2018 stock picks
A top fund manager reveals his favorite stocks for the new year. Hint: Think small. Think the U. Guess again. With stocks richly priced, the bull market nearly nine years old, and the Federal Reserve likely to raise interest rates three times in , expect much lower returns.
BTIG highlights 'conviction' stock list, top picks for 2018
On Wall Street, investors are generally classified as either market-centric or stock-pickers. And those who belong to neither group are referred to as individualists, renegades or investors who just generally need advice, constantly. The market-centric group pursues a strategy influenced mainly by how things are trending, and it proceeds with investing plans accordingly. If the market's performance is upbeat, these investors usually are inclined to buy more shares.
Stock-pickers, on the other hand, are very particular about the shares they buy, regardless of what the market is doing. They care more about the quality of the stock to raise their odds of gaining from both a calm or stormy market. The individual investors who profess to be serious stock-pickers are more passionate because they personally accept the responsibility for the consequences of their choices.
The other group can blame or praise the market for their results. So for , the big question for stock-pickers is which shares will gain no matter what uncertainties the market faces.
No doubt, investors could confront a mighty uncertain market in , despite the big gains it has piled up over the course of its nine-year bull run. The question becomes more difficult because even as the Trump administration is into its second year, it remains difficult to discern what its priorities will be about the economy, foreign policy, global trade, defense and terrorism.
One thing is certain, it's essential to select stocks that will be able to endure, if not continue to grow, in a murky economic environment. True, economic growth is humming along, but what obstacles lie ahead remain a mystery. Will the Federal Reserve stick to its current monetary policy stay, or will the new President Donald Trump-appointed chair Jerome Powell take it in another direction? How about government policies on mergers and acquisitions, and consolidation in the financial industry?
Fortunately for investors, some analysts who have been around with expertise on many fronts have been tracing the same questions and seeking answers to help clients. Here are seven stocks that they believe will overcome the possible travails the new year may bring and gain from the myriad difficulties that may arise.
The basic elements that these stocks have in common is they already have a track record of enduring despite problems -- and coming out on top of their peers. They have great proven leadership in their fields, and they face a brighter outlook not only in but in the years ahead.
Amazon AMZN represents the present and future profile of the broader online retail industry. But more than that, under founder, chairman and CEO Jeff Bezos, it reflects a new innovatively growth-oriented American company that's blazing a trail of efficiency and expansion that cuts across many industries. This year, analysts project sales to advance 30 percent -- yes, 30 percent, and 29 percent more in Amobi also sees "further market share gains versus tradition retailers in Amazon's core electronics and general merchandise offerings, thanks to a focus on providing value to consumers through selection, price and convenience.
Apple AAPL is as famous among investors as Amazon and also has a loyal following among the technology-loving crowd. It probably has among the best known U. CFRA equity analyst Angelo Zino projects Apple's revenues will rise 18 percent in fiscal , and he anticipates iPhone sales to continue climbing as consumers upgrade older devices at with newer ones at higher average selling prices.
It's a media and entertainment conglomerate with diversified operations globally, including theme parks, films, TV broadcasting and varied consumer products. Analysts described it as a "transformative" deal for Disney that should significantly boost its international exposure.
Disney's stock has been relatively strong considering the company's various investments for further expansion, including the recent purchase of Fox assets. Facebook FB has grown globally at a speed very few expected, even in the world of technology, and it has transformed social media. So it isn't surprising that its stock has been one super-performer in the short span of its existence.
Almost every month, one or two analysts upgrade their recommendations to even higher price goals. And he sees Facebook with opportunities to "drive upside to our estimates through strong pricing growth, incremental growth in video and messaging, and lower-than-expected expenses. Scott Kessler, chief technology analyst at CFRA, who continues to rate Facebook as a "buy," noted recently that the company is "prioritizing quality over quantity in terms of content and advertising, which we think could have a negative impact on revenues, especially over the near term.
Kessler sees Facebook's flexible balance sheet allowing it to continue committing capital to new technologies and offerings, geographic expansion and acquisitions of companies and patents.
So, analysts are now in the process of raising their price targets as they readjust their valuations. Kenneth Leon, equity analyst at CFRA, sees low-single-digit growth in , after a 10 percent revenue decline in For Goldman to outperform peers, he argued, it has to execute better in given it has the highest revenue concentration to the capital markets, which can often fluctuate from quarter to quarter. Longer term, Leon sees Goldman diversifying to reduce that concentration, possibly by expanding in investing and digital lending.
And it seems logical that as the bull market continues, Goldman will greatly improve its prospects for improved revenue and earnings. After all, the firm is a big play on the equity markets for most investors. Even as it expands, it's still developing personal computer software, including the Windows operating system.
Analysts' expectations for the stock remain high, even as the company has surprised investors with a stock that has climbed, despite fears about its exposure to PCs, notwithstanding its "mobile-first, cloud first" strategy.
That acquisition was part of what rekindled Wall Street's attention to Microsoft. The way Microsoft's stock has defied the bears could be a strong reason the Microsoft bulls see even better things ahead. Stock market record highs.
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Under Armour, Inc. (UA). Boston Scientific Corporation (BSX) Opening price on Jan.
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On Wall Street, investors are generally classified as either market-centric or stock-pickers. And those who belong to neither group are referred to as individualists, renegades or investors who just generally need advice, constantly.
Near the end of every year, financial publications publish their picks for the coming year. This year is no different. Kiplinger and U.
7 solid stock picks for 2018
All rights reserved. Investment gurus and talking heads who appear in the business media love to talk about their best stock ideas. Not many like to talk about their worst ideas. What do you think is the number one trait of an outstanding portfolio manager or research analyst? Venture capital investor Howard Lindzon is one of those humble people who prefer to talk about the losses more than the wins.
The Winning and Losing Stock Picks of 2018
We've exited , which ended on a very different note compared how the year began. During the last few months of , investors were hit with a combination of factors -- U. These factors have led investors to question growth prospects for the global as well as the domestic economy and earnings in There are several catalysts that could drive both the economy and the stock market higher in the coming months. These include a "good deal" resolution to the U. More than likely ahead of those two items, we will have to navigate the upcoming December quarter earnings season. That's a far cry from the One of the key principles to valuing stocks is that companies delivering stronger EPS growth warrant a premium valuation. We also want favorable tailwinds blowing on their respective businesses as well.
The stock market is at record highs. This bull market is the second longest ever with over eight years of rising stock prices.
Martin Marietta Materials could experience significant upside over the next few years, said Priest. This company's stock has risen roughly 2. MetLife will surge on rising cash flow and an ambitious stock payout program, Priest told Barron's. MetLife's operating cash flow should rise substantially after the company sold off its retail business.
Here Are My 8 Top Stock Picks for 2019
Morgan Stanley is becoming one of the most cautious major U. The group of 30 includes a number of names that should be extremely familiar to investors, including: Amazon. All four of those companies have outperformed the broader market thus far this year. Bucking that trend is Disney, where shares have dropped 2. What if the bulls are right? Follow him on Twitter RyanVlastelica. Economic Calendar. Retirement Planner. Sign Up Log In. Home Investing Stocks Market Extra. ET By Ryan Vlastelica. The stock market keeps rising while earnings keep falling — what if stocks are right? Barron's: Where to Find Value in Real Estate Stocks Everything you know about growth and value stocks is about to flip Why the Dow can jump points even as the economy destroys over 20 million jobs. Ryan Vlastelica. Why the Dow can jump points even as the economy destroys over 20 million jobs.
5 Best Stock Picks for 2018
This copy is for your personal, non-commercial use only. It was then that a fear of overheating quickly morphed into a fear that the economy was heading for a recession. Which is one way to describe my stock picks—the worst. In all, my picks lost an average of 4. Sometimes it was a question of bad timing. Still, barring a recession, buying the offshore driller in the mid-single digits would likely be a good bet. While I was correct that they would eventually start moving together again, it occurred not because of a Baidu rally, but because U. Others were simply bad calls.
