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Hot Bank Stocks To Buy For 2019

 President Donald Trump’s decision to pull out of the Iran nuclear deal has pushed crude oil back above the $71-a-barrel threshold on fears the impact of economic sanctions (to say nothing of the threat of a military confrontation) on the output of Iranian crude into the marketplace.

Adding to the tailwind for energy markets was a surprise inventory drawdown despite soaring U.S. shale production.

This is a perfect combination for embattled U.S. producers. Prices are rising. OPEC is continuing to hold output down amid an ongoing effort to push up prices. And the possible prevention of Iranian oil coming to market is set to reduce market share.

A number of smaller U.S. oil and gas players are set to be the big winners in all this. Here are seven ready to move higher quickly.

Hot Bank Stocks To Buy For 2019: Brookfield Renewable Powerr Fund(BEP)

When investors are looking at the energy industry today, there’s a lot to consider. Volatile oil prices can make big oil stocks risky, changing utility markets have hurt formerly safe utility companies, and even natural gas isn’t the profitable business it once was. But renewable-energy production around the world is growing, and companies that own renewable assets can generate consistent cash flows capable of funding dividend growth for years to come.

 

One of the best dividends for in-the-know investors is Brookfield Renewable Partners, a yieldco that owns 16,000 megawatts of generating capacity around the world. Eighty percent of that capacity is hydropower, but the company is adding more wind and solar assets after acquiring a 31% interest in TerraForm Global and a 16% interest in TerraForm Power (NASDAQ:TERP).

 

What’s unique about Brookfield Renewable Partners is that it’s not as tied to the idea of issuing stock to fund acquisitions as many yieldcos have been in the past. Instead, it expects to grow its dividend 5% to 9% annually and use any excess cash from the business to grow cash flow organically. If you look at the dividend over the past decade, you can see that the strategy has resulted in steady growth:

Energy markets can be volatile, but a renewable-energy company like Brookfield Renewable Partners usually buys projects backed with long-term contracts to sell energy to utilities under a set rate. Yieldcos that can do that well will be big winners for investors, and that’s why Brookfield Renewable Partners is a great dividend stock today.

Hot Bank Stocks To Buy For 2019: Intel Corporation(INTC)

Ignore the Noise, Intel Corporation's (INTC) Earnings Really Were That Good!

Source: Shutterstock

 

Over the past year, Intel Corporation (NASDAQ:INTC) has turned its business around from a computer-centric company to a data-centric company. That transition has played out almost perfectly, and INTC stock up more than 45% over the past year.

These gains will continue.

Intel stock has been weighed by Apple-related issues recently. Namely, weak iPhone demand as well as Apple moving away from Intel as a chip supplier for certain products.

But such concerns are rather meaningless in the big picture. As was the case with MU, Intel’s growth narrative is all about cloud data-centers and IoT devices. These markets are massive and only growing. Thus, so long as demand remains robust in those markets, iPhone-related weakness is largely meaningless.

Right now, demand in those markets isn’t showing any signs of wavering. INTC just reported really strong quarterly numbers, led by strength in data-centers (revenues +24%) and IoT (revenues +17%).

Meanwhile, INTC stock remains pretty cheap considering its exposure to big secular growth markets. The stock trades at under 14-times forward earnings. That is dirt cheap for a stock of Intel’s nature.

Consequently, this red-hot chip stock could stay hot for a lot longer. The bull thesis continues to gain momentum as the data-centric business pivot continues to yield materially positive results. Meanwhile, downside is protected by a relatively cheap valuation. Mitigated risk with a strong bull thesis is a healthy backdrop for this stock to keep heading higher.

Hot Small Cap Stocks To Own Right Now

Facebook, Inc.’s (NASDAQ:FB) data fiasco has shaken the market as a whole — and tech stocks in particular. Prices have pulled back on a wave of negative media attention and potentially tighter regulation. Suddenly the unstoppable rise of the tech giants looks a little bit more fragile. But many tech stocks still show very sustainable and robust long-term fundamentals. That’s why I am confident that now is the time to buy cheap tech stocks on the dip.

Indeed, top Monness analyst Brian White has just told CNBC that tech might be the biggest buying opportunity right now. Now is the time for investors to boost their tech holdings, says White, adding: “There are some great secular trends in this group.”

With this in mind, I used TipRanks’ stock screener to pinpoint the most compelling tech stocks right now. These are stocks with support from top analysts — i.e. analysts with the strongest track record of rating success, as well as big upside potential.

I include in all the stocks covered below the average analyst price target so you can see how far these stocks can potentially spike from current levels.

Let’s take a closer look now:

Hot Small Cap Stocks To Own Right Now: Crown Castle International Corporation(CCI)

This owner and operator of cell towers and other wireless connectivity sites has seen share prices slide 8% lower in 2018. For a company that’s preparing to exploit the upcoming rollout of 5G networking standards among its core American clients, that looks like a buy-in opportunity.

Armed with 50,000 small-cell nodes already deployed and firm orders for another 30,000 towerless connection points, Crown Castle is poised to make the most of the 5G revolution. As a reminder, 5G technologies will support much larger numbers of connected devices, which goes hand in hand with an expected explosion of networked devices under the Internet of Things banner. One megatrend supports the other, and Crown Castle is in position to benefit from these synergies.

But right now, Crown Castle investors are more concerned with the proposed merger between T-Mobile US (NASDAQ:TMUS) and Sprint (NYSE:S). These two customers accounted for a total of 33% of Crown Castle’s total first-quarter sales, so any cost-cutting moves that might follow from that acquisition would eventually be bad news for Crown Castle. That’s why the stock is trading lower in May.

It’s a legitimate concern, but hardly an immediate kidney punch to Crown Castle’s income statement. The sites that actually serve both Sprint and T-Mobile today only make up 12% of Crown Castle’s current sales — 6% from each telecom — and their tower leases are tied to multiyear contracts that cannot be canceled. The average remaining lease agreement between T-Mobile and Crown Castle stands at five years today, and the average Sprint contract has seven years left to play out. So if worst comes to worst, the resulting revenue bleed will be drawn out over several years. And at the same time, the IoT and 5G installations will keep pouring in.

The long-term story remains intact, and Crown Castle is selling at a discount for all the wrong reasons today. You should consider taking advantage of these inaccurate share prices.

Hot Small Cap Stocks To Own Right Now: Intel Corporation(INTC)

 Intel Corporation (NASDAQ:INTC) for a retirement portfolio? The same Intel that makes computer parts and other highly cyclical technological components?

In a word, yes.

It’s not quite as aggressive as it sounds, particularly when bearing in mind that you’ll want some stable growth during your retirement years. Intel is positioning to provide just that, venturing out to a more diversified product base than computer processors that drove it to prominence in the 90’s. Graphics processors, self-driving cars and networking solutions are a growing part of the revenue mix, and the organization is finally thinking more in terms of solutions than products.

There’s also the not-so-minor dividend, which Intel just raised another 10% for this year. Its trailing yield is 2.2%, and it has paid — and increased — quite reliably for more than a couple of decades.

Hot Small Cap Stocks To Own Right Now: NRG Energy Inc.(NRG)

NRG Energy was another stock surging in the wake of solid earnings results, adding more than 6.3% in morning trading to touch a new 52-week high of $32.26 per share. The energy company posted revenue of $2.42 billion in its latest quarter, beating our consensus estimate of $2.23 billion and improving 1.6% from the year-ago period.

More notably, NRG posted adjusted earnings of 87 cents per share, crushing the Zacks Consensus Estimate which called for break-even earnings. Adjusted EBITDA in the first quarter was $549 million compared with $385 million in the prior-year period.

NRG is a Zacks Rank #1 (Strong Buy).