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Top 5 Medical Stocks To Buy For 2019

If a rising tide lifts all boats, bank stocks are the ship you want to be on.

Interest rates are rising. The economy is growing. And unemployment is below 4%, which has helped keep loan losses near historical lows. Best of all, most banks have spent the past decade shedding expenses, so a greater share of each dollar of revenue flows into pre-tax profit.

But investors can do even better by selecting the very best banks the market has to offer. Below, three Fool.com contributors make the case for why these stocks are worthy additions to your portfolio.

Top 5 Medical Stocks To Buy For 2019: Costco Wholesale Corporation(COST)

Last but not least, add Costco Wholesale Corporation (NASDAQ:COST) to your list of stocks to buy for their long-term uptrend.

Costco won’t win any value awards. Priced at 29 times its trailing earnings and 25 times its forward-looking profits, the stock is more than pushing its luck — especially by retail standards. But investors just don’t care. They love the way the brick-and-mortar retail has managed to compete with both Amazon.com, Inc. (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT) at the same time, setting the stage for shockingly consistent income and revenue growth — no “retail apocalypse” here.

Analysts have taken notice too. Wells Fargo analyst Edward Kelly just upgraded COST stock, explaining:

“We expect the company to sustain strong comp momentum despite difficult comparisons, deliver improved membership trends, navigate rising retail cost pressures, and beat consensus expectations.”

Top 5 Medical Stocks To Buy For 2019: Eli Lilly and Company(LLY)

Our next choice is Eli Lilly And Co (NYSE:LLY). The stock has an Earnings ESP of +0.73% and a Zacks Rank #2.

The consensus mark for first-quarter earnings stands at $1.13 per share. Headquartered in Indianapolis, IN, Lilly has an excellent positive earnings surprise history.

The company’s average beat over the trailing four quarters is 4.08%. 

Top 5 Medical Stocks To Buy For 2019: Amazon.com, Inc.(AMZN)

Shares in Amazon.com, Inc. (NASDAQ:AMZN) are down 7% over the last month. Amazon has had to deal with FB’s data woes as well as a barrage of tweet attacks from President donald Trump. “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted on April 3.

But while Amazon may not be the president’s favorite stock, it certainly has top marks from the Street. RBC Capital’s Mark Mahaney writes “Presidential Obsession” is now an investment risk, but we continue to view the long-term growth outlook for AMZN to be the most robust in ’Net land given the very large TAMs [total addressable markets] AMZN is facing.”

He continues: “For ’18, we believe AMZN starts gaining traction in Marketing services (AMS), while Cloud appears to have hit a positive industry inflection point.” Indeed, AWS revenue contribution is still growing and should act as a meaningful, sustainable source of leverage for Amazon.

Right now 34 out of 35 top analysts are bullish on the stock. These analysts see the stock spiking 19% to $1,706. This is just above Mahaney’s $1,700 price target.

Top 5 Medical Stocks To Buy For 2019: Ingersoll-Rand plc (Ireland)(IR)

Ingersoll-Rand Plc (NYSE:IR) is a designer, manufacturer and seller of industrial and commercial products.

The company is based out of Swords and has a Zacks Rank #2. The expected earnings growth rate for the current year is 17.21%. The Zacks Consensus Estimate for the current year has improved 2.3% over the past 60 days. Ingersoll-Rand has gained 4.4% in the past six months.

Top 5 Medical Stocks To Buy For 2019: AudioCodes Ltd.(AUDC)

AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. Analysts have become increasingly bullish on AUDC lately, and our consensus projection for its full-year earnings has moved three cents higher in the last month. The stock is a Zacks Rank #2 (Buy) based on this revision activity. The company is now expected to witness EPS growth of 22% on 9% higher revenue this fiscal year. Meanwhile, AUDC’s P/E of 16.2 represents a discount to its industry average.

Top Undervalued Stocks To Watch For 2019

Retirement investors have been done a terrible disservice over the years. They’ve been told that they should move into dividend stocks and bonds in order to generate income for their retirement years, and stay away from growth stocks.

The problem with this approach is that inflation is not 3%. It is actually closer to a range of 8% to 10%. As a result, your retirement portfolio is improperly skewed towards investments that are not going to give you the return you need.

My investment advisory newsletter, The Liberty Portfolio, is designed to meet or beat the actual rate of inflation. One of the ways it does this is by zeroing in on some very carefully selected growth stocks for your portfolio.

Growth stocks are a critical part of any portfolio, including retirement portfolios. Here are suggestions for three stocks you may want to look at, and that The LibertyPortfolio either owns or is considering.

Top Undervalued Stocks To Watch For 2019: UBS AG(UBS)

How high is a "high yield?" Does nearly twice the average dividend payout on the S&P 500 qualify? Because if it does, then UBS Group AG just might be the stock you’re looking for.

UBS pays a 3.9% dividend yield, which seems pretty high to me, given that the average stock on the S&P pays just 2%. Admittedly, right now UBS doesn’t look like it should be paying so much out in dividend checks, as "3.9%" is about 122% more money than UBS actually earned last year. But here’s the thing — and here’s why I think UBS stock might be worth a look despite its high payout ratio and similarly high P/E ratio (currently 61 times earnings).

Last year, UBS’s profits got hit by the one-two punch of a $1.2 billion restructuring charge, and a $4.2 billion income tax bill. That tax bite, however, was much more than UBS had paid in any of the previous five years. In fact, it was more than UBS paid in all of the previous five years combined. As such, it seems likely that last year’s tax hit was a one-time thing related primarily to the effects of tax reform in the U.S., and not likely to repeat in future years. Going forward, I think it more likely we’ll see UBS turn in annual profits closer to the $3.2 billion it earned in 2016 — or even the $6.2 billion it earned in 2015 — than the $1.1 billion it earned last year.

With a corporate history stretching back more than 150 years, UBS is a bank stock built to stand the test of time — and to keep on paying you dividends forever.

Top Undervalued Stocks To Watch For 2019: AudioCodes Ltd.(AUDC)

AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. AUDC is a solid growth pick, with earnings expected to improve by 22% and revenue projected to expand by 9% this year. Meanwhile, the stock has a P/E of just 15.8, which is a discount compared to the average of our “Communication – Components” group. Its P/S ratio of 1.2 also helps show that investors are getting a great price on this stock. AUDC is currently sporting a Zacks Rank #2 (Buy).

Top Undervalued Stocks To Watch For 2019: Leggett & Platt, Incorporated(LEG)

What would a list of potential dividend increases be without a Dividend Aristocrat?

Leggett & Platt, Inc. (NYSE:LEG) is one of the more diversified manufacturers out there, producing a swath of products used in businesses, in homes and even in transit. Just a few examples?

Its residential products include bedding, carpet cushions and furniture fasteners; its industrial products include various types of wires and sterling steel rods; and it even boasts an aerospace division that includes tubes and ducts.

That diversification has allowed Leggett to build a 47-year history of interrupted dividend increases, and No. 48 should be on the way in May. The company typically makes an announcement during the middle of the month.

Top Undervalued Stocks To Watch For 2019: AutoZone, Inc.(AZO)

Source: Shutterstock

 

 

Auto parts retailer AutoZone, Inc. (NYSE:AZO) is known as one of the ‘steadiest performers’ in the auto parts retail space. And now the stock has received a big thumbs up from Goldman Sachs’ Matthew Fassler. On May 7 Fassler added AZO to its ‘Conviction Buy’ list. This is a group of elite stocks that the firm expects will outperform the market.

Following a ‘more normative’ winter of 2017-2018, Fassler expects a ‘solid’ summer season as auto parts de-thaw. This can create parts failure — boosting AZO sales. At the same time, sales of auto parts correlate with cars over 10 years old. In 2019 this segment will become more evident as the “last stages of the hangover” from the 2009 financial crisis hit predicts Fassler.

The best part is that AutoZone boasts a “rich” free cash flow yield of 8.5% on 2018 estimates and 8.3% on 2019 estimates. Plus AZO is trading near the low end of its recent historical relative P/E range right now. Note that AutoZone is also a top pick at Fenimore Capital Asset Management.

Interestingly, our data shows AZO as a ‘Moderate Buy’ stock. However, if we limit recent ratings to only those from the best-performing analysts, this consensus shifts to ‘Strong Buy’. Meanwhile, the average price target from these analysts of $819 indicates big upside potential 26% from current levels.

Top Undervalued Stocks To Watch For 2019: NVIDIA Corporation(NVDA)

NVIDIA Corporation (NVDA) Stock Is at a Serious Tipping Point

Source: via Nvidia

 

Nvidia Corporation (NASDAQ:NVDA) has received a slew of bullish calls from the Street in the last month. All eyes are on the chip giant right now ahead of its first quarter earnings results on May 10. “Expect beat/raise … We remain positive on NVDA ahead of Q1 results,” five-star Bank of America analyst Vivek Arya told clients on May 7.

“In our view, FQ2 sales outlook can be at-least inline or better than consensus from continued data center strength, start of Nintendo Switch sales, workstation demand, and shift of GPU sales to gamers from miners” this five-star analyst added. He is predicting that prices can soar to $300 from $248 currently.

And the longer-term outlook for NVDA is even more impressive given its ‘unparalleled strength’ in both auto and AI. Top Goldman Sachs analyst Toshiya Hari advises investors not to be alarmed by any short-term choppiness: “Despite the potential near-term volatility, our long-term thesis on the stock is intact — we continue to see Nvidia as one of the best-positioned companies in the Semiconductor space with exposure/leadership in AI, PC gaming, and further down the road in L4/5 autonomous cars.”

SunTrust Robinson’s William Stein agrees. He believes shares have 23% upside right now (which would take shares to $305) and sees huge potential for NVDA in the self-driving space. Meaningful revenue from autonomous driving should hit in the next 2-3 years advises Stein. As a result, he urges investors to buy any weakness.