March is delayed one day this year due to the leap year which means we need to wait an extra day for March Madness to start. An extra day until we can drink green beer in celebration of St. Patrick’s Day. But do we really need to wait another day before picking the best stocks to buy for March?
When the largest bond manager in the world says Italy is safe and the European financial crisis is “settled” with Greece being the sacrifice to secure the queen, the E.U., investors heed this as a sign that the bulls can run in Wall Street much further. When Pimco CEO, Mohamed A. El-Erian, made these comments on a CNBC interview recently, the Riverfront Investment Group also came out with news on Europe claiming that our American economy is still showing signs that it is slowly turning. Manufacturing is outpacing non-manufacturing employment for the first time in 35 years.
So what does it mean for investors?
With the U.S. unemployment rate continuing to decline and existing home sales increasing, the best indication that the U.S. housing market has finally started to improve, the major indices are on pace to breaking several psychological barriers, chiefly the Dow’s 13,000 line which it finally broke yesterday closing at 13,005.12.
Even banks, the one sector which has been lagging, has turned bullish which could offer the red cape the bulls needed to break the barriers all the indices needed. February was led by bank stocks ahead of all other sectors advancing a full 1% on February 27th. All the markets have massive support under them right now so dips of 3% – 5% should be the maximum corrections sustained in the short term. Contrarily, each of the major indices could see massive moves higher by as much as 10%. We are in an election year and historically the stock market has been bullish in election years.
So without further delay, the best stocks to buy in March:
#1 Best Stock to Buy – CSX Corp. (NYSE: CSX), After Hours: 21.62, +0.10 (+0.46%), the largest rail network operator on the east coast, should see its stock price driven higher due to an increase in auto, international container and foreign coal shipments. Volume and productivity will increase 2012 profit margins for CSX and corporate earnings should also increase to $1.85 in 2012 compared to $1.35 in 2010 and $1.67 in 2011.
Credit Suisse has a target price of $29 on CSX based on steady growth ahead. Technically, CSX has been hovering just below its 50-day moving average at $22. Any breakout in the stock over $22 on high volume could send CSX surging towards the $27 level.
#2 Best Stock to Buy – Deere & Co. (NYSE: DE), After Hours: 83.42, +0.09 (+0.11%),the backbone of the agricultural world as the largest producer of farm equipment in the world and maker of construction machinery and lawn and garden equipment, is sitting in the pole position to benefit from a turnaround in the economy. Farm income and the improvement in global markets will boost demand for Deere products which is why S7P analysts are extremely bullish on the stock. Recent analysts estimates boosted the 12-month target price of DE from $99 to $111.
DE ran from $70 to $89 until its recent retreat back to its 50-day moving average which appears to have been caused by Deere missing its last estimates by $.030 last quarter. However, it gives long-term value investors a buying opportunity to grab this blue-chip growth stock knowing it has $89 as an easy level to reach. Before the stock retreated, DE had formed the investor favorite golden cross after very high volumes of stock accumulation and in November, a dramatic change in trend from a bear to a bull market. The short-term price target objective for DE is $95.
#3 Best Stock to Buy – IBM (NYSE: IBM), After Hours: 198.28, +0.30 (+0.15%),the oldest and the bluest of the blue-chip technology giants, “Big Blue” maintains its global capabilities in information technology, software, computer hardware, and related financing making it a household name. IBM is in full maturity so future growth is only expected to be the result of strong trends in emerging markets and improved profitability in the company’s more developed markets. 2012 Earnings for IBM are estimated to jump over $1 to $14.93 compared to $13.49 in 2011 with another big jump expected in 2013 to $16.41.
IBM has been advancing in a bull channel, Positive advances have been broken up with sharp corrections soon after. IBM could advance to above the $205 level but it is not worth chasing at that price. Shareholders of IBM stock should consider writing options. Anyone thinking of buying IBM stock should wait for a pullback to anywhere below $188. The fundamental target price for IBM is $205 even though the stock could exceed $210.
#4 Best Stock to Buy – JPMorgan Chase & Co. (NYSE: JPM), After Hours: 39.24, +0.03 (+0.08%),the multi-trillion dollar asset manager, has increased earnings each and every year since 2008. JPM reported earnings of $4.48 in 2011, an increase of $0.54 compared 2010 and analysts expectations for an additional increase in 2012 to $5.13. The stock of JPMorgan is, and has been, considered “the” most solid of all major banking stocks by a broad range of analysts. Oh yeah, JPM also pays a $1 dividend per share also (a 2.61% yield).
JPM has been profiled before in Good Stocks to Buy with all the upgrades the stock has received from Wall Street analysts in January. JPM was a good stock to buy based upon a breakthrough of the stock at $34. JPM broke that price range shortly after the year began confirming both a double-bottom and an indicative trend change from bearish to bullish for the stock.
On Feb. 27, JPM broke from a small step-up above $38 indicates the stock is headed further north according to stochastic data on the stock. The price target as a ceiling for JPM shareholders and prospective buyers is $48.
#5 Best Stock to Buy – McKesson Corp. (NYSE:MCK), After Hours: 81.91, -0.57 (-0.69%), provider of pharmaceutical supply management and information technologies, made a major acquisition in December of U.S. Oncology. Analysts estimate that the company will earn $6.35 in 2011 compared to $4.29 in 2010. MCK is in an extremely strong financial position currently with over $3.9 billion in cash and good cash flow.
18 of the 20 analysts who cover the stock have either a “strong buy” or “buy” on MCK with a consensus price target of $100. With the stock hovering around the 200-day moving average, any break above its May, 2011 high of $88 should send MCK surging to our technical target of $105.
#6 Best Stock to Buy – Micron Technology (NASDAQ: MU), After Hours: 8.99, +0.11 (+1.24%), maker of semiconductor devices, primarily DRAM, Nandi Flash memory, and other products for mobile computing products, is for the “less readily available cash” type of investor. Analysts at Credit Suisse have an “outperform” on MU emphasizing the company’s continued ability to execute its strategy to diversify and upgrade its product line. The 12-month price target for MU is $12.
MU rose nearly 8% on February 27 following the filing for bankruptcy of a key industry rival. Since the beginning of 2012, MU stock has had high accumulation. The stock formed the golden cross and recently indicated a stochastic buy signal. The gap of the stock’s breakout on Feb. 27 confirm a technical price target for MU of $12.
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