5 Top Stocks to Buy in November

There's a crispness in the air as we kick off a new month with a slate of stock ideas ------------------------------------------------------------------------------------------------------------------------------------------------------ [View this email in your browser]( There's a crispness in the air as we kick off a new month with a slate of stock ideas, industries to consider if the market continues to fall, context on Berkshire Hathaway's recent fintech investments, and some potent — yet quick and easy — money moves you can make. – Katie Carrera, Stock Up Editor Top Stocks to Buy in November --------------------------------------------------------------- It's been a rocky year for the stock market and it just finished a particularly rough month on the heels of gloomy earning reports — but there can be real upside to plunging stock prices. So [here are a few strong businesses to consider]( as suggested by our contributors. Alphabet ([NASDAQ:GOOG]( ([NASDAQ:GOOGL]( Shares of Google's parent company fell 5% on the heels of its quarterly earnings report but that doesn't mean it showed any meaningful weakness, either. For perspective, Alphabet's quarterly revenue soared more than 20% year over year to $33.7 billion, translating to net income of nearly $9.2 billion. The former, however, fell slightly short of Wall Street's predictions. Missing that expectation doesn't change that Google boasts eight products with at least one billion monthly active users, many of which support Alphabet's thriving advertising business, where sales increased over 20% last quarter. The company's non-ad businesses (think Cloud, hardware like Google Home and Nest) enjoyed even greater momentum — with more than 29% growth in the third quarter. Alphabet's unrivaled industry leadership and stellar growth from its established operations, its solid financial position, and multiple longer-term irons in the fire, I think the recent pullback offers a perfect chance for patient investors to step in. — [Steve Symington]( Ollie's Bargain Outlet Holdings ([NASDAQ:OLLI]( The holiday season makes it the perfect time to buy the 22-state, 282-store retailer that acquires close-out and brand-name products it can sell at deep discounts. In 2017, Ollie's Bargain Outlet's sales were $1.08 billion, up from $541 million in 2013, and in the second quarter of 2018, sales totaled $288 million, up 13% year over year. Its profit is growing even faster, though, because its size is allowing it to cut even better deals with suppliers. Last year, its net income was $128 million, up from $19.5 million in 2013, and in Q2 2018, it was $26.1 million, up 46.2% year over year. We're approaching Ollie's Bargain Outlet's busiest time of year, but it could pay off to own this stock long term. The company is less than a third of the way toward the 950 locations it thinks the U.S. market can support, so there should be plenty of profit-friendly growth in the years to come. — [Todd Campbell]( Amazon.com ([NASDAQ:AMZN]( If you always wanted to start a position in this disruptive e-tailer and cloud-computing veteran but never could stomach the constantly rising stock price, this is your chance to make a move. After setting fresh all-time highs in early September and briefly boasting a [trillion-dollar market cap]( Amazon's chart turned downward. The stock traded largely sideways in September, starting when Amazon announced a [$15 hourly minimum wage]( for all of its workers in the U.K. and the U.S. The third-quarter earnings report followed, showing 11-fold earnings growth and 30% higher sales compared to the year-ago period. But that report combined with management's modest sales growth expectations turned into falling share prices. Yes, Amazon's top-line growth is taking a breather, but the company's earnings and cash flows are skyrocketing. We could see Amazon's bottom line explode over the next few years even if its revenues are more modest. I think that could still create plenty of value for Amazon shareholders in the long run. — [Anders Bylund]( Moody's ([NYSE:MCO]( The recent rise in interest rates is causing debt issuers of all types to think twice before they float a bond or two. That backdrop is making it hard for bond-rating agencies like Moody's to post strong growth. In the most recent quarter, Moody's revenue only grew by 2%, which was a bit shy of the growth rate that market watchers were expecting. When combined with the recent marketwide sell-off, Moody's shares have fallen by more than 20% from their recent high. I think that's providing investors with a great chance to get in. Bond-rating agencies play a pivotal role in the world of finance, and they tend to be highly lucrative businesses because it doesn't require a lot of capital investment. While the volume of bonds that will need to be rated may fluctuate with interest rates, Moody's should consistently be able to take its share of the pie of the foreseeable future. — [Brian Feroldi]( Square ([NYSE:SQ]( Since reaching $100 about a month ago, the fast-growing fintech company has dropped by more than 30%. There are a few reasons for this, in addition to overall market weakness. First, Square is planning to enter the consumer credit space which is viewed as additional risk by experts. CEO Jack Dorsey sold more than 100,000 shares, but it was a planned sale that doesn't reflect its value as an investment. CFO Sarah Friar also announced her pending departure, which is disappointing, but it shouldn't derail the company's growth trajectory. Even with all of those factors considered, Square still has the same massive long-term potential that it did as a $100 stock, making it one to watch as we head into November. — [Matt Frankel, CFP]( --------------------------------------------------------------- Watch: An Introduction to 'FIRE' --------------------------------------------------------------- [FIRE 101: How to Achieve Financial Independence and Retire Early]( Creators of the ChooseFI website and podcast, Jonathan Mendonsa and Brad Barrett, recently stopped by the Motley Fool Answers podcast to explain how even folks with ordinary incomes can try to reach financial independence decades ahead of the traditional timeline. --------------------------------------------------------------- Tell Me About: Berkshire Hathaway's $600 Million Bet on Fintech Berkshire Hathaway ([NYSE:BRK-A]( is generally known for holding positions in well-established, long-profitable businesses. Over the past three months, however, [the closely-watched company made major moves into two fintech]( (financial technology) companies based in emerging markets. The basics: In August, Berkshire invested $300 million in Indian mobile-payment company Paytm that translates to a 3%-4% stake in the company. Then, in late October, Berkshire invested roughly $300 million in Brazil-based payment processing StoneCo ([NASDAQ:STNE]( when it went recently went public. Both investments were made by Todd Combs, according to The Wall Street Journal, who is one of Warren Buffett's two trusted lieutenants. What does this say about their strategy? Sure, neither company is mature, both are based outside the United States, and Berkshire has historically avoided tech-focused investments. But, upon closer inspection, we can find potential logic for the moves. Both Paytm and StoneCo have huge market share in their respective countries, which is a common trait among Berkshire investments. Berkshire also has big stakes in the banking industry, and fintech is a growing part of that business. Then we must remember that Berkshire has had plenty of cash (a cool $100 billion) with nothing to spend it on — so it's not surprising that the company is trying to broaden its options. What to watch: The combined $600 million investment is small by Berkshire's standards, but it's a significant position as it could represent a new realm of possibilities for the company's cash. It will be interesting to see if this marks the start of a greater interest in fintech from Berkshire's investing team. --------------------------------------------------------------- FEATURED PODCAST --------------------------------------------------------------- [Market Foolery]( A Game Changer for IBM? Motley Fool analysts Emily Flippen and Jason Moser talk about IBM's $33 billion acquisition of Red Hat and what the deal means for investors. [Subscribe on iTunes]( --------------------------------------------------------------- 3 Industries to Consider if the Stock Market Keeps Falling The last month hasn't been especially kind to the stock market and investors, and there are some who believe that this extended period of economic expansion may be nearing its end. Although it's impossible to predict when we'll enter a slowdown in growth or the next recession [there are some industries to consider if this swoon continues](. - Pharmaceuticals: This sector has mostly trended lower in recent weeks along with the rest of the market, but they're generally a smart bet during a correction, bear market, or recession. People don't stop getting sick when economic growth slows, and established drug companies tend to enjoy consistent demand and pricing power. One stock to consider is Dow component Merck ([NYSE:MRK]( which has made waves with its cancer immunotherapy drug Keytruda. With its existing oncology portfolio and burgeoning drug pipeline, and its 3.1% dividend yield, it has plenty of appeal. - Electric utilities: Companies that provide basic-need goods or services are typically solid investments because their demand is predictable. Electric utilities are a prime example that offer steady value and consistency. NextEra Energy ([NYSE:NEE]( is the largest in the industry, but it's been a pioneer in adopting clean-energy such as wind and solar production. NextEra is lugging around quite a bit of debt, but it's all at manageable interest rates, and the company's cash flow is expected to grow by a double-digit percentage this year. - Gold and silver mining: Precious metals historically perform well either during or immediately following a recession. After a multiyear decline in the precious metals, many in the mining industry have reined in costs and are focused only on their most profitable mines and projects. SSR Mining ([NASDAQ:SSRM]( has improved its gold production in each of the past two years at its Seabee mine, has a plan to increase its flagship Marigold mine's annual output by roughly 30% by 2021, and is in the process of bringing a joint silver project on line as well. --------------------------------------------------------------- 4 High-Impact Money Moves You Can Make in Under an Hour In the age of binge watching and instant gratification, it can be hard to commit to the consistent savings needed to prepare for retirement. But if the idea of working on your long-term plan turns you off, [consider some smaller steps that don't take long to implement that can make a big difference too](. - Boost your 401(k) contribution rate: While 401(k)s make saving for retirement simple by taking a certain percentage out of your paycheck automatically, it can be easy to set it and forget it — rather than increasing your savings rate over time. To quickly boost how much you're saving, increase your percentage. Even a 1% or 2% increase can make an impact. If your finances allow, aim to increase your contribution on a regular basis rather than boosting it once only to forget it for another decade. - Cut one or two unnecessary expenses from your budget: If you're struggling to save for retirement, take a look at your spending over the past month and see if there's anything you can cut back on. They don't need to be major expenses, either. Removing an unused gym membership, a streaming service subscription, or cutting back how many times you eat out each week gives you more to save. Even if it's only $20 each week that you don't spend on takeout, that amounts to $960 per year that could be invested. - Set up automatic 401(k) or IRA contributions: If money is automatically deposited into your retirement funds, you won't be tempted to spend it first. It makes saving more convenient, and most accounts make it easy for you to adjust how much and how often you contribute. - Set just one short-term financial goal: It's easy to focus on the large questions about retirement. (Will I ever be able to save enough? What if I never can retire?) But you can start by identifying some smaller hurdles you want to conquer in a more immediate time frame. There are plenty of options depending on your situation, including: creating budget by the end of the month, saving $500 over the next six months, or establishing an emergency fund in the next year. --------------------------------------------------------------- Quick Reads - [Read the fine print on Pfizer:]( The headline numbers from the drugmaker's third quarter provided mixed results. But here are five things you might have missed from the earnings report. - [Is Amazon's growth slowing for real?]( The behemoth's revenue growth decelerated dramatically in the second half of 2018 — but it's not the first time this has happened to Amazon. - [Optimistic Under Armour:]( The athletic apparel, footwear, and technology maker released an encouraging earnings report, so we're taking a closer look at the company's progress in getting its mojo back. --------------------------------------------------------------- TWEET OF THE WEEK --------------------------------------------------------------- [Tweet of the week: You must either modify your dreams or magnify your skills. Jim Rohn]( [See all our Tweets]( Join the 1,300,000+ people who follow us! [Twitter]( [Facebook]( We work fervently, feverishly, and Foolishly to make sure all the facts and figures we publish in our emails are 100% accurate and up to date. Returns as of October 31, 2018. 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