Choosing the best stocks to trade involves a lot of research. The first thing that you have to do is to find out which companies are the most promising. Once you have the right information, it will be easy to know what you should invest your money in.
Having a list of the best stocks for swing trading can help you make better investment decisions. This list is updated every two to four months and focuses on stocks with strong recent trends.
One of the most important factors for a swing trader is liquidity. Usually, stocks are held overnight, but if you have time, you can use fundamental analysis to analyze price trends and determine the best way to enter or exit a trade. The chart below shows the stock's performance over the last two years. While the stock has seen some good performances, it has also experienced some notable declines. There are plenty of opportunities for swing traders to capitalize on these moves.
Apple is an example of a high-tech company that has been growing fast. The company's stock has been on a roll, rising 53% last year. This has been driven by innovation. The company also has multiple revenue streams, including its iPhone. In addition to its impressive growth, the company is also exploring new markets. It is also the largest manufacturer of construction equipment in the world.
Another reason Apple is considered a great swing stock is its market cap. This company boasts a $2.4 trillion market cap. This makes it a blue chip stock. This is not the type of company that is likely to rise as quickly as a smaller-cap stock, but it is a company that long-term investors like.
It also has a relatively low trading volume, making it a great choice for swing traders. The company's net income and EPS both increased by more than 40% in 2021.
Facebook is a social media giant. Its market cap is $943 billion. This makes it the sixth largest company in the S&P 500. The company reported 12% growth in revenue in 2021. This could mean that the company's share price will continue to go up.
Google is the leader in digital advertising, and its parent company, Alphabet, is a member of the FAANG group. The company's stock has seen substantial growth since the COVID-19 pandemic forced companies to adopt cloud software.
Among the best stocks for swing trading are some that have shown impressive growth. While Salesforce isn't one of them, it does have a lot to offer investors. Its balance sheet looks strong, and the company has been making strategic moves to improve its business model. Its latest move was the acquisition of Slack technologies.
The acquisition of Slack will enhance its position in the cloud computing space. Its other major competitors include SAP and Oracle. However, the most significant competitor for the company is Microsoft's Dynamics 365 offering. Despite this, Salesforce's stock has been relatively quiet since early December. In fact, its share price has barely moved from its lows. It is trading lower in the afterhours session, as the company released its third-quarter earnings.
Salesforce has been focusing on improving its margins. The company's operating margin has risen from 20.0% to 20.4%, thanks to effective cost management. It also recently raised its margin target for the current year. This will likely appeal to many investors, especially considering the current market climate.
Another reason to buy Salesforce is its strong balance sheet. The company has $20 billion in remaining performance obligations, which provides visibility to its cash flow. This is important because most software companies have a big portion of their costs tied to office expenses, travel, and personnel. It will also give the company an opportunity to deploy capital in the future.
The company has also recently announced plans to buy back $10 billion in its stock, which could help it re-establish a long-term uptrend. Its shares are nearing their 200-day EMA. This is a promising sign that the stock is ready to take a run at the $300 mark in the months to come.
The best stock for swing trading is the one that has the most promising long-term prospects, and if it does, it's likely to be Salesforce. With a hefty backlog and a strong balance sheet, the company has plenty of potential to make acquisitions in the future. Its executives have shown the ability to ride out recessions, and they continue to demonstrate a commitment to enhancing its business model.
Among the most sought after stocks for swing trading are construction and mining equipment manufacturer Caterpillar (NYSE:CAT). The company manufactures industrial gas turbines, diesel engines, site prep tractors, and asphalt pavers. It is the world's largest manufacturer of such machinery.
In the first quarter, Caterpillar topped Wall Street estimates, earning $12.9 billion in sales. The company also reported that its order backlog surged $7 billion in the last year. The company's market value is now around $109 billion. This puts Caterpillar in the top spot in the Construction/Mining Group, which includes Deere (NYSE:DE) and Boeing (NYSE:BA).
The company has been able to overcome economic slowdown worries with strong revenue growth. Its orders are growing, and demand from end markets is robust. However, the company may not meet expectations for its full-year guidance. Moreover, Caterpillar is not showing pricing power. Nevertheless, the company's demand seems solid, especially in North America and China.
With commodity prices at multi-year lows, Caterpillar could see an upside in sales. However, the company will need to grow sales in the construction industries. Retail sales in the construction industries were down 2% in February.
In the second quarter, Caterpillar's sales increased 29%, which the company attributed to favorable currency impacts and high user demand. The company also expects to see industry sales increase in China in the coming year.
The company has a history of positive earnings growth and has been able to overcome competition in China. However, the company is concerned about the U.S./China trade dispute. There are a few factors that can impact the value of Caterpillar, including cyclical risks and competitive risks. The company's valuation will be higher if investors believe that the company will continue to grow. Its high implied volatility may indicate that the stock is susceptible to extreme price movements.
The options market indicates a 4.5% move after Caterpillar's third-quarter results. The company's shares are trading over two million shares per day. The Macroaxis advisory algorithm recommends a buy for Caterpillar. The algorithm considers a 90-day investment horizon, as well as investor risk tolerance.