The Top 3 Stocks to Buy in March While it's true that there are plenty of complicated factors that could impact the stock market going forward, it's important to remember that volatility can present opportunities.
By Sean Sechler
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This story originally appeared on MarketBeat
Keep An Eye on These 3 Stocks in March
The first few months of 2022 have certainly been eventful, and there are still plenty of questions for investors to ponder as we head into March. How will the conflict between Russia and Ukraine impact the world's economy and financial markets? Have equities finally bottomed after weeks of selling pressure? What kind of headlines can we expect from the Federal Reserve during the March FOMC meeting? After a truly tumultuous two months, investors are hoping for some clarity and stability for the sake of their portfolios, but only time will tell if that's what March has in store.
While it's true that there are plenty of complicated factors that could impact the stock market going forward, it's important to remember that volatility can present opportunities. There are still plenty of great companies to consider adding this month regardless of whether or not we get answers to the questions mentioned above. That's why we've put together the following list of the top 3 stocks to buy in March to help you stay focused amidst all of the noise.
The Mosiac Company (NYSE: MOS)
This chemicals stock is exactly the type of company investors should be looking at given all of the complexities of the market at this time. The Mosaic Company is one of the world's largest producers and marketers of concentrated phosphate and potash crop nutrients for the world's agriculture industry. Fertilizer prices are already at record highs, and the conflict in Ukraine and sanctions on Russia could lead to even higher prices going forward, which would likely work in this company's favor. Mosaic has also been one of the strongest stocks in the market this year, as it's up over 26% year-to-date.
Investors should be impressed by the fact that the stock is rallying even after slightly missing Q4 EPS and revenue expectations last week, which is a sign that investors are very optimistic about the company's prospects for the rest of the year. With that said, full-year revenues for the company were up 42% year-over-year to $12.4 billion, signaling that this is a business firing on all cylinders. Also, the company recently entered an accelerated share repurchase agreement with Goldman Sachs to repurchase $400 million of Mosaic's common stock, which is another positive to consider as we head into March.
Freeport-McMoran Inc (NYSE: FCX)
Metals and mining stocks have some of the better-looking charts in the market right now, and Freeport-McMoran is no exception. After months of consolidation, shares could be on the verge of breaking out in March, especially if commodity prices continue rising. Freeport-McMoran is a major natural resource company interested in copper, gold, and molybdenum, which means it can be a nice way to gain exposure to resources that are incredibly important for the world's economy.
Copper, in particular, looks poised for higher prices given how strong the global demand is. Keep in mind that copper is an important component for creating many electronics products along with innovative new technology like electric vehicles. Additionally, the company recently reported Q4 revenue of $6.2 billion, up 37% year-over-year, and saw its adjusted EBITDA increase by 161% in 2021 to reach $10.4 billion. Finally, Freeport authorized a new share repurchase program back in November that should benefit long-term shareholders and also offers a 0.86% dividend yield, making this a top pick in metals and mining.
Palo Alto Networks (NASDAQ: PANW)
Cybersecurity stocks could be a nice place to look for buying opportunities in March given the possibility for cyber warfare from Russia, and Palo Alto Networks might be the best name in the group. It's a pure-play cybersecurity vendor that sells security appliances, subscriptions, and support to customers around the world. Palo Alto's products can enable its end-customers to secure their networks, remote workforces, public and private clouds, and more, which is becoming increasingly important in today's increasingly digitalized business world.
Palo Alto had a stellar Q2 which saw the company deliver revenue growth of 30% year-over-year to $1.3 billion. The company's management team also raised its fiscal year 2022 guidance, with Palo Alto now anticipating total revenue for the year in the range of $5.425 billion to $5.475 billion, which would represent year-over-year growth between 27% and 29%. With most of the tech sector looking questionable to start the year, Palo Alto is one name that has held up well and could be on the verge of breaking out to new highs in March.