5 Blue Chip Stocks to Buy for November

Fall has arrived and, as promised, the fourth-quarter rally is in full force. So far, the Dow has gained 3.1%, or more than 340 points, in just the first three weeks of the fourth quarter. The reason for this unstoppable move is simple — great earnings. Investors are watching each report roll in and are piling into companies with the strongest reports.

The bottom line is that earnings are a driving force of our success right now. However, the fall of the dollar will also boost our multinational stocks higher. So let’s get started and see why the fourth quarter should be a great time for these stocks.

Here are my five top blue chip stocks to buy for November.

Since the October issue of Blue Chip Growth[2] where I named it a top buy, Baidu Inc. (NASDAQ: BIDU[3]) has advanced 25% — for a total gain of 182%. Last month, Baidu was the most-trafficked website in China. Baidu is picking up market share in that country as the local Internet market has started growing at an even faster rate than had been expected.

Just this week, the company reported excellent financial results for the third quarter. The company grew its earnings by 112% year-over-year to $156.4 million, or $0.45 per share, after witnessing sales increase 76% in the quarter to $337.2 million. Analysts had been raising their earnings forecasts ahead of the announcement but still they missed the mark with their consensus estimate of $0.41, resulting in a 10% earnings surprise for Baidu.

Buy BIDU below $121.

The nation’s largest direct-broadcast satellite service, DirecTV Holdings (NASDAQ: DTV[4]) continues to outmaneuver its competitors as it continues to upgrade its services and bring in new customers with its superior availability of HD programming. The company announces quarterly earnings on Nov. 4 and analysts are expecting strong increases in both sales and earnings.

This month, DIRECTV stock has steadily gained slightly this month resulting in a total return of more than 12% since my initial recommendation in the September issue of Blue Chip Growth.

Continue buying DTV before its November earnings report and as long as it’s below $46.

The major communications equipment firm F5 Networks Inc. (NASDAQ: FFIV[5]) continues to expand its business-communications telecommuting services. A recent partnership with the Carahsoft Technology Corp, a leading government IT solutions provider, has given F5 an opportunity to expand its focus into the federal market. Primarily a provider for the private sector, F5 is in a good position to carry out its strategy to be a relevant player both in governmental and private markets.

The company reported strong earnings on Oct. 26, and shares gapped up 20% in just a few days on strong fiscal Q4 results. Strong demand resulted in a big 50% year-over-year earnings increase and a new 52-week high in shares. The report also should help clear up some of the concerns that led to volatility in technology stocks recently and allow FFIV to continue its upward momentum.

Buy FFIV below $108.

McDonald’s Corp. (NYSE: MCD[6]), the world’s largest hamburger vendor announced earnings on Oct. 21, and the results were quite impressive. The company reported an increase in earnings of 12% to $1.39 billion, or $1.29 a share. Overall sales for the company increased 4% to $6.3 billion, with a 6% increase on a global basis. Analysts had been expecting earnings of $1.25 per share, meaning the company reported a 3% surprise.

This is one of those stocks that continues to benefit from the slide in the dollar seeing as half of its operating earnings come from abroad and that’s why the company predicted sales would increase 5% to 6% in the next quarter. Continued modernization of products and operations are placing the company in an excellent position for future growth.

Buy MCD below $84.

Novo Nordisk S/A (NYSE: NVO[7]) stock has seen big volatility this month but it has still managed to climb about 8% since last month. With several innovative drug trials on the way, Novo Nordisk currently stands in the spotlight of the pharmaceutical community and is gaining more power as one of the leading producers of insulin.

In fact, it’s diabetes drugs sales boosted its third-quarter. NVO reported on Oct. 27 that the company saw a 37% boost in profit for the third quarter, posting a $665.7 million profit compared to $485.6 million this time last year. The company’s sales rose from $2.3 billion to $2.9 billion in the last year, a 26% increase. Novo Nordisk credits its quarterly gains to the robust selling of its drugs Victoza, NovoSeven and other modern insulin. Each of these drugs has continuously proven to more effectively control diabetes problems than its competitors’ comparable products.

As a result of strong quarterly sales, NVO has raised its fourth quarter and yearly predictions. The company now expects 2010 sales growth of 11% to 12% compared to initial predictions of 9%-10% over 2009 results. Preliminary estimates for 2011 anticipate a sales growth of 10%.

This is an exciting time for this company, and that’s why I think this stock is an excellent buy anywhere below $107 right now.