Category Archives: Best Stocks

Top 5 Gold Stocks To Buy For 2019

Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks.

When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.

Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:

Top 5 Gold Stocks To Buy For 2019: Elevate Credit, Inc.(ELVT)

Elevate Credit offers online credit solutions—including installment loans, lines of credit, credit building, and credit reporting products—to non-prime consumers. ELVT has emerged as one of our hottest low-priced picks lately, surging more than 24% in the past month. But even with these gains, the stock is trading at a relatively cheap 12.2x forward 12-month earnings. Plus, it should be able to break higher by posting solid earnings results later this month. Current estimates have the company reporting EPS growth of 87.5% for the period. ELVT will also hope to carry its Zacks Rank #1 (Strong Buy) into that report date.

Top 5 Gold Stocks To Buy For 2019: LM Ericsson Telephone Company(ERIC)

Ericsson is a world-leading supplier in the telecommunications and data communications industries, offering advanced solutions for mobile and fixed networks, as well as consumer products. ERIC is holding a Zacks Rank #2 (Buy) and looks appealing from growth and momentum perspectives. Earnings are expected to improve by more than 135% in the current fiscal year, and the stock has surged more than 22% in the trailing 12 weeks. Still, ERIC is trading with a P/S of just 1.1, which is a nice discount compared to its industry’s average of 1.3.

Top 5 Gold Stocks To Buy For 2019: 21Vianet Group, Inc.(VNET)

21Vianet is one of China’s leading carrier-neutral internet data center services providers. The firm provides hosting and related services, managed network services, and cloud computing infrastructure. VNET is currently holding a Zacks Rank #2 (Buy) and looks like an interesting pick for anyone trying to find strong Chinese tech stocks.

Shares have added a staggering 54% in the past three months but could break higher if 21Vianet lives up to its growth expectations, with current estimates calling for earnings to improve by 83% in 2018. Meanwhile, the company is seeing cash flow growth of 103% right now. Still, with the stock sporting a P/S ratio of just 2.2, investors are clearly getting a solid price at the moment.

Top Undervalued Stocks To Watch Right Now

We’re now just past the halfway mark of the year, which means businesses will soon be announcing second-quarter 2018 operating results. But investors don’t necessarily have to wait for management teams to hop on quarterly earnings conference calls to know if a stock is a buy this July.

Sometimes a high-yield stock gets punished without good reason, Sometimes an industry leader is quietly positioning itself to exploit a market rebound, and sometimes it’s just tough to pass up a global energy leader boasting a 6% dividend yield while it transitions to renewable energy fits that bill. Here’s why they’re my top stocks to buy in July.

Top Undervalued Stocks To Watch Right Now: International Paper Company(IP)

Entering 2018, International Paper stock had kept pace with the total returns of the S&P 500 over the previous three years. But shares are down 11% year to date just past the halfway mark. That sets up an intriguing opportunity for long-term investors with an appetite for dividends, as the stock currently yields 3.6%. Management has big plans for increasing that over time.

As one of the leading manufacturers of cardboard and with a stable of low-cost production facilities in North America, International Paper has expertly exploited the growing trend of online shopping in the last decade. In the last five years, the business has averaged $1.9 billion in free cash flow. Management intends to deploy 40% to 50% of that in efforts to create shareholder value, either through share buybacks or dividend increases (or lately, both). 

While a massive deal to acquire peer Smurfit Kappa was abandoned in early June, there are still other long-term growth opportunities for investors to look forward to. For instance, International Paper owns part of a joint venture in Russia called Ilim, which just delivered record equity earnings of $92 million in the first quarter of 2018. That compares to $183 million in all of last year. Throw in continued portfolio optimization efforts, together with low-cost production, and the company is poised to keep making progress on its near- and short-term goals while rewarding investors with a hefty dividend.  

Top Undervalued Stocks To Watch Right Now: Weight Watchers International Inc(WTW)

Weight Watchers stock has rallied tremendously in the last few years. However, trading at a forward price to earnings ratio of 27, WTW stock is still priced at a reasonably level.

The company reported significantly better than expected first-quarter results, citing strong recruitment trends. Its membership reached a record 4.6 million, and its total paid weeks jumped 27% year-over-year last quarter. Furthermore, the company predicted that its overall revenue would surge almost 20% in fiscal 2018.

A number of analysts were very enthusiastic about the outlook for Weight Watchers in the wake of the results.

For example, SunTrust analyst Michael Swartz started coverage of WTW stock with a $90 price target and a “buy” rating on May 15. According to the analyst, who was upbeat about the company’s strategy, Weight Watcher’s products are “one of the first stops” for someone considering a structured weight loss program, The Fly reported.

Also starting Weight Watchers stock with a “buy” rating was Bank of America’s Olivia Tong. The analyst, who placed a $95 price target on Weight Watchers stock, wrote that the company “has a proven operational model and sustainable momentum,” The Fly noted.

Finally, Craig-Hallum’s Alex Fuhrman expects the company’s summer ads to cause its recruiting trends to accelerate, The Fly noted. He kept a $120 price target and a “buy” rating on Weight Watchers stock.

WTW has excelled at recruiting well-known, highly respected celebrities to endorse its products. Of course, the company has convinced Oprah Winfrey to invest in Weight Watchers stock and tout its products in ads. More recently, the company signed up music producer DJ Khaled and actor Kevin Smith in an effort to appeal to more young people and males.

Judging by Weight Watcher’s first-quarter results, that effort seems to be bearing fruit.

Top Undervalued Stocks To Watch Right Now: Aphria Inc. (APHQF)

Aphria is one of the Canadian marijuana stocks that has experienced a miserable year so far. Its stock is currently down 39% since the beginning of 2018 — and that reflects improvement over the last couple of months.

However, most of the same catalysts for Canopy Growth also apply to Aphria. The company should be a big winner from recreational marijuana legalization in Canada. Aphria is on pace to produce 225,000 kilograms of cannabis annually by early 2019. The company also has a solid retail distribution network thanks to its recent deal with Southern Glazer’s, the largest wine and spirits distributor in North America.

Like Canopy Growth, Aphria has targeted the global medical marijuana market. If U.S. laws change to prevent interference with states that have legalized marijuana, Aphria should be in great shape to jump into the U.S. market because of its relationship with Liberty Health Sciences. It’s even possible that Aphria could join Canopy by moving into the cannabis-infused beverage business: Reports surfaced recently that Molson Coors Brewing is in discussions with Aphria and three other Canadian marijuana growers about a potential deal.

Top 5 Canadian Stocks To Own Right Now

The S&P 500 climbed 13% over the past 12 months despite ongoing concerns about rising interest rates and trade wars, and several tech stocks crushed the market with triple-digit gains. Today we’ll take a closer look at three of those high-growth winners: 

Top 5 Canadian Stocks To Own Right Now: Unilever PLC(UL)

Unilever (NYSE:UL) is a familiar, international presence with consumer products across the spectrum. You certainly know all of the following: Dove, Knorr, Axe, Magnum, Lipton, Surf, Becel, Lux, Metadent, Pepsodent, Country Crock, Persil, Popsicle, Ben & Jerry’s, Breyer’s Vaseline and many more.

Unilever makes a ton of money. The company reported good numbers in its fourth-quarter earnings, with sales up 3.5%, operating margins up 110bps, earnings up 11% and free cash flow of 5.4 billion euros.

UL is concentrating on new channels: health and beauty, direct to consumer, e-commerce, and “experience stores.” By the way, UL is shoring up its pension, with a deficit of 3.2 billion euros now down to just 600 million. That means money to pay the dividend won’t be diverted.

UL only has two years of consecutive increases under its belt, but it pays a 3.2% dividend, which you could do worse than.

Top 5 Canadian Stocks To Own Right Now: Carnival Corporation(CCL)

Worries about rising fuel prices have pushed Carnival’s shares lower this year while helping lift its dividend yield back above 3%. However, there’s nothing in the cruise ship giant’s recent operating results to suggest that there is anything fundamentally wrong with the business.

On the contrary, sales growth just trounced management’s forecast for the second straight quarter thanks to healthy vacation demand. Carnival is also finding more ways to spur onboard spending, with that category up by double digits in the fiscal second quarter.

Sure, fuel costs will hurt profits if oil prices continue trending higher, but Carnival isn’t struggling to pass on its core expenses to its customers. In fact, management raised its full-year outlook on June 25, and it now expects net revenue yields to rise 3% while cruise costs (excluding fuel) expand by just 1%. 

Carnival Cruise ship Costa Fortuna moving through the ocean.

IMAGE SOURCE: CARNIVAL.

Over the long term, Carnival is aiming to lessen its exposure to oil prices by building more fuel-efficient ships. There are 18 of these vessels set to launch over the next five years, which should mark a steady pace that will protect profitability by matching supply growth with demand. Meanwhile, a bit of earnings volatility is a small price for investors to pay for an above-average yield and a strong underlying business.

Top 5 Canadian Stocks To Own Right Now: BeiGene, Ltd. (BGNE)

China isn’t just about tech stocks. One of the country’s largest biopharmas is an excellent ‘Strong Buy’ stock idea right now. BeiGene Ltd (ADR) (NASDAQ:BGNE) is making a name for itself with cutting-edge cancer treatments. Primarily these treatments, known as BTK inhibitors, can shrink or eliminate some B cell tumors by disrupting the BCR pathway.

Top Maxim Group analyst Jason McCarthy is very encouraged by recent clinical data for the drug Zanubrutinib. He writes “BeiGene remains on track to file two NDAs [new drug applications] this year. We believe the data continues to be highly encouraging for the BTK inhibitor and we see multiple catalysts ahead across the PTK, PD1 and PARP that should, if positive push valuation higher.”

Most encouragingly, he is clear that more upside potential lies ahead. BeiGene’s valuation has risen significantly over the last year, at around ~$9B. However, McCarthy believes that “With a BTK, PD1, PARP and a pipeline of assets, as well as a partner in Celgene and a foothold on the China oncology market, we see more upside in BGNE shares.”

Indeed, McCarthy’s $225 price target indicates huge upside potential of 46%. He is one of three analysts that have published recent buy ratings on BGNE.

Top 5 Canadian Stocks To Own Right Now: Procter & Gamble Company (PG)

In the consumer products space, it’s hard to find a bigger stock than Procter & Gamble. The company sports almost two dozen billion-dollar brands globally, with products like Pampers diapers and Crest toothpaste found in households around the world. The consumer giant is a member of the Dow Jones Industrial Average and generated revenue of more than $66 billion over the past 12 months, with a global presence few competitors can match.

On the dividend front, Procter & Gamble is also exceptional. The stock currently yields 3.7%, and the company has been generous in sharing its long-term growth with shareholders through regular dividend increases. For 62 straight years, shareholders in P&G have gotten annual payout boosts, including a 4% rise this past spring to $0.7172 per share quarterly. That not only makes P&G a Dividend Aristocrat, it also puts it among the top half-dozen stocks with the longest dividend-increase streaks in the market.

Procter & Gamble branded items like Charmin, Tide, Pampers, Bounty and Downy displayed together.

IMAGE SOURCE: P&G.

Procter & Gamble has experienced some struggles lately, which explain its slumping share price and rising yield. Yet the company has a long-term strategy that includes focusing on its most successful brands. That looks promising, and it creates an opportunity for would-be P&G investors to buy in at relative bargain prices in hopes of success over the long haul.

Top 5 Canadian Stocks To Own Right Now: Baozun Inc.(BZUN)

Shares of Chinese e-commerce services provider Baozun rallied more than 120% over the past 12 months. The company provides retailers with digital storefronts bundled with marketing, customer, fulfillment, and IT services, making it a "one-stop shop" for bringing businesses online in China’s bustling e-commerce market. It serves a wide range of clients, from small businesses to multinational giants like Nike.

The bears once claimed that Baozun would be rendered obsolete if Alibaba or JD.com, the two top e-commerce players in China, launched similar services for their marketplaces. But today, Alibaba, JD, and many other e-commerce websites integrate Baozun’s platform into their marketplaces.

Baozun’s revenue rose 22% as its non-GAAP net income surged 121%. On a GAAP basis, earnings climbed 141%. The company attributes that growth to rising transactions at its clients’ stores, an expanding number of brand partners, and its ability to cross-sell new services.

Analysts expect Baozun’s revenue and non-GAAP earnings to grow 27% and 68%, respectively, this year. Those are impressive growth rates, but the stock isn’t cheap at 46 times this year’s earnings.

Top Tech Stocks To Own Right Now

The Holy Grail for income investors is finding quality companies with significant payouts that will continue to generate income over the long haul. It’s important to remember, though, that companies with large dividends are not all created equal. In some cases, a high yield can be a red flag that indicates trouble in the underlying business.

Separating the wheat from the chaff can be an arduous and time-consuming process, but we’re here to help. We asked three Fool.com contributors to choose top companies with high payouts. Read on to find out why they chose the following stocks.

Top Tech Stocks To Own Right Now: Alibaba Group Holding Limited(BABA)

China e-commerce giant Alibaba (NYSE:BABA) has morphed into the face of the booming China tech revolution. As a result of essentially becoming the Amazon.com (NASDAQ:AMZN) of China with a super-charged digital retail business and rapidly growing cloud business, Alibaba stock has gone from $60 to $200 over the past two-plus years.

But the stock has been stung recently by a plethora of headwinds, none of which have staying power or will materially affect the company’s still robust long-term growth narrative.

First up, there are the currency headwinds. There was a recent devaluation of China’s currency, and that creates foreign exchange risks for Alibaba. But as MKM Partners points out, such currency risks always created weakness in shares in the near-term, and never materialized into anything meaningful. As such, present currency headwinds should be viewed as a buying opportunity.

Second, there are also concerns about Alibaba’s profitability. Alibaba has long been a staple for both big revenue growth and healthy margin expansion. But the latter part of that narrative — the margin expansion part — has been lacking recently as big investments into New Retail and cloud have diluted the margin profile of the business.

This isn’t anything to freak out about. Alibaba is investing big for the future. Eventually, big investment businesses will turn into big growth, big margin businesses, and the overall profitability profile of Alibaba will improve dramatically.

Overall, then, the risks presently facing Alibaba stock are over-stated. With the stock now trading at under 30-times forward earnings against the backdrop of 60%-plus revenue growth, it looks like July could be a big bounce-back month for Alibaba stock

Top Tech Stocks To Own Right Now: Canopy Growth Corporation(CGC)

Canopy Growth Corporation is one of the few marijuana stocks that generated a solid return in the first six months of the year. The Canadian marijuana grower’s share price is up 25% year to date.

Can Canopy Growth keep its momentum going? Probably so. The market for adult use of recreational marijuana opens in Canada in October. Canopy already has supply agreements for recreational cannabis with several provinces. The company has also cranked up its capacity to meet what’s expected to be a surge in demand.

An even greater opportunity for Canopy lies in global medical marijuana markets. The company reported record sales in Germany in its fiscal fourth-quarter results. Canopy is also expanding into other international markets. And with its big partner Constellation Brands, the company plans to get into the cannabis-infused beverage market. Canopy CEO Bruce Linton recently hinted in a CNBC interview at the potential for launching a zero-calorie beverage infused with cannabis.

Top Tech Stocks To Own Right Now: Select Income REIT(SIR)

Real Estate Stocks Paying Monster Dividends: Select Income REIT (SIR)

Source: Anders Jildén via Unsplash

 

Dividend Yield: 9.1%

Select Income REIT (NASDAQ:SIR) specializes in both office and industrial properties leased to single tenants. Buildings as diverse as corporate headquarters and leasable land parcels make up SIR’s portfolio of properties. SIR also owns 69.2% of the shares in Industrial Logistics Properties Trust (NASDAQ:ILPT). ILPT makes up its industrial properties and much of its office property.

Like many real estate stocks, this stock has seen little stock price appreciation. SIR stock currently trades around $22.50 per share, less than $1 higher than its $21.75 per share IPO price in 2012. In six years of trading, the stock has never risen more than 40% above this IPO price. It has also never fallen more than 20% below its original price.

Hence, like most REITs, dividends will constitute the majority of profit earned in SIR stock. The dividend has seen a steady increase since the 2012 IPO. The annual dividend started out at 91 cents per share in 2012. It has seen a sustained move higher since and last increasedto $2.04 per share. The quarterly dividend has remained at that 51 cents per share per quarter for two years. If that trend continues, 2018 will become the first year in its history not to see a dividend increase.

However, even if investors do not see a higher dividend, a yield of 9.1% will still provide income investors with a stable amount of income at a high return.

Top Tech Stocks To Own Right Now: Turquoise Hill Resources Ltd.(TRQ)

Headquartered in British Columbia, Turquoise Hill Resources Ltd. (NYSE: TRQ) is a Canadian mineral exploration firm focused on the Pacific Rim region.

Over the last several years, Turquoise Hill has developed several significant mining projects, including the Oyu Tolgoi Project in Mongolia – one of the world’s largest copper and gold porphyry deposits.

Over the last fiscal year, Turquoise Hill has beat earnings by an average of 225% while heavily investing in the expansion of its mining operations across the globe.

The company’s rapid expansion and investment has given Turquoise Hill some aggressive production estimates for 2018.

The company’s 2017 projections estimated that Turquoise Hill will pull between 125,000 to 155,000 tons of copper and 280,000 tons of gold over the course of 2018.

Last month, Turquoise Hill doubled down on these figures and stated that it had the potential to outpace initial estimates.

Turquoise Hill currently trades for $2.76. However, with rapid expansion fueling rising profit potential, analysts estimate that the company could hit $4.00 in the near future. This is a gain of 43%.

Both Turquoise Hill and Mizuho are great penny stock investments for July. But our top penny stock has better profit potential than both of these picks.

An international steel company, our top penny stock to buy in July, is set to generate substantial returns as trade war tensions continue to rise…

Best Safest Stocks To Buy Right Now

The U.S. Federal Reserve may be pushing short-term interest rates higher, but the fact remains that these rates are still incredibly low. Parking money in the bank yields almost nothing. And bond yields are not much better. The benchmark 10-year Treasury note only offers a stingy 2.84%.

Nobody gets rich on 2.84%.

That’s why divided stocks are in such demand.

And the three we’re going to show you today are some of the best dividend stocks you can buy in 2018…

Best Safest Stocks To Buy Right Now: Scotts Miracle-Gro Company (SMG)

Scotts Miracle-Gro’s share price fell more than 20% during the first half of 2018. There were two reasons behind this dismal performance. First, California hasn’t had its act together in rolling out the legalization of recreational marijuana, seeing high tax rates and slowness for many counties to finalize their regulatory processes. Second, a long winter resulted in the season for U.S. consumers to buy lawn and garden products starting later than it normally does.

But both of these are temporary issues. The California cannabis market should pick up steam. Arcview Research and BDS Analytics project that the state’s legal marijuana market should top $7.7 billion in sales in 2022. And the U.S. is definitely in the thick of lawn-and-garden season now.

Scotts is also in a better position to benefit from expansion in the U.S. marijuana market thanks to its acquisition of Sunlight Supply in April. This deal makes Scotts’ Hawthorne subsidiary the largest hydroponics supplier in the U.S. With Massachusetts legalizing recreational marijuana and Michigan potentially on the way to doing so, Hawthorne should enjoy solid growth in the future.

Best Safest Stocks To Buy Right Now: Weibo Corporation(WB)

Welcome to Weibo Corp (NASDAQ:WB), China’s most popular multimedia micro-blogging website. The fast-growing site already boasts over 374 million monthly active users. “Weibo has established itself as a unique and sustainable social network, and we expect long-term growth in number of users and better monetization,” cheers UBS analyst Jerry Liu. “We see Weibo as Twitter but, importantly, with Instagram-like features.”

Unlike Twitter, Weibo is much more interactive with a heavy emphasis on video, photo, and live-streaming content. It is also the partner of major TV networks and users can shop online using the BABA-backed ‘Weibo Payment’. Other initiatives include virtual gifting and partnering with smartphone companies to pre-install the Weibo app. It is this “differentiated platform for users and improved ad system for advertisers” that gives Weibo huge profitability potential says Liu.

Plus note that Alibaba and another Chinese company called Sina Corp are both big stakeholders in the stock. Indeed, Weibo was spun off from Sina back in 2014. To get some idea of the stock’s growth potential we can see that the most recent rating comes from Jefferies’ Karen Chan. She has Buy rating on Weibo with a $160 price target. This means she sees prices spiking a whopping 80%.

Best Safest Stocks To Buy Right Now: Autohome Inc.(ATHM)

Another Chinese internet company, Autohome, rallied about 125% over the past 12 months. Autohome’s websites provide auto-related news, reviews, and prices for cars, while its Autohome Mall platform connects buyers to dealers. The company is expanding that offering with a cloud-based platform for over 35,000 used car dealers.

Autohome’s only meaningful competitor is Bitauto, which generates higher revenue growth but softer earnings growth. Bitauto is notably backed by Tencent and JD, which frequently co-investin tech and retail companies.

Autohome’s revenue rose 4% last year, mostly supported by a 34% jump in revenues from its media and leads generation services. Its non-GAAP net income climbed 53%, while its GAAP net income grew 63%. The company recently shuttered its unprofitable direct sales business and switched over to the ASC 606 accounting standard, both of which will slightly throttle its reported revenue growth this year.

A bird's eye view of a car lot.

IMAGE SOURCE: GETTY IMAGES.

Nonetheless, analysts still expect Autohome’s revenue and non-GAAP earnings to climb 14% and 21%, respectively, this year. The stock currently trades at 29 times this year’s earnings, which seems slightly pricey relative to its earnings growth potential.

Best Safest Stocks To Buy Right Now: Mizuho Financial Group, Inc.(MFG)

The second-largest financial services company in Japan, Mizuho Financial Group Inc. (NYSE: MFG) is a Japanese banking holding company headquartered in Tokyo.

Mizuho controls $1.8 billion in assets, ranking just behind Mitsubishi UFJ Financial Group Inc. in size.

Mizuho divides its financial services among retail banking, global asset management, financial strategy, and corporate investment, giving the company a diverse stream of revenue for the company and its investors.

Thanks to this diversity, Mizuho’s business is protected against the volatility that often rocks financial companies in turbulent markets. It also allows Mizuho to tap profit centers throughout the financial industry.

This is certainly evident in the company’s bottom line. Over the last year, Mizuho managed to generate over $57 million in profit while growing earnings by over 2%.

Mizuho currently trades for $3.36. However, analysts see the company’s stock heading to $4.00 by the end of the year, locking in a gain of 23% for investors.

While Mizuho’s profit potential is promising, our second penny stock to watch is even better.

Best Safest Stocks To Buy Right Now: Colony Credit Real Estate, Inc.(CLNC)

Real Estate Stocks Paying Monster Dividends: Colony Credit Real Estate (CLNC)           

Source: Shutterstock

 

Dividend Yield: 8.3%

Colony Credit Real Estate (NYSE:CLNC) acts as a diversified REIT. CLNC owns properties in the industrial, office and hotel sectors. It also invests in commercial real estate debt. The firm also provides investment management services and offers financial products to individuals as well as institutions.

Though it boasts 26 years of experience and $43 billion in assets under management, it stands as one of the newer real estate stocks. The company only began trading as a REIT in February.

However, the little history available on the company appears promising. Revenues have risen by over 20% every year since at least 2015. Earnings have increased at about the same rate. Analysts expect CLNC stock to earn $1.77 per share this year. They also predict a net income of $2.08 per share in 2019.

So far, the company has paid 14.5 cents per share per month in dividends. That comes to $1.74 per share on an annual basis. Moreover, if the $2.08 per share profit for 2019 holds, shareholders can expect at least $1.87 per share next year. Hence, CLNC offers both a dividend exceeding 8% and the benefit of receiving dividends on a monthly basis. Few REITs offer one or the other, let alone both.

Despite the company’s long history, the stock’s short history as a publicly traded REIT might make some investors nervous. However, the financials that are available offer promise. For investors willing to take a chance on a short trading history, they can enjoy monthly returns, a dividend set to increase and, perhaps, a stock price set to increase along with the dividend.