Top 10 Stocks for 2020
The year is 2020 and this is a special year in buying stocks because the numbers represents 20/20 vision. To have 20/20 vision is to have perfect vision. Hopefully the year 2020 will be very profitable for you like 2019 or better. While not every year you will see record highs in over 25% gains. With having a diverse portfolio of 10 different stocks, this should help in achieving gains.
If you are looking to double or more your money this year then take advantage of our stock alerts. For the 2019, all three of stock alert systems have more than double in gains!
Here is a List of the Top 10 Stocks to Buy for 2020
The case for naming Facebook one of the best stocks to buy for 2020 is fairly straightforward: at roughly 2.5 billion users, it’s gobbling up the world, and reasonable people could argue that if privacy is dying, individual investors may as well profit alongside Silicon Valley. This marks the fourth consecutive year that FB has been on U.S. News’ Best Stocks to Buy list. Since being named as a top stock for 2017, shares of the social media giant rallied more than 70%, surging from $115 to roughly $200, handily beating the S&P 500’s 40% return. A great business at a fair price, paying 31 times earnings makes sense for long-term investors; Instagram monetization is in the early stages, and opportunities in Dating, Facebook Marketplace and elsewhere abound.
Microsoft is one of the largest technology companies in the world. It has successfully pivoted from a Windows PC-first world to the cloud. The company has become a strategic partner in enterprise digital transformations through its cloud, app and infrastructure, and artificial intelligence offerings. MSFT is uniquely positioned to grow its wallet share of corporate IT budgets in this hybrid world. We think the premium valuation is justified given the above-trend growth, exposure to secular trends and strong balance sheet. Compared to software peers, the valuation is quite reasonable. The dividend yield is 1.3%
I recently laid out the full case for JD.Com following the company’s most recent earnings report. To summarize, JD announced another excellent quarter, with accelerating growth, solid margins and strong cash flow generation. This was all the more impressive because JD managed these results during a time when the Chinese economy is struggling and consumers have pulled back.
Look at the results from rival Pinduoduo (PDD) – It’s clear that the consumer is hurting, yet JD was able to maintain its market share and keep the business growing in spite of the headwinds.
Becton Dickinson is a global supplier of medical devices, hospital supplies, diagnostic equipment, and medication management systems to hospitals and labs. BDX’s portfolio is diversified across a number of categories and geographies with high exposure to consumable products that produce recurring revenues. The company should continue to benefit from the following long-term secular trends: 1) Aging populations spending more on healthcare in developed nations; 2) Rising wealth in emerging economies leading to higher healthcare spending and a greater focus on safety; and 3) Movement in the U.S. health care market away from products and towards “solutions.” yield is 1.3%
FedEx stock has been a disappointment over the past couple of years. We think the under performance reflects a combination of weaker global economic growth, the trade war with China, a poorly timed acquisition of European delivery company TNT Express, and the perception of a competitive threat from Amazon.com. While the first three concerns are mostly valid, the Amazon threat is likely overblown. It has taken FedEx several decades to build a world-class distribution network, the likes of which cannot be replicated over a short period of time.
For the more income-focused investor, Unilever is one of the compelling stocks to buy at this price. Unilever is a giant assortment of consumer food and personal hygiene brands. It includes marks such as Lipton tea, Ben & Jerry’s ice cream, Hellman’s mayonnaise and Axe, Rexona and Degree antiperspirants.
Many of these sorts of consumer staples companies have traded up sharply — Hershey HSY and Procter & Gamble PG have both posted huge gains over the past year and now trade around 25x earnings.
Exxon Mobil XOM is by far the largest company of the bunch not to advance in 2019. Don’t count it out though, this year’s biggest dog will hunt in 2020.
Why’s that? The oil market seems to be nearing a turning point since the 2014 crash in oil prices. The easy capital has finally left the sector. Dozens of smaller E&P firms have gone bankrupt. The shale revolution is quickly running out of juice. We don’t have an unlimited amount of cheap oil available to produce; on top of that, political regulation is making it more difficult to drill for new resources. Witness California putting major new measures in place to limit fracking, for example.
Avalara, the leading Software-as-a-Service company in this field. Since a Supreme Court decision last year opened the way to far more online sales tax collection, Avalara’s business has taken off. Every quarter, it has been reporting an accelerating revenue growth rate and faster new client sign-ups. It’s now heading into overseas markets as well as it actively broadens its competitive moat. Avalara has partnerships with Wix, Shopify and other such platforms to directly link Avalara’s sales tax software into those commerce engines. This creates a clear growth avenue for Avalara as companies like Shopify sign up more users.
Why is HRL one of my stocks to buy for 2020? It’s one of the more attractive Dividend Kings (a company that has raised its dividend more than 50 years in a row) at the moment.
Its share price has been flat recently as investors fret about the African Swine Fever and its impact on the global supply of pigs. Higher pork prices hit Hormel’s profit margins on products such as SPAM and Black Label Bacon. Once those concerns pass, however, HRL stock could easily make a 30%-plus run-up in share price, as peers like Procter & Gamble and Hershey already have. Finally, as the Beyond Meat (NASDAQ:BYND) bubble continues to deflate, money should flow back into more traditional protein-centered companies.
CVS Health provides health plans and services through its health insurance offerings, pharmacy benefit manager (PBM), and retail pharmacies. Last year, the big story around CVS was the acquisition and integration of Aetna. The focus in 2020 will be on the execution of its long-term initiatives, which were laid out at the June Investor Day and included a plan to return to sustainable double-digit EPS growth in 2022. We believe that the vertically-integrated model will allow CVS to achieve substantial cost savings while providing better outcomes and engagement for its members. CVS has enormous scale with about 70% of the US population living within three miles of a CVS retail location.