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Top 6 Stocks to Buy Now
Louis Navellier here. If there’s one thing that I’ve learned in my three decades in this business, it’s that it only takes a handful of stocks to make—or break—your portfolio. Just ask the folks who got in on AAPL when it was trading at $5 per share…or AMZN when it was trading at $50 per share. Or, for that matter, ask the folks who invested in Enron back in the late nineties and lost everything.
While 2020 kicked off the year on a high note, the stock market turned a few months in and dropped investors straight into a bear market.
The main culprit behind this year’s volatility was the coronavirus. It swept around the globe, triggering country-wide lockdowns, stay-at-home orders and self-quarantine efforts. As a result, schools were closed and businesses were shuttered. With global supply chains disrupted, a worldwide recession is imminent.
Due to the stay-at-home orders, here in the U.S., unemployment claims have surged and U.S. GDP growth is slowing. Economists are calling for a double-digit decline in GDP growth in the second quarter. That marks two-consecutive negative quarters, which means that the U.S. is in a recession.
The U.S. is hardly the only country feeling the economic pinch from the coronavirus outbreak. Mighty Germany, Italy and the U.K. are also seeing significant growth declines.
I know this sounds scary, but there’s some good news: There are still profits to be had in the current market environment. In fact, I’ve made sure that we can consistently profit during even the worst market conditions.
However, it’s not through speculation or any get-rich-quick schemes that take advantage of investors’ fears during the down times.
It’s through large-cap growth stocks.
With Growth Investor, I’ve made it my mission to find the next big stock stories in the large-cap arena. I rigorously screen several thousand growth stocks to identify the next big investing opportunities…and to keep our portfolios clear of any duds. My flagship service is all about maximizing returns while minimizing risk.
If you’re getting started with Growth Investor, this report is a great place to start. Below, I’ve included a digest on the Top Stocks you should own in 2020.
Many of our Growth Investor stocks are also near-monopolistic enterprises that dominate their markets and their industries. These fundamentally superior equities boast double-digit forecast sales and earnings growth on average. But even among this elite group, ten companies emerge as the best of the best.
So, settle in and make sure you read this report from top to bottom. Here are 6 of the top stocks I recommend you buy now for earnings growth and profits in the year ahead…
Top Stock #1: ADBE
Adobe Systems Inc. (ADBE) is a perfect example of a monopolistic play that will perform well no matter what the broader market is doing. Chances are that you’ve used Adobe’s software, whether it was to edit a PDF document, touch up a digital photo or update a part of a website. Adobe is best known for its Acrobat Pro software; when it comes to creating, editing and sending PDF documents, it is the clear market leader.
However, there is much more to this company than just PDFs. Adobe Systems has three business segments: Digital Media, Digital Experience and Publishing. Digital Media encompasses all of Adobe Systems’ popular software, including Photoshop, InDesign, Illustrator, Dreamweaver and Acrobat Pro.
While some of these products have been around for nearly three decades, Adobe has had no problem adapting with the times. Gone are the days where users would have to pay hundreds of dollars for a single piece of software. Nowadays, Adobe hosts its software on its Creative Cloud. So users can subscribe to an affordable monthly or annual plan and obtain access to Adobe’s proprietary software packages and cloud storage options.
Adobe Systems is also making a splash with the latest round of updates to its video editing and motion graphics software. The company has unveiled two creative tools that are powered by Artificial Intelligence (AI). Video editors can use Adobe’s Sensei AI platform to match colors between footage taken with multiple cameras. They can also take advantage of a new audio autoducking feature to do a lot of the legwork with soundtrack editing. As minor as these changes may sound, they work out to a lot of time saved.
Along with Digital Media, Adobe Systems also runs a Digital Experience segment. This division provides marketing and analytics solutions to digital marketers, advertisers, publishers, web analysts and more. Major market players such as Ford Motors (F), Marriott International (MAR) and Panasonic Corp. all rely upon Adobe Systems’ marketing and analytics products to reach their respective customer bases.
For the second quarter of fiscal 2020, the company announced earnings of $2.45 per share which was $0.12 above the consensus estimates of $2.33 per share. This represents 33.8% earnings growth from the same quarter a year ago.
Sales were forecast to grow 15.2% year-over-year to $3.16 billion, compared to $2.74 billion in the second quarter of 2019. The company reported that sales rose just 14.1% year-over-year coming in at $3.1 billion. Adobe Systems reported an earnings surprise of 5.1% and a sales miss of 1.8%.
Top Stock #2: BAH
Straight from earning his psychology degree, Edwin G. Booz started his own management consulting business in 1914. The business was rooted in “people, not products.” In other words, Booz believed that a company’s success came down to finding the right person for the right job and giving them the support necessary to produce better results.
Today, management consulting still remains at the heart of the Booz Allen Hamilton Holding Corporation (BAH). Armed with more than 100 years of experience, the company has worked with government and commercial firms to solve challenges and reach goals. In fact, Booz Allen Hamilton helped the U.S. Navy reinvent itself, which supported the World War II victory. And the company helped the National and American Football Leagues merge to create the Super Bowl.
Aside from its consulting services, Booz Allen Hamilton also provides data analytics and is partnering with Nielson, Spotify and Bloomberg to develop industry standards in data science. The company also collaborates with its clients, including the federal government, to develop new and innovative digital solutions.
In addition, Booz Allen Hamilton is one of the biggest cybersecurity providers, working with Fortune 100 and Global 2000 companies, as well as federal and defense agencies, to uncover and prevent cyberattacks. And the company’s engineering division focuses on building solutions that address engineering and applied science issues.
Considering that Booz Allen Hamilton is backed with more than 100 years of experience, skilled professionals and a diverse business portfolio, it’s no wonder that the company continues to produce results.
During the first quarter, revenue grew 7.2% year-over-year to $1.96 billion and adjusted earnings per share rose 12% year-over-year to $0.93. The consensus estimate called for adjusted earnings of $0.86 per share on $1.97 billion in revenue, so BAH posted an 8.1% earnings surprise and a slight revenue miss.
Company management noted that Booz Allen Hamilton had an “excellent start” to its fiscal year 2021, as demand for the company’s services and solutions remained strong. BAH’s backlog increased 15.9% to $23 billion.
Given the strong first-quarter results, Booz Allen Hamilton reiterated its guidance for full-year 2021. The company expects revenue to grow between 6% and 10%, and for adjusted earnings per share to come in between $3.40 and $3.60, or 6.9% to 13.2% annual earnings growth.
Top Stock #3: BRO
Back in 1939, two cousins joined forces to open an insurance agency, Brown & Owen in Daytona Beach, Florida. The agency focused on providing the best insurance options for its customers and supporting the local community. As a result, in 1959, Brown & Owen inked a contract for the University of Florida’s student accident insurance.
The agency was later renamed Brown & Brown, and became known as Brown & Brown, Inc. (BRO) in 1993 when it merged with Poe & Associates. Today, Brown & Brown remains true to the guiding principles that the company was founded on back in 1939; helping its customers protect their most-valued assets.
Brown & Brown is the sixth-largest insurance brokerage in the U.S., with more than 290 locations. The company provides insurance solutions through four main business segments: Retail, National Programs, Wholesale and Services. And individuals, as well as corporations, government institutions, businesses and organizations, rely on Brown & Brown for their insurance needs.
In the second quarter, revenue rose 4.1% year-over-year to $598.8 million, topping forecasts for $574.53 million. Adjusted earnings increased 6.3% year-over-year to $0.34 per share, up from $0.32 per share in the same quarter a year ago. Analysts were expecting earnings of $0.28 per share, so BRO posted a 21.4% earnings surprise.
For the first six months of 2020, Brown & Brown achieved 8.6% annual revenue growth or $1.3 billion, and 18.1% adjusted earnings growth, or $0.85 per share.
Top Stock #4: CMG
Chipotle Mexican Grill, Inc. (CMG) is likely a familiar name to many of you. It was founded by a classically trained chef back in 1993.
Clearly, Steve Ells wasn’t just opening another fast food chain; he wanted to prepare real food with real ingredients in a real kitchen in a fast food restaurant. Today, Chipotle boasts that it only uses 51 ingredients to prepare its wildly popular Mexican dishes, which are made by hand.
Carne asada was clearly a hit at Chipotle Mexican Grill, Inc. restaurants during the fourth quarter, as the company smashed analysts’ earnings and sales forecasts. Along with the popularity of the higher-priced protein, Chipotle opened 80 new restaurants during the quarter. Forty-six of these restaurants featured the new Clipotlanes, or drive-thrus.
Regarding fundamentals, the company exceeded analysts’ earnings and revenue forecasts for its second quarter. The Mexican restaurant chain reported that comparable restaurant sales dipped 9.8% during the quarter, while digital sales surged 216.3%. Digital sales represented nearly 61% of total sales in the second quarter.
For the second quarter, Chipotle Mexican Grill reported adjusted earnings of $0.40 per share and revenue of $1.4 billion. That represented a 4.8% decline in revenue growth and a 90% drop in earnings growth. Analysts were expecting adjusted earnings of $0.35 per share and revenue of $1.32 billion, so Chipotle Mexican Grill posted a 14.3% earnings surprise and a slight revenue surprise.
Top Stock #5: FICO
Fair Isaac Corporation (FICO) developed the first credit scoring system for American investments, as you may have gathered from the company’s stock symbol. Back in 1956, the company was founded to develop data and analytic solutions to improve business decisions. Today, businesses around the world rely on FICO’s analytic solutions.
In fact, FICO’s clients include more than half of the world’s top 100 banks, more than 600 personal and commercial line insurers and more than 400 retailers. Here in the U.S., 95 of the largest 100 financial institutions, all 100 of the largest credit card issuers and one-third of the top 100 retailers are all FICO clients.
In the past 60 years, Fair Isaac Corporation has been awarded more than 130 patents for its analytics and decision management technology. The company’s namesake credit rating score is used in three-quarters of all home originations. And 100 billion FICO Scores have been sold, which makes it the most-used credit score in the world.
Third-quarter revenue was flat year-over-year at $314 million, but topped forecasts for $301.3 million. Third-quarter earnings rose 1.5% year-over-year to $76.7 million, or $2.58 per share, up from $75.6 million, or $2.50 per share in the same quarter a year ago. Earnings estimates called for $2.16 per share, so FICO posted a 19.4% earnings surprise.
Top Stock #6: MSFT
Did you know that the founders of some of the biggest tech companies in the world were college dropouts?
Bill Gates is probably one of the most well-known Harvard University dropouts. At a young age, Gates had a proclivity for math and science and was soon captivated by the inner workings of computers. Not surprisingly, he achieved a near perfect score on the SATs, which enabled him to enroll at Harvard.
However, Gates dropped out of Harvard after only two years when he decided to start his own company, Microsoft Corporation (MSFT), with his friend, Paul Allen. Both were excited about the future of personal computers, and the first product that they developed in 1975 was a BASIC software that ran on the Altair computer.
In the following years, Gates and Allen developed several other programming languages, and in 1980, the two were tasked with developing software for IBM’s first personal computer. The MS-DOS operating system was born and used on the IBM personal computer in 1981. By the early 1990s, more than 100 million copies of the MS-DOS system were sold.
Today, Microsoft Corporation is most-known for its Windows operating systems. There are currently more than 900 million devices utilizing the latest Windows operating system, Windows 10. But Microsoft Corporation offers much more than just Windows, including cloud platform Azure, LinkedIn, Xbox hardware and software, the Bing search engine and Microsoft Office.
For its fourth quarter in fiscal year 2020, Microsoft achieved double-digit revenue growth and single-digit earnings growth. The company noted that it saw an increase in cloud demand and usage, as more folks have been working remotely throughout the pandemic.
Fourth-quarter revenue rose 13% year-over-year to $38.03 billion, which topped analysts’ estimates for $36.5 billion. Fourth-quarter earnings increased 6.6% year-over-year to $1.46 per share, up from $1.37 per share in the same quarter a year ago. Analysts were expecting earnings of $1.37 per share, so Microsoft posted a 6.6% earnings surprise.
For fiscal year 2020, Microsoft reported earnings of $5.76 per share and revenue of $143.02 billion. That compares to earnings of $4.75 per share and revenue of $125.84 billion in fiscal year 2019. The analyst community was expecting full-year earnings of $5.68 per share on $141.5 billion in revenue.
Take Your Profits to the Next Level in 2020
The stocks we’ve just discussed are a great start. Own even a few shares of the winners I’ve identified, and you will immediately increase your profits, safety and income. But if you’re like the tens of thousands of investors I’ve talked to in my career, you want more.
You want ongoing guidance that will consistently bring you the next big winners. You want updates when those stocks are on the move. And you want a balanced investing approach that limits risk.
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I’m proud that for the past 20 years I’ve been able to alert my readers to the continuing changes in the marketplace and then guide them to the most profitable stocks. By using this simple yet visionary approach, I’ve been able to not only help them bank substantial gains like Broadcom Ltd. (AVGO) for a 292% return, Facebook Inc. (FB) for a 151% return and Allergan Inc. (AGN) for a 214% return, but I’ve also led them to many more outstanding profits along the way.
All by simply riding the trends, buying the most profitable stocks, and holding on for the ride.
If this sounds good to you, I invite you to try Growth Investor with a 100% money-back guarantee.
As a New Growth Investor Member, You Will…
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Most Importantly, This Offer is 100% Risk-Free
They say money talks, and nowhere is that more applicable than in business. The reason why Growth Investor has become one of the most respected investment newsletters in the country is that I have the track record to back it.
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- Triple Your Income: 7 Elite Dividend Payers Stocks Paying More Than 4%
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- The Dividend Machine: Get Paid Up to Four Times a Month
If you trust your instincts and seize this major wealth-building opportunity today, I guarantee it will be your most profitable risk-free decision of the year.
Thank you for taking the time to read this report. I hope you enjoyed reading it as much as I enjoyed preparing it for you. And I hope that you will carefully consider joining me at Growth Investor. Whatever you decide, I wish you the best of luck with your investing. Join Now!