Stocks To Buy Before Winter

Last year marked the warmest winter in the 20th century, says Kirk Du Plessis, founder and head trader of OptionAlpha.com. "So, if this coming winter proves to be even slightly cooler than last year, (some) companies might get an added boost during the last quarter of 2016 and first quarter of 2017," he says.

stocks to buy before winter

Says Ryan Wibberley, CEO of CIC Wealth, "Cold, snowy winters mean huge profits for ski resorts," says Ryan Wibberley, CEO of CIC Wealth. "Vail Resorts is a solid company with strong fundamentals and a great market share."

Dan Grote, a winter sports enthusiast and partner at Latitude Financial Group, considers Vail Resorts a "winter tourism gem" because its three segments, "mountain, lodging and real estate provide a complete package for winter destination vacations and snow sports." He adds, "The stock has performed very well historically, averaging over 29 percent total return over the last decade."

Johnson and his co-authors found that from 1966 through 2014, utilities earned 7.9 percent annually when rates were rising, which was the best sector performance outside of energy (11.2 percent) and consumer goods (8.1 percent). Yet utility stocks have been popular with investors over the past several years and bargains in that sector are difficult to find, Johnson says.

VF Corp. (VFC). On a frigid winter day, North Face jackets and fleeces abound in almost every crowd. VF Corp. owns dominant winter clothing brands including North Face, Smart Wool and Timberland. "When the temperatures drop, sales of these brands have done very well in recent years and there is no reason to think this year would be different," Wibberley says. "North Face has been a dominant brand among outdoor enthusiasts for years, but in recent years even the couch potatoes are sporting North Face."

Home Depot (HD). Depending on the amount of winter snow, Home Depot could benefit from the sale of snow removal equipment, as well as generators and rock salt for driveways, Wibberley says. "Again, historically, rough winters have translated into sales for stores like Home Depot," he says. "The fundamentals of Home Depot have been decent, but a really cold and snowy winter could help improve those fundamentals and drive the stock higher."

Companies that enjoy a boon in consumer spending over the holiday period often fall under the umbrella of seasonal stocks, ones that move cyclically during the year with somewhat predictable moves higher and lower.

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The impending inflationary economy will make it more difficult for businesses of all sizes to surpass previous earnings reports, and stock prices are reflecting as much. Shares of just about every equity on the market are down year to date, which begs the question: Is now a good time to buy stocks?

To be clear, there is no right or wrong answer to the question, only conclusions based on individual circumstances. Since it is impossible to predict the future and which way the market will head, investors must first determine their investment strategy and time horizon; then, and only then, will they be able to determine if now is a good time to buy stocks.

Some of the best stocks to buy in the past have been the high-growth tech companies that were perfectly comfortable burning money in the moment to realize future growth. If for nothing else, relatively low interest rates, plenty of access to credit, and the advent of global industry made trading current revenues for future growth highly profitable for companies like. For all intents and purposes, cheap and unfettered access to cash helped increase profit margins for savvy capital allocators. Companies like Amazon, for example, whose value was correlated to future cash flows, outperformed on the idea of trading low yields for a brighter future.

Atlassian does face some outside threats from massive competitors, but its suite of products have become so invaluable to so many customers that it is hard to imagine anything but a bright future. In the event Atlassian is able to expand its offerings (along with its market cap), it could easily become one of the best stocks to buy for 2023 and beyond.

One of the best stocks to invest in right now may be ServiceNow. Headquartered in Santa Clara, CA, ServiceNow is a software company that has become synonymous with the transformation of digital workflows for enterprise operations. With its proprietary cloud computing platform, ServiceNow helps companies of all sizes streamline operations, optimize processes, connect data, and accelerate innovation at scale.

While fairly insulated from recessionary pressure, ServiceNow will most likely be volatile stock over the short term. There are simply too many questions surrounding the economy to suggest otherwise. However, long-term investors should find ServiceNoe to be one of the best stocks to invest in for a prolonged period of time.

The Walt Disney Company might not only be one of the best stocks to invest in for 2022 and 2023, but it may be one of the top stocks to buy now and hold for generations. If for nothing else, Disney owns some of the most valuable intellectual property (IP) in the world and has one of the most loyal fanbases to help grow revenue for years down the road.

In keeping its promise to investors, Boeing intends to put its money where its mouth is. Already off to a good start, in fact, Boeing generated nearly $3 billion in free cash flow in its latest quarter and fully expects to achieve positive free cash flow by the end of this year. The ability to increase positive free cash flow will help Boeing at a time when interest rates are rising and convince investors it is one of the best stocks to buy for the rest of 2022 and well into 2023.

The new economy has created some obvious winners in the stock market, but two stocks appear to be growing faster than many of their counterparts: Snowflake Inc. (NYSE: SNOW) and CrowdStrike Holdings, Inc. (CRWD). While the broader tech market tends to underperform in periods of rising interest rates, these two enterprise software companies have managed to thrive.

Booking Holdings Inc. (NASDAQ: BKNG): As the parent company of popular travel sites like Booking.com and Priceline.com, Booking Holdings is unquestionably one of largest online travel portals. Of course, the company suffered over the course of the pandemic, but it survived the trial by fire with billions in cash on its balance sheets. Today, Booking Holdings can deploy its cash to take advantage of what may be one of the biggest travel seasons ever. Few companies are positioned as well as Booking Holdings to take advantage of pent-up travel demand, making it one of the best stocks to buy now and hold throughout 2022 and well into 2023.

The threat of higher interest rates is shifting the way Wall Street looks at stocks in 2022, and retail investors need to pay attention to the direction sentiment is heading. In particular, the best stocks to invest in at the moment are those which can thrive in an inflationary environment.

Higher interest rates make it more expensive for businesses to operate, and less-profitable businesses will have a harder time producing the cash flow investors want to see. Therefore, the best stocks to buy and hold in 2022 are those with enough pricing power to offset inflation.

It is worth noting, however, that the re-emergence of traditional fossil fuel energies has served as a headwind for Brookfield Renewable Corporation. Oil and gas stocks have jumped on the unfortunate geopolitical turmoil transpiring in Eastern Europe. For the better part of 2022, investors have sought shelter in oil and gas, effectively moving away from renewables. As a result, Brookfield Renewable Corporation is down about 38% from its 52-week high while other energies are surging.

When all is said and done, there is no way of knowing the best stocks to buy unless you set a goal. How long is the investing window? Do you prefer passive investments or active investments? What is your risk tolerance? All of these questions, and many more just like them, must be answered before anyone can determine the best stocks to buy.

The classic cold weather stocks are names like Vail Resorts MTN, +2.33% in ski resorts; Douglas Dynamics PLOW, -0.19% in snowplows and salt-spreaders; Columbia Sportswear COLM, +0.18% in winter jackets and boots; Toro TTC, -0.46% for its snow and ice removal equipment; and Home Depot HD, +0.90% because it sells rock salt and snow removal equipment.

Over the past three months, however, growth has made a strong comeback as traders have jumped back into higher-multiple stocks and overall economic expansion has stalled, leading fund managers to search high and low for growth.

Despite this summer's turnaround, value managers remain confident cheap stocks will outperform higher-priced ones through the rest of this year and into next. And they say that there are plenty of underappreciated stocks still out there. Here are a few of their favorites:

Given this backdrop, fundamentally strong oil and gas stocks Marathon Petroleum Corporation (MPC), Valero Energy Corporation (VLO), Berry Corporation (BRY), and Unit Corporation (UNTC) could be wise additions to your portfolio before the winter freeze.

Crude oil futures recently hit an 11-month low, with this commodity suffering a peak-to-trough decline of 15.9% in the last eight trading sessions alone. Over that stretch, oil declined in seven sessions. Despite that, I think investors should still be looking for some must-own energy stocks. 041b061a72