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Top Heal Care Stocks To Invest In Right Now

With trade war fears plaguing the market, Chinese stocks have been receiving some bad rap recently. But don’t let this distract you. The top China-based stocks present stellar investing opportunities. And you don’t just have to take my word for it. Here we use TipRanks to pinpoint the best Chinese stocks according to the Street. This website tracks the latest ratings from over 4,800 analysts — so we can find the most highly-rated stocks with just a couple of clicks.

If you think about it, the restrictions on foreign companies means a whole host of Chinese-equivalent U.S. stocks has sprung up. From WhatsApp to Google, China has its own parallel universe of top-notch companies. The best part is that these stocks appear seriously undervalued. It’s true that it’s much easier to invest in a company whose products you know and use. But for the more adventurous investor, these stocks have huge potential.

Here are 5 A-rated stocks to add to your wish list right now:

Top Heal Care Stocks To Invest In Right Now: SVB Financial Group(SIVB)

SVB Financial Group (NASDAQ:SIVB) is my pick from the financial sector. Up 25% YTD, it’s on a seven-year winning streak that doesn’t look to be broken anytime soon.

If you can only own one bank, I wholeheartedly suggest you hold SVB Financial, the holding company for Silicon Valley Bank, consistently named one of the 100 best banks in America.

Silicon Valley Bank got its start lending money to tech startups and has since broadened its base to include innovators and entrepreneurs outside the technology sector with a loan portfolio nearing $25 billion.

“The combination of these two things [digital health and machine learning], I think is super exciting,” SVB Financial CEO Greg Becker told Fortune recently. “I think we’re going to see an incredible amount of innovation over the next five, ten, 15 years.”

Innovation is a big reason I called SIVB in 2013 one of the five best stocks to own for the next 20 years. Up 192% since then, I believe it’s just getting started. 

Top Heal Care Stocks To Invest In Right Now: Equinix Inc.(EQIX)

Equinix (NASDAQ:EQIX) is my pick from the technology sector. Down 5% YTD, it’s not even keeping up with its diversified REIT peers.

However, anyone who has owned EQIX over the past five years — 21% annualized total return — has significantly benefited from the data center buildout that has been going on to support the growing cloud.

In March, InvestorPlace contributor and Finbox.io founder, Matt Hogan, discussed the six most inexpensive growth stocks to buy; Equinix was on his list.

“Equinix’s stock currently trades at $414.48 per share as of Tuesday [March 20], up 9.4% over the last year. On a fundamental basis, the company’s stock is trading at a 7.0% discount to finbox.io’s intrinsic value estimate,” Hogan wrote. “However, the average price target from 22 Wall Street analysts of $507.23 implies 23.2% upside.”

At the time, Finbox.io had a fair value of $444, providing investors with 7% upside. Now trading around $428, Finbox.io suggests it has 22% upside or fair value of $520.

With the public cloud computing market expected to grow by 22% in 2018 to $178 billion, the company’s data centers will continue to experience strong demand.

As long as Amazon and the rest of the major cloud participants continue to grow, so too will Equinix.

Top Heal Care Stocks To Invest In Right Now: Baidu Inc.(BIDU)

As China’s No. 1 search engine, Baidu Inc (NASDAQ:BIDU) is often nicknamed the ‘Google of China.’ Like Google, Baidu’s business interests span much more than just search. Baidu’s business covers the cloud, AI, maps, IT security and self-driving technology. The latest update: Baidu has announced a new partnership with Ford Motor (NYSE:F) to develop smarter cars for the Chinese market.

Ford will now install Baidu-powered in-vehicle infotainment systems known as DuerOS in its cars for Chinese customers. “Baidu and Ford share the vision of using technology to build the future of driving,” says Ya-Qin Zhang, president of Baidu. “Together, with Baidu’s leading-edge AI technology and Ford’s advanced engineering expertise, we will transform the mobility ecosystem and create the next-generation in-vehicle experience for consumers.”

And from a Street perspective, Baidu certainly gets the thumbs up. The stock has 100% support from top analysts specifically and a $306 price target (26% upside potential). Top Oppenheimer analyst Jason Helfstein has just reiterated his BIDU Buy rating. The “current valuation is too low for the leading Chinese search engine” argues Helfstein. He points out that BIDU is in prime place to benefit from the secular growth of China’s online ad market.

Top Heal Care Stocks To Invest In Right Now: GlaxoSmithKline PLC(GSK)

You certainly know the name GlaxoSmithKline (NYSE:GSK). As investors, we aren’t going to freak out about a U.K.-based company, right? We also know it is an $100 billion pharmaceutical company.

It has four divisions: Pharmaceuticals, Pharmaceuticals R&D, Vaccines and Consumer Healthcare. Besides its huge portfolio of proprietary pharma drugs, it has other products you certain know: Otrivin, Panadol, parodontax, Poligrip, Sensodyne, Theraflu and Voltaren.

It also has consumer products, such as drinks and foods, toothpastes, toothbrushes, mouth rinses, medicated mouthwashes, gels and sprays, denture adhesives, and denture cleansers.

GSK invented NicoDerm and has more than three dozen other products in development. It’s no wonder GSK has billions of cash on the balance sheet, and more than enough cash flow to pay its dividend, presently at 5.4%.

Top Heal Care Stocks To Invest In Right Now: Alibaba Group Holding Limited(BABA)

Chinese e-commerce giant Alibaba Group Holding (NYSE:BABA) is always one of the Street’s favorite stock picks. And this doesn’t appear to be changing any time soon. On the contrary; our data shows that in the last three months 15 analysts have published BABA Buy ratings. Couple this with a bullish $248 price target (34% upside potential) and you can see why BABA is a hot stock pick right now.

Indeed, you may get more than you bargained for. Five-star Argus Research analyst Jim Kelleherhas just initiated coverage of BABA with a $275 price target. This translates into massive upside potential of 48%. Kelleher wrote, “Although BABA shares have had a strong multi-year run, we regard the stock as attractive based on mid-double-digit growth prospects for GMV [gross merchandise volume].”

But this huge sales potential still isn’t reflected in current prices: “We believe that BABA’s growth prospects are accelerating more rapidly than the share price, creating a favorable entry point. The shares also appear attractively valued. Based on peer group, historical comparables analysis, and discounted free cash flow valuation, we believe the BABA shares are attractive up to $330 and beyond.” We’re sold!

Best Value Stocks To Watch Right Now

While stock prices continue to bounce around following their tumble earlier this year, crude oil is back near new highs. In fact, despite the stock market’s super run in 2017, crude oil actually outperformed stocks starting in June. And it continues to do so here in April 2018.

 

That means investors have a choice during the current volatile environment for stocks. And that does not necessarily mean speculating in commodities. Energy stocks representing companies that explore, drill, produce and refine oil finally look positioned to lead the stock market to the upside.

How can this be? For years, the fundamentals of “black gold” were rather dour. It was fairly common to see headlines saying, “the world is awash in oil” or “crude oil inventories rise again.” Indeed, the U.S. became a net exporter of oil in May 2011 and the third-largest producer of crude oil in 2014, after Saudi Arabia and Russia.

That is, until this year.

While neither the technical or fundamental side is signaling a return to $100-per-barrel oil prices any time soon, the tone of the market is bullish. The question is: What should investors buy?

Best Value Stocks To Watch Right Now: Maxim Integrated Products, Inc.(MXIM)

This company supplies some chips to Samsung for the red-hot Galaxy line. Maxim Integrated Products Inc. (NASDAQ: MXIM) designs, develops, manufactures and markets various linear and mixed-signal ICs worldwide. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. It primarily serves automotive, communications and data center, computing, consumer and industrial markets.

While the company only posted inline fourth-quarter numbers, it did offer strong guidance on auto, industrial, data center strength and above seasonal consumer (Samsung, Nintendo). That could prove to be a big plus when it is expected report first-quarter results on April 26.

 

The Merrill Lynch team has favored Maxim for some time as the company continues to generate significant cash and targets 80% payout ratio. The company’s dividend yield is near its five-year average, and the company has grown its dividend in each of the past six years. The favorable view is based on expectations of continued strong growth in automotive with solid double-digit year-over-year growth and continued strength in its industrial segment.

Shareholders of Maxim are paid a 3.09% dividend. The $68 Merrill Lynch price objective is above the posted consensus target of $61.18. The shares closed most recently at $54.40 apiece.

Best Value Stocks To Watch Right Now: Paycom Software, Inc.(PAYC)

I’ll be the first to admit that growth investing is not my style. I don’t want to have to be right. Being right is hard. Instead, I want such a large margin of safety that I can be wrong to a degree and still have a positive outcome. High-priced growth stocks generally don’t offer that.

While I wouldn’t buy shares of Paycom Software at today’s prices, I like the company. Paycom offers a cloud-based solution for payroll processing and other human resources tasks. What’s notable about Paycom is that the company is solidly profitable. Many fast-growing software-as-a-service (SaaS) companies pour resources into sales and marketing to juice their growth at the expense of the bottom line. Paycom is different.

Businessman pulling pile of hundred dollar bills off a table.

IMAGE SOURCE: GETTY IMAGES.

In 2017, Paycom grew revenue by 31% to $433 million. Sales and marketing expenses ate up just 34% of revenue. Compare that to an unprofitable SaaS company like HubSpot, which spent 57% of revenue on sales and marketing last year. As a result of Paycom’s efficiency in winning new business, the company managed a GAAP operating profit of $78.6 million, good for a double-digit operating margin.

You don’t find SaaS companies like this very often, able to grow revenue at a brisk pace while generating fat margins. Unfortunately, the market recognizes this excellence, pricing the stock at a whopping 96 times last year’s GAAP earnings. If your holding period is 50 years, the company should eventually grow into that valuation, assuming it continues to perform well. If it doesn’t perform well, the stock has a lot of room to fall.

If I were forced to buy a growth stock and hold it for decades, I would pick a company that has a proven business model and a track record of strong profitability. Paycom would be at the top of my list.

Best Value Stocks To Watch Right Now: GlaxoSmithKline PLC(GSK)

GlaxoSmithKline Plc (ADR) (NYSE:GSK) has kept its dividend frozen since 2012 and has impressively paid uninterrupted dividends for nearly 20 consecutive years. When combined with its high yield and seemingly conservative payout ratio below 40%, it’s no wonder why the stock is popular with income investors.

Dividend Stocks to Avoid: GlaxoSmithKline (GSK)

However, the pharmaceutical giant is facing real growth struggles as branded and generic competition eats away at the pricing of its core drugs.

With pressure to continue expanding and its dividend consuming a meaningful amount of cash flow, it’s not out of the question that GlaxoSmithKline might opt to reduce its dividend to free up growth capital and keep its balance sheet in good shape.

GlaxoSmithKline has a Dividend Safety Score of 30 from Simply Safe Dividends, indicating that its payout is potentially unsafe and has a heightened risk of being cut in the future.

Best Value Stocks To Watch Right Now: Booking Holdings Inc.(BKNG)

 It’s hard to bet against Netflix, especially immediately after the streaming video giant just announced another quarter of strong financial performance. Yet Netflix is having to make a transition away from simply being a conduit for delivering other people’s content to a willing audience of viewers, spending billions to come up with its own exclusive content instead. That’s a smart move for the company, and it could promote long-term growth, but it still requires a big investment and fundamentally changes the nature of the business.

By contrast, Booking Holdings has largely been able to stick with its successful business model of offering a wide range of accommodations and other travel services using the internet. Its recent name change reflects the transition the company has made, with consumers seemingly less enthusiastic in the name-your-own-price propositions that made the company’s Priceline segment famous and instead highlighting the highly successful Booking.com hotel booking website.

Booking Holdings faces its own growth challenges, as rising competition has led some to fear that hurdles to further revenue gains could prove difficult to overcome. Yet through smart acquisitions, Booking Holdings has been able to answer past competitive threats, and the online travel giant has plenty of financial resources to use if future situations arise that warrant quick strategic action. In the long run, online travel has greater growth potential than entertainment, and that should give the smaller Booking Holdings an edge.