In today's market, it is more important than ever to make sure you are putting your money to work in stocks that are not only being viewed bullish at the current time but have the best chance of staying in the market's favor moving forward.
There are a lot of uncertainties in the market, but the general consensus is that the overall economy remains strong, and you should continue to keep your money working for you.
Trade tensions between the U.S. and China will continue to dominate headlines, and while both nations try to negotiate out of an all-out trade war, no one can be certain of the eventual outcome, or what it will mean to the broader stock market. Rising interest rates are also a concern, as is political uncertainty in Washington with mid-term elections around the corner.
In order to best guarantee success in the markets, you want to look for stocks that have been strong in recent months, while making sure that these stocks have solid underlying fundamentals which justifies future gains.
At InvestorsObserver, we have developed a screening tool called the Stock Score Report which combs the entire stock universe and ranks stocks using a combination of short and long term technicals as well as fundamental data. By combining both technical and fundamental data, we are able to put a spotlight on the stocks that have the best recipe for success moving forward.
Here are five stocks that are currently near the top of the rankings.
Dave & Busters
Dave & Buster's (PLAY) operates dining and entertainment locations for adults and families. PLAY currently gets an overall score of 89 from the Stock Score Report, with strong rankings across the board. The company most recently reported earnings on Sept. 14, with earnings up 42% year over year, and handily topping analyst estimates. Sales were also higher than expected and rose around 14% from the same period last year. The market is bullish on the stock, which currently trades just pennies below its 52-week high. PLAY has a forward P/E of 20.4, and analysts expect earnings to rise by an annual rate of 12% over the next five years. PLAY is trading at $64.32 with an average price target of $68.56.
Click here to see a full copy of the report.
Chart courtesy of stockcharts.com
Marathon Petroleum
We have seen Marathon Petroleum (MPC) near the top of the rankings for the last several weeks, and the stock currently gets an overall score of 91 from the Stock Score Report. Earnings have been on the rise, and are expected to rise by 34% during the current year, and 57% per annum over the next five years. With such strong growth, the market has driven the stock higher, and it currently trades just pennies below its all-time high. MPC will next report earnings on October 25. The stock trades at $82.67 with an average price target of $96.48.
Click here to see a full copy of the report.
Chart courtesy of stockcharts.com
Sony Corp.
Electronics maker Sony Corp. (SNE) has enjoyed steady gains over the last year, and the stock is currently trading just shy of its 52-week high and is higher than it has traded since 2001. SNE gets an overall Stock Score Report score of 96, with near perfect scores on both the technical and fundamental screens. Earnings are expected to rise by 21.4% during the current year but looking out further analysts see profits rising by 7.1% per annum for the next five years. While we would like to see stronger growth estimates, it is worth noting that the stock trades at a forward P/E of just 14.2, so valuation is not a concern and as long as the company is able to hit its estimates the stock should continue to move higher. Sony's next quarterly report will come October 30. SNE trades at $59.04 with an average price target of $77.01.
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Chart courtesy of stockcharts.com
Visa Inc.
Credit card leader Visa (V) has traded steadily higher over the last five years, and the stock is now sitting just shy of its all-time high. With shares trading at record highs, valuation is always a concern, and V has a forward P/E of 27. The valuation is a bit high, but analysts forecast per annum earnings growth of 19% for the next five years, which justifies the valuation and should not prevent additional gains in the stock. V gets an overall score of 88 from the Stock Score Report. Electronic payments are gaining volume as we move closer to a cashless society, and V is a major player in all of the big platforms. Consumer confidence is high leading up to the high volume holiday season, which has the market incredibly bullish on the entire sector, and Visa in particular. V trades at $147.58 with an average price target of $155.42.
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Chart courtesy of stockcharts.com
IAC/InterActiveCorp
Stock Score Report gives IAC/InterActiveCorp (IAC) an overall score of 88, with near perfect long- and short-term technical scores. IAC/InterActiveCorp is a media and internet company, offering popular services such as Match and Angies List. Some of its other brands include Dotdash, Investopedia, and Dictionary.com. IAC has trended steadily higher since the start of 2016, and shares are currently just shy of their all-time high at $216.88. Analysts have an average price target of $216.00 on the stock. Earnings are rising sharply, with analysts forecasting growth of 70% during the current year, and 34% per annum over the next five years. IAC will next report earnings November 7.
Click here to see a full copy of the report.
