7 Stocks to Buy Now and Avoid a Summer Swoon in 2021

Posted on Friday, June 4th, 2021 by MarketBeat Staff
7 Stocks to Buy Now and Avoid a Summer SwoonSummer is generally a quiet time in the markets. Institutional investors, generally speaking, take some time away. In fact, that’s where the idiom “Sell in May and Go Away” comes from.

But quiet doesn’t mean uneventful. The world still moves along even in the lazy months of summer. And at the moment, there are two conflicting views driving the market.

One is the fear that everything’s a bubble that is just about to burst. We don’t recommend you get out of stocks, but let’s face it, things are more than just a little frothy.

But there’s another view summarized by the acronym, YOLO (as in You Only Live Once). And these investors are committed to keeping the markets going higher. Even if it means going “all in” (whatever that means to them) on risky asset classes like NFTs or Dogecoin.

We sincerely hope you take time to recharge (whatever that means to you) this summer. Whatever your personal beliefs, the reopening of our economy is a moment that deserves to be celebrated by all of us. But before you do, we recommend that you take a peek at these seven stocks that you can consider adding to your portfolio before you check out for the summer. These are likely to get as hot as a firecracker on the Fourth of July and should have you smiling when the summer ends.

#1 - Walt Disney Company (NYSE:DIS)

The Walt Disney logo

At some point, I’ll get tired of recommending the Walt Disney Company (NYSE:DIS) as a stock to buy. That day is not today. On a list of stocks that should avoid a summer sell-off, Disney is one of the first to come to mind.

From a technical standpoint, despite being up 44% in the trailing 12 months as of June 3, 2021, the path hasn’t always been true north for Disney. At many times during the pandemic, the bears briefly seized control. But my bullishness on Disney is not strictly from a technical standpoint.

Prior to the pandemic, my bullish outlook on Disney was on the whole being greater than the sum of its parts. During the pandemic the company’s streaming service, Disney+, carried a heavy load. Now it won’t have to carry the load by itself. And I imagine that investors will quickly begin to see the magic return to DIS stock including, perhaps, a reinstatement of the dividend that they suspended at the onset of the pandemic.

About The Walt Disney
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates domestic cable networks under the Disney, ESPN, Freeform, FX, and National Geographic brands; and television broadcast network under the ABC brand, as well as eight domestic television stations. Read More 

Current Price: $173.50
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $201.19 (16.0% Upside)



#2 - Home Depot (NYSE:HD)

The Home Depot logo

Some may argue that the housing market is in a bubble. But if your sentiment towards Home Depot (NYSE:HD) is based on a belief that home building may slow down, you’re not seeing the whole picture.

Certainly, the home improvement giant is benefiting from strength on its commercial side. Contractors and builders were sidelined to an extent by Covid-19 restrictions. And now that they are back in business, there is some thought that the market for new construction and remodeling may slow down as lumber costs remain high.

But the pandemic showed that the American consumer finds a way. Whether it’s using laminate flooring or simply applying a fresh coat of paint, they’ll figure out cost-effective alternative to renovate their homes. And with its now proven omnichannel model, Home Depot is helping them get there.

If you need a less abstract case, consider the company’s recent earnings report in which it beat estimates on top and bottom lines for the fourth straight quarter. And you don’t have to drill down to see that they not only beat expectations, they crushed them. I expect more of the same this summer.

About The Home Depot
The Home Depot, Inc operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, building materials, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. Read More 

Current Price: $312.71
Consensus Rating: Buy
Ratings Breakdown: 23 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $326.96 (4.6% Upside)



#3 - Cedar Fair (NYSE:FUN)

Cedar Fair logo

If you’re looking to add some fun (couldn’t resist) to your portfolio, you should consider Cedar Fair (NYSE:FUN). And the reason is that consumers are going to be looking to have some excitement this summer, and the company’s properties of amusement parks including Cedar Point and King’s Island in Ohio are prime candidates.

FUN stock is about 15% below its pre-pandemic high. That would put it at right about the 12.17% consensus price target set by analysts.

The proof will be in the performance. The company just got done reporting in what is typically its lightest quarter of the year. This year was particularly light. However it beat analysts’ expectations by over 50%.

Good news for investors may be less enjoyable for college students who make up a good chunk of the company’s labor force. Cedar Fair is adopting a Kronos-based workforce management solution to help optimize seasonal labor costs which total approximately 30% of the company’s operating costs.

About Cedar Fair
Cedar Fair, L.P. owns and operates amusement and water parks, and complementary resort facilities in the United States and Canada. Its amusement parks include Cedar Point located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm near Los Angeles, California; Canada's Wonderland near Toronto, Ontario; Kings Island near Cincinnati, Ohio; Carowinds in Charlotte, North Carolina; Kings Dominion situated near Richmond, Virginia; California's Great America located in Santa Clara, California; Dorney Park & Wildwater Kingdom in Allentown, Pennsylvania; Worlds of Fun located in Kansas City, Missouri; Valleyfair situated near Minneapolis/St. Read More 

Current Price: $46.46
Consensus Rating: Buy
Ratings Breakdown: 7 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $51.67 (11.2% Upside)



#4 - Beyond Meat (NASDAQ:BYND)

Beyond Meat logo

Beyond Meat (NASDAQ:BYND) has only been a publicly-traded stock for a little over two years. But looking at the company’s stock chart could easily be confused with being on one of the roller coasters at a Cedar Fair property.

The plant-based movement is real. And yet has not quite lived up to the hype. But as a short-term summer stock, I can make a case for Beyond Meat. The global meat industry is just recovering from a ransomware attack on JBS (OTCMKTS:JBSAY), the Brazil-based meat processing giant. BYND stock got a nice spike on that news. However, that’s not the real story.

The fact is meat prices have been climbing throughout the pandemic. The strain on supply chains as businesses reopen, high commodity prices, and labor shortages after prolonged Covid-19 shutdowns are just a few reasons for the higher prices. But whatever the reason, the door is open for consumers to give Beyond Meat a chance.

Analysts believe BYND stock is overvalued. And without the current strain on meat supply, I would likely be right there with them. But this is not about forever stocks, it’s about “for now” stocks. And in that context, Beyond Meat has a chance to do special things.

About Beyond Meat
Beyond Meat, Inc, a food company, manufactures, markets, and sells plant-based meat products in the United States and internationally. It operates under the Beyond Meat, Beyond Burger, Beyond Beef, Beyond Sausage, Beyond Breakfast Sausage, Beyond Chicken, Beyond Fried Chicken, Beyond Meatball, the Caped Steer Logo, Go Beyond, Eat What You Love, The Cookout Classic, The Future of Protein, and The Future of Protein Beyond Meat and design trademarks. Read More 

Current Price: $147.82
Consensus Rating: Hold
Ratings Breakdown: 5 Buy Ratings, 8 Hold Ratings, 6 Sell Ratings.
Consensus Price Target: $127.72 (13.6% Downside)



#5 - Penn National Gaming (NASDAQ:PENN)

Penn National Gaming logo

Online gaming was a high-growth sector during the pandemic. However, as the economy began its tepid reopening last summer, the demand to go to casinos was real. That dynamic should prove to be a catalyst for Penn National Gaming (NASDAQ:PENN). The company has an asset-light approach to its properties. While that was a drag at the onset of the pandemic, it should work to the company’s advantage in the recovery.

Penn National has a partnership with Barstool Sports in 2020. When the online sports betting app launched in Pennsylvania, consumers wagered $11 million in the first week.

PENN stock soared after last November’s election as an increasing number of states either passed ballot initiatives or announced future ballot initiatives to legalize online gaming.

But like many things, the reality is setting for investors. And while some large states are now on board with online gambling, the rollout may not be as soon as expected. That’s actually good for PENN stock. It’s taken a bit of a haircut since February and not it appears to be a much more attractive buy heading into summer.

About Penn National Gaming
Penn National Gaming, Inc, together with its subsidiaries, owns and manages gaming and racing properties, and operates video gaming terminals. It operates through four segments: Northeast, South, West, and Midwest. The company operates live sports betting properties in Colorado, Illinois, Indiana, Iowa, Michigan, Mississippi, Nevada, Pennsylvania, and West Virginia; Barstool Sports, an online sports betting app in Pennsylvania; and online social casino, bingo, and online casinos under the iGaming name in Pennsylvania and Michigan. Read More 

Current Price: $76.63
Consensus Rating: Buy
Ratings Breakdown: 12 Buy Ratings, 3 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $105.61 (37.8% Upside)



#6 - Boeing (NYSE:BA)

The Boeing logo

The global pandemic was challenging for the airline industry but must have been an absolute to Boeing (NYSE:BA). The company struggled through 2019 battered by difficulties in getting its 737-Max Jet approved after it was implicated in two separate crashes.

So when the stock dropped 70% at the onset of the pandemic, it took nerves of steel to continue to hold BA stock. I like how MarketBeat’s Sam Quirke described Boeing as a stock that many investors will view as “the one that got away.” But it’s hard to blame investors for getting anxious about holding BA stock when it was a falling knife.

However, with airline traffic getting stronger by the day, analysts are seeing a pass-through effect to Boeing and by extension BA stock.

The company continues to be burning through a significant amount of cash. And recovery to Boeing’s balance sheet won’t happen overnight. But with the stock more than 37% below its high of over $400 a share, this looks like a good entry point. 

About The Boeing
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. Read More 

Current Price: $243.78
Consensus Rating: Hold
Ratings Breakdown: 14 Buy Ratings, 8 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $255.41 (4.8% Upside)



#7 - Winnebago Industries (NYSE:WGO)

Winnebago Industries logo

The ingenuity and resolve of the American consumer were on full display during last summer’s socially distanced summer. I’m referring to the increased demand for recreational vehicles (RVs) to hit the open road. And one of the largest beneficiaries was Winnebago Industries (NYSE:WGO).

And even as the ranks of the vaccinated increases, many Americans lately choose an RV as their transportation of choice. To be fair, the RV industry is not immune to the impact of the global chip shortage. However, the industry has dealt with supply chain shortages in the past and may be better prepared to handle any obstacles. Investors should pay attention to any remarks the company makes when it releases earnings at the end of June.

And with shares about 20% down from their March high, WGO stock is presenting itself as a nice buy-the-dip opportunity. Analysts agree as they have a price target that has the stock climbing over 11%.

About Winnebago Industries
Winnebago Industries, Inc manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles. Read More 

Current Price: $66.54
Consensus Rating: Buy
Ratings Breakdown: 10 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $78.77 (18.4% Upside)

 

One thing is fairly certain. It’s not going to be a boring summer. The economy and stock markets continue to show a high degree of volatility. And with America reopening, by the time those institutional investors check back in after Labor Day, we’ll have a pretty good idea of where those pent-up savings dollars were allocated.

We don’t pretend to have a crystal ball, but we believe that these seven stocks will be ideal barometers for the disposable consumer dollars that will be unleashed in the economy.

Of course, macroeconomic events can upset things. Inflation is becoming more difficult to ignore. And the global chip shortage is only one reason that supply chain disruptions are likely through the end of the year.

But you should never bet against the American consumer. Even during the pandemic, consumers showed an ability to adapt their shopping habits. It’s hard to see them sitting on the sidelines now.

That’s why you really need to consider adding one or more of the stocks in this presentation to your portfolio. They’re leaning in to where the consumer is going, and are primed to take you on a profitable ride.

20 Stocks Wall Street Analysts Love the Most

Every trading day, between 500 and 800 new recommendations and research reports are issued by sell-side equities research analysts. There are between 300 and 500 brokerages and research houses that issue ratings, price targets and recommendations and more than 5,000 securities around the world that regularly receive coverage from research analysts.

MarketBeat has tracked more than 170,000 distinct analyst recommendations in the last 12 months alone. Given the volume of ratings changes that occur each day, it can be difficult to sift through the noise.

Analysts don't always get their "buy" ratings right, but it's worth taking a hard look when more than a dozen different analysts from different brokerages and research firm are giving "strong buy" and "buy" ratings to the same stock.

This slide show lists the 20 companies that have the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.

View the "20 Stocks Wall Street Analysts Love the Most" Here.







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