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7 Stocks to Buy for the Fourth Quarter

By U.S. News & World Report

It’s time to finish the year off strong.

This year got off to a historically bad start as stocks suffered their worst-ever two-week period to open a year. Thankfully, markets have staged a rebound since then, and the Standard & Poor’s 500 index is up about 6 percent going into the fourth quarter. That said, the year isn’t over yet — it’s time to finish the year on a strong note. The following names are poised to do just that, either because they’re strong consumer stocks or because they simply are priced too attractively to ignore.

Amazon.com (ticker: AMZN)

The ultimate online retailer is a timely stock to buy for the holidays. Amazon CEO Jeff Bezos is laser-focused on great customer service, quick delivery and product affordability — all things he correctly notes that consumers will still care about 10, 20, or 50 years from now. One can certainly make the argument that AMZN stock is a bit pricey at several hundred times trailing earnings, but long-term shareholders should still continue to reap the benefits of this visionary company. Once consistently unprofitable, Amazon’s high margin cloud computing arm, Amazon Web Services, now reliably churns out enough profit to finance the rest of the company’s costly endeavors.

Ulta Salon, Cosmetics & Fragrance (ULTA)

Ulta has quietly been one of the best-executing public companies in the stock market for the last 10 years. The beauty retailer and salon has managed to meet its ambitious expansion targets in recent years, and doesn’t plan to stop any time soon. In 2014, Ulta announced plans to open 500 new locations in the subsequent five years, a 70 percent increase from its 715-count store base at the time. Last quarter, ULTA opened 24 new locations, increased same-store sales by 14.4 percent and boosted online sales by 54.9 percent. After a recent pullback, one insider snapped up shares, yet another bullish sign for Ulta shareholders.

Intel Corp. (INTC)

Intel, a quarter-after-quarter cash cow, is a good company. Its stock also happens to be fairly cheap, pay a healthy dividend, and exhibits relatively low levels of volatility. So while INTC may not really have much to do with the fourth quarter or the holidays, it’s still a solid buy, almost regardless of the quarter. Shares go for just 13.3 times forward earnings going into the fourth quarter, nearly 30 percent cheaper than the S&P 500, which goes for 18.4 times forward earnings. What’s better, Intel has almost $4 per share in cash on its books, providing some downside protection.

Boston Beer Co. (SAM)

For those throwing one or two back over the holidays, consider buying Boston Beer, the brewer behind the Samuel Adams brand. While the recent obsession with microbrews has made for slowing growth in recent years, SAM is still a relatively small player in its industry, especially after the $100 billion SABMiller merger with Anheuser-Busch InBev (BUD). That puts Boston Beer in an interesting position — it can both acquire much smaller, hipper craft breweries to boost sales growth, but it could also easily be snapped up by one of the beverage industry’s behemoths.

Mastercard (MA)

The fourth quarter of the calendar year is typically the best one, financially speaking, for the majority of U.S. companies. Wall Street can thank the consumer for that, as a whopping 70 percent of the economy is driven by consumer spending. What better way to bet on the U.S. consumer than Mastercard, the second-largest credit card company in the States. MA is a little more attractively priced than its rival Visa (V), and after buying back $462 million worth of stock in the second quarter, the company is still approved to redeem another $2.7 billion in shares.

Chipotle Mexican Grill (CMG)

Chipotle has been an operational nightmare for the last year or so, but if you’ve got an appetite for risk, CMG is the stock for you going into the fourth quarter. Several highly publicized outbreaks of food-borne illnesses over the last year caused the stock to plunge 40 percent, but those incidents seem to be firmly in the past. Not only has CMG stock found a pretty firm bottom around $400/share, a recent vote of confidence from hedge fund bigwig Bill Ackman, who took a 9.9 percent activist stake in the burrito chain, is reassuring.

Alibaba Group Holding (BABA)

Last but not least, Chinese online retail behemoth Alibaba is well-poised to cash in big in the fourth quarter. While holiday purchases are a boon to all retailers, BABA has an ace up its sleeve: an invented shopping holiday in November. Nov. 11, known as “Singles’ Day” for its 11/11 signification and its celebration of the single life, is Alibaba’s biggest sales day of the year. In 2015, Singles’ Day sales soared 60 percent, reaching an incredible $14.3 billion. Alibaba has also been extremely strong in mobile — it has 427 million monthly users — and its eye-popping 59 percent revenue growth rate in the second quarter shows BABA isn’t close to slowing down.

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7 Stocks to Buy for the Fourth Quarter originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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