By MarketBeat. Originally published at ValueWalk.
Keep an Eye on These 3 Standout Stocks This Month
With the S&P 500 and the NASDAQ indexes both posting their worst quarters since the pandemic crash of March 2020, investors are likely wondering what’s next for equities this year. Keep in mind that the market would be in a lot worse shape if not for a massive rally that took place over the last few weeks of the quarter, which begs the question – is the bottom for the year officially in? While there could certainly be some more volatility ahead for investors to deal with in April, staying focused on strong investment opportunities instead of guessing when corrections are over is typically the right strategy.
Now that the market has some clarity about the Federal Reserve’s plan for combating inflation and the initial shock of the recent geopolitical turmoil has passed, it’s not a bad idea to consider adding stocks with bright business prospects and strong price action. That’s why we’ve prepared a brief list of the top 3 stocks to buy in April.
If you’re looking to put some money to work this month, take a look at these standout names:
We’ve been getting a lot of stock split announcements lately from a variety of different companies, yet perhaps Alphabet’s is the most intriguing. The company is pursuing a 20-for-1 stock split in July 2022 that could ignite a strong rally in the coming weeks. The search engine giant will also be reporting its Q1 earnings later this month, and if the market can hold up it wouldn’t be surprising to see shares head higher into the release. Regardless of how the stock performs in the near term, adding shares of this mega-cap tech company should pay off in a big way over the years. Keep in mind that Alphabet has developed one of the best business models in the world and has plenty of room for continued growth, particularly with how strong both the digital advertising and cloud computing industries are.
Alphabet smashed its Q4 earnings last quarter and posted 38% EPS growth, and with so many businesses ramping up their digital ad spending as the economy recovers from the pandemic, there’s a chance another strong quarter is on the horizon. Additional technology like quantum computing, machine learning, natural language processing, and autonomous driving are more reasons why Alphabet is such a special company. Any dips to the 200-day moving average could offer an intriguing spot to consider adding shares.
Johnson & Johnson (NYSE:JNJ)
One trend has held true during a volatile and unpredictable 2022 in markets – investors are interested in biopharmaceutical stocks with affordable valuations and strong dividends. Just look at the performance of stocks like AbbVie and Bristol Myers Squibb for proof. That’s a big reason to consider adding shares of this major biopharmaceutical stock that quietly hit new all-time highs recently, Johnson & Johnson. It’s a global leader in the pharmaceutical, medical device, and consumer health care products industries and exactly the type of company to target amidst so much uncertainty in the world.
Part of what makes Johnson & Johnson so attractive is the company’s history of dividend growth. It’s a member of the Dividend Aristocrats and has increased its payout for 60 consecutive years, which is definitely the type of consistency that investors want to see given inflation concerns. Johnson & Johnson also has plans to spin off its Consumer Health business to focus on higher growth, which is an intriguing strategic move that has massive implications. Finally, an uptick in doctor and hospital visits as the pandemic fades should be another catalyst for this stock, making it a great pick this month and beyond. Johnson & Johnson will report its Q1 earnings on April 19th, so keep an eye on shares heading into the release.
Cleveland Cliffs (NYSE:CLF)
Commodity stocks have been some of the biggest outperformers this year, and steel names like Cleveland-Cliffs stand out as smart buy-the-dip candidates this month. It’s the largest flat-rolled steel company and the largest iron ore pellet producer in North America, which is certainly attractive since the steel prices are expected to remain elevated thanks to the conflict in Ukraine. Shares of the stock have rocketed higher in recent weeks and are hitting prices not seen since 2013, which tells us just how strong the narrative surrounding commodity stocks is at this time.
It’s also worth noting that Cleveland-Cliffs recently acquired AK Steel and ArcelorMittal to become a fully integrated company, which is another positive for investors to ponder. If the automotive industry can rebound later this year, look for shares to continue trending higher as this company supplies almost all of the auto manufacturers in the country with steel. Cleveland-Cliffs will announce its Q1 earnings results on April 22nd, which should provide some interesting information given the elevated steel prices.
Before you consider Cleveland-Cliffs, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Cleveland-Cliffs wasn’t on the list.
While Cleveland-Cliffs currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
Article by Sean Sechler, MarketBeat
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