Good stocks tend to move together in the market: they’re down on down days, and up on up days. With bad stocks, of course, anything goes.
One type of market movement that’s noteworthy and bullish is when a good stock is going up or breaking out of a trading pattern on the upside, while the rest of the market’s having a pullback. That’s the situation I’m seeing today in H&R Block (HRB), which is featured in the Smart Investing in Turbulent Times Growth & Income Portfolio.
I just wanted to give you a head’s up: If you’re wondering which excellent stock to add to your portfolios right now, HRB is the one. It’s got strong projected three-year earnings growth, an undervalued P/E, a 2.1% dividend yield, a low debt ratio and a big stock repurchase plan.
My suggestion is to buy now, and not wait for a pullback. Most of your other stocks are having pullbacks. If you want to “buy low” on a stock, buy one of those. If you want the stock that’s most likely to continue rising in the coming days, weeks and months, then buy HRB.
I might discuss a variety of financial stocks in one of the December weekly updates. If you’re curious about a financial stock, please send a question to me at crista@cabotwealth.com.