5 High-Quality Stocks On Sale Right Now
My colleague Andy Obermueller has been telling readers of his premium newsletter, Game-Changing Stocks, to target a number of well-known, high-quality stocks for months now.
In case you’re not familiar, Andy advocates for his readers to take an “80/20” approach to investing. This means 80% of your portfolio is allocated to safer investments with a fairly predictable rate of return (think: index funds, blue chips, etc.). The other 20% is reserved for picks that can really move the needle on your portfolio — the kinds of innovative, world-changing companies he regularly recommends in his premium newsletter.
#-ad_banner-#As he puts it, the market’s volatility and global uncertainty make it tricky to recommend the aggressive-growth stocks he usually does. But on the flip-side, it also gives investors a chance to scoop up high-quality stocks at steep discounts that hold the kind of triple-digit “home-run” potential he and his readers usually target.
I’d like to briefly run through a few of the high-quality names Andy has been recommending to his readers. For the sake of space, I won’t be able to give you Andy’s full thesis. To get a full rundown, you’ll need a subscription to Game-Changing Stocks.
But as Andy mentioned to his readers, these are all large companies that qualify as game-changers because the world’s perception of them has faltered. “The baseline assumptions in their respective industries have changed and are at this point inaccurate,” Andy said. “These are all strong companies with leading market positions, mega-cap valuations and strong dividends. They don’t belong in the bargain bin, and my hunch is that history will repeat itself yet again and these discounted prices won’t last there much longer.”
Here’s a few of the companies that Andy thinks are worth consideration for investors:
| 1. Chipotle Mexican Grill (NYSE: CMG) The company has declared the food contamination issue resolved. It might face some regulatory intervention, but that’s not a major challenge. The critical aspect now is how the company’s masterful marketers can reengage with customers who are frightened by the E. coli scare. My guess is that smart advertising can do these shares a lot of good. Action to Take: Buy under $530. These little burritos are headed back to the $700 range, in my view. 2. Harley-Davidson (NYSE: HOG) These shares ebbed in January and tanked again just before Valentine’s Day. Now they appear to be on the uptrend. They’re a steal. Action to Take: Buy under $45. 3. Tiffany (NYSE: TIF) Shares of the iconic jeweler were near a 52-week-low right before Valentine’s Day — oh irony of ironies — after initial reports indicated holiday sales were weak. I had predicted that the new T line would be a popular gift option, but it apparently didn’t provide much lift. With this bad news baked into the cake, the wise course now for Tiffany shareholders is to double down. The classics might never go out of style, but this is a stock that tends to move in and out of fashion quickly. Action to Take: Strong buy at or about $65. 4. Halliburton (NYSE: HAL) A lot of times we like to forget picking stocks that took a dive, which, to be sure, this one has done since I recommended pulling the trigger. Remember: The most dangerous thing an investor can say is, “This time it’s going to be different.” Oil prices, along with other commodities, are in the dumper. They will not stay there forever. Action to Take: Purchase a set amount of Halliburton twice a month until July 1. Reinvest all dividends. Patient investors will see a nice pop, not only when the price rises but also when the merger with Baker Hughes (NYSE: BHI) is approved. 5. Cummins (NYSE: CMI) I liked this diesel-engine manufacturer for your 80% portfolio late last year in the $112 range. I like it even better now, in the $97 range. The company is strong and the yield, at just over 4%, is a nice revenue stream. Use it to buy more shares. Action to Take: Keep a steady hand on the wheel. Cummins has 50% upside over the next 24 months. |
As I mentioned earlier, Andy thinks each of these companies has been unfairly punished. As such, investors have a unique opportunity to scoop them up for the 80% of their portfolio dedicated to well-known, reliable investments — while shares are still at a discount.
In the meantime, for those looking for more aggressive opportunities should check out Andy’s newest report about the eccentric billionaire Elon Musk and his latest project. It has to do with a game-changing energy technology that he says could quite possibly lead to the end of coal, fracking and OPEC as we know it. To learn more, click here.