The big indexes are all down for the week, thanks to persistent uncertainty over trade and the global economy – and the possibility of a financial panic in the Chinese juggernaut.
This really underscores the extreme turbulence we’ve seen during the first half of the year – and there’s every reason to expect the second half to be the same, if not more volatile.
So Money Morning Chief Investment Strategist Keith Fitz-Gerald sat down with our top editor Bill Patalon to name some of his very favorite stocks to buy and hold for superior returns during a wild and wooly finish to 2018.
In fact, these shares have already given us around 300% in reliable gains since Keith first recommended them – and we’ve been through corrections in China, the United States, and Europe – and we’ve seen Brexit, Trump, trade tantrums, and a whole host of other bone- and market-jarring events in the meantime.
Each one of these picks fits Keith’s stringent "Total Wealth" criteria, so you can buy with confidence whether markets happen to be headed up or down in any particular week.
Best Cheap Stocks To Watch For 2019: Callon Petroleum Company(CPE)
Finally, rising crude oil prices give the shale oil industry a boost, too. Depending on the source, shale oil production becomes profitable when crude oil trades between $50 and $60 per barrel or higher. With current oil price in the high $60s and looking strong, investors once again turned towards shale oil producers.
Many of these companies still do not have the strength to compete. However, Callon Petroleum (CPE, $14.17) seems poised to take advantage of the stronger energy market. Nine in 10 analysts surveyed by MarketWatch hold buy ratings on the stock and as a group they target a 38% gain over the next year. That gives the stock a forward P/E of just over 15, which is in line with other, more mainstream energy stocks.
What is most important is that the market itself already caught on to Callon’s improved condition. The stock is up sharply since February and broke out to the upside from its own basing pattern.
Best Cheap Stocks To Watch For 2019: AU Optronics Corp(AUO)
AU Optronics Corp (ADR) (NYSE:AUO) is a supplier of flat panel displays used in everything from 4k and 8k televisions to cell phones and notebooks.
Shares look poised to move up and out of a three-year sideways range as higher wages set the stage for increased spending on new iPhones (with a TFT-LCD model on the way in addition to the OLED iPhone X) and televisions.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of 10 cents per share on revenues of $72.2 billion. When the company last reported on April 26, earnings of 45 cents per share beat estimates by 25 cents on a 15.9% decline in revenues.
Best Cheap Stocks To Watch For 2019: Tree.com Inc.(TREE)
Have you heard the expression, “Stock prices don’t go up in a straight line?”
That definitely applies to LendingTree Inc (NASDAQ:TREE), an online platform for helping consumers find the best loan. Even though the stock is down 25% in April, LendingTree CEO Doug Lebda recently appeared at the top of my list of CEOs who’ve delivered for shareholders with a 3,216% cumulative return since March 2010.
By comparison, that’s almost three times the return of Amazon.com, Inc. (NASDAQ:AMZN) over the same period.
Businesses that make or save people money or time always seem to be in demand and LendingTree is no exception.
As is often the case, investors weren’t too happy with the company missing analyst estimates for Q1 2018, sending TREE stock down more than 17% April 26.
What was the big miss?
Analysts were expecting $1.12 per share; LendingTree delivered $1.10, 29% higher than the same quarter a year earlier. That’s hardly an imprisonable offense.
Sure, TREE isn’t cheap, but Doug Lebda’s proven he can deliver for shareholders. As they say, “The proof is in the pudding.”
If you’ve owned TREE for a long time you know what I’m talking about.