks like Anglogold Ashanti (NYSE:AU) have been in the doghouse for a long time, falling hard in the wake of Donald Trump’s surprise electoral victory in late 2016 and the strong rally in the U.S. dollar and risky assets that followed. But the reappearance of financial market volatility and uncertainty has lifted the metal and the associated mining stocks in recent weeks.
Already, AU shares are up 70% from the lows set in August as a tightening job market and dovish calls from Trump for the Fed to slow its rate hike pace sets the stage for higher inflation and a weaker dollar — both of which should boost gold further and bolster AU.
Harmony Gold Mining (HMY)
Harmony Gold Mining (NYSE:HMY) shares are on the move as gold prices show signs of life. Watch for a possible run to the early April high near $2.50, which would be worth a gain of nearly 20% from here. The company recently settled a charge of improper financial statements with regulators in South Africa, removing a cloud of uncertainty.
Back in July, the company reported that it had exceeded production guidance by 4% and posted its sixth consecutive year of increasing the quality of underground recovered ore.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.