Tag Archives: P

Best Financial Stocks To Watch For 2019

Scores of companies generate huge returns for their investors without making splashy financial headlines. That’s why it can make a great deal of sense to look for stocks to buy that Wall Street is currently ignoring. 

So, which stocks are potential hidden winners that can be safely purchased today? We asked a team of investors to weigh in, and they picked these stocks.

 

Best Financial Stocks To Watch For 2019: 8×8 Inc(EGHT)

If you want to beat Netflix at its own high-growth game, you will have to take some risks. On that note, let me introduce you to 8×8, the most exciting little telecom-like company you’ve never heard of.

8×8 sells voice and video communications services built on cloud-computing concepts. The company mostly serves small and medium businesses at this point, but it has started to sniff around a few huge customers in the enterprise category. Big contracts are the long-term future of this business. According to CEO Vik Verma, only 10% of the enterprise communications market is served by cloud-based solutions today, leaving the vast majority of a $50 billion annual sales opportunity untapped.

Now, 8×8 is hardly the only game in town. Besides a handful of other cloud communications specialists, the big boys of the telecom world also dip their toes into these waters. There are no guarantees that 8×8 will beat all comers and become the undisputed king of internet-based enterprise communications. But you can’t win if you don’t play, and 8×8 is most definitely in the game.

This company has some high-growth chops. Over the last five years, 8×8’s revenues have increased by 160%, closely followed by 184% higher share prices. But shares are trading at a mind-boggling 208 times forward earnings estimates and 109 times the company’s free cash flows. At these nosebleed levels, it’s a volatile ticker that’s prone to sudden jumps — and the occasional crash.

So, I’m not 100% sure that 8×8 is a guaranteed long-term winner. All I’m saying is, if the company keeps up the good work for another few years, it could make shareholders very happy indeed.

If.

Don’t back up your truck to the buying window. This is a lot of speculation and a certain amount of gambling, but that’s what it takes to beat Netflix, in my book.

Best Financial Stocks To Watch For 2019: NVIDIA Corporation(NVDA)

Imagine your daughter or son 20 years from now, chatting with you in a beach house overlooking a gorgeous white sand beach with their kids — your grandchildren — splashing in the crystal-clear water. Your adult child is telling you about how much the kids love their new pediatrician. Here’s the kicker: You’re not in a beach house and are instead in a virtual reality world while your fully autonomous car is driving you to visit your child. And that pediatrician is a robot.

Too far-fetched? Maybe, but maybe not. And if it does come about, your grown-up offspring would likely be bragging to you if you had bought them shares of NVIDIA. The company is at the center of the technologies that could make that future possible.

NVIDIA’s graphics processing units (GPUs) power the world’s most popular video game applications, which makes them perfect for virtual reality as well. The company’s GPUs are also well suited for artificial intelligence (AI) applications. And NVIDIA ranks as a key leader and innovator in self-driving car technology. 

Being at the forefront of several enormously important tech trends caused NVIDIA stock to soar close to 900% over the last three years. I expect NVIDIA to remain an important player in these areas for a long time to come. There should be plenty of room for the stock to go much higher over the long run — even if the future doesn’t turn out exactly like I think it will.

Best Financial Stocks To Watch For 2019: Euro FX(P)

The first stock on this list may come as a complete surprise considering its core business is still in free-fall, but streaming music company Pandora Media Inc (NYSE:P) is actually a cheap stock on the rise.

The company started to turn around its business by finally pivoting away from its core ad-supported streaming music platform. Pandora just acquired digital-audio tech firm AdsWizz, and in doing so, potentially changed the entire company’s growth narrative from dying streaming music platform to growing audio-streaming advertising marketplace.

AdsWizz is a firm that specializes exclusively in digital audio advertising. Based on management commentary, it seem like Pandora is planning on using AdsWizz to create a centralized digital audio advertisement marketplace. This could have potentially huge effects, seeing as the digital audio advertising market is expected to grow by a ton over the next several years as radio ads shift to the digital format.

In other words, the whole idea is that the AdsWizz acquisition accelerates Pandora’s ad-tech roadmap, thrusts the company more deeply into the secular growth audio advertising market, ditches the company’s reliance on its struggling streaming music platform, and opens up new revenue opportunities.

That is a solid formation for a bull thesis on Pandora stock.

Meanwhile, the company just reported first quarter numbers, and they were much better than expected. While the core ad-supported streaming music platform continues to dwindle in popularity, the subscription business is actually growing nicely, and that fits in well with this company’s big turnaround story.

Pandora stock used to be north of $30. Today, it is still only $7. Therefore, if this turnaround plays out to completion, Pandora stock could still head markedly higher.

Top 10 Dividend Stocks To Buy For 2019

Gold prices hit $1,350 per ounce for the 13th time in the last five years in yesterday’s trading, after hovering around the psychological level of $1,300 over the last week.The prime catalyst behind the rally was the military attacks in Syria, spearheaded by the United States and its allies.

Furthermore, war-related geopolitical risks are lifting up crude oil prices, in turn boosting gold’s value in the market. Gold bullion ETF SPDR Gold Shares (GLD) has gained about 2.4% in the last month.

With escalating war tensions, investors are increasingly leaning toward safe haven assets like gold.

At this juncture, allocating your hard-earned money in selective gold mining stocks can prove to be a masterstroke.

Top 10 Dividend Stocks To Buy For 2019: Euro FX(P)

Pandora (NYSE:P) shares have blasted out of a long consolidation range — which ran between November and April — and hopes of an emerging turnaround for the internet streaming music pioneer.

New management has managed to engineer an increase in paid subscriptions and stabilize user metrics. Analysts at B. Riley FBR upgraded shares to “buy” on what they see as meaningful business improvements and an attractive valuation.

The company will next report results on July 31 after the close.

Analysts are looking for a loss of 16 cents per share on revenues of $372.50 million. When the company last reported on May 3, a loss of 27 cents per share beat estimates by eight cents on a 1% rise in revenues.

Top 10 Dividend Stocks To Buy For 2019: Renewable Energy Group, Inc.(REGI)

The name might be a little misleading, but Renewable Energy Group (NASDAQ: REGI) is a leading eco-friendly stock nonetheless. The company is the nation’s largest biodiesel producer, processing inedible agricultural products into over 450 million gallons of biofuel every year that is blended with petroleum-based fuels to reduce emissions. It has quietly grown its footprint over the years despite political wrangling over key subsidies for the industry. Aside from perennial uncertainty, things have worked out for the business: the reinstatement of an important tax credit just netted the company a $205 million windfall.

While biodiesel alone is good for the environment on the whole, Renewable Energy Group has set its sights on next-generation renewable diesel, with 75 million gallons of annual production today. The fuel is chemically-identical to petroleum-based diesel, but manufactured from animal fats or other renewable oils in a special process. It provides more compatibility with existing infrastructure, which will broaden its market share and help to provide no-compromise transportation fuels.

Top 10 Dividend Stocks To Buy For 2019: Camtek Ltd.(CAMT)

Camtek is a developer of automatic optical inspection systems that are used to enhance both production processes and yield for manufacturers in the circuit board and semiconductor industries. After posting better-than-expected earnings results last week, CAMT has moved to a Zacks Rank #2 (Buy), and its resulting share price surge has earned it an “A” grade for Momentum in our Style Scores system.

Camtek is also an exciting growth pick, with EPS figures expected to improve by 81.5% in the current fiscal year and an additional 25.5% in 2019. Still, the stock is trading with a Forward P/E of just 16.1 and a P/S of 2.8—so its valuation is hardly stretched considering its rapid expansion opportunities.

Top 10 Dividend Stocks To Buy For 2019: Axon Enterprise, Inc.(AAXN)

In April 2017, the company formerly known as Taser International re-branded as Axon Enterprise Inc (NASDAQ:AAXN).

As part of the re-branding, the company essentially changed the focus of its whole business model from selling tasers to selling body cameras and the accompanying data management and cloud storage solution. To accelerate this transition, Axon agreed to give away free body cameras to every police officer in the United States for a year.

Wall Street hated the idea. AAXN, after all, is a business, not a charity. The stock dropped to $21, and it stayed there for a few months as the numbers over the next several quarters showed significant margin pressure.

But time and time again, I said to buy AAXN stock while its margins and valuation were depressed (read here, here, and here). The whole idea was that everyone would love the one-year free trial, and subsequently, AAXN would sell a whole bunch of body cameras, smart weapons, and cloud subscriptions the following year.

Indeed, that has happened. AAXN just reported robust fourth quarter numbers alongside a strong guide that called for continued strong revenue growth and big margin expansion. AAXN stock jumped to above $40 on the news.

Moreover, since that report, it seems like everyone and their best friend is ordering smart weapons and body cameras. In the month of April alone, the Chicago Police Department ordered nearly 3,500 smart weapons, the Montgomery County Police Department rolled out in-car cameras to 900 vehicles, and the Kent and Essex Police forces in the UK ordered almost 5,000 Axon cameras.

Clearly, this is one of the hottest turnaround stories on Wall Street. AAXN was a $20 stock not too long ago. Now, it’s at $42, and the momentum is only building.

Top 10 Dividend Stocks To Buy For 2019: NVIDIA Corporation(NVDA)

Perhaps the most prominent names of the bunch are NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), which are best known for their graphics card and PC-based microprocessors, respectively. Neither company has exactly been forthcoming with regard to how much of their sales are tied to cryptocurrency mining, but each company has clearly benefited in recent quarters from the sale of graphics processing units (GPU). NVIDIA’s full-year results pointed to 41% year-over-year sales growth, with Advanced Micro’s sales up 25% on an annual basis. 

In fact, demand for GPUs has been so strong that the price of graphics cards, new and old, has been shooting higher. This actually creates a bit of a conundrum for NVIDIA and AMD, as Advanced Micro Devices is more commonly known. The core customers for both companies are avid gaming enthusiasts and enterprise clients. If crypto mining demand continues to pluck supply from the market, the high price for graphics cards could cause a rebellion among NVIDIA’s and AMD’s core customers. Then again, if these companies create a product specifically for crypto mining, they’ll drive down prices by increasing supply and squash the sales and margin boost they’ve recently experienced.

While both companies certainly have a lot going on beyond the cryptocurrency mining industry, it’s possible that their share prices could reflect the ebbs and flows of virtual currency token prices, so it’s something to keep in mind.

Hot Bank Stocks To Buy For 2019

For a company to be considered a "growth stock," the only real criteria is that you are buying it because you believe in the unbridled potential for the stock’s price to go up over time.

That being said, I personally believe adding some specific criteria can help to increase the probability of finding a stock with Amazon-esque return potential. By buying companies with market capitalizations under $20 billion, there’s more room for the stocks to grow over time. And by buying companies that have shown strong revenue growth — an average of over 20% over the past three years — that makes it likely these companies are offering what consumers want more and more of.

Hot Bank Stocks To Buy For 2019: Euro FX(P)

The first stock on this list may come as a complete surprise considering its core business is still in free-fall, but streaming music company Pandora Media Inc (NYSE:P) is actually a cheap stock on the rise.

The company started to turn around its business by finally pivoting away from its core ad-supported streaming music platform. Pandora just acquired digital-audio tech firm AdsWizz, and in doing so, potentially changed the entire company’s growth narrative from dying streaming music platform to growing audio-streaming advertising marketplace.

AdsWizz is a firm that specializes exclusively in digital audio advertising. Based on management commentary, it seem like Pandora is planning on using AdsWizz to create a centralized digital audio advertisement marketplace. This could have potentially huge effects, seeing as the digital audio advertising market is expected to grow by a ton over the next several years as radio ads shift to the digital format.

In other words, the whole idea is that the AdsWizz acquisition accelerates Pandora’s ad-tech roadmap, thrusts the company more deeply into the secular growth audio advertising market, ditches the company’s reliance on its struggling streaming music platform, and opens up new revenue opportunities.

That is a solid formation for a bull thesis on Pandora stock.

Meanwhile, the company just reported first quarter numbers, and they were much better than expected. While the core ad-supported streaming music platform continues to dwindle in popularity, the subscription business is actually growing nicely, and that fits in well with this company’s big turnaround story.

Pandora stock used to be north of $30. Today, it is still only $7. Therefore, if this turnaround plays out to completion, Pandora stock could still head markedly higher.

Hot Bank Stocks To Buy For 2019: Moelis & Company(MC)

In the wake of the financial crisis, with so many investment banks tarnished (or in some cases gone), there was an opportunity for an independent company to step up. That’s exactly what Moelis & Co (NYSE:MC) has done — and so far it’s been a raging success.

A company founded in 2007 now is worth over $3 billion. MC stock has risen 132% from its 2014 IPO price of $25. Moelis even was named an adviser to the Saudi Aramco IPO, potentially the largest ever.

Fundamentally, Moelis just keeps chugging along. Adjusted EPS rose 56% in Q1 on the back of a 27% jump in revenue. The company continues to add new directors and partners, while expanding its geographic reach. Without the other divisions — and potential conflicts of interest — seen at larger rivals like Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley(NYSE:MS), Moelis continues to win more than its fair share of deals.

Meanwhile, a recently raised dividend yields 3.2%, and the company holds no debt. A 19x forward P/E multiple might be considered a bit pricey — particularly because Moelis has a good deal of cyclical risk. Any slowdown in M&A, in particular, could send its revenue and earnings falling.

Still, from a qualitative standpoint, Moelis seems to be in the right place at the right time. And it seems to have a path to grow into a behemoth in corporate finance while rewarding shareholders along the way.

Hot Bank Stocks To Buy For 2019: Mastercard Incorporated(MA)

Let’s do a double for this one: Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA). Both companies are huge beneficiaries of the same trend, as global consumers continue moving to credit and debit from cash and check. Further, growing e-commerce sales bode well for V and MA too, for obvious reasons.

The credit card business is attractive for many reasons, as V and MA serve as simple “toll booth” businesses. They don’t lend consumers money and they don’t take on big risks. Instead, when a consumer purchases goods or services from a merchant and pays via credit card, the merchant pays a fee that goes to V and MA.

While the pair of stocks may look expensive on a sales basis at first glance, the earnings-based valuation isn’t all that bad. Especially considering their double-digit earnings and revenue growth.

Throw in the fact that Visa has profit margins of almost 40% while MA has margins of 32% and we can see that these two are earning money hand over fist.

Both stocks tend to trade with a high correlation. They’ve been in a steady uptrend since early 2017 and I hate that I’ve taken some off the table since I first initiated a position almost six years ago.

As V and MA both bump up against resistance, they look like they’ll soon push through to new highs, short of another market-wide selloff.