Investors who are looking for top stocks for their portfolios in 2019 need to do research due to the numerous companies available for investing.
In this article:
- DowDuPont (DWDP): Possible Agricultural Stocks For Growth
- Electronic Arts (EA): One of the Candidates for Top Stocks to Buy in the Gaming Industry
- JPMorgan Chase (JPM): A Consistent Member of Any Banking Top Stocks List
- Starbucks (SBUX): Part of the Global Stocks to Invest in for Industry Diversification
- U.S. Bancorp (USB): An Interesting Dividend Stock Play
- Halcon Resources (HK): A Lesser Known Energy Stock Pick
- NIKE, Inc. (NKE): A Sports Stock Option
- Johnson & Johnson (JNJ): One of the Best Stocks for Pharmaceutical investments
- Alibaba (BABA): A Tech Stock to Consider
9 Stocks To Watch in 2019
These 9 companies are possible portfolio investment options, not stock recommendations. These companies have a vote of confidence from reputable financial sites like Market Watch, Kiplinger Finance, and Investing Haven.
Of course, investors should see if a stock aligns with their investment philosophy. At the end of the day, the investor has the sole responsibility of deciding on an investment, which makes prudence an important character to have.
1. DowDuPont (DWDP): Possible Agricultural Stocks For Growth
This chemical and agricultural company is a world leader when it comes to the production of plastics and raw chemicals, as well as chemical products. DowDuPont supplies companies with their needed materials for production.
For example, automobile and styrofoam companies need not only plastics but also other chemicals to manufacture their products. DWDP fills that need for stable supply as well as high-quality raw materials.
DWDP also supplies the agricultural market with pesticides and other important agricultural necessities. The company has started researching and developing modified seeds for better strains of plants, whether for food or for other commercial use.
While its fundamentals are strong, another main reason why DWDP is a great option lies in its upcoming stock split.
DowDuPont chief, Ed Breen has said that the upcoming stock split will generate $1 billion in research and development funding. The split will give shareholders shares for all three companies, making DWDP stocks a viable choice for portfolios.
The three firms that result from the split will focus on individual areas, which ensures that no market cannibalization takes place.
Shareholders will receive stocks of Corteva Agriscience, which is the agricultural company from the stock split.
Investors will also receive shares from Dow, which is the plastics division as well as DuPont, which focuses on specialty products businesses.
2. Electronic Arts (EA): One of the Candidates for Top Stocks to Buy in the Gaming Industry
The company is also the second largest gaming company for the Americas and Europe. With its market cap of $27 billion as of January 22, 2019, the gaming company has an impressive war chest with lucrative franchises under its belt.
One of Electronic Art’s weaknesses is now one of the reasons why they are a good investment option, as they have a relatively modest market share when it comes to mobile. Most of their games cater to the PC and console audience.
However, they have upcoming games for the largest growing gaming audience, which is the mobile market.
One of the most beloved franchises around the world, Star Wars, has immense branding potential. EA already started Star Wars: Rise to Power, for the mobile market.
With big brands and well-known franchises, EA can provide IRA portfolios exposure to the growing game industry.
3. JPMorgan Chase (JPM): A Consistent Member of Any Banking Top Stocks List
Known as the world’s biggest bank according to market capitalization, JP Morgan Chase is a mainstay in a lot of portfolios. Investors value JPM at $342 billion, as of January 22, 2019.
It started with operations with numerous banks and companies merging to create JPM. This massive bank has been providing financial services for more than two centuries.
JPM has operations not just in the US but on all continents. For the US specifically, JPM has 5 subsidiary banks, which further boosts revenues and market shares.
It is not uncommon to have these subsidiary banks fighting against each other, and even their parent company, for market share. However, this veneer of competition actually makes the investors the winner, as bank operations are considerably lucrative with a high ROI.
Interested investors in the banking sector can consider JPM as an investment option. JPM can give both capital gains as well as dividend income, as the business model is sound and efficient.
4. Starbucks (SBUX): Part of the Global Stocks to Invest in for Industry Diversification
Starbucks is a global coffeehouse chain company with more than 28,000 branches worldwide. Interestingly, of the 28,000 branches, around 14,000 operate in the United States.
This global reach makes SBUX an interesting choice for diversification. Investors who want to hedge currency risks with business revenue can appreciate SBUX, as dividends and assets are in dollars, even if cash inflow comes from international sources.
With roughly half of revenues coming from outside the US, SBUX can play the role of a holding company with a massive global share of a singular market, specifically coffee.
The staying power of SBUX lies not just in the massive number of outlets but also in the culture of coffee.
5. U.S. Bancorp (USB): An Interesting Dividend Stock Play
Another company that operates in the banking sector, USB is a relatively young bank with 50 years of operation. USB has more than 3,000 branches and 4,000 ATMs nationwide, which shows its healthy captured market share.
However, why should investors think about USB when other bigger banks are present?
USB has a solid history of paying dividends. This characteristic makes USB a viable choice for IRA investors looking for companies that provide a predictable dividend payment scheme.
The company provides both retail banking, commercial banking, and credit card services. Of course, the bank aims to raise profitability, so it mixes conventional revenue generation activities with more unconventional banking operations like private banking and equity for high net worth clients.
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6. Halcon Resources (HK): A Lesser Known Energy Stock Pick
A lesser-known oil company, Halcon Resources focuses on the acquisition, exploration, and production of oil from the Delaware Basin. Interestingly, the company positions itself more as an energy company rather than an oil one, but the company still has a considerable war chest for expansion.
With a market cap of only $284 million, this company can give portfolios exposure to the energy and oil industry.
7. NIKE, Inc. (NKE): A Sports Stock Option
Nike is a dominant player in both the sports and clothing industry. This sportswear and footwear company has been operating for more than 50 years and is a brand known worldwide.
With its very popular slogan “Just Do It”, Nike captures the imaginations and ambitions of young people worldwide to become great athletes through sponsorships and advertising. With a loyal following, Nike has an audience loyal to the brand and can support current revenues with their product lineups.
Investors can see how NKE can add value due to its high-profit margin and a loyal brand following. However, investors must make sure that the purchase of such a stock is in line with their investment strategy.
8. Johnson & Johnson (JNJ): One of the Best Stocks for Pharmaceutical investments
The medical company Johnson & Johnson is a pharmaceutical titan in the financial world. JNJ ranks number 37 in the Fortune 500 companies for 2018, showing confidence from the investing public.
JNJ sells more than just baby products and facial wash. The popular medicine brand Tylenol is under JNJ’s umbrella of products together with the ever-present Band-Aid bandages.
Market cap for the company is at $343 billion and has more than 250 subsidiary companies. JNJ has offices and branches in 60 countries but sells products in more than 175 countries.
These numbers show the strength of JNJ’s cash accounts. Investors can choose this blue-chip company entering 2019 to take advantage of its global reach and profitability.
9. Alibaba (BABA): A Tech Stock to Consider
This Chinese online retail giant is a competitor to Amazon. The main difference between these two retail titans lies in their leading markets.
While Amazon is the market leader in online retail for the 300-million American market, Alibaba owns 58% of the Chinese online retail market of 1.3 billion.
However, Alibaba is not just an e-commerce website, although admittedly online retail constitutes the bulk of its revenues.
Alibaba also offers internet services, cloud computing, financial technology, digital entertainment, and AI research and development.
AI Definition: AI stands for Artificial Intelligence which is the ability of the digital computer, machine, or computer-controlled robot to simulate human intelligence.
With its diversified business operations, Alibaba can give IRA investors access to the growing Chinese economy in multiple sectors.
It is important to repeat that these 9 companies are viable options and that only the investors themselves can decide whether or not to buy shares of these companies.
Before you buy shares, whether through an online or personal recommendation, always think if such a purchase aligns with your investment philosophy.
Do you have other stocks and companies to recommend? What are your thoughts on these 9 companies? Let us discuss in the comments section below.