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Best Medical Stocks To Buy Right Now

Unfortunately, America’s obesity epidemic continues to deteriorate, as more and more children and adults are becoming obese. Meanwhile, more information is emerging about the dangers of obesity.

In addition to heart disease and diabetes, scientists increasingly agree that obese people are more likely to get cancer, which in many cases spells a death sentence. Against this background, it’s worth looking at several companies and stocks that are likely to benefit by helping people combat this worsening trend.

Best Medical Stocks To Buy Right Now: TripAdvisor, Inc.(TRIP)

TripAdvisor’s (NASDAQ:TRIP) 62% spike makes it the fifth-best performer on the S&P 500 to date. The travel booking giant has delivered plenty of good news to investors lately. In February it announced that it had ended a brutal streak of profitability declines in its core hotel booking business even as management promised stronger earnings ahead. Executives delivered on that goal with a solid first-quarter report that sent shares soaring by 39% in May. To keep the good times rolling, TripAdvisor will need to show that it can sustain its sales growth even as it slashes spending in key areas like marketing.

Best Medical Stocks To Buy Right Now: ABIOMED, Inc.(ABMD)

Medical device specialist Abiomed (NASDAQ:ABMD) has seen its shares more than double this year. The company, which focuses on heart pumps, logged 40% sales growth in the first quarter and 34% gains in the second quarter. Both periods were marked by sharp global demand gains for its Impella pumps, along with surging profitability. Yet investors are even more excited about the future, given the low penetration of its products in major international markets like Germany and Japan. Abiomed also has a growing pool of patents that could extend its competitive lead in this key medical niche in the coming years.

Best Medical Stocks To Buy Right Now: Adobe Systems Incorporated(ADBE)

Cloud giant Adobe Systems Incorporated (NASDAQ:ADBE) has long been one of my favorite stocks in the market.

This is a 20%-plus revenue growth, 20%-plus earnings growth company with a ton of visibility due to secular growth tailwinds in cloud adoption and mitigated competition in the professional creative solutions space. That lack of competition also gives Adobe a big runway for price hikes, which creates a powerful long-term margin expansion narrative.

That being said, Adobe stock got slightly ahead of itself from a valuation perspective in mid-June when it was trading above $250. That is why the stock dropped after the Q2 earnings report, despite strong numbers. The valuation was just too big, and needed to normalize lower.

Adobe stock dropped. Then it hit its 50-day moving average, which has served as a strong support for this stock for the past several years. Adobe stock bounced off that 50-day moving average, and is now back to rally mode.

This rally will persist because nothing is wrong with the growth narrative at Adobe. The stock just dropped due to valuation. It came back down, tested a key technical level, and is now rallying again. Thus, July could be a big month for this cloud giant.

Top 5 Gold Stocks To Buy Right Now

As a rule of thumb, I try to stay away from the sub-$5 category when it comes to cheap stocks.

After all, companies don’t go public with a share price below $5. Thus, if a stock is trading below $5, that means investors have sold it off to be below $5. That usually means there is something really wrong with the underlying growth story, the valuation, or both.

For this reason, finding a winner in the sub-$5 group is like finding a needle in a haystack.

But if you find that needle, you could be looking at huge gains. After all, once upon a time in 2001, Amazon.com, Inc. (NASDAQ:AMZN) was basically a $5 stock.

I’m not saying you’ll find the next Amazon in the sub-$5 group, but you could find a stock will go up 2-5x or more in a hurry.

With that in mind, here is a list of 5 cheap stocks under $5. 

Top 5 Gold Stocks To Buy Right Now: Banco Latinoamericano de Comercio Exterior, S.A.(BLX)

Bladex (NYSE:BLX), or Foreign Trade Bank of Latin America, based in Panama City, serves as a special purpose bank. The bank works to facilitate trade and business relationships between Latin America and the Caribbean. Its commercial sector accounts for most of its activities and generates most of the institution’s income. Its treasury sector handles funding, liquidity, and investment management. Operating in Panama also creates a unique advantage. Since the Republic of Panama uses the United States dollar, it also enjoys the credibility that comes with conducting business in the world’s reserve currency.

BLX remains a stable institution for more reasons than its use of the U.S. dollar, though. This stability extends to the growth (or lack thereof) of revenue and net income levels. After seeing revenue and profit growth in 2014, both revenue and profits had fallen back to 2013 levels by 2017. Growth has stagnated since, and analysts believe that it will not resume until next year.

Hence, dividends remain the compelling reason to invest in BLX stock. While dividend levels saw some fluctuations in past years, the company has held its annual dividend to the $1.54 per share level since 2016. This roughly translates into its 6.1% yield. Moreover, if profit growth predictions hold, consensus 2018 earnings of $2.12 per share should cover the dividend. Also, if the company meets 2019 profit forecasts of $2.46 per share, a dividend increase for 2019 remains a possibility. With the advantages of operating in Panama and the stability of its income, the BLX stock dividend remains a safe bet for a high dividend return.

Top 5 Gold Stocks To Buy Right Now: Marriott International(MAR)

Hotel Stocks to Buy: Marriott International (MAR)

Source: Shutterstock

 

I’m not a big traveler but my wife is, and whenever she’s on the road for work she stays at a Marriott International Inc (NYSE:MAR), usually at a Courtyard Marriott when in the U.S. and Delta when in Canada.

She’s excited about the upcoming merger of Marriott Rewards with Starwood’s loyalty program which gives her a greater option of places to stay for work. Traveling as much as she does, it’s essential to have an excellent hotel to return to at night.

Marriott is continuously opening new hotels. Its pipeline is massive. As of the end of the first quarter, it had 465,000 rooms either under construction or soon to be with 49% in North America, 30% in Asia, and the rest in other parts of the world with 82% of them, upscale or above.

Back in 2013, I wrote about its new Moxy brand. It now has ten Moxy Hotels open in the U.S. with another 14 on the way — and that’s just one of its many brands.

Long-term, this is a hotel stock you want to own.

Top 5 Gold Stocks To Buy Right Now: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group (NYSE:UNH) is the largest single health carrier in the United States. It serves more than 85 million people worldwide and is a parent company to six businesses, including UnitedHealthcare — health insurance that offers policies to businesses and individuals, including Medicare and Medicaid policies.

Its other main branch, Optum, administers everything from mental health and substance-abuse programs to mail-order pharmaceuticals.

While many drug store stocks were rocked by the news that Amazon has now entered the pharmacy business, UNH has been relatively undisturbed because of its integrated strategy.

Looking ahead to full-year 2018, the healthcare giant is targeting adjusted earnings between $12.30 and $12.60 per share, which is a 22% to 25% year-over-year increase and up from its previous guidance of $10.55 to $10.85 per share.

Additionally, cash flows from operations are expected to be in a range between $15 billion and $15.5 billion, and UnitedHealth Group is calling for total revenues between $223 billion and $225 billion.

Top 5 Gold Stocks To Buy Right Now: Adobe Systems Incorporated(ADBE)

Cloud Computing Stocks to Consider: Adobe (ADBE)

Source: Shutterstock

 

The story at Adobe (NASDAQ:ADBE) is a faster-growing version of that of Microsoft (NASDAQ:MSFT). In both cases, the shift from “on-premise” software to cloud-based offerings hasn’t just been a case of selling the same product in a different medium. Rather, the move to the cloud has opened up new cross-selling and revenue opportunities … and benefited margins as well.

Indeed, Adobe’s fantastic growth story often seems a bit lost in the shuffle in terms of tech coverage, despite a $120 billion market capitalization and hugely impressive performance. In fiscal Q2, revenue rose 24% and EPS jumped an impressive 77% year-over-year. Adobe once again beat analyst estimates; it hasn’t missed consensus on either revenue or EPS since September 2014.

Valuation is a bit of a concern, as Lango pointed out after the fiscal Q2 report. But a 31x forward EPS multiple isn’t that oppressive in the context of recent growth, and a pullback since earnings has brought the valuation in a bit. Investors are still paying up for ADBE, but at least they’re paying up for quality.

Top 5 Gold Stocks To Buy Right Now: Shopify Inc.(SHOP)

Shopify is an e-commerce platform company that helps businesses of all sizes run their own online store and sell products via social media and through platforms including Amazon.com.

When it comes to growth stocks, it doesn’t get much better than Shopify. About 600,000 merchants are now using its platform, up from 243,000 just two years ago. And in the fourth quarter of 2017, Shopify’s sales were boosted by 71% year over year. The growth has been sparked in part by its ability to bring bigger (read: more lucrative) companies onto its platform. Shopify ended 2017 with 3,600 high-end Plus customers, including huge companies like Cummins and Ford. Shopify Plus customers pay a premium for the company’s services and these sales are helping to boost Shopify’s monthly recurring revenue (MRR). MRR from Shopify Plus now makes up 21% of total sales, up from 17% in the year-ago quarter. But wait, there’s more. Not only are sales booming, but the company’s gross merchandise volume (the value of the transactions processed on its platform) jumped 71% in 2017. 

Management expects full-year 2018 sales to be $980 million at the midpoint, which would be a 45% increase from 2017. Similarly, the sales estimate for first-quarter 2018 is $198 million to $202 million, which would be a nearly 57% year-over-year increase at the midpoint.

Shopify’s share price has jumped about 60% over the past year, and while it’s experienced some volatility, there’s likely more room for this company to run. That’s because the online shopping market is still booming and is expected to climb from $385 billion in 2016 to $632 billion by 2020.

Investors should know that Shopify’s shares aren’t cheap and its stock price is likely to see more dips and pops ahead. But this company is quickly building out its own niche in the e-commerce market and has proved that it knows how to add customers both big and small. If Shopify continues at this pace, stable profitability shouldn’t be far behind.

Top 10 Small Cap Stocks To Watch Right Now

With the new inflation numbers coming in under expectations, that’s a bullish sign that the Federal Reserve won’t be adding more hikes to interest rates, at least for now.

Slower inflation is a good sign since it means that the transition from a cool economy to a hot one isn’t happening too quickly. It’s transitioning over time, and that’s bullish for consumer stocks since a fast rise in prices means consumers will slow spending or choose value brands over name brands.

As 2018 started, it looked like the economy was heading down the first drop on a roller coaster, gather enormous speed from nearly a dead start. That hurt some stocks as the markets worried that inflation would hit hard and fast, hurting the consumer’s spending power in the process.

Now that this scenario isn’t coming to pass, I wanted to highlight seven consumer goods stocks that will rise again.

Top 10 Small Cap Stocks To Watch Right Now: Activision Blizzard, Inc(ATVI)

ATVI is the ticker symbol. Activision Blizzard is, for me anyway, the worldwide leader. There’s some good competition [Electronic Arts and others] in interactive entertainment.

Now, the company’s not as dominant in China as some very large Chinese companies, so you and I could debate who the real worldwide leader is. The good news is with a stock like NetEase, which is a big Chinese video game maker and one of those conglomerates, we own that one, too. I like to think that we’ve got this industry cornered, but I love the future of interactive entertainment, whether it’s playing digital card games like Hearthstone, which I do almost every day, even though it’s in its fourth or fifth year. I love Hearthstone to great games like Overwatch, which has been a huge hit and is the big e-sport of choice with clubs these days.

You might be following the The Overwatch League, some of you. Cities in the U.S. and abroad paying tens of millions of dollars to have the rights to have a team that’s competing in Overwatch. So, e-sports is a big part of Activision Blizzard. Starcraft. Warcraft. World of Warcraft. The list goes on of this company’s properties. Love Activision Blizzard. Bobby Kotick, the CEO. I’ve talked about him before on this show. He’s a brilliant asset allocator. He’s not even a video gamer.

He also, by the way, had a cameo appearance in one of my favorite films, Moneyball, when Bill James’s great story and Michael Lewis’s non-fiction book was turned into a movie with Brad Pitt. You’ll see Bobby Kotick playing the owner of the Oakland A’s in an early scene in that movie. A little trivia tip for Activision Blizzard fans. 

Top 10 Small Cap Stocks To Watch Right Now: Centene Corporation(CNC)

Centene Corp (NYSE:CNC) operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States.

The company’s total revenue stands at $48.3 billion as of its latest fiscal year. This is nearly 5x higher than the $8.1 billion achieved five years prior.

Going forward, analysts are forecasting that Centene’s total revenue will reach $87.9 billion by fiscal year 2022 representing a five-year CAGR of 12.7%.

Shares of the company are trading 54.2% higher year over year. But the stock price could end up trading another 31.6% higher in 2018 based on Centene’s future cash flow projections.

It’s worth noting that highly followed portfolio manager David Tepper currently holds a position in Centene worth $76.5 million. Tepper, founder and portfolio manager at Appaloosa Management, is widely known for having inspired what’s been dubbed the Tepper Rally of 2010.

Top 10 Small Cap Stocks To Watch Right Now: ARMO BioSciences, Inc.(ARMO)

ARMO BioSciences stock skyrocketed 78% this week. The biotech announced on Thursday that it was being acquired by Eli Lilly (NYSE:LLY) for $1.6 billion. What’s especially notable about this acquisition is that ARMO conducted its initial public offering (IPO) less than four months ago. 

What made ARMO so attractive to Lilly? The small biotech’s lead product candidate, AM0010, also known as pegilodecakin. AM0010 a long-acting form of recombinant human Interleukin 10 (IL-10) that stimulates white blood cells called CD8+ T cells. These T cells recognize and kill cancer cells. The drug is currently being evaluated in a phase 3 study for treating pancreatic cancer and in earlier-stage studies targeting other types of cancer.

Lilly saw AM0010 as a great addition to its current oncology lineup, which includes Cyramza, Verzenio, and three pipeline candidates in phase 2 clinical studies. The acquisition is expected to close by the end of the second quarter. 

Top 10 Small Cap Stocks To Watch Right Now: Adobe Systems Incorporated(ADBE)

Adobe has been selling software used to create digital content for nearly four decades, so you’d be forgiven for assuming that this company has morphed into a slow-moving giant. Amazingly, that’s not the case at all. Adobe posted revenue and adjusted EPS growth of 24% and 65%, respectively, last quarter. Those spectacular results weren’t a one-off fluke, either; the company has been a growing like a weed ever since CEO Shantanu Narayen made the bold decision a few years back to transition to a cloud-based business model. 

While the transition was met with harsh criticism when it was announced it has paid off brilliantly for long-term investors. Adobe’s stock has steadily marched higher since 2013, including a 70% jump in 2017 alone. All told, shareholders have enjoyed a 417% jump in the last five years.

But can the good times continue? I believe that the answer is yes. Adobe’s software lineup is led by design necessities like Photoshop, Illustrator, and InDesign, and their continued popularity drove the company’s Digital Media segment to 28% growth in the first quarter. Even better, these products are typically sold through the cloud on a subscription basis, which means consistent and steady income. Adobe makes 86% of its revenue through subscriptions (a figure that’s still growing), and subscription-based revenue increased 30% in the first quarter. Selling products this way also gives Adobe a better look into how its customers are using the software, which means a better experience over time. Meanwhile, the company is also plowing its R&D dollars to build out its presence in fast-growing areas such as virtual reality and digital advertising. When combined, market watchers believe that sustained double-digit revenue and profit growth is achievable. I happily concur with that assessment.

The only downside here is that the tremendous run has pushed the company’s valuation up so high that shares currently trade for more than 30 times next year’s earnings estimates. While that might seem like too high of a price to pay I don’t think its outrageous given the company’s projected profit growth rate of 26% over the next five years. Mix in a cash-heavy balance sheet and a dominant competitive position and I think that Adobe is a fantastic business that is currently trading at a fair price. If you haven’t bought shares yet, consider it today.

Top 10 Small Cap Stocks To Watch Right Now: Best Buy Co., Inc.(BBY)

Shares of Best Buy are up 55% over the last year and have also climbed 7.4% in the last four weeks. The big-box electronics retailer is expected to see its Q1 revenues pop by 2.8% to hit $8.77 billion, based on our Zacks Consensus Estimates. Meanwhile, Best Buy’s earnings are projected to surge by 25% to touch $0.75 per share.

Best Buy’s Most Accurate Estimate—the representation of the most recent analyst sentiment—calls for quarterly earnings of $0.76 per share, which is 1 cent better than our current consensus estimate. The company is also currently a Zacks Rank #2 (Buy) and sports an Earnings ESP of 2.01%. Therefore, investors can consider BBY as a stock that could top quarterly earnings estimates when it reports its Q1 financial results before the market opens on Thursday, May 24.