3 Stocks that are Actually Worth the Investment in 2018
Morgan Stanley's analyst does a yearly review of stocks that they believe will be the best investment for the next year. Last year their predictions almost surpassed the market. I think these analysts are great at their valuation and their opinions should not be taken lightly.
We focused on stocks rated Overweight by our analysts that also were favored by our US Equity Strategy Team's “BEST” model, which ranks stocks by expected market-relative performance on a 24-month horizon.
These are three best stocks according to them. First, is IBM as it is currently trading around $143 but they believe it will hit $248 that's almost double your money! Second, is VOYA is currently trading roughly at $38 but they project it at $52 for the upcoming year. Thirdly, is SLB as it is about $63 and they believe it will reach $90.
I don't know about you guys but I think it doesn't hurt to invest a little in one of these companies. So what are your guys' top stock pick for 2018?
I'm mainly looking at Marijuana (In Canada, it's bound to be legalized soon), Gold stocks (Lot of political drama) and Alibaba (Has provided me with great returns in the past). I'm also trying to find lumber companies because of Trump's duty on Canadian lumber. Bound to be one stock that adjusts to it well enough to impress investors.
That is interesting that you say gold as one of your investments to look out for. It has been a great return so far where do you see it reaching before it falls again?
One Stock to Watch: Best Buy (Originally Posted: 08/30/2017)
Best Buy recently reported their quarterly earnings yesterday. It had crushed their expectation and the stock had skyrocketed then came back down on Tuesday. Best Buy has been doing exceedingly well this year, but as Amazon continues to expand its operations. Best Buy needs to pay close attention to that.
Best Buy has been a stellar investment so far this year, however, how long do you guys think it will last or where do you believe Best Buy will go in the future?
Personally, I don't know what to expect for their future. The volatility of the market trend is somewhat crazy over the months. But I think there's nothing to worry about with the company since it's still generates revenue. If you aim for long term investment, I think its worth the risk. I don't have the data to show since, I'm not a data scientist in this field lol. But if I based it on your post, its never too late to compete! The company should change their strategy to boost their income because there are plenty of competition in the market and now their biggest competitor is Amazon. I'll ask my investing group about this at www hashtaginvesting Dot com
I agree that they are a solid company and it will be hard for them to go out of business. I want to hear your group's opinion. Please let them share their opinion here.
Should You Short These 5 Hot Growth Stocks? (Originally Posted: 10/10/2017)
Facebook, Amazon, Apple, Netflix, and Alphabet have been some of the hottest growth stocks of 2017. Short sellers, however, see the writing on the wall and have been piling into the so-called FAANG stocks in recent weeks, with Netflix leading the pack as the hottest stock among short sellers.
The FAANG stocks are still among the most popular long plays on the market. Although short-sellers have made $510 million in gains on Facebook, Amazon, and Apple, they have lost more than half a billion dollars on their positions in Netflix and Alphabet since Aug. 15.
Do you think that the FAANG bears are right and the 2017 growth rally has run its course? Or will shorting the FAANG stocks continue to be a losing bet for the foreseeable future?
From Yahoo News
Very interesting article and question. I believe that the FAANG stocks have truly run their course and been successful, but are on track to lose their bite. Only time will tell!
I don't think the growth rally has run it's course. I think with all the new technologies being developed, especially AI, Big Data and Machine learning the golden days of FAANG companies are not yet over.
I would not put all the FAANG stocks in a single bucket (i.e. Long-only/Short-only). Netflix, Alphabet and Amazon have continued upside potential given the strength of their products and dominant position relative to competition. I see no imminent headwinds that would precipitate a drop in their stock prices, and I don't consider them good candidates for shorting. Apple and Facebook's competitive position is relatively weaker, and hence are more prone to a momentum reversal trade (triggered by company news that may not meet market expectations or better than expected news from one of their competitors) and would be good candidates for shorting.
That's true. Netflix might be one of the hottest stocks of FAANG at the moment. Its business model of investing in original content will continue to generate subscribers for years to come. Year-over-year subscriber growth has exceeded 20% in each of the past eight quarters, and international subscriber growth has skyrocketed recently. Online access is exploding in places like Asia, Latin America, and Africa, which will only further allow Netflix to continue expanding its international consumer base.
My mantra when it's come to playing overpriced growth stocks (specifically FAANG) has been to never short quality -- if it's indeed true that market pricing is becoming increasingly separated from fundamentals be it due to the rise of quant or passive, then shorting a company like Apple or Facebook is bound to get you burned unless you have extremely high conviction in the short-term.
That's a good point. One could certainly argue that the FAANG stocks are overpriced, but they're growth stocks and it doesn't like they're going down anytime soon.
What stocks will thrive under Trump? (Originally Posted: 03/29/2017)
Uranium stocks have been on the rise since Trump's election. The biggest uranium stocks have gone up by 40% since the election, according to CNN. This is due to Trump's comments about expanding nuclear capability, although there has been no confirmation on his part about going through with this. What other stocks do you think will thrive in the Trump era?
This is mostly because of President Donald Trump’s defense budget, which promises the Pentagon an extra $54.0 billion in military spending. according to my knowledge you should invest in defence stocks under trump for better growth.
Anything defense, oil & gas, and financial services
Defence, go for the big ones. LMT, BA, GD, etc. Wouldn't count on O&G - too much volatility in the oil markets Financials, prepare for the shitstorm that's about to come because of massive overpricing during the rally.
Ideally, you should be looking not at the industries he said he'll support, but rather the industries closer to his network (read Jared, Schwarzmann (Basically any opportunity BX is looking at) and Thiel). Because frankly, the only thing he's actually dictated in numerical terms is the defence budget - everything else is a sham.
Arts and crafts stores who sell poster boards
:)
Thermal coal producers in the interior such as Illinois Basis. Be weary of coal outside of this region as the cost advantage of producers like ARLP is huge. Valuations are arguably still shit even after the recovery, check out the stuff the EIA publishes, given the general sentiment surrounding coal, its unreal the projections being reached for both production in the Illinois basin versus other regions as well as the predictions regarding nat gas versus coal.
Financial Services especially banks - rollback in reg with int rate increases should translate to some degree of net interest margin expansion, how much gets passed along to depositors is another question. Also been a huge swing in banks, could see a good entry point after a correction which is likely coming. Also regional banks should do well on a long-term but again these got a overbought in the rally.
Second anything defense.
Kind of a "next big thing" type thought but I think travel related/experience economy/sharing economy type shit will do well. I definitely need to do more research. Obviously pure plays aren't as easy here as well but it's insane how much Millennials like to travel. Social media will continue to open the world electronically which I think is going to translate to just crazy travel/a thirst for experience for young people. Its insane how much some of my friends like to travel, like they might not open an IRA until they are 30 and have no conception of personal finance but they legit set aside money to travel. It's just baffling how much of a priority it is for people. I also watched a presentation by the founder of zipcar and some of the stuff she talked about is just crazy regarding how the auto sector is going to completely get disrupted in the next 10 years. Thinking about cars objectively, there's so much inefficiency in owning a car especially in urban scenes and some older people might not buy into it but it's very likely we see significant changes in the car ownership model with younger generations.
I'm overweight hair and tanning supply stocks.
Currently prepping for that exotic pelt rally, so i guess long anything Canadian circa 18th century?
none
I'm looking at 60% upside when the fake news establishment finally fails tremendously. Look for players like Breitbart, Fox News, and Info Wars to shoot up in value.
That's why you pair diversification with proper due diligence. To answer your question, yes it is worth investing your money in the stock market
Buy index funds then.
Papertiger might as well burn your money or hide it under your Mattress bud. Leave the investing and trading to us pros. Why would we invest a huge portion of our money into an African Mine stock? lol
That is why I own a very diversified portfolio of Vanguard Index Funds. VTI, VEU, and BND are the only three I own. I don't have to worry about stupid shit happening to a specific company because I own a piece of the whole damn market. Pretty simple to do. Commission free at TD Ameritrade as well.
Company specific risk can be studied and analyzed. You are talking about unforeseeable risk that is pretty much impossible to forecast. This is where modern portfolio theory and diversification comes in to alleviate the risk exposure in this type of risk. Also when investing in the stock market you are investing in these types of risks, risk and rewards are somewhat proportionate. That's why the stock market typically has the biggest rewards to compensate you for these risks. There are more unpredictable factors (risk) in the stock market than the bond market, and as the golden rule says the stock market provides typically better returns on the upside.
I think this is a troll, but I'll bite.
Both things you stated as influencing the stock price negatively are short term hits, investing is about the long term prospects of the company, do you believe in the product, management, business model, etc. trading is more about the short term results of a company.
Keep an investing journal, or some sort of notes surrounding why you are purchasing said stock, so when they do take negative hits like this, you are able to look back and see whether or not the reasons you purchased the stock in the first place are still valid.
The solid blue chip stocks usually return more than the index itself and if you are curious jump on and have a look at the return you would have accumulated from year x to now, I bet it is much more than the loss you would have accumulated from keeping physical cash and have it eaten away by inflation.
I'm really ashamed of myself now.
The main thing thing you should be focusing on with equities is understanding a mix of tech, fundamental, relative value, top down, and bottom up analysis. You have to be able to look at a situation from all angles, which is tough. Focusing just on financials will get you nowhere, especially if you're just identifying intrinsic value opportunities. Personally, I just use equities to beat out inflation and that's because my expertise is in credits. But if you're good at identifying and reacting to information quickly to trade on you can make some money on stocks.
Generally no. I tend to think of auditors as number crunching service sector parasites. Definitely pay attention to the balance sheet, income statement, & statement of cash flows though.
Amazon vs Walmart which stock would you buy? (Originally Posted: 06/16/2017)
Amazon just announced its acquisition of Whole Foods and it probably signals Amazon's plan to actually have a physical stores. So I think it's timely to bring up this discussion.
It's a vision Amazon has on its high tech shopping of the future:
One company that's getting more and more alarmed by Amazon's growth is Walmart. Once young tech-savvy millennials quickly replacing retiring baby boomers in the workplace, more and more people are shopping online than visiting Walmart stores. In response, Walmart bought Jet.com in order to compete with Amazon in e-commerce space. With integration of digital shopping and in-store shopping, I think we will see these two companies go head-to-head very soon.
Amazon has grown non-stop and multiplied its price over the years. Walmart's stock has been rather struggling. Who will win? Which stock would you buy?
So basically, Walmart is becoming Amazon while Amazon is becoming Walmart.
Exactly, Jet.com has almost identical pricing model as Amazon's prime. Seems like price war there has already heated up pretty big.
Amazon is going to mop the floor with Walmart.
Is It a Bad Time to Own Stocks? (Originally Posted: 08/18/2017)
MarketWatch posted an article stating 7 reasons that they think are indicating a market crash or tumble in the near future. There is a lo of uncertainty in the economy with all of the heat from Trump and North Korea, causing The Nasdaq to have a few tumbles recently.
Even more uncertainty is brewing in the economy as Trump's many campaign promises are slowly beginning to look less likely to be put into place. The article brought up the tax cuts, and the road construction that Trump promised are looking less likely as more time passes and not much is being said about it. This promise being put into action would be a strong driver of the market, but is it going to drive the market down if not done?
It also doesn't help the market that it is at record highs right now, and a possible market correction may occur.
The article also shows 6 gauges they believe show a market tumble in the future.
What do the monkeys think? Is it time to pull out before Winter finally comes and the market takes a tumble? Or do you think these are just the bears crying wolf? Tell me what you think
about to bust - time to pull out
Is it really the bad time to own stocks?
if you're not already in, raise cash and buy on the pullbacks and corrections
Feel like the market has learned to ignore these empty threats from NK: short-term selloffs -> quick recovery. The fact that China is willing to enact sanctions against the country should further discourage them from making any meaningful advances. Trump trade is also slowly getting priced out. Just look at the Russell's recent performance to get an idea of what I mean.
Broad correction will occur due to balance sheet trimming by CBs. There is so much liquidity out there and we're all in for a bit of a rude awakening once it dries up.
Dividend stocks for 2017 (Originally Posted: 01/05/2017)
Investing in top-quality dividend stocks is what a lot of successful investors do over their lifetimes. This class of investor has just one goal in mind while picking investments: stability in a company’s cash flow generation. Keeping these factors in mind, I’ve put together a basket of long-term dividend stocks for 2017.
These picks are some of the great American companies that are crucial parts of our modern economy. They have a leading position in their markets, with a long and proven track record of rewarding investors with higher dividend payments.
the best stocks for 2017 according to me are: KO, MSFT, PG and WMT. Source: Dividend stocks for 2017
Is that it? No background no nothing? Weak. Edit: unless you wrote the article you are linking to that is... But if it's just a copy paste...
Top stock to pick right now (Originally Posted: 08/17/2017)
Do you guys have a top stock right now in your portfolio or to monitor?
Im long on banks actually
Mind the gap: European market is cheaper than US (see IMG below)
Italian bank such as Intesa seems fine for example Or I'm following and have in portfolio stocks such as Campari (Eurostoxx600)
Fintech companies (also their IPOs)
Maybe better several days after IPOs...
Check out BAMI IM
Are Value Stocks As Risky As Growth Stocks Now? (Originally Posted: 12/15/2017)
Hello Monkeys,
With faster economic growth, higher inflation, the improved prospect for tax reform and most importantly, higher interest rates, I would expect value stocks to outperform growth stocks going forward.
However, a recent article from Bloomberg suggests that value stocks are becoming too "crowded" instead, while also considering the flattening yield curves and how reflation will only happen slowly.
Monkeys, what are your thoughts? Is it time to turn up the love again for value stocks? Or do you think that the sentiment towards value has become too stretched? Does this imply increased risk?
And what value stocks are you bullish on?
Hi Wolf of Flinders Street, the silence is deafening, sorry about that.... Any of the threads below helpful?
Who will rescue this thread? KingAlpha Matthew123 shuckjones
Fingers crossed that one of those helps you.
How to research companies to invest in their stocks (Originally Posted: 11/18/2016)
What is the best way to research which company's stock you want to invest in? Common things to look for after choosing a company are the management, their balance sheet, income statements, and potential for growth. The hard part is choosing where to start from or what industry would be the most profitable in the long run. Choosing companies which are undervalued is always a good option, but do any experienced investors in the market have any other suggestions for how to choose what stock to long or short?
You could literally write a 500+ page book on different investing styles...
GARP has been really good for me. General rule of thumb is to understand free cash flow.
Stocks That Can Rebound in 2018 (Originally Posted: 11/07/2017)
I came across this article on Investopedia regarding 7 battered down stocks that are set to rebound in 2018. The stocks that made their list include: Macy's (M), Kroger (KR), Footlocker (FL), Navient (NAVI), General Electric (GE), Viacom(VIAB), and Alaska Air Group (ALK)
Which do you agree with? Which do you disagree with?
What stocks would you include on your 2018 rebound list?
Hey opaquet, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:
More suggestions...
I hope those threads give you a bit more insight.
The Stock-Market (Originally Posted: 11/04/2017)
Hey folks. Are you all invested into the stocks right now? I think we are due for 10%-20% in the coming months. I feel like buying any equities right now is absurd, thoughts?
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