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.