The Motley Fool's Weekly Editors' Picks
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
A Looming Problem for Auto Stocks
Fool analyst John Rosevear brings word that some automakers are likely to experience production glitches thanks to an impending shortage of a substance that's critical to the manufacture of brake and fuel systems. "[A]s of now it looks like there's a good chance that at least some companies will lose some manufacturing for an indeterminate period of time -- weeks or perhaps months," John wrote.
Investors in auto companies including Ford (NYS: F) , General Motors (NYS: GM) , and Toyota (NYS: TM) have been put on notice. But John doesn't stop there. He encourages investors to keep in mind that the shortage will be temporary. "Any lost production, and any share-price drop, is likely to be made up in time," he wrote.
John, who owns shares of Ford and GM, said he has no plans to sell and noted that a drop in share price over concerns about the shortage could give investors an opportunity to pick up shares.
Read the article to get the full rundown.
3 Big Dividend Stocks That Could DoubleDividends and growth potential in the same stock? Yes, it's possible. Fool analyst Jeremy Bowman has found three dividend stocks that he thinks could double. SUPERVALU (NYS: SVU) is first on the list of high-yielding stocks with beaten-down share prices.
Jeremy calls SUPERVALU "one of the biggest value plays in the market," noting that restructuring that led to losses is now in the rearview mirror. "Analysts estimate earnings of $1.27 for this fiscal year, which gives the company a forward P/E of less than 5," Jeremy writes. "Add a 5.5% dividend yield into the mix, and the reasons to invest look compelling."
Read the article to learn more about SUPERVALU and Jeremy's two other picks.
Well, Hello, Buying Opportunity! I've Been Waiting for You
Deciding when to buy can be tough. Especially if you're looking at stocks in a sector as lively as the natural-gas one. Fool analyst Brian Stoffel, who has some extra money of his own to invest, looks favorably on Westport Innovations (NAS: WPRT) , which is up 80% over the past two years, but down significantly since hitting a high in late March.
The company's business includes building natural-gas engines and providing the technology to convert petroleum-based fuel engines to use natural gas. Westport's stock has been riding a wave of low natural-gas prices, Brian notes, and the dip in price provides a good opportunity for investors to jump in.
"Though Westport shares could easily continue falling, I think any price under $40 will look like a steal five years from now," Brian writes. Shares closed at $34.49 on the day Brian's article was published.
Read the article to find out about the other two stocks that have piqued Brian's investing interest.
For a little more help building a solid portfolio, check out this free Motley Fool report: "3 Stocks That Will Help You Retire Rich."
At the time this article was published Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article.The Motley Fool owns shares of Ford, SUPERVALU, and Westport Innovations.Motley Fool newsletter serviceshave recommended buying shares of Ford, General Motors, and Westport Innovations, as well as creating a synthetic long position in Ford and buying calls on SUPERVALU. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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