Stocks Ready To Buy Today

By Matthew McCall | February 19, 2012 AAA

Heading into a holiday-shortened week, the major U.S. indices are at or near multi-year highs. Typically, the strategy of buying near highs is not the best, however there are a handful of stocks that are sitting at levels that are attractive as buying opportunities. Here are the top four on my list.
Investopedia Markets: Explore the best one-stop source for financial news, quotes and insights.

Technology
Intel
(Nasdaq:INTC) is one of the worlds largest semiconductor companies that are used in everything from computers to consumer electronics to servers. The stock recently broke out of a narrow trading range to hit the best level in over fours years, on the back on heavy volume. From a technical perspective, the stock is flashing a buy signal. When analyzing the fundamentals, there are two numbers that stand out. The dividend yield of 3.1%, well above the 10-year Treasury yield, and the PEG ratio of 0.97. Usually, I will avoid the megacap stocks, however all signs are pointing to higher prices for INTC.

IAC Interactive (Nasdaq:IACI) is another technology stock that has its interests in the Internet. The company owns and operates some well-known websites such as Ask.com, Dictionary.com, Vimeo.com and Match.com. After breaking out to a new all-time high a few weeks ago, the stock has pulled back and retested support, which is a bullish technical signal. Fundamentally, IACI trades at a good valuation with a PEG ratio of 1.19 and a minimal dividend yield of 1.0%. The support ranges between $43 and $44, offering an attractive entry at the current price. (For additional reading, check out 5 Must-Have Metrics For Value Investors.)

Commodities
Flotek Industries
(NYSE:FTK) develops and supplies products and services to the energy and mining industries. The company is split into three divisions: chemicals for drilling, drilling and artificial lift. In early 2012, the stock broke above resistance near the $10 area and rallied 30% in the following weeks. The stock has now pulled back to the breakout level at $10 and is offering a technical buying opportunity. Fundamentally, the stocks trades with a PEG ratio of 0.94 and it is well positioned for more drilling in the U.S., as the search for more natural gas and oil continues.

Monsanto (NYSE:MON) is a major agricultural chemical company that operates in two divisions: seeds & genomics, and agricultural productivity. The company is known for its seeds, as well as herbicides such as Roundup. The stock broke out to a new 52-week high recently, when it passed the $76 area. Since rallying on the breakout, the stock has pulled back to support, and is now setting up technically as a buying opportunity. The valuation is not as attractive with a PEG ratio of 2.01 and a dividend yield of 1.5%, however the sector has strong momentum.

As I mentioned above, the market is near highs and could be setting up for a normal pullback in the coming days/weeks. That being said, the stocks in this article are sitting near support and it is OK to give them a look even with the market near highs. Finally, make sure to use stop-loss orders to protect against a major pullback. (For more, see Blending Technical And Fundamental Analysis.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

At the time of writing, Matthew McCall did not own shares in any of the companies mentioned in this article.

You May Also Like

Related Analysis
  1. Stock Analysis

    3 Best Performing Dow Stocks in 2014 - Analyst Blog

  2. Stock Analysis

    Red Hat Beats on Q3 Earnings and Revenues; Guides Well - Analyst Blog

  3. Chart Advisor

    Profit From Holiday Spending With This ETF

  4. Chart Advisor

    How To Trade The Biggest U.S. Companies In 2015

  5. Chart Advisor

    'Tis The Season For Food And Beverage Stocks

Trading Center