BEST STOCKS TO BU Y N OW 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 stock alerts. Best penny stock alerts: The most popular alerts that you usually see advertised are penny stock alerts. The reason behind penny stock alerts being so enticing because you can make a killing in just one trade! It is an awesome feeling to double or more your money with one of our daily stock picks which we have had happen more than once. Penny stock alerts work: The alerts are updated around 15 minutes before the market closes. You basically hold the stock overnight and sell it when the market opens in the morning. With all our stock alerts, you will receive three stocks to trade daily. The reason behind this strategy so not all your money goes into one stock. Any amount of money would be fine to start with. You can start with as little as $5.00 in your account. Since they are penny stocks you can still fit at least 5 shares into your purchase even with just 5 dollars! The other good news, when you sign up, we will show you how to trade 100% commission free. Each week will vary on gains. Some weeks you may have huge gains and other weeks no gains at all or even loses. Now the other Still bullish on Netflix? Here's a way to play the decade's best stock Netflix heads into the new year up more than 4,000% this decade, making it the best performer in the S&P 500 throughout the last 10 years. However, the streaming environment is much different from what it was when the decade began, and there are signs that the next decade won't be quite as kind to
Netflix. More competition has hurt the stock in 2019, to the point that it is slightly underperforming the broader market, but if you're of the opinion that Netflix can adapt and survive the next 10 years, there is a way to play it without risking it all. "We're going to talk about executing a call calendar spread in Netflix. And why is that? Well, as you would expect with any stock that's rallied 4,000%, it is pretty pricey." Nations Shares founder Scott Nations said Friday on "Options Action." "The [price to earnings ratio] right now for this is in triple digits —105. So, we can't just run out and buy the stock even though we love the company," said Nations. The thesis is fairly simple, as Nations sees it. If you believe that Netflix is heading higher in the new year, but you're not willing to buy stock outright because of inherent risk exposure, a call calendar is a capital-efficient way to get access to potentially uncapped upside while defining your downside risk. "Not only is [Netflix] up a bunch, and it would be really expensive if we were to buy it and see it collapse, but there are actually some shorter-term problems with the stock," said Nations. "But with a name that's been up 4,000% in the last 10 years, we want unlimited profit potential." "We don't want to be trading this name for a small profit, given what we've seen what it's capable of." As Nations pointed out, Netflix has been unable to regain its prior 2019 high, even as the broader market has surged out to new highs in the back half of this year. The stock has come close to retaking the level it gapped down to in late July but failed to push above a key resistance level of around $340. However, that doesn't mean it never will, and Nations thinks there is upside ahead for those willing to play that side of the stock. "Earlier [Friday], you could buy the February-March 350-strike call calendar," said Nations. "We're buying the March 350-strike call, paying $13.50, and to reduce the risk and reduce the cost, we're going to sell that same option, that is the 350-strike call in the February expiration, and we could sell that for $10.80." As Nations points out, this trade only costs $2.70 in premium. That $2.70 is your maximum risk per contract, and puts the trade's breakeven level at an underlying stock price of $352.70 by March expiration. "What do we want Netflix to do? This works best when that February option expires worthless," said Nations. "We want Netflix to be below $350 at that February expiration. That call will then expire worthless, and that leaves us just net long this March 350-call." From there, this trade grants access to potentially unlimited upside. The higher Netflix surges into that March expiration, the more profits the trader sees. Netflix was trading about 1% lower on Monday. Disclaimer 02. Top-Rated Small-Cap Stocks You Can Buy Now
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum. If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. Reference ID: 03. 3 Top Value Stocks to Buy in January The so-called Santa Claus rally just happened, capping off a great year for investors and bringing the 2019 calendar year return for the S&P 500 up to 30%. Huzzah! But not so fast. If one is to apply Warren Buffett's "fearful when others are greedy" principle, now's the time to take a hard look at the portfolio and make some decisions. After all, stocks don't go straight up all the time. However, selling out and going to cash isn't the best of plans, either. Rather, balancing your biggest winners with some value stocks -- especially those that pay dividends -- can be a better alternative to market timing. With a new year and decade upon us, here's why I have my eye on buying (or buying more of) Starbucks (NASDAQ: SBUX), Comcast (NASDAQ: CMCSA), and Seagate Technology (NASDAQ: STX). 1. Starbucks: The king of coffee culture is on top of its game again Though Starbucks has backed off a bit from record highs (it was up over 50% at one point in 2019), the world's largest coffee chain has had a great year. Shares surged as global same-store sales (which factors for foot traffic and average guest ticket size) increased 5%, helped by Starbucks' mobile app and seasonal drink rotation. Not bad at all for an operation with over 31,000 locations. Starbucks is the well-established leader in premium coffee culture, but this large-cap stock isn't done growing yet. The company faces a fierce competitor in Luckin Coffee in its second most important market, China. Nevertheless, the 4,000-plus stores there barely scratch the surface of the ultimate potential, and Starbucks plans to increase its locations by some 50% in the next handful of years. Along the way, investors get treated to a 1.9%-yielding dividend, which includes a 14% payout hike in the autumn of 2019 -- an annual practice of payday raises the company has made a point of emphasis since it started paying a dividend a decade ago. There's likely plenty more income ahead given Starbucks' ability to convert new sales into profits. Free cash flow (money left after basic operating and capital expenses are paid) is up 45% over the last five-year stretch. Shares are priced at 25.7 times next year's expected earnings, but this high-quality restaurant industry stock is worth paying up for. Brand recognition, emerging market growth, and steady income are a potent force in any portfolio. 2. Comcast: The other American media giant
Disney! Disney! Disney! The iconic entertainment conglomerate put a few exclamation marks at the end of the 2010s by completing its takeover of several Fox assets, launching its proper Netflix competitor, Disney+, and utterly dominating the 2019 box office with six titles each hauling in over $1 billion in global ticket sales and seven of the 10 top-grossing films of the year. But let's not forget about Comcast, the other big media giant. It doesn't carry the clout Disney does -- its business isn't slanted toward theme parks, but rather toward its far less sexy cable communications operation headed by the Xfinity name. Consumers have varying opinions about Xfinity and its internet and cable services -- some of them involving some strong critical language -- but there's no denying that the segment is incredibly profitable as high-speed internet connections continue to increase by hundreds of thousands every quarter. Shares are up 32% in 2019 as a result. It shouldn't be forgotten, though, that Comcast was up to some pretty good deal-making of its own in the last decade. Back in 2009, the company announced it would pay a meager $30 billion in cash and assets to General Electric for control of NBCUniversal over the course of a few years. That asset returned $8.6 billion in earnings before interest, tax, depreciation, and amortization (EBITDA) in 2018 and another $6.8 billion through three quarters of 2019 alone. Suffice to say, the purchase was a steal. Comcast followed that up by buying British broadcaster Sky for $38.8 billion in 2018. It likely won't go down as quite the same screaming deal as NBCUniversal, but the $2.33 billion in EBITDA so far in 2019 from Sky is respectable. Plus, Comcast is stitching together its own formidable portfolio of entertainment content to launch Peacock, its first entry into the streaming TV industry, in April 2020. Add in a 1.9% dividend yield and an attractive 13.5 price-to-forward-earnings multiple, it all makes for one hot buy of a value stock. 3. Seagate Technology: Value memory chips trading at a value On to the biggest 2019 winner on this list: Seagate Technology, with a 57% return in 2019. Even after the massive run, this stock trades for just 11.3 times expected earnings and yields a juicy 4.3% dividend. What's up with that? Seagate has been in a cyclical slump along with other digital memory manufacturers, something that happens every so often for the up-and-down industry. At least according to sector leader Micron, as well as Seagate's management, a bottom for memory chip sales may be close. For its part, Seagate said during its fiscal 2020 first quarter that there could be a year-over-year revenue and earnings-per-share increase in store in Q2. With that expectation being set, recent share price action should be seen as merely a rally from recent multiyear lows registered in 2018. But here's what makes Seagate so attractive: Its focus on older hard disk drive technology (versus some of its higher-bred, but more expensive, peers) has meant a shallower slump in sales for the company. As a result, Seagate has remained very profitable, reporting $309 million in free cash flow in Q1 on $2.58 billion in sales. That's good for a 12% free cash flow margin, an enviable figure given the yearlong bear market in an industry prone to sharp downturns.
That means Seagate's dividend is on solid footing, and the stock is likely undervalued if sales do in fact recover as expected in 2020. Thus, even after a huge rally in 2019, I'm looking to buy headed into the new year. 10 stocks we like better than StarbucksWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Starbucks wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Nicholas Rossolillo and his clients own shares of Comcast, Micron Technology, Starbucks, and Walt Disney. The Motley Fool owns shares of and recommends Netflix, Starbucks, and Walt Disney. The Motley Fool owns shares of Luckin Coffee Inc. The Motley Fool recommends Comcast and recommends the following options: long January 2021 $60 calls on Walt Disney and short January 2020 $130 calls on Walt Disney. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.