Investing in stocks can be a challenging task, but with the right strategy, it can lead to significant gains. In this article, we’ll discuss three stocks that are currently good investment options: Exxon Mobil, Canadian Solar and WillScot Mobile Mini.
When choosing a stock, it’s essential to consider several factors. One method is to use the CAN SLIM system, which recommends investing in companies with recent quarterly and annual earnings growth of at least 25%, innovative products or services, and those generating high revenue growth. The system has a track record of significantly outperforming the S&P 500.
It’s also vital to keep an eye on the stock’s supply and demand, focus on leading stocks in top industry groups, and look for stocks with strong institutional support. Once you’ve identified a stock that fits your criteria, you can use stock charts to plot an entry point. A good time to purchase a stock is when it forms a base and reaches a buy point, ideally in heavy volume.
Another crucial factor to consider is the state of the overall market. Most stocks, even the best ones, follow the market direction. Therefore, it’s essential to invest when the stock market is in a confirmed uptrend and move to cash when the market goes into a correction. A confirmed uptrend is when investors should make most stock purchases.
It’s also crucial to stay on top of sell signals. Any stock that falls 7% or 8% from your purchase price should be jettisoned. Also, beware of sharp breaks below the 50-day or 10-week moving averages.
Let’s take a closer look at the three stocks:
- Exxon Mobil: Ticker XOM
Exxon Mobil is currently a good buy. The stock has a strong IBD Composite Rating of 90 out of 99 and boasts impressive relative strength. It’s in a buy zone after clearing a flat base buy point of 114.76. Investors could have used its retaking of the 50-day moving average as an early entry. Exxon Mobil recently reported EPS grew 66% to $3.40 in Q4 while revenue shot up 12% to $95.43. In 2022, Exxon Mobil earnings skyrocketed 160% to $14.06 per share. Sales edged up 45% to $413.68 billion.
- Canadian Solar: Ticker CSIQ
Canadian Solar is another excellent investment option. The company specializes in solar energy solutions and has a strong IBD Composite Rating of 99 out of 99. The stock has recently formed a flat base with a buy point of 42.14. Canadian Solar is benefitting from the global shift towards clean energy, which is driving the demand for solar panels. The company recently reported strong Q4 earnings, with revenue increasing by 29% YoY to $1.4 billion.
- WillScot Mobile Mini: Ticker WSC
WillScot Mobile Mini is a leading provider of mobile office trailers, portable storage units, and modular buildings. The company has a strong IBD Composite Rating of 97 out of 99 and boasts impressive relative strength. The stock recently formed a cup-with-handle base with a buy point of 40.03. WillScot Mobile Mini is benefitting from the growing demand for affordable and flexible office space solutions.