Author: Perez Clark

Are you looking for the right stocks to sell before companies begin awarding shareholders with buybacks? This article will give you insights on stocks you should consider selling and why selling them makes sense.

Let’s get into it.

Stocks to Sell Before They Give Back This Year’s Gain

1. Chevron

It is clear that Chevron (NYSE: CVX) is utilizing the Biden administration’s fight against fossil fuel consumption, as company stock is up by 48% from last year. Also, the newly-announced production cuts from OPEC are sure to benefit the corporation.

One article, however, warns against regarding Chevron as a momentum stock. While a Republican majority vote in one or both Congress houses would undoubtedly see the U.S government relying on increased drilling, that wouldn’t be the most straightforward feat for the GOP to achieve.

Even if the Republican party manages to win, the global turn towards renewable energy is still going strong.

But, as you may know, increasing production outputs is more complex than flipping a switch. New developments, especially in the oil sector, require adequate time and capital. Before you know it, the 2024 Presidential polls will be here, and everyone knows oil and politics are the best balls to juggle simultaneously.

With the current markets, Chevron stock looks better as a long-term hold. However, if making some stock profit before the year’s end is your plan, flipping CVX may be a good option.

2. Hershey

Hershey’s stock is experiencing a fantastic 2022 run, with HSY going up 18%. Currently, Hershey distributes a delightful dividend annually that pays shareholders over $4 per share. Now’s also the best time to be a candy manufacturer, given October (Halloween), December (Christmas), and January (New Year’s).

But if we’ve just detailed the benefits of HSY, why is it on a list of stocks to sell?

Hershey’s stock price is consolidating near its 10-, 20-, and 50- day moving averages. The candy company may be able to lift its stock in the coming days, as it’s scheduled to report its Q3 earnings on Nov.4.

Conversely, HSY prices may drop due to investors’ reception of the company’s fiscal results. Investors could buy the shares at a lower price if things go right.

3. Merck & Co

Investors reading this article probably know about Merck’s wonder Keytruda drug, which brought over $17 Bn for the company last year. 

That figure (over 25% of its 2021 revenue) plus the results of its phase three study of sotatercept, a treatment for pulmonary arterial hypertension (PAH) exhibiting great potential. 

Merck will have the chance to continue the stock momentum on Nov. 19 when it presents its Q3 earnings report. Merck’s numbers have exceeded analyst expectations in its last reports. Investors, including me, can utilize gains to profit from Merck if it manages to repeat this feat.

Conclusion

Now’s the best time for investors to pick the best stocks to profit from. 

Before you deal with stocks, you should research the business and how you can profit from it. Also, it’s always a good idea to seek help from a financial adviser before investing significant amounts of cash in stocks.