Markets
CMG

5 Stocks We're Buying Again

NOV Chart
NOV Chart

National Oilwell Varco is precisely the kind of stock to buy when a sector faces tough times. It's a well-run company with a dominant presence in its industry. Specifically, the company has at least an 80% market share in offshore drilling rig equipment, and some estimates put this figure as high as 90%. Plus, National Oilwell Varco standardizes rigs, which translates into brand strength and a lot of repeat business as rigs need spare parts. In fact, National Oilwell Varco is known as "No Other Vendor" to its customers because of its presence in nearly every offshore rig.

The company has remained profitable despite the headwinds, and has a low debt-to-equity ratio of just 22%. In a nutshell, National Oilwell Varco's dominant market share and rock-solid financial position will allow it to survive depressed oil prices for as long as they last. In the meantime, I'm happy to collect a juicy 6% dividend yield while I wait for the rebound.

: Fears of a global economic slowdown have sent shares of MasterCard down more than 10% from their peak in November. After all, the company does a lot of business outside the U.S. already, but international growth is expected to power the company for years to come. On the surface, that may sound like a bad combination, especially when factoring in a strong U.S. dollar, which further dilutes the value of the company's overseas income.

The current global economic uncertainty very well could turn into recession, but economic cycles happen, and this quarter's -- or year's -- downturn reaches bottom, and another upswing starts. But at the same time, the global population continues to grow, and technology continues to become more pervasive.

As prevalent as plastic seems in developed countries, electronic payments still make up less than 20% of global transactions. At the same time, the global middle class is expected to increase by around 1 billion people by 2030. Between this expansion of the global middle class and the increased use of mobile devices in developing markets, the percentage of transactions that will move from cash to electronic is enormous. And MasterCard's payment network will be one of the key things that supports that shift.

MasterCard just reported 7% more cards and 12% transaction growth in the fourth quarter, increasing earnings per share 14%. Now look in the future 15 years. See the opportunity for huge growth?

That's why I own MasterCard, why I plan to buy more, and why I'll probably hold those shares for many years to come.

Dan Caplinger : Mexican fast-casual chain giant Chipotle Mexican Grill has been in the news in recent months for all the wrong reasons. A breakout of foodborne illnesses has scared investors into thinking that Chipotle would face a huge backlash that would result in a big drop in customers. The stock has plunged in response, falling from $750 per share in October to as low as $400 last month before bouncing back somewhat.

In the past, some other restaurant chains have faced trouble winning customers back after similar problems. But Chipotle has done everything it can to get in front of the situation, and it looks like it's handling things well. The Centers for Disease Control said at the beginning of February that it appeared the outbreak was over, and that should reassure regular visitors to return to their burrito-eating routines. In addition, Chipotle has given its local restaurants greater latitude to offer free food to customers, with individualized campaigns designed to keep customers happy and coming back for more.

Even though the company's quarterly results looked disastrous, things going forward will get better. That's good news for Chipotle shareholders, and it makes buying the stock now an attractive move.

The $15,978 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.

The article 5 Stocks We're Buying Again originally appeared on Fool.com.

Brian Feroldi owns shares of Chipotle Mexican Grill, Gilead Sciences, and MasterCard. Dan Caplinger has no position in any stocks mentioned. Jason Hall owns shares of Chipotle Mexican Grill, MasterCard, National Oilwell Varco, and Textainer Group. Matthew Frankel owns shares of National Oilwell Varco. Selena Maranjian owns shares of Chipotle Mexican Grill, Gilead Sciences, and National Oilwell Varco. The Motley Fool owns shares of and recommends Chipotle Mexican Grill, Gilead Sciences, MasterCard, National Oilwell Varco, and Textainer Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CMG GILD MA TGH NOV

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More