The Top 3 Stocks to Buy in February That's why we've put together the following list of the top 3 stocks to buy in February so that you can approach this month with the confidence needed to take...

By Sean Sechler

This story originally appeared on MarketBeat

Depositphotos.com contributor/Depositphotos.com - MarketBeat

Consider Adding These 3 Stocks Next Month

With the stock market off to one of the worst starts to a year in recent memory, the idea of adding new positions in February might be met with some hesitancy among many investors. It will certainly be interesting to see if equities can finally bottom and how the market digests the recent Fed meeting and the prospect of rate hikes in March. Combine these headlines with the fact that we are heading into the heart of earnings season and you have a recipe for a fascinating month ahead.
While there are plenty of complex factors at play in both financial markets and the economy at this time, that doesn't mean investors should avoid seeking out stocks trading at attractive levels. The truth is that volatility can create some amazing buying opportunities, and when sentiment gets extremely washed out it can be the ideal time to load up on intriguing stocks for the long term.
That's why we've put together the following list of the top 3 stocks to buy in February so that you can approach this month with the confidence needed to take full advantage of whatever the market brings.

Apple (NASDAQ: AAPL)


If there's one stock that investors should be watching closely for February, it's Apple. The multinational tech company has such a massive weight in the market indexes that it will provide important signs about where we could be heading next. Regardless of how shares trade in the short-term, long-term investors should view the recent weakness in Apple as an opportunity to add shares of one of the best companies in the world at prices well off of 52-week highs. The company's smartphones, personal computers, tablets, wearables, and accessories are some of the best-selling consumer electronics products in the world, and it's easy to envision a future where these devices continue flying off of the shelves.
Apple continues to deliver quarter after quarter of staggering growth, which is a big reason why it has become the most valuable company in the world by market capitalization. The company just announced its Q1 earnings which saw Apple beat consensus estimates on EPS and revenue, which tells us that the company has been able to navigate supply chain issues well. Apple's Q1 revenue of $123.9 billion was an all-time record and represents year-over-year growth of 11%, and the company expects to set another record for the March quarter.

Zim Integrated Shipping (NYSE: ZIM)

Next up is an appealing shipping stock that has been benefitting from the aforementioned supply chain issues. Israel-based Zim Integrated Shipping operates a fleet and a network of shipping lines offering cargo transportation services on all major global trade routes. Shipping companies like Zim have been busy helping the international trade market return to normal following the pandemic, particularly since big companies like Alibaba rely on it for logistics technology. Shipping rates have gone up significantly as well, which is showing up in this company's earnings.
Zim Integrated Shipping generated its highest ever quarterly net income of $1.46 billion in Q3, up 913% year-over-year, and boosted its forward guidance for the year, which are both signs of a company that is poised to continue delivering shareholder value. It's also worth mentioning that the stock offers a very attractive annual dividend yield of 16.83%, which is certainly appealing given inflation concerns.

Deere & Co (NYSE: DE)

Since technology stocks face the most risk in February given rising bond yields, it makes sense to look at a high-quality cyclical name like Deere & Co. The stock has been consolidating for almost an entire year and could be gearing up for a breakout if the market can find a bottom. Deere is the world's largest producer of farm equipment and also a leading producer of construction equipment. That means it's a company that should benefit from U.S. federal infrastructure spending and high crop prices. Supply chain constraints should also ease up in the coming months and help the company meet rising customer demand for new and used equipment.
The company will report its Q1 earnings on February 18th, which could be a catalyst that helps shares break out of the recent price range. Last quarter, Deere delivered Q4 EPS that increased by over 70% year-over-year, which is a good sign that the company's business is heading in the right direction after the pandemic. Finally, a dividend yield of 1.13% and a forward P/E ratio of 16.75 make this exactly the type of stock to look at in a difficult market environment where value might remain more in favor than growth for months to come.

Editor's Pick

Related Topics

Business News

Katy Perry Is Fighting the Founder of 1-800-Flowers for a $15 Million California Mansion He Doesn't Want to Sell Her

The eight-bedroom, 11-bathroom estate sits on nearly nine acres in the Santa Ynez foothills in Montecito.

Business News

'Please Fix This': Elon Musk Frantically Emails Employees During Livestream Glitch

Musk attempted to livestream his visit to the U.S.-Mexico border.

Employee Experience & Recruiting

78% of Employers Are Using Remote Work Tools to Spy on You. Here's a More Effective (and Ethical) Approach to Tracking Employee Productivity.

Research and common sense show that the practice does far more harm than good.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

Too many entrepreneurs are counting too heavily on a company exit for their eventual 'win.' Do this instead.

Leadership

A Guide to Effective Crisis Leadership — Key Steps to Lead Your Team Through Turbulent Times

The essential strategies and skills required to be a successful crisis leader and guide your organization through difficult times.

Personal Finance

5 Entrepreneurial Mindset Principles That Empower Financial Literacy

Adopting the right mindset is key to financial literacy. Follow these five guiding principles to enhance your understanding of wealth creation and growth.