U.S. Markets open in 5 hrs 40 mins

7 High-Risk, High-Reward Stocks to Buy Now

Anthony Mirhaydari

U.S. equities have rebounded from a short-lived scare regarding a possible pullback of Chinese buying of U.S. Treasury bonds. The holiday-season melt has resumed, with stocks enjoying one of their strongest starts to a year on record. Just days after the Dow Jones Industrial Average passed the 25,000 threshold for the first time, the index is now closer to 26,000 than that level.

Just incredible.

For bulls looking to push their long-side exposure, the number of stocks hovering a modicum of value is short. There is no other way to say this: The market is very expensive. But there are still opportunities if you know where to look. Mainly, in biotech and energy. The latter is enjoying a tailwind amid a surge in energy prices, with crude oil closing in on the $64-a-barrel threshold.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Here are seven high-risk, high-reward stocks to consider:


High-Reward Stocks to Buy: JC Penney (JCP)

High-Reward Stocks to Buy: JC Penney (JCP)

J C Penney Company Inc (NYSE:JCP) is in the middle of a strategic turnaround, with new management and a new focus on things like appliance sales finally starting to gain traction after its disastrous attempt years ago to move up market and alienate its discount-oriented shoppers.

Buyers are coming in as shares found support near the $3-a-share level, down more than 70% from the levels seen in late 2016.

The company will next report results on Feb. 9, before the bell. Analysts are looking for earnings of 44-cents-per-share on revenues of $4 billion. When the company last reported on Nov. 10, a loss of 33-cents-per-share beat estimates by 10 cents on a 1.8% decline in revenues.


High-Reward Stocks to Buy: Trevena (TRVN)

High-Reward Stocks to Buy: Trevena (TRVN)

Trevena Inc (NASDAQ:TRVN) shares are finding support amid a four-month consolidation range near the $1.60-a-share level. The biotechnology company is developing a number of treatments, including a Phase III candidate for acute pain and a drug to combat migraines.

The company will next report results on Feb. 6, before the bell. Analysts are looking for a loss of 26-cents-per-share. When the company last reported on Nov. 7, a loss of 27-cents-per-share was 3 cents better than expected as development continues to be funded by investment capital.


High-Reward Stocks to Buy: Idera Pharma (IDRA)

High-Reward Stocks to Buy: Idera Pharma (IDRA)

Shares of Idera Pharmaceuticals Inc (NASDAQ:IDRA), a clinical-stage drug development company looking to treat cancers and rare diseases, are rallying above their late November highs. The company was recently granted fast-track designation by the FDA for a development candidate drug labeled IMO-2125 designed to treat metastatic melanoma in conduction with Ipilimumab.

Shares were initiated with a buy rating by analysts at HC Wainwright back in November with a $4 price target. They cited the company’s two lead products has having significant potential in a fast growing market.


High-Reward Stocks to Buy: Scorpio Tankers (STNG)

High-Reward Stocks to Buy: Scorpio Tankers (STNG)

Scorpio Tankers Inc. (NYSE:STNG) is a provider of seaborne transportation for refined petroleum products. STNG shares, which have lost more than 60% from their 2015 highs amid a pullback in the energy industry, are enjoying stabilization after hitting a low near $3. Watch for a rally to the 200-day moving average, which would be worth a gain of 13% from here.

The company will next report results on Feb. 15, before the bell. Analysts are looking for a loss of 8-cents-per-share on revenues of $152 million. When the company last reported on Nov. 16, a loss of 15-cents-per-share missed estimates by 3 cents on a 7.8% rise in revenues.


High-Reward Stocks to Buy: Teekay Offshore Partners (TOO)

High-Reward Stocks to Buy: Teekay Offshore Partners (TOO)

Teekay Offshore Partners L.P. (NYSE:TOO) provides oil transportation, production and offshore installation support among other activities to the energy industry. TOO shares are emerging from a long, tight consolidation range near the $2.50-a-share level going back to June. This capped a 90% decline from the highs seen back in summer 2014, when energy prices were last peaking.

The company will next report results on Feb. 8 before the bell. Analysts are looking for earnings of 5-cents-per-share on revenues of $279.6 million. When the company last reported on Nov. 9, a loss of 5-cents-per-share missed estimates by a penny on a 4.4% decline in revenues.


High-Reward Stocks to Buy: Baytex Energy (BTE)

High-Reward Stocks to Buy: Baytex Energy (BTE)

Baytex Energy Corp (USA) (NYSE:BTE) is an oil and gas company with operations in the Western Canadian Sedimentary Basin and the Eagle Ford shale complex in the United States. Shares have been oscillating higher since finding a low back in June. BTE shares are down some 90% from their 2014 highs and have been trading near the $4-a-share level since late 2015. A return to the 200-week moving average, which hasn’t been touched in four years, would be worth a triple from here.

The company will next report results on Feb. 1, before the bell. Analysts are looking for a loss of 13-cents-per-share on revenues of $266.5 million. When the company last reported on Nov. 2, earnings of 33-cents-per-share beat estimates by 51 cents.


High-Reward Stocks to Buy: Weatherford (WFT)

High-Reward Stocks to Buy: Weatherford (WFT)

Weatherford International Plc (NYSE:WFT) is an oilfield services provider that helps evaluate, drill and produce oil and gas wells. After peaking near $25 back in 2014, shares fell to a low near $3.20 that was twice tested in November before investors starting pushing prices higher. A breakout above the 200-day moving average looks likely now, potentially setting the stage for a return to levels seen last spring for a gain of 50% from here.

The company will next report results on Feb. 2, before the bell. Analysts are looking for a loss of 20-cents-per-share on revenues of $1.5 billion. When the company last reported on Nov. 1, a loss of 22-cents-per-share beat estimates by 3 cents on a 7.1% rise in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

Compare Brokers

The post 7 High-Risk, High-Reward Stocks to Buy Now appeared first on InvestorPlace.

  • Judge orders law firm of Stormy Daniels' lawyer to pay $10M
    News
    Associated Press

    Judge orders law firm of Stormy Daniels' lawyer to pay $10M

    A federal judge in California ordered a law firm linked to Stormy Daniels' attorney to pay $10 million on Tuesday to a lawyer who claimed that the firm had misstated its profits and that he was owed millions. The judgment came after Jason Frank, who used to work at Eagan Avenatti, alleged that that the law firm failed to pay a $4.85 million settlement he had reached in December. Frank had worked at Avenatti's firm under an independent contractor agreement and was supposed to collect 25 percent of the firm's annual profits, along with 20 percent of fees his clients paid, according to court documents.

  • Sony Lays the Early Groundwork for PlayStation 5's Introduction
    Finance
    Fortune

    Sony Lays the Early Groundwork for PlayStation 5's Introduction

    The PlayStation 4 has been a sales juggernaut for Sony, selling 79 million units as of the end of April. While Sony intends to strongly support the PS4 with new software, comments from PlayStation boss John Kodera at Sony’s Corporate Strategy Meeting Tuesday have sparked whispers about when the company will begin talking about the PlayStation 5. Perhaps anticipating this speculation, Sony announced 12 days ago that it would have “no new hardware announcements at E3,” the upcoming video game trade show where major systems have been unveiled in the past.

  • Will Ferrell and Molly Shannon's Royal Wedding Coverage Was Nothing Short of Incredible
    News
    Time

    Will Ferrell and Molly Shannon's Royal Wedding Coverage Was Nothing Short of Incredible

    While pretty much every major network covered Prince Harry and Meghan Markle’sroyal wedding in some form or fashion, none did it quite like HBO. To celebrate the Saturday nuptials of the Duke and Duchess of Sussex, Will Ferrell and Molly Shannon revived their comedic TV commentator personas of Cord Hosenbeck and Tish Cattigan to deliver live updates of the couple’s highly-anticipated ceremony. From Ferrell and Shannon absolutely losing it over Harry and Meghan’s first kiss as husband and wife to parodying Markle’s longtime role on Suits, The Royal Wedding Live With Cord and Tish! was definitely a can’t miss special of the day.

  • Netflix, Inc. Stock Is Ripe for the Picking
    Finance
    InvestorPlace

    Netflix, Inc. Stock Is Ripe for the Picking

    Netflix, Inc. (NASDAQ:NFLX) shares are a coiled spring about to pop. Let’s chronicle the recent action in the tech sector and identify how to best capitalize on the resolution of Netflix’s triangle formation. Since reclaiming the high ground above the 50-day moving average, the tech-laden Nasdaq has been in a holding pattern.

  • More American Airlines frontline staff criticize Boeing 737 MAX
    Business
    American City Business Journals

    More American Airlines frontline staff criticize Boeing 737 MAX

    American Airlines’ rollout of the Boeing 737 MAX is generating a lot of discontent among AA employees as more and more pilots and flight attendants get their first experience flying the aircraft. The MAX is the same size as the Boeing 737-800, of which AA has several hundred, but the MAX has a more fuel-efficient engine. The MAXs now coming online seat 172 people, as opposed to 160 people in the 737-800s now in AA’s fleet. A large number of those 737-800s are about to reconfigured to match the cabin configuration of the MAX, however.  And that increasingly has AA employees on the frontline concerned about what’s coming as part of Project Oasis, which the reconfiguration of the 737-800s has been dubbed.

  • Cramer: If you want bigger gains, buy stocks that are sel...
    Business
    CNBC Videos

    Cramer: If you want bigger gains, buy stocks that are sel...

    Jim Cramer uses Amazon's stock to explain why buying broken stocks can boost investors' earnings.

  • Salesforce unveils new offices in San Francisco's tallest building, Salesforce Tower
    Finance
    American City Business Journals

    Salesforce unveils new offices in San Francisco's tallest building, Salesforce Tower

    Now that Salesforce.com (NYSE: CRM) has had few months to settle in its new offices in Salesforce Tower in San Francisco, executives decided it was time to fete the building. The enterprise software maker moved the first 600 workers into the $1 billion tower, the tallest building in San Francisco, starting in January. The move marked a major milestone in the evolution of San Francisco’s Transbay district.

  • Dems want to scrap tax cut for rich to fund teachers' raises
    Finance
    Associated Press

    Dems want to scrap tax cut for rich to fund teachers' raises

    Responding to teacher walkouts across the country, congressional Democrats on Tuesday proposed raising teachers' salaries by canceling the tax cut for the nation's top 1 percent of earners. The Republican-controlled Congress was unlikely to support the idea of giving states and school districts $50 billion over a decade to fund the teacher raises at the expense of dismantling the hard-won tax bill. At a congressional hearing Tuesday, Education Secretary Betsy DeVos agreed that teachers are underpaid, but offered few concrete suggestions to boost their income.

  • Business
    CNBC

    Why JPMorgan CEO Jamie Dimon puts work ‘literally last’ on his priority list

    JPMorgan Chase JPM CEO Jamie Dimon is the chairperson of one of the world's most valuable banks. "I've always said family first, country second, JPMorgan literally last," says the 62-year-old father of three. Within four years, Dimon managed to turn the company around and sell it to JPMorgan Chase in 2004 for $58 billion .

  • Frontier Is Talking With Bondholders After Failed Asset Auction
    Finance
    Bloomberg

    Frontier Is Talking With Bondholders After Failed Asset Auction

    Frontier Communications Corp. and its bondholders are back at the negotiating table after the debt-laden telephone service company’s asset auction failed to generate an acceptable price, people with knowledge of the matter said. The company, which serves small towns and midsize cities, received multiple bids for landline assets in Florida this month but decided not to sell because none of the offers were high enough, said the people, who asked not to be identified because the matter is private. Struggling under a debt load that’s more than 23 times the size of its market capitalization, Frontier has been considering a sale of landline assets in California, Florida and Texas since at least February.

  • BP to cut 3 percent of upstream jobs by year-end
    Business
    Reuters

    BP to cut 3 percent of upstream jobs by year-end

    The 110-year old company is undergoing its fastest growth in recent history with new oil and gas fields from Egypt and Oman to the U.S. Gulf of Mexico, riding a tide of higher oil prices following the 2014 downturn.

  • Trump Eliminates Federal Auto Lending Anti-discrimination Guidelines
    Politics
    Yahoo View

    Trump Eliminates Federal Auto Lending Anti-discrimination Guidelines

    Research shows auto lenders often charge black and Hispanic customers higher interest rates than white customers with similar credit profiles.

  • 3 Stocks to Buy and Hold for the Next 50 Years
    Business
    Motley Fool

    3 Stocks to Buy and Hold for the Next 50 Years

    The only constant is change, and it can be difficult to anticipate how changes will affect any investment in terms of quarters and years, let alone decades. While there isn't any investment that you can buy and simply forget, there are some companies that increase the likelihood that they'll still be in your portfolio in 50 years' time. With that in mind, we asked three Motley Fool investors to choose top companies they believed could still be viable investments come 2068.

  • How an Autonomous Vehicle Found the 'Holy Grail' of Shipwrecks
    World
    Fortune

    How an Autonomous Vehicle Found the 'Holy Grail' of Shipwrecks

    An autonomous vehicle was required to find the “holy grail of shipwrecks” that had up to $17 billion in gold, silver, and emeralds on it. In a statement on Monday, the Woods Hole Oceanographic Institution (WHOI) released fascinating new details about the recovery of the San José, a Spanish galleon ship that was sunk in 1708 during the War of Spanish Succession and was discovered three years ago off the coast of Cartagena, Colombia. According to the WHOI, which needed to obtain permission to divulge more details on the discovery from the Maritime Archaeology Consultants (MAC) and Colombian government, the ship was discovered 600 meters (1,968 feet) below the surface by an autonomous vehicle called the REMUS 6000.

  • Hawaiian Airlines CEO: Vast majority of Hawaii tourism i...
    U.S.
    CNBC Videos

    Hawaiian Airlines CEO: Vast majority of Hawaii tourism i...

    Hawaiian Airlines CEO Peter Ingram discusses the impact on travel and tourism from the eruptions of the Kilauea volcano.

  • The Apple Watch has found a surprisingly useful home
    Technology
    Quartz

    The Apple Watch has found a surprisingly useful home

    When the Apple Watch launched in 2015, it wasn’t exactly clear who, or what, it was for. You might’ve noticed that the person who took your order at the bar, brought you the shoes you wanted to try on, or perhaps even patted you down at the airport security line, is sporting an Apple Watch, which starts at $329 for the newest Series 3 watch. Quartz spoke with airline attendants, bartenders, waiters, baristas, shop owners, and (very politely) TSA employees who all said the same thing: The Apple Watch keeps them in touch when they can’t be on their phones at work.

  • EPA blocks some media from summit, then reverses course
    News
    Associated Press

    EPA blocks some media from summit, then reverses course

    A reporter for The Associated Press was grabbed by the shoulders and shoved out of an Environmental Protection Agency building by a security guard Tuesday for trying to cover a meeting on water contaminants in which some reporters were welcomed and others were not. An aide to EPA Administrator Scott Pruitt later called to apologize to AP reporter Ellen Knickmeyer and said the incident is being looked into. Knickmeyer, who said she was not hurt, was later let into the meeting when the EPA reversed course and opened it to all reporters.

  • We Are Gathered Here Today to Enjoy Some Memes About Meghan Markle's Veil
    News
    Time

    We Are Gathered Here Today to Enjoy Some Memes About Meghan Markle's Veil

    Meghan Markle’s 16.5 foot long veil made a bunch of people think of unnecessarily long CVS receipts. On Saturday, the world cleared a path to give Meghan, Duchess of Sussex, and her veil the room to ascend the steps of St. George’s Chapel at the 2018 royal wedding. In fact, meticulous workers had to wash their hands every half hour to keep it looking immaculate, according to Kensington Palace.

  • Ousted Ford exec Raj Nair lands at firm that builds Ford GT
    Business
    Autoblog

    Ousted Ford exec Raj Nair lands at firm that builds Ford GT

    Raj Nair, the former president of Ford North America who left the company earlier this year following an internal investigation into "inappropriate behavior," has a new gig as a top executive at the Canadian auto supplier that builds the Ford GT. Nair has joined Multimatic Motorsports, a privately held racing shop headquartered in suburban Toronto, as president and chief operating officer, Road and Track reports. The company has worked with Ford for decades and in 2015 won a bid from Ford to build the GT's carbon fiber bodies.

  • Finance
    InvestorPlace

    Sears Stores Closing 2018: 40 More Stores to Close

    Sears Holdings Corp (NASDAQ:SHLD) announced that the company is shuttering the doors of at least 40 more stores in the coming months. The retail chain announced that it will be closing 40 Sears and Kmart stores in July and August, according to a Business Insider report from May 19. The company has yet to comment on the matter, which includes 31 Sears locations and nine Kmart stores that will be closing in 24 states.

  • Business
    Reuters

    Weatherford mulls sale of larger business in bid to pay down debt

    Oilfield service company Weatherford International Plc may have to sell one of its larger businesses next year to pay down its sizeable debt, Chief Executive Officer Mark McCollum said on Tuesday. Last December, Weatherford sold its U.S. fracking equipment business to rival Schlumberger and currently has several other businesses up for sale. Weatherford was hit hard by the 2014 downturn in oil prices and has not posted a quarterly profit since September 2014.

  • If You're in Your 70s, Consider Buying This Dividend Stock
    Business
    Motley Fool

    If You're in Your 70s, Consider Buying This Dividend Stock

    Here's why energy giant Kinder Morgan (NYSE: KMI) fits the bill. With 85,000 miles  of oil and gas pipelines snaking throughout North America, Kinder Morgan is one of the largest energy infrastructure companies in the world. As such, Kinder Morgan is one of the businesses best positioned to profit from the shale gas revolution, which could drive U.S. natural gas demand higher by as much as 30%  over the coming decade.

  • Prince Harry and Meghan Markle's Royal Wedding Guests Are Reselling Their Gift Bags on eBay
    News
    Time

    Prince Harry and Meghan Markle's Royal Wedding Guests Are Reselling Their Gift Bags on eBay

    Lucky guests who attended Prince Harry‘s nuptials to Meghan Markle are selling their gift bags for lucrative prices with bids already surpassing $2,700 just days after the two tied the knot. Harry and Meghan, the newly minted Duke and Duchess of Sussex, invited 600 people to attend their wedding at St. George’s Chapel at Windsor Castle.

  • Why J.C. Penney Will Succeed Where Sears Is Failing
    Business
    Motley Fool

    Why J.C. Penney Will Succeed Where Sears Is Failing

    Both J.C. Penney (NYSE: JCP) and Sears (NASDAQ: SHLD) have been hurt by the rise of digital retailers -- and most specifically, e-commerce giant Amazon. Under CEO Marvin Ellison (who announced today he was leaving the retailer to head up home-improvement giant Lowe's), J.C. Penney has learned from its mistakes and adjusted its strategy accordingly. J.C. Penney has made major changes to its stores.

  • Boeing Roundup: S.C. workers plan union vote… American staff criticize 737 MAX… New 777X wing design
    Business
    American City Business Journals

    Boeing Roundup: S.C. workers plan union vote… American staff criticize 737 MAX… New 777X wing design

    Chicago-based Boeing Co. (NYSE: BA) has operations around the country. Here are other recent stories reported by The Business Journals. A group of technicians working at Boeing’s 787 Dreamliner plant in North Charleston, South Carolina, plan to hold a vote to unionize on May 31.