President Trump continues to dominate the attention of the global media, from his ongoing trade spat with China (and hopes of a looming deal) to the machinations of the U.S. government shutdown and his pledge to fulfill a campaign promise to build a wall on the southern border.
He was even partially responsible for the market unpleasantness in December, as he reportedly considered firing Federal Reserve chairman Jerome Powell for his policy hawkishness. Things have appeared to calm in recent days, with Trump shying away from declaring a national emergency at the Mexican border in his first Oval Office address Tuesday night.
Perhaps the market is pricing in a loss of political capital, because a number of “Anti-Trump” stocks are moving higher, and quickly becoming stocks to buy again. They range all the way from Chinese tech giants to Mexican cement makers. I’m not making a political statement, but merely reporting the situation on the ground.
With all of that said, here are five stocks to buy:
Shares of online Chinese retailer JD.com (NASDAQ:JD) are emerging from a three-month consolidation range that capped an epic decline of more than 60% from the highs last January. This came despite evidence of a deepening slowdown in Chinese manufacturing activity and falling retail activity by China’s consumers. Perhaps the market is pricing in a trade deal between the United States and China, an indication Trump may be softening his stance to bag a policy win.
The company will next report results on Feb. 18, before the bell. Analysts are looking for a loss of 11 cents per share on revenues of $19.2 billion. When the company last reported on Nov. 19, earnings of 80 cents per share beat estimates by 13 cents per share on a 25.1% rise in revenues.
Shares of Mexican cement maker Cemex (NYSE:CX) are rallying off of a three-month low that has capped a decline of roughly 55% from the highs seen in the summer 2017. It seems ironic that a Mexican maker of the stuff Trump wants to use to build the border wall — beautiful and strong cement — is rallying as the odds of such a barrier being built fade.
Instead, the latest is that a steel slat barrier (or fence?) is the best outcome for him. Shares are benefiting from a general rise in emerging market stocks thanks to weakness in the U.S. dollar and signs of slowing in the U.S. economy.
Chinese internet giant Alibaba (NYSE:BABA) is watching as its shares rally back over its 50-day moving average in another upside breakout attempt. The move marks the third bounce off of support at the $130-a-share level, which capped a near 40% decline from the summer 2018 high. Trump has in the past pointed to weakness in Chinese stocks as evidence he was winning the trade war. Unfortunately, the performance gap has closed in recent weeks. Strength in stocks like BABA will close the gap further.
The company will next report results on Feb. 1 before the bell. Analysts are looking for earnings of $1.38 per share on revenues of $17.3 billion. The company last reported results on Nov. 2, with earnings of $1.11 per share beating estimates by a penny on a 49.6% rise in revenues.
Tech giants like Amazon (NASDAQ:AMZN) have been a frequent foil for Trump and his supporters amid accusations of bias against conservative voices as well as CEO Jeff Bezos’ purchase and operation of the Washington Post, which is no fan of the President. Trump has frequently threatened to tighten regulation on these guys, including raising the cost of shipping via the U.S. Postal Service.
After a nasty 30%+ decline from its September high, AMZN shares are on the path to recovery and are making another challenge of its 200-day moving average. The company will next report results on Jan. 31 after the close. Analysts are looking for earnings of $5.48 per share on revenues of $73.9 billion. When the company last reported on Oct. 25, earnings of $5.75 beat estimates by $2.66 on a 29.3% rise in revenues.
Shares of Facebook (NASDAQ:FB), the social media platform that has been plagued by privacy scandals and frequent criticisms of leaning against conservative media, have broken above their 50-day moving average for the first time since July. This move is beginning to unwind the decline of more than 40% from the highs seen in July.
The company will next report results on Jan. 30 after the close. Analysts are looking for earnings of $2.17 per share on revenues of $16.4 billion. When the company last reported on Oct. 30, earnings of $1.76 per share beat estimates by 32 cents on a 32.9% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.