Netflix a top buy as market volatility hits investors.
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As of writing, the Dow Jones is down about 6% on the week, having a consolidation period after a long rally. The market is pulling back after Federal Reserve Chairman Jerome Powell gave a speech yesterday saying that further stimulus could be needed to support the economy’s recovery, and a potential ratcheting up on the trade war with the U.S. and China. Not to mention, almost an additional 3 million applied for jobless benefits last week, bringing the two-month total to 36.5 million total applications over that period. Aside from the noise, this could be an opportunity to buy select companies, and we have a list of winners to go through.
Netflix Inc NFLX is one of the top buys we have today, after an impressive rally since late 2019. This company is uniquely positioned to benefit from more hours spent at home binging content, of which Netflix Inc has plenty of. The stock is treading around its all-time highs but looks set to break out, after an impressive gain of over 37% this year. If you’re looking to crown a pandemic winner, Netflix Inc has to be on the podium.
Moving Averages and 14-day RSI Charts for Netflix
Another company that is worth looking at is PC Connection Inc CNXN . The company provides IT solutions, such as computer systems, software and peripheral equipment, networking communications, and other products and accessories in that space. Given the increased demand for remote technology, the company is well positioned for a future of work-from-home. Its factor scores are strong as well, with a C in Technical, C in Growth, A in Momentum Volatility and A in Quality Value. It is worth considering picking up the company at a discount after a pullback of over 35% from its high made in January.
Moving Averages and 14 day RSI charts for PC Connection
FBL Financial Group In FFG c is another one of our top purchases, and the company looks cheap right now after losing almost 53% this year. The company offers primarily life insurance products in the U.S. through several subsidiaries. It rates well on the factor scores, with a B in Technical, A in Growth, A in Momentum Volatility, and B in Quality Value, the top overall score today.
Moving averages and RSI Charts for FBL Financial
Another interesting company to pick up might be Herman Miller Inc. MLHR The company researches, designs, manufactures, sells, and distributes interior furnishings around the globe, predominantly in the U.S. but has independent dealers and licensees across the globe. It is a truly vertically integrated company and might be a great buy after it has lost over 72% year-to-date alone. It rates well in the factor scores, with a C in Technical, B in Growth, C in Momentum Volatility, and B in Quality Value.
Moving averages and RSI charts for Herman Miller
And finally, the last company on our buy list today is FTI Consulting Inc FCN . The company is trading near its 200-day moving average which should provide some downside resistance, as the upward trend looks to stay intact. FTI Consulting Inc is a U.S. based firm that provides professional business services to customers, something that is likely in high demand as many firms look to pivot their business plans in the new Coronavirus world. The company has done well this year, up almost 6%, and a recent pullback represents a potential opportunity.
Moving averages and RSI charts for FTI Consulting