One way to enhance investing returns is to pick stocks that have multiple bullish factors aligning for them.
Molson Coors TAP, JP Morgan Chase & Co. JPM, and Murphy USA MUSA all have a litany of bullish catalysts on their horizon. From earnings upgrades to technical chart patterns, and secular macroeconomic tailwinds, each of these stocks has a few things going for them.
Additionally, they represent a diverse selection of market sectors offering a broad range of options for investors to select from.
Molson Coors
Molson Coors is a globally recognized brewing company that boasts a rich history spanning over two centuries. Known for its portfolio of iconic beer brands, including Coors, Miller, Blue Moon, and Molson Canadian, the company has a strong presence in North America, Europe, and other international markets.
TAP operates through various subsidiaries and joint ventures, enabling it to tap into diverse markets and consumer preferences. With a commitment to brewing excellence, innovation, and sustainability, the company continues to introduce new and exciting products to meet evolving consumer demands.
Tap just broke above a major level of resistance that has been holding it down for the last four years. Additionally, after pushing above the $60 level of resistance, it traded back down retesting the level and pushed higher again. This indicates that resistance has turned to support and is a very bullish development.
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Molson Coors currently boasts a Zacks Rank #1 (Strong Buy), indicating upward trending earnings revisions. Current quarter earnings have been revised higher by 11.7% and are expected to grow 20% YoY. FY23 earnings have been upgraded by 7.6% and are projected to climb 7.3% YoY.
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TAP is trading at a one-year forward earnings multiple of 15x, which is below the market average, and just above its 25-year median of 14x. Additionally, Molson Coors stock has a dividend yield of 2.5%.
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JP Morgan Chase & Co.
JP Morgan Chase & Co. is one of the largest and most renowned banking institutions in the world, with a history that spans over two centuries. As a global leader in financial services, JPM offers a comprehensive range of banking, investment, and asset management services to individuals, businesses, and institutional clients.
JPM’s diverse business portfolio includes consumer banking, commercial banking, investment banking, and wealth management, among other areas. With a strong presence in both domestic and international markets, JPM leverages its extensive network to provide innovative financial solutions.
After surviving, and even benefiting from the recent turmoil in regional banking sector JPM is building a very bullish technical chart pattern. Considering JP Morgan Chase & Co. absorbed in billions of new deposits and purchased a large debt portfolio at a discount following the banking debacle, it’s no wonder investors are interested in buying stock in the financial behemoth.
JPM stock has cleared two major levels of resistance and has constructed a tight consolidation. If the stock can clear the $141 level, it should go on a nice bull run. Alternatively, if the price trades below $137.50 investors can expect the stock to trade back down into the range.
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JP Morgan Chase & Co. has seen some substantial upgrades in its earnings estimates, giving it a Zacks Rank #1 (Strong Buy). Analysts seem emboldened by JPM’s resolute actions during the banking crisis and have boosted expectations accordingly.
Current quarter earnings have been revised higher by 6.6% and FY23 earnings have been upgraded by 11.5%. If JPM can reach expectations it would reflect a 28.6% YoY increase in current quarter earnings, and an 18.2% YoY increase in FY23 earnings. Additionally, current quarter sales are projected to climb 20%, while FY23 sales are projected to grow 14.5%.
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Murphy USA
Murphy USA MUSA is a leading independent retailer of motor fuel and convenience merchandise in the United States. Murphy USA markets refined products through a chain of retail stations, almost all of which are located near a Walmart supercenter, primarily in the Southeast, Southwest and Midwest United States. As of Dec 31, 2022, the company had more than 1,700 retail fuel stations encompassing 27 states.
The company, which caters to approximately 1.6 million customers daily, also owns a dedicated line space on the Colonial Pipeline – the largest refined products system in the country and the biggest gasoline mover.
MUSA has been an incredibly strong stock over the last five years, considerably outperforming the industry and broad market. That performance is likely to keep up over the next few years as the energy market could remain supply constrained going forward.
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Just this week OPEC+ announced that they would be cutting daily oil output by 1 million barrels per day, lighting a fire under oil prices. Additionally, the gross underinvestment in oil and gas infrastructure over the last decade caused by ESG initiatives, has limited oil and gas infrastructure investments tremendously. Investments in new oil projects take 3-5 years before yielding considerable production, so supply is likely to stay tight for some time.
Murphy USA is trading at a one-year forward earnings multiple of 14.7x, which is below the market average of 20x, and below its five-year median of 16x. Considering how much MUSA stock has appreciated over that period it is extremely impressive it has maintained such a reasonable valuation.
This is because of the explosion in earnings MUSA experienced between 2019 and today, where annual EPS grew from $5.26 to $26.82 per share. And if oil prices remain elevated investors can expect those profits to remain high as well.
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Bottom Line
By utilizing the Zacks Rank #1 List, investors can find new stocks with strong near-term expectations daily. By doing a bit more diligence and finding companies with additional bullish catalysts, investors can really boost their odds of trading winning stocks.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
