Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Rotation Playbook: 3 Strong Stocks To Buy Now

By (Sean Sechler )Stock MarketsNov 24, 2021 04:27AM ET
Rotation Playbook: 3 Strong Stocks To Buy Now
By (Sean Sechler )   |  Nov 24, 2021 04:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Consider Adding These 3 Stocks As Money Rotates Out of Growth

Investors have had to deal with several complicated factors impacting equity markets throughout 2021, as issues like inflation and the possibility of rate hikes have loomed large. Whether it was news surrounding the Federal Reserve or red hot CPI prints that impacted stocks, the ability to recognize when rotations occurred in the market has been a truly essential skill over the last few months.

That continues to hold true as we wind down 2021, as we are currently witnessing many high-growth companies getting taken to the woodshed as money moves out of tech winners and into companies that can perform well in a rising-rate environment.

While it's easy to be overwhelmed by the vicious moves in and out of sectors that have occurred lately, there’s plenty of opportunities for savvy investors to take advantage of. Keeping an eye on stocks that are showing relative strength and adding reliable companies with rock-solid fundamentals can be a great way to navigate this type of market environment.

That’s why we’ve put together a rotation playbook that includes some of the best stocks to buy amidst all of the different moving parts in equities at this time. Let’s take a deeper look below.

1. Morgan Stanley

The financial sector has been quiet over the past few weeks, yet stocks like Morgan Stanley are seeing inflows again during the recent rotation. Keep in mind that banks tend to perform well in rising interest rate environments, which is a good reason to consider adding shares given that the Federal Reserve has announced it will begin tapering its bond purchases in the coming weeks.

Since Morgan Stanley (NYSE:MS) is one of the largest financial services firms in the U.S., with operations in investment banking, securities, and investment and wealth management, it stands out as a great option for investors looking to add exposure to the sector.

Morgan Stanley reported revenue growth of 26% year-over-year in Q3 to $14.8 billion and is seeing strong performance across all business segments at this time. It’s worth mentioning that if you expect the IPO market to stay hot, adding shares of this company makes a lot of sense given its incredibly strong investment banking business.

Keep in mind that after acquiring E-TRADE Financial (NASDAQ:ETFC) and Eaton Vance (NYSE:EV), Morgan Stanley is set to benefit from strong equity trading volumes and recurring revenue from investment and wealth management clients going forward. Finally, the fact that the stock currently offers investors a 2.82% dividend yield makes it a top pick with so much uncertainty in the market.

2. Nucor

We often see money rotate into cyclical stocks after a huge run in tech, and that could be the case again as we head into the end of the year. That’s why Nucor (NYSE:NUE) should be in your rotation playbook, as it's one of the best steel stocks to consider owning for the long term.

Nucor is a major manufacturer of steel and steel products and is also North America’s largest steel recycler, which means it’s a company that plays a key role in the overall economy. This is good news since two of the largest end markets for steel products—autos and construction—are rebounding strongly following the pandemic.

Nucor recently delivered record Q3 earnings of $7.28 per diluted share, up 44% sequentially, and provided an upbeat take on the upcoming quarter, which should give investors more confidence in adding shares.

It’s also worth mentioning that Nucor is a dividend aristocrat stock, meaning that it has increased its base dividend every year for at least 25 consecutive years. Investors should expect strong demand for Nucor’s products to continue into 2022, which could mean that higher share prices are on the horizon for this leading steel company.

3. United Parcel Service

Another area of the market that could benefit from money rotation out of high-growth stocks is the transports sector, with United Parcel Service (NYSE:UPS) standing out as one of the best buys there.

The package delivery company is set to benefit from an increase in consumer goods spending in the coming quarters and should deliver a nice quarter given that the holiday season is one of the busiest times of the year. There’s also a lot to like about the company’s exposure to e-commerce, which should continue driving earnings growth over the long term.

United Parcel Service recently announced that the published rates for UPS Ground and UPS Air services will increase by an average of 5.9% going into 2022, which should certainly benefit the company’s top-line going forward.

The stock also offers a 1.93% dividend yield which is attractive given how we continue receiving signs that inflation is increasing. It wouldn’t be surprising to see UPS rally to new highs heading into 2022, so consider adding shares of this transportation giant in the coming sessions.

Original Post

Rotation Playbook: 3 Strong Stocks To Buy Now

Related Articles

Rotation Playbook: 3 Strong Stocks To Buy Now

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email