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10 Best Stocks to Buy for Medium Term

In this article, we will be taking a look at the 10 best stocks to buy for medium term. To skip our detailed analysis of the current stock market dynamics, you can go directly to see the 5 Best Stocks to Buy for Medium Term.

While some investors prefer to hold long-term positions in the stocks they pile into, others take notice of company fundamentals and other factors to hold short-term positions in stocks. The practice of holding positions in stocks for a shorter time period before exiting them is known as medium-term trading. This strategy often enables investors to keep their portfolios active while cutting out stocks that perform poorly, so they can reinvest in better companies. It also maximizes investors’ return on capital since profits from successful trades enable them to reinvest in stocks with higher growth potential.

To successfully implement this strategy, investors must look at certain factors in the companies they choose. These include share performance over a 12-month period, company profits, sales, debt, price-to-earnings ratio, and dividends. It also helps to consider companies’ revenue growth rates and payout ratios, in the case of dividend stocks like Johnson & Johnson (NYSE:JNJ), PepsiCo, Inc. (NASDAQ:PEP), and The Coca-Cola Company (NYSE:KO). With high revenue growth and low payout ratios, investors can actively ensure the companies they choose for medium-term trading are performing well and managing their earnings smartly in a way that enables their own growth while keeping shareholders satisfied.

One major reason to consider dividend stocks for medium-term trading is that these stocks offer passive income to investors for the short period they hold a position in them. However, another reason to consider these stocks is that dividend-paying companies are an effective investment in times of market uncertainty. According to a Lord Abbett report published in July, dividend stocks have outperformed the S&P 500 index between 1973 and 2022. Research has shown that dividends have contributed to over 40% of the S&P 500’s total return between December 1929 and May 2022. Within these stocks, those that grow their dividends have markedly outperformed all other dividend stocks. And when it comes to periods when market returns are below average, dividends have been seen to provide a cushion for investors that offsets a stock’s price depreciation. The research further indicates that in every decade where the market’s annualized returns fell below 10%, dividends contributed about 76% of the S&P 500’s total return. Resultantly, dividend stocks have proven themselves to be attractive stock picks for investors in times of market volatility, which is why we have recommended dividend-paying companies in our list below.

Let’s now take a look at the 10 best stocks to buy for medium term.

Our Methodology

We have selected dividend-paying stocks with payout ratios below 30% for our list below. They all have dividend yields over 2%. The information on these stocks’ yields and payout ratios are updated as of February 27. These companies have at least 10% revenue growth year-over-year, and they are highly popular among the 943 hedge funds tracked by Insider Monkey in the fourth quarter. They are ranked on the basis of the number of hedge funds holding stakes in them, from the lowest to the highest. We have mentioned analyst price targets, ratings, and upside potential for these stocks where applicable as well.

Best Stocks to Buy for Medium Term

10. Heartland Financial USA, Inc. (NASDAQ:HTLF)

Dividend Yield as of February 27: 2.42%

Number of Hedge Fund Holders: 8

Heartland Financial USA, Inc. (NASDAQ:HTLF) is a regional banking company based in Denver, Colorado. The company provides commercial, small-business, and consumer banking services to individuals and businesses. It also accepts checking and other demand deposit accounts certificates of deposit, and other time deposits, among more.

On December 12, Christopher McGratty placed a Market Perform rating on Heartland Financial USA, Inc. (NASDAQ:HTLF) shares alongside a $54 price target.

Heartland Financial USA, Inc. (NASDAQ:HTLF) has been raising its dividend yield for the past six years and has a dividend payout ratio of 21.41%. Company management expects to see earnings surge in 2023 in light of higher loan balances. In the fourth quarter, Heartland Financial USA, Inc. (NASDAQ:HTLF) reported revenues of $195.2 million, which demonstrated a revenue growth of 14.87% year-over-year.

Eight hedge funds were long Heartland Financial USA, Inc. (NASDAQ:HTLF) in the fourth quarter, with a total stake value of $15.5 million. AQR Capital Management was the largest shareholder in the company, holding 82,151 shares.

9. ConnectOne Bancorp, Inc. (NASDAQ:CNOB)

Dividend Yield as of February 27: 2.53%

Number of Hedge Fund Holders: 13

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) is the bank holding company for ConnectOne Bank, which provides commercial banking products and services for small and mid-sized businesses and local professionals. The company is based in Englewood Cliffs, New Jersey. It offers products like personal and business checking, retirement, money market, and time and savings accounts.

Raymond James analysts Daniel Tamayo holds a Market Perform rating on ConnectOne Bancorp, Inc. (NASDAQ:CNOB) shares as of December 22.

For four years, ConnectOne Bancorp, Inc. (NASDAQ:CNOB) has been raising its dividend yield, and it has a payout ratio of 20.42%. The company also has a year-over-year revenue growth rate of 10.71%, and it reported revenues of $78.01 million in the fourth quarter. As of 2022, ConnectOne Bancorp, Inc. (NASDAQ:CNOB) had compound annual growth rates of 12.9% and 33% for growing its asset base and net income, respectively, over the preceding five years.

ConnectOne Bancorp, Inc. (NASDAQ:CNOB) was found among the 13F holdings of 13 hedge funds in the fourth quarter. Their total stake value was $38.3 million.

8. Berkshire Hills Bancorp. Inc. (NYSE:BHLB)

Dividend Yield as of February 27: 2.45%

Number of Hedge Fund Holders: 13

Berkshire Hills Bancorp, Inc. (NYSE:BHLB) is the bank holding company for Berkshire Bank, and it is based in Boston, Massachusetts. The company offers banking products and services like deposit accounts and loans. It also provides wealth management services such as investment management, trust administration, and financial planning.

Berkshire Hills Bancorp, Inc. (NYSE:BHLB) has a dividend payout ratio of 24.55% and has increased its dividend for one year. As of the fourth quarter, the company has a year-over-year revenue growth rate of 29.61%, when it posted revenues of $117.58 million. According to TipRanks, the average price target placed on Berkshire Hills Bancorp, Inc. (NYSE:BHLB) is $34. The stock was trading at $29.34 on February 27. Based on this price target, the stock has an upside potential of 15.76%.

Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 13 funds were long Berkshire Hills Bancorp, Inc. (NYSE:BHLB), with a total stake value of $42.8 million. Driehaus Capital was the largest shareholder in the company, holding 669,663 shares.

7. Comstock Resources. Inc. (NYSE:CRK)

Dividend Yield as of February 27: 3.9%

Number of Hedge Fund Holders: 19

Comstock Resources, Inc. (NYSE:CRK) is an oil and gas exploration and production company based in Frisco, Texas. The company works to acquire, explore, develop, and produce oil and natural gas. It operates primarily in North Louisiana and East Texas in the US.

Stifel’s Derrick Whitfield holds a Buy rating on Comstock Resources, Inc. (NYSE:CRK) shares as of January 30, alongside a $21 price target.

The dividend payout ratio offered by Comstock Resources, Inc. (NYSE:CRK) is 3.34%. The company generated revenues of $922.38 million in the fourth quarter, which demonstrated a revenue growth rate of 40.74% year-over-year. Over the six months preceding February, natural gas prices have fallen by about 70%, resulting in Comstock Resources, Inc. (NYSE:CRK) shares also taking a hit. However, since the company has a geographical advantage by virtue of its location near the Gulf Coast corridor and near some large liquified natural gas terminals, it is still able to produce large amounts of free cash and stay afloat.

Our hedge fund data for the fourth quarter shows 19 funds long Comstock Resources, Inc. (NYSE:CRK). Their total stake value was $220.6 million.

6. CVR Energy, Inc. (NYSE:CVI)

Dividend Yield as of February 27: 6.33%

Number of Hedge Fund Holders: 20

CVR Energy, Inc. (NYSE:CVI) is an energy company based in Sugar Land, Texas. The company is engaged in petroleum refining and nitrogen fertilizer manufacturing activities. It operates through its Petroleum and Nitrogen Fertilizer segments.

Shares of CVR Energy, Inc. (NYSE:CVI) closed at $32.51 on February 27. According to TipRanks, the average price target on the stock is $34. Based on this price target, CVR Energy, Inc. (NYSE:CVI) has an upside potential of 4.5%. The company offers a payout ratio of 28.1%. It generated revenues of $2.68 billion in the fourth quarter, demonstrating a revenue growth rate of 26.85% year-over-year.

Two Sigma Advisors was the largest shareholder in CVR Energy, Inc. (NYSE:CVI) at the end of the fourth quarter, holding 252,000 shares. In total, 20 hedge funds were long the stock, with a total stake value of $2.3 billion.

CVR Energy, Inc. (NYSE:CVI), like Johnson & Johnson (NYSE:JNJ), PepsiCo, Inc. (NASDAQ:PEP), and The Coca-Cola Company (NYSE:KO), is a highly popular stock among hedge funds today.

Click to continue reading and see the 5 Best Stocks to Buy for Medium Term.

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Disclosure: None. 10 Best Stocks to Buy for Medium Term is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…