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Nokia Corporation (ADR) (NOK), TrustCo Bank Corp NY (TRST): Three Stocks On Which to Ride the Market’s Momentum

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Nokia Corporation (ADR) (NYSE:NOK)So far the Dow Jones Industrial Average has risen over 15% year-to-date. This meteriotic rise has left many investors scratching their heads, wondering what to do next. One school of thought is to continue to look for equity positions that would ride the momentum upward. Another is to buy defensive stocks that would hedge against a market correction. I’ve uncovered three stocks that would cover both schools of thought.

TrustCo Bank Corp NY (NASDAQ:TRST) is certainly a buy in this marketplace. It isn’t a secret that banks fair well when interest rates rise. Because of higher rates, banks typically can make money on the burgeoning credit spreads on their products. With the rise in the real estate markets, the activity on a bank’s commercial and home mortgage portfolios should reflect the new home and commercial purchases.

This particular bank has such growth in mortgage loan activity. They have seen increases in mortgage activity, and welcome over 3% yield spreads, even with these low rates currently in place. As rates rise, variable rate loans issued would be advantageous to the loan holder by demanding higher rates versus an artificially deflated interest rate. With over 70% of its loan portfolio in these assets, rest assured that TrustCo Bank Corp NY (NASDAQ:TRST) will capitalize on two fronts: real estate and rising interest rates.

TrustCo Bank Corp NY (NASDAQ:TRST)’s stock has taken quite a leap in the last few trading days, breaking out of a holding pattern its been in to accurately reflect the second quarter EPS surprise the company announced on July 22, 2013. Their $0.201 EPS beat analyst estimates by $0.01 and offered optimistic guidance for the rest of the year.

Maxim Integrated Products Inc. (NASDAQ:MXIM) is a favored stock by many, including JP Morgan, which has Maxim Integrated Products Inc. (NASDAQ:MXIM) on their buy list. There’s no secret as to why we would want to buy this stock–it has a dividend yield of 3.5% and is trading just four points off of its 52-week low.

This integrated circuits manufacturer has a global footprint and is estimated to bring in over $2.5 billion in revenue for 2013, which would be a 50% increase from 2009. Analysts expect this company to continue to expand at a rate of 7%-9% year-over-year, which means your investment should grow along with it. The average analyst has this stock pegged at $33 per share, and if we can add it the rising market premium on interest rate hikes, this stock should trade above $35 by year’s end. At the current price of around $27 per share, there is much more upside than downside here.

If you hadn’t already have seen Nokia Corporation (ADR) (NYSE:NOK)’s surge against Apple and Samsung, you probably have been living under a rock. The chief of Nokia Corporation (ADR) (NYSE:NOK), Mr. Stephen Elop, has launched a new phone advertised to directly assault the iconic iPhone and the neuve riche Galaxy.

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