Five Stocks that You Should Consider For December

Tom Handy

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Stocks you should consider for your stock portfolio.

With the price of goods rising due to inflation, some prominent stockholders selling, choosing the right stock is more important than ever. These stocks are showing strong support heading into December.

These five stocks are on the uptrend. 

Since they are at or near all-time highs, it’s best to wait for a dip in the market.

This month I discuss five stocks for you to consider.

  • Arista Networks, Inc. (ANET)
  • CF Industries Holdings, Inc (CF)
  • Enphase Energy, Inc. (ENPH)
  • ON Semiconductor Corporation
  • Trex Company, Inc. (TREX)

The price for the stocks was recorded on December 6, 2021, at the opening of the market.

“Courage taught me no matter how bad a crisis gets … any sound investment will eventually pay off.” 
Carlos Slim Helu

Some basic investing principles never change.

Arista Networks, Inc. (ANET)

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Screenshot from Yahoo Finance

Company Profile.

Arista Networks, Inc. creates and sells cloud networking solutions in North and South America, Europe, the Middle East, Africa, and Asia. Arista was founded in 2004 and is located in Santa Clara, California.

Analysis.

Arista had a strong Q3 as sales were up 24% and earnings were up 22%. The company gave its forecast for accelerating revenue growth (30%) in 2022. Analysts see earnings up mid-20% in 2022. Arista relies on a couple of big customers, and there is little doubt the next few quarters should be positive for the company.

52 week high. $134.14

52 week low. $65.52

Forward Dividend and Yield. N/A

CF Industries Holdings, Inc (CF)

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Screenshot from Yahoo Finance

Company Profile.

CF Industries Holdings, Inc. creates and sells hydrogen and nitrogen products for clean energy, emissions abatement, fertilizer, and other applications worldwide. The company primarily serves cooperatives, independent fertilizer distributors, industrial users, and wholesalers. The company was founded in 1946 with headquarters in Deerfield, Illinois.

Analysis. In CF’s third quarter, revenue was 61% higher from 2020. The company had strong nitrogen demand and favorable energy spreads. Per-share earnings of $1.02 beat by six cents and higher from a year-ago loss. Sales volumes in the first nine months of 2021 were lower than a year-ago period. The average selling prices in Q3 were higher due to strong global demand. CF believes that positive industry fundamentals will persist until 2023. Additionally, CF forecasts that growers will continue to plant nitrogen-consuming crops (cotton, corn, and wheat) at high levels going into the future. Management is focused on reducing debt and a new $1.5 billion share repurchase program for 2022–2024. In 2022, analysts see the bottom line to nearly $8 per share. Analysts think the next big move is up for this stock.

52 week high. $68.09

52 week low. $36.21

Forward Dividend and Yield. 1.20 (2.02%)

Enphase Energy, Inc. (ENPH)

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Company Profile.

Enphase Energy, Inc. and its subsidiaries, design, develops, manufactures, and sell home energy solutions for the solar photovoltaic industry in the United States and globally. The company sells its solutions to solar distributors. Sales are also made to large installers, original equipment manufacturers, strategic partners, and homeowners. Enphase started in 2006 and is located in Freemont, California.

Analysis. Enphase shipped 2.6 million microinverters last quarter which resulted in a record sales of $351 million despite logistical constraints. This caused the stock to rise last week. Longer-term, Enphase sees its core product as its entryway to selling home energy management systems. This could turn microinverter buyers into repeat buyers. In 2022, analysts see earnings up 31%.

52 week high. $282.46

52 week low. $108.88

Forward Dividend and Yield. N/A (N/A)

ON Semiconductor Corporation

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Screenshot from Yahoo Finance

Company Profile.

On Semiconductor Corporation and its subsidiaries, manufactures and sells semiconductor components for various electronic devices. The company serves equipment manufacturers, distributors, and electronic manufacturing service providers. The company was started in 1992 and is headquartered in Phoenix, Arizona.

Analysis. The company delivered record results in Q3 based on strong demand for its intelligent power and sensing solutions in the auto and industrial markets. An increase in revenue was up 32% to $1.74 billion and 12% above expectations. Per-share earnings of 87 cents exceeded estimates by 13 cents. Last quarter, Onsemi completed its acquisition of silicon carbide (SiC) producer GT Advanced Technologies. Heading into Q4 2021, Onsemi anticipates revenue will grow around 27% from the prior year. The ON stock started to get going in the summer, but sellers caused the price to dip. The stock is starting to hit new highs and has a strong future.

52 week high. $65.99

52 week low. $29.88

Forward Dividend and Yield. N/A (N/A)

Trex Company, Inc. (TREX)

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Company Profile.

Trex Company, Inc. manufactures and distributes wood and plastic composite products, for residential decking, and railing applications in the United States. Trex sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores, as well as independent sales representatives. The company was founded in 1996 and is located in Winchester, Virginia.

Analysis. Trex’s had a great Q3. Sales (up 45%) and earnings (up 55%) topped expectations. Top management mentioned the big pickup in home improvement permits and announced a third construction plant to meet demand. A rise in interest rates could hurt the stock price. Trex is a great, well-managed company with analysts seeing earnings up 22% next year.

52 week high. $138.90

52 week low. $73.97

Forward Dividend and Yield. N/A (N/A)

If you liked this article, see this recent one.

References.

Cabot Wealth Network

Yahoo Finance

Note: The writer does not own any of these investments.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.

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