2 Blue-Chip Stocks Screaming 'Buy' Right Now

By Andrea Kramer / October 30, 2017 / www.schaeffersresearch.com / Article Link

November has been one of the best months to own stocks, historically, and if past is prologue, two blue chips could be screaming "buy" right now. Specifically, American juggernauts Wal-Mart Stores Inc (NYSE:WMT) and McDonald's Corporation (NYSE:MCD) are typically two of the best stocks to own next month. Below, we'll take a look at WMT and MCD shares, and how they tend to perform in November.

Wal-Mart Stock Nears All-Time Highs

Wal-Mart stock has ended November higher 80% of the time over the past decade, and averages a monthly gain of 3.93%, according to Schaeffer's Senior Quantitative Analyst Rocky White. That puts WMT among the best stocks to own in November, and represents the best average monthly return among Dow stocks.

WMT stock has added 25.5% year-to-date, and last week touched a two-year high of $89.11. The shares are down 1.5% today to trade at $86.81, but are still within a chip-shot of their early 2015 all-time highs north of $90. In fact, from the blue chip's current perch, another 3.93% rally in November would place the stock around $90.22.

walmart stock chart

It's worth noting that despite the equity's long-term uptrend, short interest represents more than a week's worth of pent-up buying demand, at WMT stock's average daily trading volume. Meanwhile, just 10 of the 22 analysts following the shares deem them worthy of a "buy" or better endorsements. Another November rally -- perhaps after Wal-Mart Stores reports earnings in a couple weeks -- could enjoy extra fuel from a short squeeze or round of upbeat analyst attention.

The Best Blue-Chip Win Rate for November

McDonald's stock has the best win rate of all blue chips in November, ending the month higher nine of the past 10 years. The equity has averaged a monthly gain of 2.28%, according to data from White.

The company last week reported strong restaurant sales for the third quarter, but missed analysts' per-share estimates by a penny. As such, MCD shares spent the week dawdling in the $163-$165 area, and failed to surpass their Oct. 20 all-time high of $167.90. At last check, the equity was fractionally lower at $165.24, but another 2.28% rally in the next month would put MCD at $169 -- in uncharted territory.

mcdonalds stock chart

Unlike WMT, though, MCD is already beloved by most analysts. In fact, 20 of the 27 brokerage firms following McDonald's stock offers up "buy" or better recommendations, with not a single "sell" in sight. Likewise, short interest accounts for not even 1% of the stock's total available float.

Recent News

Gold stocks down as metal and equities momentum fades

September 02, 2024 / www.canadianminingreport.com

Another Kazatomprom guidance announcement shakes uranium price

September 02, 2024 / www.canadianminingreport.com

Major monetary drivers still supporting gold

August 26, 2024 / www.canadianminingreport.com

Gold stocks gain on metal rise and continued equities rebound

August 26, 2024 / www.canadianminingreport.com

Big Gold stocks outperform Big Base Metals

August 19, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok