NVDA, SBUX, AAPL lead the way.
Even if you don’t believe in New Year’s resolutions, there’s one any investor can easily glom onto, and it doesn’t even involve hitting the gym: make more money. Of course, every pundit has opinions, formulas, secrets and the like. We’ll keep you posted as soon as some high-tech whiz perfects a Wall Street crystal ball, but in the meantime, the well-reasoned opinions of market experts will have to do. Here we present eight stocks worth a close look in 2016.
Nvidia Corp. (ticker: NVDA)
The tech buzzwords for 2016 may be “virtual reality,” as everyone’s getting into the act — from Facebook (FB) with its Oculus Rift, to Sony Corp.’s (SNE) PlayStation VR. “Regardless of who gets the biggest slice of the virtual reality pie, one common and indispensable link is that they all require the most powerful graphics cards to work properly,” says Chris Dodson, analyst at the George Investments Institute at Stetson University in DeLand, Florida. “We like Nvidia because they’re the only one in the market to meet the high performance standards.”
Starbucks Corp. (SBUX)
Starbucks stock went from a tall to a venti this year, up more than 45 percent. And there’s financial java to spare, as the company carries a market capitalization of $88.7 billion. “The company has had a serious increase in net income and substantial return on equity,” says Derek Peterson, CEO and founder of Terra Tech and a former vice president with Morgan Stanley. “Company management continues to be looked at with high regard, and its brand continues to flourish among a sea of other would-be coffee shops.”
Alphabet (GOOG)
While comics joked about Google buying the rights to the alphabet, investors in its new holding company laughed all the way to the bank. Jesse Cohen, senior editor at a global financial portal Investing.com, points to “stellar quarterly numbers” Alphabet posted for the latter half of 2015 — a sign of solid uptrends in the tech sector. In its third quarter, Alphabet posted revenues of $18.7 billion and its revenue grew 13 percent from the previous year. Alphabet stock is up 43 percent for the year.
Apple (AAPL)
Apple shocked many investors in 2015, as its stock fell 3 percent and trades at less than $110 a share. But don’t ditch your iPads yet. “The valuation is attractive as is the dividend, close to 2 percent,” says JJ Feldman, portfolio manager at Miracle Mile Advisors in Los Angeles. And though iPhone shipments are down, “Apple is an innovative company that is continually launching new and improved products. Its superior ecosystem, as well as high customer retention rates and upgrade cycle, are reasons you want to own the stock.”
Eagle Pharmaceuticals (EGRX)
This small New Jersey-based company hit it big time on a tongue-twisting drug called bendamustine, used to treat leukemia and lymphomas. It rose a stunning 460 percent in 2015, thanks to an exclusive licensing agreement with Teva Pharmaceutical Industries (TEVA) in February for its injectable drug. And while that alone might not be enough to propel EGRX stock, the company “will have significant launches in 2016 that should drive pretty meaningful earnings,” says Tim Lugo, an analyst with William Blair & Co. in Chicago.
Chipotle Mexican Grill (CMG)
It hasn’t been a great year for Chipotle, as the Mexican food chain’s stock has dropped 33 percent since October. But Peterson points out that revenue has grown, as have earnings per share and net income. “These factors indicate a high potential for success and lead one to conclude that Chipotle is definitely worth investing in this coming year,” he says.
Ross Stores (ROST)
Ross is the largest off-price retailer in the U.S. and its stock has been spot on, up 14 percent this year. “Ross is very likely to witness a repeat of its 2015 performance,” says Steve Berg, CFO of O.penVAPE and a former managing director at Wells Fargo and UBS. “Where other corporations would drop off due to the disappearance of their industry or space, Ross is enjoying its place in the middle-market retail business as one of the toughest companies around.”
Southwest Airlines Co. (LUV)
In the summer, Southwest Airlines picked up steam as a “buy” recommendation among stock analysts, even though its share price was off 24 percent. And LUV proved the experts right, gaining more than 30 percent since July, powered by record second-quarter profits totaling $691 million, followed by record net income in the third quarter. Low fuel prices and a host of new international destinations in Central America have also bolstered this budget airline, now also the nation’s largest domestic carrier.
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8 Stocks to Buy for a Great 2016 originally appeared on usnews.com
