Altria Group Inc. (MO) – bought @36, it went up to $43.50 in 4 weeks and to $52 in 16 weeks = 21% and 42% return respectively.

We recommended the stock back in November, 2020 as a great long-term value play, and as one of our favorite picks in the Consumer staples sector. We noted that the price was re-testing the strong support around the $35 mark and that if the price holds its ground around the support that would serve as a great buying opportunity for our followers. We recommended for our clients to wait for the price to start moving up from the above-mentioned support before committing fully to the stock and opening their long positions. The anticipated price development to the upside occurred shortly thereafter and the stock moved 21% and 42% higher in less than 4 and 16 weeks respectively. The stock is part of the XLP, which tracks a market-cap-weighted index of consumer-staples stocks drawn from the S&P 500. XLP delivers a representative if slightly conservative basket of consumer-staples firms. Because XLP pulls its stocks from the S&P 500 rather than the broad market, it holds far fewer names than our benchmark, producing somewhat-concentrated exposure. The fund’s holdings are nearly all large-caps, which investors may appreciate for their familiarity and stability. XLP seeks to provide exposure to stocks in the following industries: food and staples retailing, beverage, food products, tobacco, household and personal products. The index is reconstituted and rebalanced on a quarterly basis. Through our correlation-confirmation approach we compared XLP’s price performance to the XLK Technology Select Sector SPDR ETF, and used the strong and positive 10-year correlation of 79% between the two indices in order to validate our market recommendations.

Link to the article: https://www.dowexperts.com/stock-picks-for-november/

Sincerely,

Add a comment