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7 high-quality stocks to buy before the fourth quarter


Quality stocks to buy can be hard to find due to economic uncertainty.

The Federal Reserve is raising interest rates again, this time by another three-quarters of a percentage point. He says he’s ready to push through more rate hikes in his quest to get inflation under control. The stock market reacted predictably with another drop.

For unsophisticated investors, it’s a scary time to be in the stock market. But for my readers, I hope the volatility of the year and as we approach the fourth quarter smacks of an opportunity to get some quality stocks at discounted prices.

Make no mistake, bear markets are the perfect time to look for stocks to buy, because when the inevitable rebound occurs, downtrodden stocks are in the best position to offer exceptional returns.

The trick is knowing where to look for those quality stocks. One place to look is my Portfolio Grader to find those special quality stocks that have the distinction of being triple “A” rated stocks. This means they have an “A” rating as a quantitative rating, a fundamental rating, and a total rating.

Nothing says something is one of the best quality stocks to buy like a AAA rating. Here are seven that fit the bill.

CWEN Clearway Energy $35.74
DPSI Decision point systems $5.82
ARLP Alliance Resource Partners $23.61
CEIX Energy Console $64.52
VISIT Vista Energy $9.36
PBF PBF Energy $31.09
TRGP Targa Resources Corp. $65.91

Clearway Energy (CWEN)

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As one of the largest renewable energy providers in the United States, Clearway Energy (NYSE:CWEN) operates in the field of solar and wind power generation. It has interests in solar power operations throughout the West and in wind power plants everywhere from Minnesota to Texas and West Virginia.

Clean energy sources will likely become more popular as the United States — along with much of the rest of the world — explores more environmentally friendly power solutions.

CWEN’s stock is virtually flat so far this year – much better than the market in general. And it remains in growth mode, having sold its thermal assets earlier this year and announced plans to buy a portfolio of wind projects from Capistrano Wind Partners.

On top of that, CWEN stock has a dividend yield of almost 4%. That’s why it gets a “AAA” rating in the Portfolio Grader.

Decision Point Systems (DPSI)

An image of a hexagonal network covering the world map with glowing data centers and shield symbols

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Decision point systems (NYSEAMERICAN:DPSI) is a California-based IT company that provides network services, managed IT services and IT lifecycle management. The company says its mission is to help businesses grow faster, to get workers to work more efficiently, and to help businesses reduce risk and costs.

Although the company is not listed on major indices and has a market capitalization of less than $50 million, the company has serious potential. DecisionPoint only started trading publicly in May and the stock has climbed as high as $8.75 and as low as $3.40. Over the past three months, DPSI stock has risen nearly 20%, making it one of the most attractive new stocks to buy.

And the company has been a solid earnings earner so far, consistently beating revenue estimates. Second-quarter revenue was $27.51 million, 81% better than a year ago and 28% better than analysts had expected.

For a new stock, DPSI got off to a good start and earned a “AAA” rating in the Portfolio Grader.

Alliance Resources Partners (ARLP)

A magnifying glass zooms in on the Alliance Resource Partners, LP (ARLP) logo

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Alliance Resource Partners (NASDAQ:ARLP) is a leading coal producer in the eastern United States. While it’s important to look ahead with clean energy stocks like CWEN, it’s also beneficial to research which betting stocks to buy for the present.

This is where Alliance Resource Partners comes in. Coal is always in high demand, and as long as the world faces the threat of an energy crisis thanks to the Russian invasion of Ukraine, coal will have its place in the power grid.

But it’s also important to recognize that the company, which is organized as a master limited partnership, is trying to diversify its holdings. He invested in Francois Energy (which manufactures charging stations for electric vehicles) and Electric Infinity, which manufactures electric motors.

Second-quarter earnings included beats both up and down. Revenue of $616.5 million beat analysts’ expectations of $563.14 million, and EPS of $1.23 beat Street’s forecast of 94 cents per share.

ARLP stock is up 85% so far this year and it has a dividend yield of 6.8%, earning it a “AAA” rating in the Portfolio Grader.

Consol Energy (CEIX)

An image of pile of coal

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Like Alliance Resources Partners, Energy Console (NYSE:CEIX) operates in the energy sector as a coal stock. Its Pennsylvania mining complex is the largest underground coal mining complex in North America.

Consol is having a great year so far. CEIX shares are up 108%. Second-quarter earnings rose 89% from a year ago to $544.62 million on earnings of $3.57 per share. Analysts were only expecting revenue of $445.25 million and EPS of $2.26 per share.

As long as coal prices remain high, CEIX stock will be a solid winner, well deserving of a “AAA” rating in the Portfolio Grader.

Vista Energy (VIST)

Production operator communicates between central control room using radio to operate ball valve on offshore oil and gas processing platform for control gases and liquid crude oil processing .

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Based in Mexico City, Vista Energy (NYSE:VISIT) is an upstream oil and gas exploration and production company. It is the third largest oil producer in Argentina and the second largest shale producer in this country.

Its main assets are in Vaca Muerta, which is the fourth largest shale oil reserve and the second largest shale gas deposit on the planet.

Second-quarter earnings delighted the street: Revenue of $294.29 million beat analysts’ expectations of $268 million. EPS of $21.77 was also a pleasant surprise, with analysts predicting $16.41 per share.

VIST stock is up 78% so far this year and, like the other names on this list, has a “AAA” rating in the Portfolio Grader.

PBF Energy (PBF)

A photo of a woman pumping gasoline

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Here is another oil and gas stock to consider. PBF Energy (NYSE:PBF) is an energy midstream company that operates in the refining and petroleum supply markets. It presents itself as a leading independent refiner of petroleum and a supplier of unbranded transportation fuel, heating oil and other petroleum products.

The company currently has a strong cash position, having reduced its net debt by nearly two-thirds in the second quarter of 2022. Free cash flow was $1.8 billion in the first half of the year, and it is expected to reach $2.3 billion over the period. next 18 months.

Profit in the second quarter was $14.08 billion in revenue, easily beating expectations of $10.97 billion. EPS of $10.58 was also better than the expected $7.77.

PBF stock is up 128% so far this year and has a “AAA” rating in the Portfolio Grader.

Targa Resources Corp. (TRGP)

a gas pipe with the sun setting in the background, natural

Source: Shutterstock

Targa Resources Corp. (NYSE:TRGP) operates a network of natural gas and liquefied natural gas, or LNG. Its network includes pipelines, LNG transportation, processing, storage and export facilities.

As natural gas prices have increased in 2022, TRGP’s inventory has also increased. Targa is up 28% year-to-date – even after falling 12% since July.

Second-quarter revenue of $6.06 billion was 77% higher than a year ago and beat analysts’ estimates of $5.19 billion. The company also offers a strong dividend yield of 2.1%, helping TRGP stock achieve a “AAA” rating in the Portfolio Grader.

At the date of publication, Louis Navellier is working at CEIX, VIST and TRGP. Louis Navellier has held (neither directly nor indirectly) any other position in the securities mentioned in this article.

As of the date of publication, the InvestorPlace Research staff member primarily responsible for this article held (neither directly nor indirectly) any position in the securities mentioned in this article.

InvestorPlace

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