2 Stocks to Load Up On in March
Believe it or not, February is over and we’re almost a quarter of the way through the year. For traders, so far 2024 has started off in the same way that 2023 ended: the bulls are firmly in control. The stats favour a bull run for the rest of the year too: whenever January and February post monthly green candles, the S&P 500 averages a return of about 19% for the rest of the year.
So what am I looking to add in March? There’s been some weakness recently in tech stocks as we see a bit of a sector rotation away from high multiples. That’s understandable considering how much the NASDAQ has run over the past few months, led by the big tech stocks and the Mag 7. As you probably know, I like to target stocks that are laggards and haven’t moved to their full potential yet. Here are 2 I have my eyes on for March.
AMD (NASDAQ: AMD)
It’s funny because the first part of this move already happened on the last day of February. On Thursday, AMD rose by nearly 10%, finally breaking out of a near month-long period of consolidation. A lot of people on FinTwit are pointing out that the breakout mirrors that of AMD’s older sibling NVIDIA ($877.35|6.18%). While I’m not sure if AMD will make that big of a move, I do agree that the stock has some catching up to do.
Everyone’s been focused on NVIDIA and SMCI (NASDAQ: SMCI) in 2024, but AMD deserves just as much love. While it hasn’t seen the same sales increase that NVIDIA has, AMD is certainly set to be a major player in the AI industry. AMD is already producing GPUs that can compete with NVIDIA’s and has lined up some major buyers like Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META).
AMD is almost certain to take out the $200 level in the next few sessions and from, there it will attempt to reach its Fibonacci extensions. Option flow has been very bullish for AMD with a number of whales loading up on calls into April. Catch this runaway train now before it’s too late!
Walmart (NYSE: WMT)
Wait, you might be thinking: “Don’t you just invest in tech stocks?” That’s not true at all! I’ve been eyeing Walmart’s stock for a while now and the recent 3 for 1 split has made it a bit more enticing. As much as Walmart is seen as an evil corporation, it underwent the split so that its own employees could afford the stock. That’s a pretty honorable way to take care of your people.
So why do I like Walmart? I like to think that the worst of the economic downturn is behind us. With interest rates expected to fall later this year, consumer sentiment continues to rise. Wil Walmart dethrone Amazon (NASDAQ: AMZN)? Probably not, but for the most part they have different target demographics. At about 25 times forward earnings, a 1.42% dividend yield, and a rock solid position in the world’s largest economy, the risk/reward for buying Walmart right now is pretty good for the long-term.
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