7 Top-Quality Stocks to Buy Before Q4

Stocks to buy

Quality stocks to buy can be hard to find as economic uncertainty prevails.

The Federal Reserve is raising interest rates again, this time by another three-quarters of a percentage point. It says it’s prepared to levy more rate increases in its quest to bring inflation under control. The stock market reacted predictably with another drop.

For unsophisticated investors, it’s a scary time to be in the stock market. But for my readers, I hope the year’s volatility and as we approach the fourth quarter reeks of opportunity to get quality stocks at discounted prices.

Make no mistake – down markets are an ideal time to research stocks to buy because when the inevitable rebound happens, downtrodden stocks are in the best position to provide outstanding returns.

The trick is to know where to look for these quality stocks. One place to look is my Portfolio Grader to find those special quality stocks that have the distinction of being triple-rated “A” stocks. That means they have an “A” rating as a quantitative grade, a fundamental grade and a total grade.

Nothing says something is one of the best quality stocks to buy like an AAA rating. Here are seven that fit the bill.

CWEN Clearway Energy $35.74
DPSI DecisionPoint Systems $5.82
ARLP Alliance Resources Partners $23.61
CEIX Consol Energy $64.52
VIST Vista Energy $9.36
PBF PBF Energy $31.09
TRGP Targa Resources Corp $65.91

Clearway Energy (CWEN)

Source: Pavel Kapysh / Shutterstock.com

As one of the biggest renewable energy providers in the United States, Clearway Energy (NYSE:CWEN) operates in the solar and wind generation space. It has interests in solar power operations throughout the West, and in wind power plants everywhere from Minnesota to Texas and West Virginia.

Clean energy sources will likely become more popular as the U.S. – along with most of the rest of the world – explores more environmentally conscious solutions to power.

CWEN stock is virtually flat so far this year – much better than the broader market. And it remains in growth mode, after selling its thermal assets earlier this year and announcing plans to buy a portfolio of wind energy projects from Capistrano Wind Partners.

On top of that, CWEN stock has a dividend yield of nearly 4%. That’s why it gets a “AAA” rating in the Portfolio Grader.

DecisionPoint Systems (DPSI)

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DecisionPoint Systems (NYSEAMERICAN:DPSI) is a California-based IT company that provides network services, managed IT services and IT lifecycle management. The company says its mission is to help businesses grow faster, for workers to work more efficiently and to help companies lower their risks and costs.

While the company doesn’t trade on the major indices and has a market capitalization of less than $50 million, there’s serious potential in the company. DecisionPoint didn’t start trading publicly until May and the stock swung as high as $8.75 and as low as $3.40. Over the last three months, DPSI stock is up nearly 20% making it one of the hot new stocks to buy.

And the company’s been a solid earnings winner so far, consistently beating revenue estimates. Revenue for the second quarter was $27.51 million, which was 81% better than a year ago and 28% better than analysts predicted.

For a new stock, DPSI is off to a good start, and has earned a “AAA” rating in the Portfolio Grader.

Alliance Resources Partners (ARLP)

Source: Pavel Kapysh / Shutterstock.com

Alliance Resources Partners (NASDAQ:ARLP) is a top coal producer in the eastern United States. While it’s important to look to the future with clean energy stocks like CWEN, it also pays to look for the bet stocks to buy for the present.

That’s where Alliance Resource Partners comes in. Coal is still in high demand, and as long as the globe faces the threat of an energy crisis thank to Russia’s invasion of Ukraine, coal will have a place in the power grid.

But it’s also important to recognize that the company, which is organized as a master limited partnership, is attempting to diversify its holdings. It has invested in Francis Energy (which makes electric vehicle charging stations) and Infinitum Electric, which manufactures electric motors.

Earnings in the second quarter included beats on both the top and bottom line. Revenue of $616.5 million beat analysts’ expectations for $563.14 million, and EPS of $1.23 beat the Street’s prediction of 94 cents per share.

ARLP stock is up 85% so far this year and it has a dividend yield of 6.8%, helping it earn a “AAA” rating in the Portfolio Grader.

Consol Energy (CEIX)

Source: Shutterstock

Like Alliance Resources Partners, Consol Energy (NYSE:CEIX) operates in the energy sector as a coal stock. Its Pennsylvania Mining Complex is the biggest underground coal mine complex in North America.

Consol is having a great year so far. CEIX stock is up 108%. Earnings in the second quarter were up 89% from a year ago, reaching $544.62 million on earnings of $3.57 per share. Analysts were expecting only revenue of $445.25 million and EPS of $2.26 per share.

As long as coal prices remain elevated, CEIX stock will be a solid winner, well deserving of an “AAA” rating in the Portfolio Grader.

Vista Energy (VIST)

Source: Oil and Gas Photographer / Shutterstock.com

Based in Mexico City, Vista Energy (NYSE:VIST) is an upstream oil and gas exploration and production company. It is the third-largest oil producer in Argentina, and the second-largest producer of shale in that country.

Its primary assets are in Vaca Muerta, which is the fourth-largest shale oil reserve and the second-biggest shale gas deposit on the planet.

Earnings for the second quarter pleased the Street: Revenue of $294.29 million beat analysts’ expectation for $268 million. EPS of $21.77 was also a pleasant surprise, as analysts had predicted $16.41 per share.

VIST stock is up 78% so far this year, and like the other names on this list has a “AAA” rating in the Portfolio Grader.

PBF Energy (PBF)

Source: Gergely Zsolnai/Shutterstock.com

Here’s another oil and gas stock to consider. PBF Energy (NYSE:PBF) is a midstream energy firm that operates in the refining and petroleum supply markets. It calls itself a leading independent refiner of petroleum, and a supplier of unbranded transportation fuel, heating oil and other petroleum products.

The company has a strong cash position right now, having reduced its net debt by nearly two-thirds in the second quarter of 2022. Free cash flow was $1.8 billion in the year’s first half, and it’s expected to come in at $2.3 billion over the next 18 months.

Earnings in Q2 were $14.08 billion in revenue, easily topping expectations of $10.97 billion. EPS of $10.58 was also better than the anticipated $7.77.

PBF stock is up 128% so far this year and has a “AAA” rating in the Portfolio Grader.

Targa Resources Corp. (TRGP)

Source: Shutterstock

Targa Resources Corp. (NYSE:TRGP) operates a network for natural gas and liquified natural gas, or LNG. Its network includes pipelines, transportation, processing, storage and LNG export facilities.

As natural gas prices have been on the rise in 2022, so has TRGP stock. Targa is up 28% so far on the year – and that’s even after dropping 12% since July.

Revenue of $6.06 billion in the second quarter was 77% greater than a year ago and beat analysts’ estimates of 5.19 billion. The company also provides a solid dividend yield of 2.1%, helping push TRGP stock to a “AAA” rating in the Portfolio Grader.

On the date of publication, Louis Navellier has a position in CEIX, VIST and TRGP. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

On the date of publication, the InvestorPlace Research staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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