Stock markets have largely fallen in 2022 while the stocks started this year on a positive note in hopes that cooling inflation may allow the Fed to take it easier on rates. However, markets still face a lot of headwinds like rising interest rates and an impending recession, especially after a strong US employment report raised fears that the US central bank could keep hiking interest rates to combat inflation. So, investors should look for stocks which are more resilient and can withstand difficult times.
This article would explore 5 stocks you should add to your watchlist now and why these are attractive options.
It’s not a name that needs much in the way of an introduction. PayPal (NASDAQ: PYPL), a pioneer in the digital payments industry, the stock regained upside momentum in recent weeks after it formed a double-bottom below $70. This week could be an important week for the company. The reason is, PayPal will release its fourth-quarter results on Thursday, Feb. 9. The company is expected to earn $1.20 a share on sales of $7.38 billion.
The stock started this week on a bearish note after Raymond James downgraded the stock to market performance from outperform. However, despite the last two sessions' price drop, we might continue to see PayPal’s share price continue to grow. Therefore, the stock will likely continue rising as buyers target the next key resistance level at $100 and then $123. A break below the support level at $70 will invalidate the bullish view.
It’s another name that doesn’t need any description — add chip maker Advanced Micro Devices (NASDAQ: AMD) to your list of stocks to watch. The company had a tough last year, but the share price has staged a strong recovery in the past few weeks. Last month, the company reported its fourth-quarter financial results. AMD Q4 earnings results beat EPS and revenue expectations, the company's fourth-quarter revenue rose 16% to $5.60 billion.
As of this writing, the $AMD is down more than 2%. We can see that the stock well rebounded after touching the lower trendline. So, if the stock holds above the trend line there are chances the stock may eventually rise back to above $100 in the short term.
With Airline and travel stocks leading the way in major markets, Boeing (NYSE: BA) is a must-stock add to your watchlist now. Boeing has been in a strong bullish comeback since November 2022 as investors continue focusing on the positive developments in the Airline industry and strong demand for commercial aircraft.
From a technical perspective, as long as the stock holds above $170 levels, $BA could see a resumption of the upside move. If this happens, the next key level to watch will be at $235 then $280. A drop below the support at $170 will invalidate the bullish view.
The credit card and payments company American Express (NYSE: AXP), the stock has soared more than 22% so far this year. Shares of American Express jumped more than 12% on January 27th after the company reported stronger-than-expected Q4 revenue numbers. The company revenue rose 17% year over year to $14.2 billion in the fourth quarter.
Technically the current price action signals suggest that the medium-term bullish trend remains intact. Furthermore, the stock trading is slightly down from the recent peak. However, in the coming days, there are chances the American Express stock may eventually rise above the 52-week high of $199 if the bullish sentiment continues.
Last, but by no means least on the list, we have the networking equipment giant Cisco Systems (NASDAQ: CSCO), Cisco stock declined almost 25% this year. However, the share price has been in a slow comeback in the past few weeks, it has recovered from a 52-week low of 38.40 to a high of $50. Cisco's earnings release for the fourth quarter is slated for February 15, a strong earnings report could certainly help to boost the share price further.
The stock was recently upgraded by Credit Suisse and given a $67 price target, which could be a positive catalyst for the stock in the coming trading sessions. Therefore, the Cisco stock price will likely continue rising as buyers target the 52-week high level at $58 first, a break above would increase the potential of an extension towards $65 over the coming months.
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