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A Bullish Bet On Netflix That Can Make 85% Gains

The FANG stocks can be quite polarizing for investors, and Netflix (NASDAQ: NFLX) is no exception. The streaming video giant (and the N in FANG) also may be the most volatile of the four. You can usually count on it for some action every few weeks or so.

Of course, NFLX just posted earnings so there was bound to be a lot of volatility associated with the event. But even before earnings, the stock had been plenty active. As you can see from the chart, there’s over a hundred point range in less than a month.

Last earnings period in 2018, NFLX beat earnings substantially. But, poor market conditions (and a high valuation) led to a steep decline in the share price. The drop ended and the reversal began right at the end of the year. Since that time, the stock has mostly gone straight up until just recently pulling back.

Along with momentum from the stock market recovery, NFLX headed higher in January due to higher viewership numbers. And then, the company announced it would be raising prices. Since NFLX appears to be a fairly inelastic good, most customers will continue their subscriptions after the price hike. That means a bigger bottom line for the company.

On the other hand, the recent earnings news wasn’t stellar. The results weren’t exactly disappointing, but they don’t blow away expectations either. And, the company’s high cash flow needs are a clear reason why raising subscription prices had to take place.

So what’s in store for NFLX next? Let’s take a look at the options action…

A well-capitalized trader just made an expensive bullish bet on NFLX that expires in April. The trader purchased the April 320-330 call spread (buying the 320 call and selling the 330 at the same time) for $5.40 with the stock price at $321.90. The trade was executed 2,680 times for a total cost of $1.4 million.

The cost of the trade, the $1.4 million in premium, is the max risk on the trade. The trade breaks even at $325.40, and can achieve max gain at $330 or above by April. The $4.60 in max gains translates to $1.2 million in profits, or 85% gains.

Now, it may seem like $1.4 million is a lot to spend to only make 85% – at least for a volatile stock like NFLX. However, keep in mind that the trade is already in the money. There’s $1.90 in intrinsic value already in the spread, so really the trader is only paying an extra $3.50 for the position. Moreover, being in the money substantially increases the probability of the trade’s success.

This is an expensive call spread on NFLX, but it has 3 months to expiration and is higher probability than most large call spreads you’ll see. If you are bullish on NFLX, this is a reasonable idea for a trade if you have a bit more money to spend on premiums.

Source: Investors Alley

Market Preview: Market Rallies on China Trade Hopes

Markets that were already moving up, got a boost Friday when it was reported Chinese trade negotiators had offered to address the trade imbalance with the U.S., and essentially eliminate the imbalance by 2014. The offer to purchase $1 trillion of U.S. goods, provided hope to investors that the trade dispute will not only be settled, but will be a boon for the U.S. Trade bellwether Caterpillar (CAT) was up over 2% on the news. And, markets finished up over 1% across the board. With this bounce off of the late December lows, pundits are now concerned markets may be overshooting to the upside and setting up for potential headline risk to send them lower. Cheerleaders of the bull move point to earnings, which though uneven, have been coming in somewhat better than expected, and do not appear to be indicating a recession is in the cards in 2019.   

U.S. Markets are closed Monday for Martin Luther King, Jr. Day. But, the release of economic numbers resumes Tuesday with Redbook retail data and existing home sales. The November data, showing 5.32 million homes sold, was down 7% year-over-year and epitomized the state of housing sales, which fell off a cliff in the final quarter of 2018. Analysts are anticipating a positive effect from falling mortgage rates which may boost the December number. Wednesday, the housing data continues as investors will analyze mortgage applications and the FHFA House Price Index data. The Richmond Fed will release its manufacturing Index Wednesday morning.

Earnings are set to flow Tuesday as we hear from Johnson & Johnson (JNJ), International Business Machines (IBM), UBS AG (UBS) and Capital One Financial (COF). Investors will be expecting JNJ to provide an update in the ongoing battle over contaminated baby powder, which plaintiffs claim was intentionally sold by the company.  Proctor and Gamble (PG), Abbott Labs (ABT), Comcast (CMCSA) and United Technologies (UTX) all report earnings Wednesday. JP Morgan (JPM) raised its price target on P&G Friday, from $100 to $106. The consumer giant’s stock has flattened in the low $90s in recent months, after moving off of lows just above $70 in May of last year.

Market behemoth Intel (INTC) reports earnings Thursday after the close, and will be joined by Starbucks (SBUX) and Intuitive Surgical (ISRG). Though not a staple of tech stocks, investors are keen to learn if Intel will be raising its dividend for 2019. The company currently pays a rate of 2.48% annually to its shareholders. China will be the question on the earnings call when Starbucks reports Thursday. Analysts expect a 3% uptick in U.S. business, but fear this may be offset by a weak consumer in China. Colgate-Palmolive (CP), Ericsson (ERIC), and D.R. Horton (DHI) will close out the week when they report earnings next Friday.

Jobless claims, the PMI flash numbers, and leading indicators will all be released Thursday. The leading indicators are expected to tick up .2% for December. Also on the way Thursday is the Kansas City Fed Manufacturing Index. Durable goods orders and new home sales numbers will be released on Friday. Durable goods are expected to increase .8% month-over-month.

7 Stocks to Buy That Are Run By Billionaires

Elon Musk’s 'Billionaire Games' Continue to Prop Up Tesla (TSLA) Stock
Source: OnInnovation via Flickr

I recently viewed a list of the 50 richest people in the world. I don’t look at these kinds of lists as some sort of worship ritual towards the wealthy, but rather to find out about businesses run by these people I might have overlooked in my never-ending quest for stocks to buy.

When you get to billionaire status you’ve obviously done a lot in your life to make it happen. Most billionaires on the list made it without a family inheritance. Some run private companies. Others have publicly traded investment vehicles. All of them play a role in the global economy.

Rather than find stocks in really interesting companies, why not find really interesting billionaires and invest alongside them? You can bet Jeff Bezos and company are going to succeed far more often than they fail. Not to mention the fact a big chunk of their wealth is tied up in their company’s stock.

Men and women who put their money where their mouths make the best investment partners, don’t you think?

Here then is my list of seven stocks to buy that are run or controlled by billionaires. 

Stocks to Buy: Leonardo del Vecchio, Luxottica (LUXTY)

Source: Eva Rinaldi via Flickr

Leonardo del Vecchio: Luxottica (LUXTY)

The poorest person on my list — Leonardo del Vecchio, at $20.2 billion — founded Luxottica (OTCMKTS:LUXTY) in 1961 in Milan, Italy.

You might not know the name Luxottica, but you likely have heard of Sunglass Hut, the retail shop it uses to sell Ray-Ban and Oakley sunglasses, two of the many brands it has acquired over the years.

In May 2017, Luxottica voluntarily delisted its ADR from the New York Stock Exchange to save costs. Only 3.7% of the company’s worldwide average daily volume was in the U.S. Investors can still buy its shares on the over-the-counter market.

Also, in 2017, Luxottica and Essilor, the world’s largest lens maker, agreed to merge in an all-stock deal that would generate more than $20 billion in annual revenue with more than 140,000 employees around the world.

The merger, making Luxottica a vertically integrated powerhouse, was completed this past October. Del Vecchio is executive chairman and owns 39% of the company.

Stocks to Buy: Elon Musk, Tesla (TESLA)

Source: JD Lasica via Wikimedia Commons

Elon Musk: Tesla (TESLA)

This man needs no introduction. Nor does Tesla (NASDAQ:TSLA), his company, the world’s biggest electric car company.

As both a Canadian and a fan of Musk and the company, I find it gratifying that not only did the billionaire spend some time in Canada during his college years — in his freshman and sophomore years he attended Queen’s University in Kingston, Ontario — he’s got a Canadian girlfriend.

Clearly, his attachment to Canada goes beyond two years of university. A grandmother and aunt live in Alberta and he met his first wife while studying in Kingston.

Geography aside, you either love or hate Musk’s personality. However, regardless of your thoughts on the man’s behavior, what he’s doing with Tesla and electric vehicles will stand the test of time.

In the fourth quarter of 2018, Tesla delivered 90,700 vehicles, 204% more than in the same quarter a year earlier. More than likely the company will generate a second consecutive quarter of profitability, a sign Tesla is gaining traction in the marketplace.

The stock is incredibly volatile but the rewards a decade from now should be tremendous. Of all the stocks on the list, this is the one I’m rooting for the most.

America needs more Tesla’s.

Stocks to Buy: Li Ka-shing, CK Hutchinson Holdings (CKHUY)

Source: Shutterstock

Li Ka-shing: CK Hutchinson Holdings (CKHUY)

If Leonardo del Vecchio is a mystery to most American investors, Hong Kong billionaire Li Ka-shing is an enigma rolled inside of a mystery. Li Ka-shing left school at 16 to support his family. All these years later — the man’s 90 — he’s worth an estimated $27.8 billion and still going strong.

Reading about the various businesses that are part of this multinational conglomerate isn’t something you can do in one sitting. CK Hutchinson Holdings (OTCMKTS:CKHUY) controls companies that operate in telecom, infrastructure, energy, healthcare and many other fields. It employs more than 300,000 people in over 50 countries around the world.

Conglomerates might be on the way out, but don’t tell that to Li Ka-shing and the people working at CK Hutchinson or one of its subsidiaries. Financially, it’s doing just fine. In 2017, CK Hutchinson had $53.2 billion in revenue with $4.5 billion in net income.

It might not be very well known on this side of the pond, but over in Asia it’s a household name.

Stocks to Buy: Larry Page, Alphabet (GOOGL)

Source: Shutterstock

Larry Page: Alphabet (GOOG, GOOGL)

It’s hard to imagine being worth $50.5 billion at 45 years of age and the eighth wealthiest billionaire but that’s exactly where Google co-founder Larry Page sits at the moment.

In contrast, Warren Buffett didn’t become a billionaire until he was 55.

Depending on how Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) stock performs in 2019, Page could go even higher.

When Page isn’t counting his billions, he’s busy being the CEO of the entire Google network of companies and experiments. That’s not exactly a 9-to-5 job.

Everybody knows about Google’s formidable market share in online advertising — 37% at the end of 2018 — but it is the company’s other bets that hold the most potential.

Take Waymo, for example. It’s the company’s big bet on autonomous driving technology. Analysts believe Waymo could be worth $250 billion to the company, or 34% of its current market cap. That’s up significantly from previous estimates that were half that amount.

A lot has to happen for this to be correct, but if you’re looking fto ride a billionaire’s coattails, Alphabet is one of the best stocks in my opinion.

Stocks to Buy: Bernard Arnault, LVMH, (LVMUY)

Source: Mathieu Lebreton via Flickr

Bernard Arnault: LVMH, (LVMUY)

I’ve never owned LVMH (OTCMKTS:LVMUY), the luxury goods holding company of French billionaire Bernard Arnault, but I probably should because Arnault is in a league of his own when it comes to running a business.

Starting out in the family business, Arnault took a big leap of faith in 1984, acquiring Boussac, a textile company that owned several apparel businesses including Christian Dior. He then went on to make so many acquisitions in fashion, retail, drinks, watches and other industries, it would make your head spin.

His latest example of risk-taking: LVMH has acquired Belmond — the London-based owner of the Orient Express train service as well as luxury hotels in 24 countries — for $3.2 billion.

Skeptics of the deal suggest that it’s one thing to own luxury brands. It’s another to own luxury hospitality. If there’s a businessperson on this planet that can make this work, Arnault is definitely the person to do it.

Stocks to Buy: Warren Buffett, Berkshire Hathaway (BRK.A,BRK.B)

Source: Shutterstock

Warren Buffett: Berkshire Hathaway (BRK.A, BRK.B)

What Bernard Arnault is to luxury goods, Warren Buffett is to insurance. Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) wouldn’t be the company it is today if it wasn’t for the Oracle of Omaha recognizing the beauty of the insurance company float.

Buffett realized that he could use an insurance company’s float — the difference between the premiums collected and the paid out claims — to invest in stocks and other businesses. It’s essentially an interest-free loan by the insurance company’s shareholders.

The downside of float is that you eventually have to repay the money in the form of claims payments. When there are major events like floods or hurricanes, the payouts often far exceed the premiums leading to an underwriting loss.

So, not only was Buffett smart to realize the float’s usefulness beyond the insurance business, he was wise enough to know he needed really smart people running these insurance companies to limit the underwriting losses over the long haul.

In fact, Berkshire Hathaway’s insurance operations are so well run that its float hasn’t cost the company a cent. It was actually paid $2 billion a year between 2002 and 2016 to invest $92 billion in insurance float.

I consider Berkshire Hathaway the world’s cheapest mutual fund. Pay no annual fees but get lots of positive returns. What’s not to like?

Stocks to Buy: Jeff Bezos, Amazon (AMZN)

Source: Shutterstock

Jeff Bezos: Amazon (AMZN)

Jeff Bezos tops the list of the world’s wealthiest people. Even if he gives away half of his estimated wealth of $125 billion to his wife Mackenzie as part of any divorce settlement the couple might agree to, Bezos would still be the fifth-wealthiest person on the planet.

That is a staggering amount of wealth.

The founder of Amazon (NASDAQ:AMZN) has seen his personal wealth mushroom in recent years as the company’s continued to prosper and free cash flow’s accelerated.

Consider this. In 2008, Bezos’ estimated net worth was $8.2 billion. The company’s free cash flow that year was $1.4 billion. In 2017, it was $8.4 billion. That might not seem like a lot until you consider that Amazon’s capital expenditures were only $333 million in 2008 compared to $5.4 billion in 2017.

Bezos and any other Amazon shareholder who held the entire period got much wealthier indeed.

Between online retail, Whole Foods, advertising and many other Amazon initiatives, he could become the world’s first trillionaire. Divorce shouldn’t slow him down.

As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.

Source: Investor Place

7 Tech Stocks Without China Exposure

Source: Shutterstock

The market’s big headline to start 2019 was that tech juggernaut Apple(NASDAQ:AAPL) cut its first-quarter guidance because the world’s hottest economy, China, is rapidly slowing. The news chopped off 10% from an already beaten up Apple stock. It also brought the tech-heavy Nasdaq down 2%.

That makes sense. A lot of tech stocks have exposure to China. As such, if a monster like AAPL of them all is reporting considerable weakness in China, chances are high that almost every other tech stock is having trouble in China, too.

But, this doesn’t universally apply to the whole Nasdaq. There are a handful of tech stocks out there that don’t have any exposure to China. Yet, these stocks were also being sold off due to widespread and indiscriminate selling as a result of Apple’s weak guide.

From this perspective, there is opportunity in the early 2019 rubble. Broadly speaking, China is slowing rapidly, and that is significantly hurting Apple’s business. Every tech stock is dropping in response. But, there’s a handful of tech stocks that don’t have exposure to the rapidly slowing China economy. These are the stocks that are worth taking a look at during this sell-off.

With that in mind, let’s take a look at seven tech stocks that do not have China exposure.

Big Tech Stocks Without China Exposure: Facebook (FB)

Source: Shutterstock

At the top of this list is arguably the most troubled big tech stock in the market. But, it is also a big tech stock that has zero exposure to the China market.

It was a rough 2018 for Facebook (NASDAQ:FB). The social media and digital advertising giant was hit with a flurry of problems ranging from regulation to slowing growth to rising costs. All together, Facebook stock dropped about 25% in 2018, and currently trades at its lowest level in two years, and its all-time lowest valuation.

Because there has been so much weakness in Facebook stock, further weakness will need to actually be warranted by a drop in the fundamentals, not a drop in sentiment. Fortunately, the biggest fundamental risk to stocks right now is exposure to a rapidly slowing Chinese economy. Facebook has no such exposure, since its digital properties are largely blocked in China.

As such, with Facebook stock, you have a really beaten up stock trading at an all-time-low valuation, with zero exposure to one of the market’s biggest risks right now. That seems like an attractive combo which should provide downside protection for the foreseeable future.

Big Tech Stocks Without China Exposure: Alphabet (GOOG, GOOGL)

Source: Shutterstock

Much like Facebook, digital advertising giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) had a rough 2018 due to regulation fears, slowing growth and rising costs. Also much like Facebook, GOOG stock now trades at a multiyear low valuation, yet has limited exposure to the China economy due to the Great China Firewall.

That is an attractive combination which implies healthy downside protection for the foreseeable future. But the upside thesis is from the notion that the sum of this company’s growth initiatives are being undervalued by the market.

We all know Google Search as the backbone of the internet. That positioning in and of itself is extremely valuable, and means the digital ad business is a stable growth machine. But, beyond that, Alphabet is also a leader in the nascent and rapidly growing AI, cloud, IoT, and self-driving markets.

With the stock trading at its lowest forward earnings multiple since 2016, the current valuation doesn’t seem to reflect much optimism regarding this company’s promising growth narrative. As such, the risk-reward on GOOG stock skews towards the upside here, especially with the stock closing in on a historically strong support level at $1,000.

Big Tech Stocks Without China Exposure: Twitter (TWTR)

Source: Shutterstock

Much like Facebook and Alphabet, social media company Twitter(NYSE:TWTR) does not have a presence in China. Also, unlike Facebook and Alphabet, Twitter’s growth rates and margins have actually been on an upward trajectory over the past several quarters.
Yet, despite having zero exposure to one of the market’s biggest risks and coming off off a multi-quarter streak of revenue growth acceleration and margin expansion, Twitter stock has been hugely beaten up over the past several months. Since July 2018, the stock has fallen 40%.
There are two big culprits behind the sell-off: user drops and valuation. User drop concerns are overstated. The company’s monthly active user base has dropped for two consecutive quarters, yet revenue growth has accelerated higher in each quarter. The reason for this is that the company is deleting “fake accounts.” That is technically shrinking the user base, but it’s also making it more authentic and valuable. Thus, ad revenues are still climbing, and that’s all that matters.
On the valuation front, Twitter’s trailing P/S multiple has dropped from 14 in July 2018, to a much more industry-average level around 7.8 today. Thus, with user drop and valuation concerns now behind it, Twitter stock looks ready to bounce back from this sell-off.

Source: Shutterstock

Much like Facebook and Alphabet, social media company Twitter(NYSE:TWTR) does not have a presence in China. Also, unlike Facebook and Alphabet, Twitter’s growth rates and margins have actually been on an upward trajectory over the past several quarters.

Yet, despite having zero exposure to one of the market’s biggest risks and coming off off a multi-quarter streak of revenue growth acceleration and margin expansion, Twitter stock has been hugely beaten up over the past several months. Since July 2018, the stock has fallen 40%.

There are two big culprits behind the sell-off: user drops and valuation. User drop concerns are overstated. The company’s monthly active user base has dropped for two consecutive quarters, yet revenue growth has accelerated higher in each quarter. The reason for this is that the company is deleting “fake accounts.” That is technically shrinking the user base, but it’s also making it more authentic and valuable. Thus, ad revenues are still climbing, and that’s all that matters.

On the valuation front, Twitter’s trailing P/S multiple has dropped from 14 in July 2018, to a much more industry-average level around 7.8 today. Thus, with user drop and valuation concerns now behind it, Twitter stock looks ready to bounce back from this sell-off.

Big Tech Stocks Without China Exposure: Amazon (AMZN)

Source: Shutterstock

When you think about e-retail and cloud giant Amazon (NASDAQ:AMZN), you usually think about a company with global growth exposure. But, thanks to China’s own versions of Amazon, Alibaba (NYSE:BABA) and JD(NASDAQ:JD), Amazon has a very small presence in China.

Thus, the overall health of the Chinese economy doesn’t really impact Amazon’s ongoing operations. Instead, what impacts Amazon’s operations are the health of more developed markets like the U.S., Canada and Europe. Apple’s big update included some reassuring comments about developed market strength, while developed market economic data still remains broadly positive. Also, the 2018 holiday season appears to be have been a robust one, especially on the e-commerce front. The ad business continues to gain traction, and the cloud business remains the head-and-shoulders leader in a secular growth market.

All together, the fundamentals underlying AMZN stock remain favorable, despite a slowdown in China. At current levels, Amazon stock is trading at a multiyear low valuation. A multiyear low valuation on top of still-favorable fundamentals is a winning combination which should power Amazon stock higher in the near-to-medium term.

Big Tech Stocks Without China Exposure: Shopify (SHOP)

Source: Shopify via Flickr

Much like Amazon, Shopify (NYSE:SHOP) is an e-commerce company with robust exposure to developed markets like the U.S. and limited exposure to developing markets like China. Given Apple’s comments regarding emerging market weakness and developed market strength, this is a favorable position to be in given the current global economic environment.

The near-term bull thesis on SHOP stock is compelling. This is a 50%-plus revenue growth company with expanding margins that just recently turned the corner into consistent profitability. Growth isn’t slowing by all that much, and analyst estimates have been consistently moving higher. Despite all that, the stock trades at its lowest P/S multiple since March 2017 — right before the stock doubled over the next six months.

The long-term bull thesis is even more compelling. The world is becoming more digital and more decentralized than ever before. Shopify exists in the overlap of these two trends. The company provides e-commerce solutions for retailers of all shapes and sizes, and in so doing, essentially serves as the e-commerce version of a storefront. Eventually, all retailers will need an e-commerce storefront, and most of them will turn to Shopify. Competition is muted. Growth is big. Gross margins are high. There’s lot to like here if you’re a long-term investors with a multiyear horizon.

Big Tech Stocks Without China Exposure: Netflix (NFLX)

Source: Shutterstock

One of the more obvious choices for this list is global streaming giant Netflix(NASDAQ:NFLX). Netflix doesn’t have a China presence, but they have a huge and rapidly growing presence everywhere else. Also, given Netflix’s price advantages over linear television packages, a global economic slowdown could actually help accelerate global Netflix adoption, especially in emerging markets.

As such, Apple’s big warning about rapidly slowing growth in China and other emerging markets isn’t big news for Netflix. Instead, the big news here is that Netflix’s original content continues to get better, more innovative, and more watched than ever before. For example, Black Mirror: Bandersnatch is a revolutionary interactive Netflix original that scored super high among fans, while Sandra Bullock-led Bird Box broke Netflix records for most viewers.

So long as Netflix maintains competitive pricing and continues to pump out quality original content, this global growth narrative will remain on track. That will help keep shares on a long-term uptrend. In the near term, the stock could get a boost as rate hike fears back off amid a rapidly slowing global economy.

Big Tech Stocks Without China Exposure: Chegg (CHGG)

Source: Rob Wall via Flickr (Modified)

An under-the-radar tech stock that has solid fundamentals and zero exposure to the slowing Chinese economy is digital education giant Chegg(NASDAQ:CHGG).

Chegg is a digital education company that builds connected learning tools for high school and college students across America. From this perspective, the company has zero exposure to China or any other emerging market. The growth fundamentals are aligned with a secular rise in digital consumption. And, the company’s operations are somewhat recession resilient since education is spend is one thing that likely won’t fall during an economic slowdown.

As such, with Chegg stock, you have a robust growth narrative with defensive qualities. That makes this stock an attractive addition to any portfolio during times of market turbulence.

As of this writing, Luke Lango was long AAPL, FB, GOOG, TWTR, AMZN, JD, SHOP, NFLX, and CHGG. 

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Market Preview: A “Patient” Fed Sparks Market Rally

Markets staged a rally Friday, recovering from Thursday losses brought on by Apple’s (AAPL) earnings warning. Following comments from Federal Reserve Chairman Powell, at a panel presentation with former Fed Chairs Yellen and Bernanke, that the Fed would watch the data and “be patient” with interest rates, markets kicked into high gear and rallied into the close. The DJIA finished almost 750 points higher and the Nasdaq jumped over 4% as markets rejoiced over what many hope is a softening stance at the Fed.

The comments were enough to overcome continued rancor in Washington as Democrats met with President Trump to discuss the federal budget and the ongoing partial government shutdown. Democrats emerged from the meeting commenting the President had said the shutdown could last for “months or years”. Investors will be watching meetings between China and the U.S. over the weekend for any possible break in negotiations over tariffs. A deal announcement, or even positive news on the tariff front, could fuel a further market rebound.

Commercial Metals Company (CMC) reports earnings Monday. The company painted a rosy picture for investors in its last conference call, reporting its “best quarterly performance since the great recession.” With operations in the U.S. and Poland, analysts will be looking for a gauge on both markets to help paint a picture of industrial vigor. With recent manufacturing numbers showing softness, CMC may be able to provide some clarity given what the the business seeing headed into the first quarter.  

The ISM Non-Manufacturing Index, and the TD Ameritrade Investor Movement Index will both be released Monday. The scheduled release of factory orders will be delayed barring an end to the partial government shutdown. Analysts will have a keen interest in the December TD Ameritrade numbers as other measurements have indicated investors dumped stocks heading into year end 2018.

The rest of the week is data heavy as investors take on the first full week of trading in 2019. Tuesday, the small business optimism index and JOLTS numbers will be released. The release of a better than expected jobs number Friday, which initially goosed markets higher in the morning, will have analysts watching the job openings number closely. Mortgage application data, and the Fed meeting minutes, will be released on Wednesday. Investors are still wary of the housing market, which many hope will find some footing in 2019.

Jobless claims and wholesale trade numbers will both be released Thursday. Friday, analysts will focus on CPI, the Baker-Hughes rig count data, and the Treasury Budget. Analysts will be watching the rig count number closely to determine what impact the recent decline in oil has had, and to determine if the bottom has been put in for oil prices for the time being.

Earnings from a number of companies will be released next week. Helen of Troy Limited (HELE), AZZ, Inc. (AZZ) and Lindsay Corporation (LNN) all report Tuesday. Wednesday investors will hear from Bed Bath & Beyond (BBBY) and homebuilders KB Homes (KBH) and Lennar Corp. (LEN). The homebuilders face a tough market right now, and analysts will be looking for forward projections heading into 2019. Thursday investors will focus on earnings from FuelCell Energy (FCEL) and Synnex Corporation (SNX). Infosys (INFY) closes out the earnings week on Friday, before the earnings season kicks into high gear the following week.  Pay Your Bills for LIFE with These Dividend Stocks

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7 Stocks to Sell In January

Source: Shutterstock

The stock market ended 2018 on a sour note. Back in September, stocks were flying at record highs. Since then, they’ve dropped 20% amid a flurry of concerns ranging from higher rates to bigger tariffs to slowing growth. Yet, most Wall Street analysts view the selloff as overdone, and the consensus 2019 S&P 500 price target still sits around 3,000, representing a whopping 25% upside for stocks next year.

In other words, Wall Street is saying that the recent correction is simply near-term pain that will be replaced by long-term gain in 2019.

This consensus thesis seems rationale. The headwinds that are plaguing markets (falling oil prices, trade war tensions and rising rates) are all fixable, and will likely be fixed in 2019. OPEC is cutting production. China and the U.S. are starting to make cessations, and will likely continue to do so to stop from “over-hurting” their respective economies. And, the Fed will likely go more dovish in 2019, as the economy slows.

If those headwinds disappear in 2019, and growth remains stable, stocks should rally here, with the S&P 500 trading at its lowest trailing twelve month P/E multiple since 2012 and highest dividend yield since early 2016.

But, that doesn’t mean the rally will start in January, nor does it mean that this rising tide will lift all boats. Instead, there are a handful of stocks investors should continue to avoid, even in the new year.

With that in mind, let’s take a look at seven stocks to sell in January.

Tilray (TLRY)

Stocks To Sell In January: Tilray (TLRY)

Source: Shutterstock

If you had to pick one stock to characterize the 2018 cannabis craze, it would have to be Tilray(NASDAQ:TLRY). The Canadian pot company saw its stock go from $20 to $300 to $90 to $150 to $70, all in the matter of just five months.

The problem with Tilray heading into 2019 is that this stock’s biggest potential catalyst (a big investment from a big beverage or tobacco company) is now in the rear-view mirror. Global beverage giant and the world’s largest beer maker, AB InBev (NYSE:BUD), put in $50 million to help facilitate cannabis beverage research with Tilray. The deal was underwhelming. The initial pop in TLRY stock was faded. Now, it seems all the dry powder has been used up.

Meanwhile, the valuation is still extended and the Canadian cannabis market is still suffering from supply shortages. Overall, the near-term fundamentals here aren’t great, meaning TLRY stock should remain weak in early 2019.

Micron (MU)

Stocks To Sell In January: Micron (MU)

Source: Shutterstock

Chipmaker Micron (NASDAQ:MU) is the type of stock you buy when the music is playing, and sell when the music isn’t playing. For the past several months, the music hasn’t been playing for Micron. It doesn’t look like it’s going to start playing anytime soon, either.

Demand across the memory space is stagnating due to global economic concerns. Meanwhile, supply is building. Thus, the current memory market dynamic is one defined by rising supply and falling demand, and that ultimately results in lower chip prices and lower margins for Micron. When margins fall, MU stock falls, too.

The problem here is that we are early in this down-cycle, and no one knows how long it will last. Thus, until the market gets confirmation that margins are turning a corner, MU stock will remain depressed, regardless of valuation, because no one knows exactly how far earnings will fall (prior down cycles have wiped out earnings entirely).

Yelp (YELP)

Stocks To Sell In January: Yelp (YELP)

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Over the past several years, Yelp (NASDAQ:YELP) has under performed its digital ad peers in a big way because the company’s digital ad business simply hasn’t gained the traction that the ad businesses at Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FBAlphabet(NASDAQ:GOOG, NASDAQ:GOOGL) or Twitter (NYSE:TWTR) have.

Yet, despite this relatively weak ad business performance, Yelp stock has found a floor recently around $30 due to rumored M&A prospects. I don’t buy these prospects. Who would want to buy Yelp? The potential suitors include Amazon, Facebook and Alphabet. But, each of them are expanding an in-house recommendations and rating system, and those in-house systems are arguably already better than Yelp. Thus, there really isn’t a compelling M&A motive here.

Consequently, the M&A catalyst should fall out in 2019. Once it does, Yelp stock will drop.

Snap (SNAP)

Stocks To Sell In January: Snap (SNAP)

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If anything became crystal clear in 2018 in the digital ad space, it is that once trending Snap(NYSE:SNAP) is now an afterthought for users and advertisers.

The story here is simple. Snap pioneered a new way method of ephemeral photo sharing. Everyone loved it, and everyone joined Snapchat. But, Snap didn’t protect this method, and so everyone else copied it. Everyone else had more resources, too, so they actually made better versions of Snapchat. Those better versions stole all the users. Now, Snap is left with a maxed out user base that isn’t big enough to attract advertisers in bulk.

If advertisers don’t flock to Snap in bulk, ad prices will remain cheap and margins will remain depressed. Advertisers won’t flock to Snap until user growth picks back up. Thus, until user growth turns around, this is certainly one of the key stocks to sell in January and one that investors should avoid.

JCPenney (JCP)

Stocks To Sell In January: J.C. Penney (JCP)

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By now, it is well known that retailers had a really strong 2018 holiday showing. According to Mastercard, holiday retail sales rose 5% to their best level in six years, driven largely by a near 20% increase in digital shopping. But, not all retailers were big winners this holiday season. One retailer that appears to have struggled in a big way is JCPenney (NYSE:JCP).

JCP has struggled to compete in the hyper-competitive retail industry for several years. As other companies have built out omni-channel capabilities and improved product assortment, JCP has been too burdened by a debt-heavy balance sheet and falling margins to invest much of anything back into the business. As such, JCP has turned into the eyesore of retail.

This holiday season was more of the same. According to retail analytics firm Placer.ai, Black Friday weekend shopping traffic rose 10% this year. But, JCP under performed, with foot traffic rising just 1%. That’s a bearish read, and it underscores that even in a healthy economy, JCP continues to struggle. If JCP’s holiday numbers disappoint (as I expect them to), you could see JCP stock fall in a big way in early 2019.

Starbucks (SBUX)

Stocks To Sell In January: Starbucks (SBUX)

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The problem with retail coffee giant Starbucks (NASDAQ:SBUX) is three fold. First, the entire growth narrative at Starbucks is centered around expansion in China. But, the Chinese economy is cooling, and is expected to keep cooling in 2019. The more it cools, the more Starbucks’ 2019 growth rates will be impacted, and the more of a drag that will have on SBUX stock.

Second, Starbucks is a premium-priced coffee house that is anything but recession resilient. Coffee is easy to get anywhere. But, coffee at Starbucks is more expensive than coffee at McDonald’s (NYSE:MCD). Thus, if the economy does slow in 2019 and the consumer starts to feel the impact, that means that morning Starbucks runs will be replaced by morning McDonald’s runs.

Third, SBUX stock trades at around 24 forward earnings. That’s a big multiple. It hardly takes into account the aforementioned risks. Thus, if those risks rear their ugly head in 2019, SBUX stock could drop in a big way.

Proctor & Gamble (PG)

During the market selloff, defense has become the new offense, and investors have rushed into defensive consumer staples names like Proctor & Gamble (NYSE:PG). But, this rush has inflated defensive stock valuations to levels that aren’t sustainable. In 2019, as clarity and stability emerge out of the ashes of the late 2018 selloff, defensive stocks like PG will likely suffer, which lands it on this list of stocks to sell.

At the current moment, PG stock trades at an above-average valuation with a below-average yield. The big valuation is the result of broad economic uncertainty. That uncertainty won’t last forever. Either we enter a recession in 2019, or we don’t. If we do, PG stock will drop because, while it’s recession resilient, it isn’t recession proof (during the 2008 recession, PG stock still fell about 40%). If we don’t, PG stock will fall because investors will stop playing defense, and will roll money back into growth names.

Overall, the current uncertainty that’s inflating PG stock won’t last forever. Indeed, it will likely come to an end in 2019. When it does, PG stock is liable to drop.

As of this writing, Luke Lango was long AMZN, FB, GOOG and TWTR. 

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10 Stocks That Are Screaming Buys Right Now

Editor’s Note: This story originally appeared on March 2018 but has since been updated and republished to reflect new developments.]

Buckle up — the market is looking jittery right now. If it’s not the threat of further Federal interest rate hikes, it’s the possibility of a full-blown prolonged trade war with China and Europe. As James Brumley notes, however, if geopolitical risks were actually a deterrent to investing in today’s best stocks to buy, “nobody would ever put a penny in stocks”.

For investors prepared to put in the work, there are plenty of gems to be found. I set out to pinpoint the best stocks to buy right now using the best analysts on Wall Street as guidance. TipRanks tracks and measures the performance of over 4,700 analysts enabling investors to identify consistently outperforming experts.

Analysts are ranked based on two crucial factors: success rate and average return-per-recommendation. Following top analysts is an easy way to identify stocks that experts believe have strong investing potential. That’s why I’m only including companies with a ‘Strong Buy’ top analyst consensus based on the past three months of ratings.

Using this consensus, investors can be reassured that these stocks are the crème-de-la-crème as far as the Street is concerned.

Bearing this in mind, let’s dive in and take a closer look at the top 10 best stocks to buy right now:

Facebook (FB)

Best Stocks to Buy: Facebook (FB)

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Social media giant Facebook (NASDAQ:FB) is one of the best stocks to invest in right now. Shares are cheap at $131. And now we have a clear buying opportunity on our hands according to two top analysts.

Looking at TipRanks best-performing analysts, FB stock is expected to see upside of 43%, with prices spiking to $188.10. Meanwhile, top-100 analyst KeyBanc analyst Andy Hargreaves adds, “We believe this provides an opportunity to purchase above-average growth at Facebook for a price that is well below average.” He believes investors are heavily discounting FB’s growth prospects and extraordinary core momentum. His $245 price target suggests even greater upside potential with FB rising to $195.

Boeing (BA)

One of the world’s largest aerospace companies, shares in Boeing (NYSE:BA) slipped this year on trade war fears. But Head of Research at Fundstrat Tom Lee believes the market overreacted.

He has calculated that Boeing actually has a trade war exposure of just 35.2%. To calculate this figure, Lee looked at the company’s overseas sourcing as a percentage of cost of goods sold and exports as a percentage of sales. A percentage under 40% means the company has a low trade war exposure, according to Lee.

And in this case, despite all the trade war noise, I would recommend carefully considering Boeing right now. After all, BA stock has received 11“buy” ratings in the past four months, with three analysts on the sidelines. With a $436 average price target, upside potential stands at 38%. But some analysts are much more bullish than consensus.

For example, five-star Cowen & Co analyst Cai Rumohr singles out BA as one of the best stocks to buy. He has a bullish $445 price target.

Alexion Pharmaceuticals (ALXN)

Best Stocks to Buy: Alexion Pharmaceuticals (ALXN)

Source: Alexion Pharmaceuticals

Alexion Pharmaceuticals (NASDAQ:ALXN) is a U.S. pharma company best known for its development of Soliris, a drug used to treat rare blood disorders. And top Oppenheimer analyst Hartaj Singh selected ALXN as his top stock to buy for February-March. Bear in mind this is a five-star analyst with a top-200 ranking on TipRanks (out of over 4,700).

Singh is confident that Alexion can explode more than 40% from just $116 to $165. He says the stock’s risk/reward profile is oriented to the upside making this a top stock to invest in right now.

He concludes: “With a robust rare disease platform, a slowing yet cash-generating asset in Soliris, and two newly launched products in Strensiq and Kanuma, we believe that it is not a question of if, but rather when, the shares positively re-rate.”

In total, Alexion has scored seven buy ratings and only two hold ratings from best-performing analysts in the past three months. These analysts predict that Alexion will rise roughly 41% to reach $164.44.

Pioneer Natural (PXD)

Best Stocks to Buy: Pioneer Natural (PXD)

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Texas-based Pioneer Natural Resources (NYSE:PXD) is on the cusp of great things. The company is divesting all non-Permian assets. This asset sale should raise PXD about $1 billion and it transforms PXD into a pure-play on the Permian Basin. Given that this is one of the world’s most lucrative oil fields, that’s no bad thing.

B. Riley FBR analyst Rehan Rashid applauds the company’s “strategic realignment.” He says the move will enable PXD to ramp up its investment in its Permian assets.

“We believe this platform and the substantial resource base it has to offer are simply not replicable. We reiterate our ‘buy’ rating and $305 price target and add PXD to the B. Riley FBR Alpha Generator list” says Rashid. He calculates “new” resource potential of nearly 20 billion BOE (barrels of oil or equivalent).

TipRanks shows that Pioneer has received 11 buy ratings and one hold ratings from analysts. Considering that the stock is now at $151, analysts are projecting (on average) upside potential of 58%.

Vertex Pharmaceuticals (VRTX)

Best Stocks to Buy: Vertex Pharmaceuticals (VRTX)

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Global biotech stock Vertex Pharmaceuticals (NASDAQ:VRTX) is a prime investing pick right now with a growing portfolio of cystic fibrosis (CF) drugs. This is a genetic disorder that causes severe damage to the lungs, digestive system and other organs in the body.

The company scored a key approval from the FDA for its third CF drug, Symdeko, earlier this year. The approval came two weeks earlier than expected and “potentially speaks to the FDA’s growing comfort with the suite of VRTX medicines” says JP Morgan’s Cory Kasimov. Management is now anticipating a “strong launch” for Symdeko with E.U. approval on track for the second half of 2018.

“We continue to believe that VRTX’s dominance in the CF space, compelling bottom-line growth trajectory (43% CAGR through 2022), and significant free cash flow generation could potentially allow the company to substantially expand the breadth of its investor base” cheers Kasimov. So watch this space.

Overall, this “strong buy” stock scored 13 top buy ratings and just one “hold” rating in the past few months. Meanwhile, the average analyst price target of $208 works out to 30.7% upside from current share levels.

Raytheon (RTN)

Best Stocks to Buy: Raytheon (RTN)

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Defense giant Raytheon Company (NYSE:RTN) is the world’s largest producer of guided missiles. As with Boeing, you may be concerned that this stock would suffer in the event of a trade war. However, you can rest easy.

According to research firm Fundstrat, it actually has a trade-war exposure percentage of 35.2% (again, anything under 40% is considered low). And from a Street perspective, the outlook on RTN is also very bullish right now.

“Strong broad order momentum, a large Patriot backlog, and untapped financial firepower give RTN extended EPS and cash flow per share growth potential” cheers five-star Cowen & Co. analyst Cai Rumohr. He notes that the Harpoon replacement missile bid, a massive $8 billion opportunity, could be decided as soon as fall 2018.

With a strong outlook for 2018 and the subsequent years, RTN has received four buy ratings from the best analysts in the last three months. In this same period, two analysts have remained on the sidelines. The average analyst price target indicates 27% upside potential from the current share price.

Alibaba (BABA)

Best Stocks to Buy: Alibaba (BABA)

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Chinese e-commerce giant Alibaba (NYSE:BABA) has a “moderate buy” analyst consensus rating with big upside potential of 30%. The Street is unanimous in its take on BABA as one of the best stocks to invest in right now.

I say that because in the last ten months, this stock has received no hold or sell ratings from the Street. Just 100% buy ratings.

Key growth drivers to keep a close watch on include rural/cross-border/cloud/logistics. For example, AliCloud (Alibaba’s answer to Amazon Web Services) revenue is soaring with triple-digit year-over-year growth.

Skechers USA (SKX)

Best Stocks to Buy: Skechers USA (SKX)

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Skechers (NYSE:SKX) is primed for significant expansion. Even after a 60% rise last year, the company remains notably undervalued compared to its athletic retail peers. Top Susquehanna analyst Sam Poser recently reiterated a target of $29. The new target indicates a further near-20% upside from the current share price.

Following a blowout fourth-quarter earnings report, Poser is confident that the stock’s solid momentum is here to stay. “Another significant earnings beat reinforces our belief that SKX is at the beginning of a multiyear run of superior earnings growth and outsized investor returns,” he said.

According to Poser, SKX is now seeing strength in “all its businesses.” The company’s domestic wholesale business is inflecting while the potential for growth in international markets is robust. He predicts that strong Chinese growth will enable management to meet its targeted $6 billion in revenue by 2020. This suggests an impressive CAGR rate of roughly 13%.

“A premium multiple is warranted as we are confident that the SKX business is on the verge of a material positive inflection,” Poser concludes in his Feb. 9 report. On Skechers specifically, Poser has a 75% success rate and 37.6% average return across 43 stock ratings.

In the last three months, Skechers has received five buys and five holds, and an average price target of $31.

2U Inc (TWOU)

Best Stocks to Buy: 2U Inc (TWOU)

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Online education platform 2U (NASDAQ:TWOU) received a slew of price target increases from the Street this year. On May 3, the company reported Q4 results ahead of expectations. This marks its sixteenth consecutive quarter of outperformance. 2U’s Q4 organic revenue growth accelerated to about 30% year-over-year, and 2018 guidance implies another year of “Tier 1” industry revenue growth.

But for top Oppenheimer analyst Brian Schwartz it’s not just about 2018 — it’s about the changes sweeping through the education industry. He sees a “high migration” likelihood toward the digital channel for students and learning over the next decade.

“We believe long-term investors will be rewarded over the years as 2U disrupts and transforms the post-secondary education landscape with little credible threat over the medium term” states Schwartz. This top-10 analyst has a $70 price target on TWOU.

In the last three months, this stock to buy boasts five buy ratings from the Street’s best analysts.

MasTec (MTZ)

Best Stocks to Buy: MasTec (MTZ)

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Last but not least of all the best stocks to invest in for 2018, we have Florida-based specialty contractor engineer MasTec (NYSE:MTZ). The company’s work spans electric power infrastructure, oil and natural gas pipelines, renewable energy facilities and wireless networks. Strength across the board has resulted in 100% Street support with four top analysts publishing recent buy ratings. These analysts spy near-60% upside potential for MTZ.

The company has released very strong Q4 results last month. Notably, cash flow and liquidity remained strong, giving MTZ flexibility for organic and acquisitive growth.

“Guidance for 2018 was solid and suggests another record year for the company, with strong market trends across all of its segments. We believe MTZ is well positioned across all of its end markets to benefit from multiple opportunities for long-term growth” states top B.Riley FBR analyst Alex Rygiel.

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5 Low-Priced Stocks Under $10 for the New Year

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As Warren Buffett likes to say, “price you what you pay, value is what you get.” It’s the reason why a $300-per-share stock can be cheap, while a $3 one can be expensive. With that said, there’s something about low-priced stocks that captivates investors’ imaginations. After all, there’s nothing like being able to buy a ton of shares for dirt cheap and having them take off. And there is some method to this madness.

For example, the Fidelity Low-Priced Stock Fund (MUTF:FLPSX) has managed to return nearly 15% annually over the last 10 years. That return has managed to beat both the small-cap-focused Russell 2000 and Russell Midcap Index over that time. Low-priced stocks can be a big source of additional alpha and returns.

The key is that many low-priced stocks are cheap for a reason. Finding the ones that have the potential for greatness or overcoming their issues is vital. They are a gamble, but the payoff can be big for portfolios. The idea is to keep your bets small and broad.

For investors looking to put some risk capital to work, here are five low-priced stocks that have great potential in the new year.

Low-Priced Stocks Under $10 for the New Year: Dova Pharmaceuticals Inc (DOVA)

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Dova Pharmaceuticals Inc (DOVA)

Closing Share Price on Dec. 19: $6.07

Over the summer, Dova Pharmaceuticals (NASDAQ:DOVA) was riding high. The biotech firm had scored an approval for their drug Doptelet. The drug is used to treat thrombocytopenia — which is a low-blood-platelet disorder. With that disease, patients find it hard to form blood clots and suffer major bleeding from even a small injury. The drug has plenty of blockbuster potential. Unfortunately, that potential hasn’t lived up to expectations.

Management recently cut sales guidance for the drug down to just $2.4 million. That’s about half of what Wall Street is looking for. At the same time, several key executives have recently left the company. Naturally, investors are spooked and shares have nose-dived, dropping from a recent high of about $30 per share down to under $7.

But that could be a great buying opportunity for this low-priced stock.

For one thing, the potential for Doptelet is there. DOVA is looking to fast-track Doptelet for other indications of thrombocytopenia. That will expand the usage of the drug and bring in more revenues. Secondly, Dova has replaced many of its outgoing managers with executives from winning biotechs like United Therapeutics (NASDAQ:UTHR) and Vertex (NASDAQ:VRTX).

With that, analysts still have price targets in the $20 to $30 range on this low-priced stock.

Low-Priced Stocks Under $10 for the New Year: Trivago (TRVG)

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Trivago (TRVG)

Closing Share Price on Dec. 19: $5.81

Internet travel websites are known for their profitability, as their margins remain crazy high. However, for hotel booking site Trivago (NASDAQ:TRVG) that hasn’t been the case over the last year or so. TRVG has spent much of the last few quarters disappointing investors and has lost money. That’s sent shares tumbling and below $6 per share.

However, TRVG may be a bargain among low-priced stocks.

For one thing, the bleeding seems to have stopped. While revenues continue to drop, profits have come back to the travel site. Trivago managed to post net income of 10.1 million euros or around 0.03 euros per share last quarter. Analysts were looking for another loss.

And other things have gotten better for TRVG as well. Returns on advertising spend jumped by 25 percentage points to reach 135.9%, while the firm continues to see improvement/demand from its mobile site. Additionally, Trivago continues to see huge listing numbers — over a million places — from so-called alternative accommodations, including private apartments and vacation rental properties. This is great considering this is the fastest-growing section of travel booking. All in all, analysts expect the firm to continue to see profits in 2019.

When it comes to low-priced stocks, Trivago’s turnaround is one to bet on.

Low-Priced Stocks Under $10 for the New Year: Goldcorp. (GG)

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Goldcorp (GG)

Closing Share Price on Dec. 19: $9.23

With volatility and uncertainty rising, gold has been riding high over the last few quarters. That surge in gold prices hasn’t exactly reached former gold stock kingpin Goldcorp (NYSE:GG), though. In fact, the GG share price currently places it among the low-priced stocks and castaways of the mining sector. The gold miner’s stock has now fallen to levels not seen since 2002!

And part of that decline is justified.

Goldcorp continues to be hit on several fronts. During the spring, the miner reported lower production and rising all-in costs. This trend continued during the fall. Last quarter, Goldcorp once again showed a decline in production — by roughly 20% — and saw its all-in sustaining costs surge higher. That’s terrible. Essentially, GG hasn’t been able to capitalize on the higher gold prices and is now earning less on what it does mine.

But there may be some hope for this low-priced stock.

Goldcorp mentioned that drop in production was a short-term dip due to lower one-time output at the company’s Penasquito mine. Meanwhile, the firm has made significant progress on its 20/20/20 plan, which will see production rising by 20%, costs falling by 20% and asset reserves growing by 20%. Ramped-up production at its Eleonore and Cerro Negro mines have helped here. Moreover, GG is producing decent cash flow and has resumed its dividend payment.

If management can execute on its plan, GG stock should regain much of its former glory. That makes it one of the best low-priced stocks to snag in the mining sector.

Low-Priced Stocks Under $10 for the New Year: Barclays PLC ADR (BCS)

Barclays PLC ADR (BCS)

Closing Share Price on Dec. 19: $7.46

One of the biggest shadows on the entire market happens to be the dreaded Brexit. Naturally, the U.K.’s exit from the European Union hasn’t gone smoothly. Heck, at this point, an exit might not happen even at all. Because of that, it has thrown plenty of uncertainty over stocks in the United Kingdom. This includes U.K. banking giant Barclays PLC ADR (NYSE:BCS).

BCS never fully recovered from the financial crisis, and the latest Brexit woes have put a hurt on its share price, which currently rests below $8 per share. But that low price does offer some bang for the buck.

For one thing, Barclays is dirt cheap and can be had for a forward P/E of around its share price. At the same time, it has a price-to-growth ratio of less than 1. That means would be investors are not paying much for its current earnings nor its future projections. Those future projections are coming from its continued moves to court more international high-net-worth investors from the Middle East. Additionally, recent moves into Fintech have improved BCS margins.

All of this is starting to pay-off. Last quarter, BCS saw some big jumps to its profits and revenues- despite the Brexit mess. The firm reported EPS of £0.07 and total net income of £5.13 billion. This was roughly double what analysts expected it to earn per share. The hope is that Barclay’s can keep it going with the world’s economy getting a bit rocky.

But with its rock-bottom P/E and PEG, the bank is a prime example of value among low-priced stocks today.

Low-Priced Stocks Under $10 for the New Year: VEREIT (VER)

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Vereit (VER)

Closing Share Price on Dec. 19: $7.49

Sometimes low-priced stocks are being punished for things that happened years earlier. Case in point, real estate investment trust Vereit (NYSE: VER). VER’s issues started back in 2016 when it was called American Realty Capital Properties. American Realty was created by combining several non-traded REITs, and it quickly became one of the largest single-property REITs in the country. At its peak, it held more than 4,600 different properties. Unfortunately, executives at the firm weren’t so great and it turned out that they used all sorts of questionable accounting tricks.

Naturally, shares of VER sank like a stone when the news came out. Several lawsuits, jail time, a dividend cut and a name change bring us to Vereit. And that’s actually a good thing.

The new management at the firm has worked to reduce and prune its portfolio of underperforming and “flat” leased properties. Debt reduction and bolstering its balance sheet have also been a priority. These efforts have helped and VER finally started to turn the corner. Cash flows continue to be robust and the firm is able to pay its juicy 7%-plus yield.

The problem remains the overhang of lawsuits from shareholders. But with many shareholders already settling, VER is getting closer to being 100% free from its past. With the end in sight, the real estate firm could be one of the most sure things when it comes to low-priced stocks.

Disclosure: At the time of writing, Aaron Levitt did not have a position in any of the stocks listed, but may initiate a position in DOVA.

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10 Best of the Best Stocks for 2019

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It’s certainly never a dull moment in the markets these days — or anywhere else for that matter. It’s hard to pick the best stocks with all these headlines tugging them in all different directions. The Chinese economy is slowing down to sub-6% growth. Brexit negotiations are in shambles. President Donald Trump’s political troubles are growing. Europe is putting the brakes on quantitative easing.

The markets are understandably having trouble processing it all. One day China-U.S. trade talks are rallying stocks, but the next day, there’s talk of a global recession and stocks are tanking.

This is when you need quality stocks that aren’t wrapped up in all these issues. This when you need stocks that are moving on trends that are beyond much of this market volatility

The 10 best-of-the-best stocks for 2019 that I feature below are the kind of stocks I’m talking about. All are top-rated picks in my Portfolio Grader and will not only be shelter from this storm but great long-term growth companies as well.

Amazon (AMZN)

Best Stocks: Amazon (AMZN)

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Amazon.com (NASDAQ:AMZN) should be no surprise at the top of this list.

The U.S. economy is driven by the consumer — about 70% of our economy is consumer driven. And few companies are focused on the consumer like AMZN.

Plus, Amazon has a “growth over profits” philosophy that has served it well, even when analysts had their doubts. It means that AMZN is already laser focused on making money in low-margin businesses and fueling its growth with higher-margin enterprises like its Amazon Web Services cloud services division.

It commands a significant premium, but given its track record through tough times, it’s well deserved.

Netflix (NFLX)

Netflix (NASDAQ:NFLX) has stuck to its knitting, unlike many of the other FAANG stocks. While it lost nearly 26% in the past three months, NFLX is still up an impressive 42% year to date. This is where the headlines may mislead some investors.

There’s no doubt that FAANGs like Netflix have been hammered. But the fact is, they’re still some of the best performing stocks in the market today.

What’s more, NFLX stock is continuing to grow its subscriber base in high-potential markets like India, where economic growth isn’t as volatile and barriers to entry are lower than in say, China right now.

ConocoPhillips (COP)

ConocoPhillips (NYSE:COP) is my favorite integrated energy company right now. One key reason is that it’s well diversified across oil and natural gas operations.

While oil has been a victim of overproduction and prices are low, natural gas prices are on the rise. And with winter coming to the Northern Hemisphere, demand is growing in Europe and Asia, where prices are significantly higher than in the U.S.

COP stock recently acquired more natural gas reserves in Canada, so it continues to expand its business in stable countries with hungry markets.

Up 18% year to date, this is solid energy pick that you can count on for the long haul.

Ecopetrol SA (EC)

Best Stocks: Ecopetrol SA (EC)

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Ecopetrol SA (NYSE:EC) is the top Colombian integrated energy company. It has upstream operations — exploration and production — as well as midstream (pipelines) and downstream (refining) divisions for its oil and natural gas reserves.

EC has been operating in Colombia since 1948, but Colombia has had its ups and downs over the decades.

In the past few years, new leadership has brought its long-standing civil war to an end and the drug cartels are significantly less influential. This has meant that the economy is recovering and the middle class is expanding.

EC is a stable energy player in South America, delivering strong growth and a solid 3.5% dividend.

Abiomed (ABMD)

Best Stocks: Abiomed (ABMD)

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Abiomed (NASDAQ:ABMD) is part of the medical device megatrend that is underway across the globe.

ABMD makes the world’s smallest heart pump. It was started by the doctor who invented the first artificial heart.

Today, it has a $14 billion market cap and is gaining business at a rapid pace because it’s a much better alternative to costly surgery and other procedures. When healthcare costs continue to rise, it’s companies like ABMD that benefit the most.

That explains why, in this tough market, ABMD is up 71% year to date. And there’s still plenty of headroom left.

Veeva Systems (VEEV)

Best Stocks: Veeva Systems (VEEV)

Source: Shutterstock

Veeva Systems (NYSE:VEEV) is a cloud provider that operates in a niche space — life sciences.

While you may think about the cloud as simply some remote storage facility that allows people to access information from anywhere, it’s more complex and nuanced than that. It has tiers of access and layers of analytics as well as customer resource management tools and productivity applications. And few sectors need a specialized cloud solution more than life sciences.

With all the regulations, the drug approval process and managing pipelines, as well as research, distribution and marketing, a focused and cohesive system built around these needs is very valuable.

That’s why VEEV has taken off in recent years. It’s up 67% year to date and has plenty of growth left.

China Petroleum & Chemical (SNP)

Best Stocks: China Petroleum & Chemical (SNP)

Source: Shutterstock

China Petroleum & Chemical Corp (NYSE:SNP), or as it’s better known, Sinopec, is China’s leading energy company and one of the top five energy companies in the world.

That’s not bad for a company that isn’t even 18 years old at this point.

Obviously, energy is a key component to the world’s second-largest economy’s economic growth. And it needs a secure source of oil and natural gas because relying on OPEC can get dicey, given the power and influence of the U.S. in the Middle East.

Sinopec is the tip of the spear for China’s energy independence. And there’s little reason to think that Sinopec’s importance is likely to fade in coming years. As a matter of fact, China’s moves into the South China Sea would suggest that energy exploration and production efforts are growing.

Up a respectable 13% year to date, it also throws off an impressive 5.6% dividend.

CenturyLink (CTL)

Best Stocks: CenturyLink (CTL)

Source: Shutterstock

CenturyLink (NYSE:CTL) is a telecom provider that has been around since 1930.

It’s not one of the major players and is more of a player in smaller markets where it can hold sway in rural communities and small towns. It considers itself the second-largest U.S. communications company to global enterprise providers. Basically, that means it’s a major player in the enterprise level marketplace. And this is the focus of the business moving forward.

The consumer market is losing its allure, especially as the mobile age takes over. CTL is now focused on finding its most valuable revenue sources and cutting its low- and no-margin businesses.

At worst, CTL is a good takeover play. At best, there’s a lot of growth and a solid 12.6% dividend to buy your patience.

Square (SQ)

Best Stocks: Square (SQ)

Source: Via Square

Square (NYSE:SQ) would be a fourth grader if it was a human. Yet Square is already a company with a $26 billion market cap and global reach.

SQ stock is up 81% year to date.

That’s a lot of success in just a few years. Granted, Square’s payment processing solutions were up and running before the company went public. And while SQ stock is firing on all cylinders, the financial industry has also started to take its fintech game to the next level, turning mobile banking into a significant force.

The crazy thing is, that its 81% return this year also includes a 30% slide in its stock price during the last three months.

Given the fact that SQ is a game-changer for small- and medium-sized business and there is a lot of untapped growth in these sectors, it is in a great position for the unfolding fintech evolution.

Shopify (SHOP)

Shopify (NASDAQ:SHOP) is a major player in helping small and medium-sized businesses grow and succeed online. It not only helps people build out their sites, but it also delivers tools to help people manage inventory, develop marketing, track payments and track shipping.

It’s an all-in-one small business system in the cloud.

This niche is growing very quickly as people are looking for extra income, exploring turning a hobby into a business or looking to grow the market for their existing business.

At this point, there are more than 600,000 businesses powered by SHOP that are doing more than $82 billion in sales.

The stock is up 45% year to date and has weathered the stormy market. That should continue for years to come.

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Source: Investor Place

10 Stocks That Can Move Higher Whatever Happens

As we move nearer to 2019, market sentiment is growing increasingly cautious. And that’s fair enough. Talks of inverted yield curves and the ongoing U.S.-China trade war certainly aren’t boosting sentiment. But even within these conditions, there are still stellar stocks to buy out there.

I mean stocks with strong fundamentals and high growth potential. And the best part is, you don’t even have to look that far to find them. Morgan Stanley has just released a report revealing its stock picks for 2019. They see 2019 as a year of consolidation for the stock market. Consolidated stocks typically trade within limited price ranges and offer relatively few trading opportunities.

However, the names singled out in the report are capable of growing earnings even if the economy slows and the market tumbles.

Here I pinpoint 10 of the firm’s most compelling stock picks. As you will see all 10 stocks boast a “strong buy” analyst consensus rating (according to TipRanks research tools), and their upside potential doesn’t look too bad either. With that in mind, let’s see why Morgan Stanley is such a fan of these stocks right now:

Alphabet (GOOGL)

Stocks to Buy: Alphabet (GOOGL)

Source: Shutterstock

All’s well that ends well. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) may have endured a rocky trading period recently, but the future remains bright according to Morgan Stanley.

“As the dominant player in paid search, Google continues to benefit from secular growth as advertising dollars shift into digital,” the firm’s Brian Nowak (Track Record & Ratings) said.

Most notably, Google also owns YouTube, the leader in online video advertising. Indeed, Novak sees video advertising expanding nearly 25% from 2017 to 2020 to roughly $22 billion in the U.S. alone.

The Street shares this upbeat outlook. With a “strong buy” analyst consensus, the company’s $1,349 average price target speaks of 24% upside potential ahead. Get GOOGL Research Report.

Amazon (AMZN)

Stocks to Buy: Amazon (AMZN)

Source: Shutterstock

Also on Nowak’s stocks-to-buy list: Amazon.com (NASDAQ:AMZN). “As the dominant player in U.S. eCommerce, Amazon continues to experience secular growth as retail dollars shift online,” the analyst explained.

He believes the e-commerce giant has a “significant opportunity” to capture a larger piece of the roughly $1 trillion worldwide eCommerce market (ex China). This is thanks to 1) the company’s growing logistics network and 2) its expanding Prime membership program.

Indeed, an impressive 37 out of 38 analysts covering the stock are bullish. That’s with a $2,154 average price target (27% upside potential). Bear in mind that while GOOGL stock might be struggling, AMZN is still enjoying strong momentum. Shares are up 40% year-to-date. Get the AMZN Research Report.

Expedia (EXPE)

Stocks to Buy: Expedia (EXPE)

Source: Shutterstock

Let’s stay in internet land for our third stock: leading online travel player Expedia Group (NASDAQ:EXPE). Like other web stocks, Expedia continues to benefit from secular growth as travel dollars shift online.

“The $1.3 trillion global travel industry remains a highly fragmented market and both BKNG and EXPE look well positioned given their scale advantages and portfolio of brands” writes Morgan Stanley’s Brian Nowak.

In all, over the next three years he expects EXPE’s bookings to grow at an aggressive 11% CAGR.

Indeed, while some skeptics may call the stock overvalued, the Street is forecasting a 23% rise in share prices for EXPE. That’s with 12 buy ratings vs three hold ratings over the last three months. Get the EXPE Research Report.

Illumina (ILMN)

Stocks to Buy: Illumina (ILMN)

Genetic sequencing stock Illumina (NASDAQ:ILMN) gets the thumbs up from Morgan Stanley’s Steve Beushaw (Track Record & Ratings). This is a stock that’s already up 55% year-to-date, boosted by the savvy acquisition of Pacific Biosciences in December.

“As the dominant provider of technology to sequence DNA, ILMN stands to benefit from a series of market developments and policy changes that have emerged over the last year,” Beuchaw said.

Here are a few positive catalysts to consider: 1) The success of DNA-driven drug administration in immunotherapy by Merck 2) Stronger global pharma and government funding for DNA analysis 3) Growing consumer interest in DNA-derived applications; and 4) Growing global research funding for genomic research.

In terms of share price, the Street is modelling for 8% upside ahead. This would take this “strong buy” stock to buy to $367. Get the ILMN Research Report.

Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) specializes in robots — robotic surgeries to be precise. Its da Vinci robotic system has already racked up a whopping five million procedures. That’s with 44,000 da Vinci surgeons trained worldwide.

“Intuitive Surgical is the leader in robotic surgery,” states the firm’s David Lewis (Track Record & Ratings) said. The system allows doctors to carry out minimally invasive procedures. It does this by translating the surgeon’s hand movements into smaller, precise movements of tiny instruments inside the patient.

Lewis added: “The company has gained significant adoption within urology and gynecology and is still in the relatively early stages of penetration internationally and within broader procedures (including general surgery).”

With eight buy ratings vs two hold ratings, analysts forecast 24% upside for shares. Get the ISRG Research Report.

National Vision Holdings (EYE)

Stocks to Buy: National Vision Holdings (EYE)

Source: Shutterstock

National Vision Holdings (NASDAQ:EYE) is one of the largest and fastest-growing optical retailers in the U.S. It already boasts 1,000 stores in over 40 states.

“We believe EYE offers a unique blend of defensiveness and growth vis-à-vis its focus on value within the non-cyclical optical retail segment and ~50% unit growth runway,” Morgan Stanley’s Simeon Gutman (Track Record & Ratings) said.

The numbers speak for themselves. As Gutman points out, “EYE has delivered 67 consecutive quarters of positive SSS [same store sales] and is expected to grow square footage ~10% annually over the next several years.”

Plus the upside potential looks very compelling. Analysts see shares exploding by nearly 50% to $49. Get the EYE Research Report.

Palo Alto (PANW)

Stocks to Buy: Palo Alto (PANW)

This cybersecurity stock is primed for success. So says Keith Weiss (Track Record & Ratings). He sees Palo Alto Networks (NYSE:PANW) as well-positioned for future industry trends.

“To garner more effectiveness and efficiency in information security architectures, we believe the key secular trend in security will be the consolidation of spending towards integrated security platforms” revealed this five-star analyst.

And Weiss believes PANW can emerge victorious: “Palo Alto Networks stands well positioned to excel within that trend given its leadership in core network security and growing traction into areas such as Endpoint, Cloud, and Security Analytics.”

Encouragingly, its $240 average price target suggests 24% upside potential for this “strong buy” stock. Get the PANW Research Report.

Pluralsight (PS)

Despite what its name might suggest, this isn’t another vision-related stock. Pluralsight (NASDAQ:PS) is an online education company that provides IT and software video training courses through its website. The company is seeing “exceptional” business-to-business activity, with Q3 with billings growth over 50%.

“We believe Pluralsight is well positioned to help enterprises address the need for IT knowledge while managing an accelerating industry-wide talent gap,” commented Brian Essex (Track Record & Ratings).

He continues, “The platform is driven by machine learning technology that not only enables a more efficient learning process at the individual level but also enables enterprises to efficiently quantify, develop, and manage talent across technology platforms.”

Five analysts have rated the stock in the last three months. All named it a stock to buy. They see 30% upside potential ahead. Get the PS Research Report.

Vertex Pharmaceuticals (VRTX)

Stocks to Buy: Vertex Pharmaceuticals (VRTX)

Source: Shutterstock

Vertex Pharmaceuticals (NASDAQ:VRTX) is a biotech that focuses primarily on cystic fibrosis (CF). Word on the Street: This is a stock with some of the best growth prospects in large-cap biotech.

“The company’s CF therapies Kalydeco and Orkambi collectively generated ~$2.2B in sales in 2017, and a third therapy (Symdeko) was approved in early 2018, which we believe could generate ~$750M in sales for 2018E” comments Morgan Stanley’s Matthew Harrison.

Plus Vertex is also developing a triple combination therapy for cystic fibrosis. According to Harrison, this triple therapy has generated strong late-stage data and “could address a large portion of the CF market.”

In total, 12 out of 13 analysts rate this “strong buy” stock a buy, with 17% upside potential from current levels. Get the VRTX Research Report.

Visa (V)

Stocks to Buy: Visa (V)

Source: Shutterstock

Last but not least we have financial giant Visa (NYSE:V). Trends are looking strong going into 2019.

“Visa is a key beneficiary of robust consumer spending worldwide, the ongoing migration from cash to electronic payments, and broadening merchant acceptance,” sums up Morgan Stanley analyst James Faucette.

This should power the stock higher despite forex headwinds.

“Global Personal Consumption Expenditure and secular growth drivers should support high-single-digit volume growth and low double-digit revenue growth in the near-to-medium term” he adds.  Europe, India and Visa Direct are all potential upside drivers.

All told, 15 analysts rate this a stock to buy with only two analysts staying sidelined. Their average price target indicates 19% upside potential. Get the V Research Report.

This ‘Overlooked’ Sector Produced the Biggest Winners of the Last Decade
Wall Street is oblivious to it, yet you can earn 2,537% profits from an overlooked "blue chip" sector. The same group of stocks that has produced some of the biggest winners of the last 10 years.
Investors have earned 618%, 834%, and up to 2,500% - performing better than Amazon, Netflix and Facebook.
Click here to get in on your own 2,537% windfall.

Source: Investor Place