3 Stocks To Watch This Week

Summary

This week has started with an uptick in the market. I am watching 3 stocks this week in the event of another downturn.

GoPro, Phillips 66, and Blackstone are all U.S. based offering "some" insulation from China's craziness whilst each offering a good financial performance for our current climate.

GoPro has put together some awesome quarters, whilst Phillips 66 is displaying the backing and confidence of Berkshire Hathaway, and Blackstone offers a great yield after a Q2 dip.

Up and down and all around. The market has been taking us for loops. But with chaos comes opportunities. Here are a few stocks I'm watching this week in the event of any more dips. Should the market snowball, I consider them deals for the future.

GoPro Inc. (GPRO)

Despite ever increasing revenues, combined with 4 quarters of earnings beats, GoPro has been caught up in the onslaught that the stock market is going through.

(Source: Nasdaq.com)

After some crazy volatility after its IPO, GoPro's Q1 results helped put the stock back on track, it has subsequently spent the rest of the year climbing its way back to $65 a share. Alas, China's slowdown and commodity price falls have quaked the market, and it seems nothing has been spared. Since the first part of August, GoPro has fallen some $25 in the series of sell-offs and subsequent rallies. I see an opportunity in the firm as their Q2 earnings results have shown that there is no justification for this downturn in the stock. Revenues were up 71% from the same quarter last year. If you look at anannual view of their balance sheet, their equity is looking great. With 4 straight quarters of earnings beats, it stands to reason that this stock should get noticed once the bewilderment of current market conditions cools down. News of Ambarella's slowdown in the chips used for these camera's has some scared of smaller sales this fall. Even if this happens, the stock is already down over 30% through August. A lot of the downside has been washed out.

In their Q2 earnings release, they announced that they will putting a GoPro quadcopter on the market early next year to get in on the growing flying camera market. Their growing presence on Youtube and other online media channels is expanding their notoriety.

Phillips 66 (PSX)

I've already written about Berkshire Hathaway's (NYSE:BRK.A) (NYSE:BRK.B) involvement with Phillips recently. Operating within these ideas for why Berkshire bought into the firm, I think that on any weakness as a result of oil pricing, shares can be acquired for the long term. Trading at 10 times earnings, Phillips is a great deal given their position within refining. Theirearnings per share show strength while many other plays in the energy sector are taking hits.

(Source: Google Finance)

Take a look at their chart and you can see they've weathered the energy storm far better than others. Phillips' position in refining, transportation, and selling gives them a cushion to still make money that exploration companies just don't have right now. In turn, it makes for one of the best plays in the energy sector.

The Blackstone Group L.P. (NYSE:BX)

The public investment manager is in the news for having just announced itsacquisition of Chicago based Strategic Hotels and Resorts inc. for a little under $4 billion. The stock is down after a miss in Q2 of this year offering an opportunity into an 8.4% yielding Unit Trust Fund. Among comparable competitors such as BlackRock (NYSE:BLK), and Franklin Resources (NYSE:BEN), Blackstone has had a much better stock performance year to date. The Price to earnings is very reasonable at a little over 10.MyTradingIncome has a good article on the valuation and overall attractiveness of their dividends due to their corporate structure.

(source: Nasdaq.com)

Estimates have earnings and revenues as both being up next year. With the stock down, I like the attractive yield to take advantage of while the rest of this year plays out.

By David Butler

Source:http://seekingalpha.com/article/3499356-3-stocks-to-watch-this-week