Housing Market and Stock Market Forecasts

Best Stock Picks for 2020

Best Stock Picks for 2020/2021

We’re in a strange phase of the economic recovery right now, and US stocks have some worry attached to them.  With the stimulus package in doubt, there are concerns about which direction the stock market might go.

And we can’t quite determine whether we’re in a Corona virus stock period or a recovery stock period.

 

If you’re a day trader, there’s plenty of volatility to give you opportunities between the two. Even if the economy keeps improving, Covid 19 will keep the airlines, restaurants and cruise line stocks firmly tethered to ground.

With the S&P and NASDAQ continuing to explore new record heights, is big tech really where you want to be? Sure Tesla is hot and 5G is being pursued by big telecom.  Good long term bets.  Economy is up but the pandemic surge is still on, and this fall’s back to indoor classrooms and workplaces is likely to create some big drops in a month or two.

 

Gold stocks are finally climbing and look interesting, oil looks to be on a steady rise, and small town real estate and new construction housing stocks should be okay too. Just some ideas for investors.

Stock Market Sectors

Best Stock Market Sectors. Screenshot courtesy of CNBC.

Consumer discretionary, technology and health have the market momentum of late.

Those are your big three stock market sectors trending today.

Top Gaining Stocks Today

BioNTech SE a vaccine stock, along with Livongo Health, are a couple of health stocks showing in the top gainers.  A few mining and oil stocks are showing as well.

Top Gaining Stocks week of August 17. Screenshot courtesy of Yahoo Finance.

A large number of health stocks are rising to the top as the Corona Virus commands the world’s bank account and interest mounts in the vaccine stocks. Tesla’s stock prices keeps rising too even long after the announced 5 for 1 stock split. You should investigate Tesla corporation a little more closely because its EV, battery and solar shingle businesses could offer the safest and best long term growth.

Good Jobs Report, but No Stimulus is a Big Problem

The latest US jobs report and economic indicators show the economy is on the rebound. Certain sectors are getting left behind, although they seem to be fighting hard to keep it alive.  Which industries will outperform? My guess is that US tech stocks are the best investments.

Best Long Term Investment: 5G

The very best may be 5G and vaccine stocks for 2021 and 2022.

5G is a revolutionary development in communications opening up new opportunities for US tech companies in everything from AI to gaming and entertainment.  New microchips will need to utilize the big bandwidth and speed of 5G technology. Certainly, the work remote or work at home crowd will love what 5G gives them.

US gaming technology providers will benefit greatly from faster speeds. Learn more on the 5G forecast page.

The coming return of jobs and investment from China, and tariff protection against China theft and predation is the a big part of this recovery too. If the President can eliminate the trade deficit, it provides another half a trillion dollars to the US economy each year.

What’s Hot on the Dow Jone, NASDAQ, S&P and Russell Indexes

Stock prices on the Dow Jones, NASDAQ, S&P, Russell, TSX and overseas stocks markets have been recovering well. Last week was outstanding for all the indexes. Even Asian markets are anticipating a return to exporting to the US in big volumes.

This event was the big shakeout for the stock market in 2020 leading to a stock market recovery in 2021.  You should be looking for the best stocks to buy while prices are low. But this recovery might be volatile and prolonged, so you’ll have plenty of time to pick the stocks you want.  Begin with a good overall stock market forecast.

Corona Virus Vaccine Stocks?

Corona Virus stocks are not great options now, however the vaccine stocks might be worth investing.  There’s more than 100 horses in that race, but the winners come out rich. Learn more about virus vaccines stocks. Instead look at the 5 year forecast for stocks that may double or triple your investment such as 5G stocks.

If you’re a gambler, you could buy a basket of Corona Virus medical stocks listed below. Will the Corona Virus stocks fizzle out soon, meaning you’re gambling and have to get out before they crash? Probably. Better to look long term e.g., 5 year forecast.

The best stock picks for 2020 and 2021 may be those that have plummeted in this mini recession.  Certainly liquor stores, grocery stores and big box stores such as Costco and Walmart are doing okay. But they won’t accelerate when everyone goes back to work.

Should I Buy Stocks that Have Plunged the most in the last Few Weeks?

Should you buy stocks on the Dow Jones or NASDAQ or the Russell Index?  Not oil stocks.  Oil has plunged again today to $20 a barrel. Jim Cramer advised last week to look for good individual stocks. He might think that anyone could pick any of the most stable companies and make a killing. But he thought that ETFs won’t have the upside.

Pick the right single company stocks and you might be a big winner.  If you buy a range, you’re actually doing some hedging. If a few don’t climb back to previous 2019 highs, not a problem.

2021 is Not Far Away

Find your list of stocks to buy via the list of big loser and big gainer stocks on the stock market forecast page, and in the 2021 Stock Predictions page.  A lot of investors are sitting on a lot of cash, while others are panicking and dumping stocks. The competition for 2020s rebound stocks will be intense.

What will consumers need when they get back to work? After being trapped at home, they’ll soon need transportation, clothing, shoes, hair cuts, and as well, US vacations through the summer.  They’ll be taking vacations but not overseas. With cheap gasoline prices, they’ll be stay-cationing right here in America! Hotels, campgrounds, and restaurants will pick up nicely. 5G phones will soon be the hot ticket.

Best Stocks to Consider:

American Express – consumer discretionaries are up again that means credit card companies such as American Express are looking a little more attractive.

 

PLUG Power – makes hydrogen fuel cells for forklift trucks. If the global economy rolls along and it with its new sales agreement with UK’s asda supermarkets, owned by Walmart, analysts feel it looks very good.

 

Visa – same as American Express with growing revenue via back to school and coming Xmas spending and online shopping.  Credit card companies are enjoying low interest rates yet charge loan shark rates and fees themselves. It’s like printing money.

 

Google Alphabet – Google has take a big hit its key revenue generator Google Ads (Adwords) given how consumers aren’t spending or even working. Companies see little need to advertise right now. However, by June spending and advertising will roar back. Even if advertising doesn’t boom to where it was in 2019, it will jump Google stock price. There are longer term fears about Google (anti-trust/data privacy), but whether there is political will to charge them is a big question.

US Bankcorp – With the $2 Trillion stimulus bailout, banks are good as gold. Consumers will be asking for more credit and begin spending more freely. And if interest rates rise again, the banks stand to be even more profitable.

Home Depot – having their confidence hit a bit, homeowners will likely stay put and not sell their home. Instead they’ll hunker down and fix up their home and yard to make it more livable. It’ll be the summer of enjoying what you’ve got now.

Dollar Tree –  Dollar Tree operates 7,000 stores under the Dollar Tree and Dollar Tree Canada brands, along with 12 distribution centers in the United States and 2 in Canada. With consumer discretionary spending rising, back to school, and bargain shopping all part of the next 3 months, the company should fare well.

 

LENNAR Home Builders – It seems housing stocks are doing well and the big home construction companies have lots of buyer demand. Lennar builds homes and is making money on financing too.

 

Nike – kids and college students will be back buying new running shoes, of course the ones endorsed by their favorite sports idols.

AMD – the chipmaker makes chips for 5G phones and other devices which Americans will be buying lots of. In fact around the world they’ll be ordering Apple 5G and Samsung, LG and ets.

Qualcomm – plans to sell their 5G chips to Apple for their 5G smartphones. Demand is subdued right now but after the phones are fully launched in 2021, the market is expected to boom.

Intel – yet another 5G chip maker ready to surf on this new evolution in signal technology.

Keysight Technologies, Inc. – Keysight makes 5G network testing gear or equipment, and as 5G systems are setup, they’ll need high quality testing solutions.

Bar Charts Top Gainers

Top gaining stocks last month. Screenshot courtesy of Barchart.com

 

The Fool chimes in with their Corona Virus best stock picks:

  1. Amazon
  2. JD.com
  3. Paypal
  4. Facebook
  5. Shopify
  6. Netflix
  7. Electronic Arts
  8. Peleton Interactive
  9. Teladoc
  10. Zoom Video

Peleton is the only one I don’t like.  $4000, 500 lb stationary bikes are not attractive and once the Pandemic is over, buyers won’t use them. Also Netflix content isn’t especially high quality. However, with 5G entering the picture, Netflix stands to grow reach, but will they have anything but old tired content?

Investor Place Offers up the 7 Best Corona Virus Stocks to Buy Now

Kiplinger Lists their Top 11 Best Corona Virus Stocks

  1. Docusign
  2. Gilead Sciences
  3. Campbell Soup
  4. Clorox
  5. Amazon
  6. Netflix
  7. Alibaba
  8. Dominoes Pizza
  9. Grubhub
  10. Twitter
  11. Zoom Video

Benzinga Best Stocks to Buy List

Most of these are biotech stocks that have solutions related to the Corona Virus and vaccines. There could be exceptional profits for any that are successful. Seems a little bit of a gamble.

  1. Landland Industries
  2. Co Diagnostics
  3. Vir Biotech
  4. Bio Cryst
  5. Inovio
  6. NovaVax
  7. NanoViricides
  8. Cleveland BioLabs
  9. Cerus
  10. Moderna
  11. Aethlon Medical
  12. AstraZeneca
  13. Cocrystal Pharma
  14. Enlivex
  15. Beyond Air
  16. New Frontier
  17. Vaxart Inc

 

Take a Good look at these best picks, more for 5 year long term value.

FacebookFacebook has no rival in social media while user numbers are high and sustained. Despite facing high fines and restrictions, the company’s revenues from Instagram, Facebook app, Whatsapp, and potentially the Libra payment system could make it a record breaking year. See more on the Facebook stock price forecast.

Google – In a year of political turmoil, consumers and voters will be doing plenty of searching. The advertising giant will suffer no setback in 2020 ad revenues. See more on the Google stock price forecast.

Amazon – The company’s stock has been down for almost 2 years, but should regain its market dominance in 2020. The company is creative and will get themselves turned around. Buy now when it’s low and enjoy big returns when it comes back. See more the Amazon stock price forecast.

Walmart – If a recession is coming in 2021, Walmart will see customers returning. With a strong economy Walmart’s marketshare Walmart U.S. During Q2, 2019, their sales revenue grew 2.8%, U.S. eCommerce sales grew 37%.

Apple – Apple’s streaming TV service and iPhone will sell well during a strong US economic outlook. See more on the Apple stock price forecast.

Tesla – Tesla’s production is hitting expectations and it’s on a roll. It’s new model Y is turning heads.  The price tag is high, but electric car hungry consumers can’t get enough of Tesla automobiles.

Autozone – the auto parts maker has performed well in 2019, and they were stars back in the last recession. With tariffs raised for auto part imports in place, they stand to do well in 2020.

Bristol-Myers Squibb – the major pharmaceutical maker has done well in boom or bust times and with consumer spending high with high employment, they won’t have to work hard to make a profit on their portfolio of drugs.

Visa – the credit card company enjoys money at ultra low rates and has 54 million merchant locations. They’re expanding globally. With tourism and consumer spending booming, Visa shouldn’t have trouble in 2020.

Lithia Motors Inc. – People are buying cars online, because they can find the new or used vehicle they want at the best price. Lithia is a hot stock of late and are expanding their physical locations to support growth. It’s a 1 Trillion dollar market and Lithia is third and wanting to grow.

Sherwin Williams – The giant paint company is benefiting from an extended Corona Virus stay at home period where homeowners are spending their time on improvement projects. And if houses have to be sold, they’re often repainted.

Good luck researching and picking the best stock picks for 2020. Should be an interesting year for the S&P, NASDAQ and DJIA.  Like real estate? Low mortgage rates and growing demand for homes should begin a big resurgence in the housing market.  Builders such as Toll Brothers,  DR Horton and others may post good sales in 2020.

 

Stock Market Forecasts – Dow S&P NASDAQ

*  the above post includes opinions of the author and do not connote buy recommendations of any kind regarding stocks to invest in. The material is provided as information only. Please choose stocks cautiously after thoroughly reviewing the market and the company involved. Consider a qualified financial investment advisor to help you with your social directed stock investing strategy.

 

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