If you’re wondering which shares to buy, we have the answer for you. Whether you’re a novice investor or a seasoned veteran, we’ve compiled the 08 stocks that could be worth your money. Included in this list are established and emerging companies with solid finances and promising futures. These ten stocks represent a diverse group of industries, including banking, real estate, and oil and gas. Some of these companies trade at reasonable prices, while others offer substantial growth opportunities. Either way, these stocks can be an excellent addition to any portfolio.
Before we dive into the list, let’s review what investors should look for when determining which stocks to buy. First, why do I invest in stocks? When most people hear the term “investing”, they tend to think of high risk, high reward plays that offer the potential to earn spectacular returns. The truth is, not all actions are created equal, and many actions require good homework. Several professional analysts provide research coverage on each stock they follow. These analysts can examine the fundamentals of the business, assess management and assess financial strength to determine whether a particular stock is a good buy. A recommendation can come from a single analyst or from multiple analysts working together.
from Bank of America
When we think of a bank, we tend to think of a large, traditional institution. Still, if you consider the fact that about half of all Americans don’t have bank accounts, it’s clear that many people live without a bank account. In fact, according to a 2015 survey, 14% of Americans live without a bank account. Given that fact, Bank of America (NYSE: BAC) is a potentially powerful investment. BAC is a major US bank with a market capitalization of over $200 billion. The company has nearly $2.8 trillion in total assets and 4,600 branches in 19 states. In addition, the BAC boasts a stellar quarterly record. In the most recent quarter, BAC earned an impressive $0.63 a share despite its rivals facing headwinds.
Even before the recent Wells Fargo (NYSE: WFC) scandals, the bank had several problems. To begin with, the bank was caught “involved in widespread fraud of fake accounts”. The Federal Reserve penalty of $185 million was the maximum possible. There were additional signs of widespread problems. The Consumer Financial Protection Bureau and others noted that the bank had no oversight. One downside was the bank opening accounts without the customer’s consent. Wells Fargo has also had numerous customer complaints. In many cases, customers saw products they didn’t need, broke their accounts, and ran into problems with credit monitoring. However, we are confident that Wells Fargo’s share price is still solid. The bank recently received a D- in an independent audit.
JPMorgan Chase & Co.
At one of the most powerful players in the banking industry, JPMorgan Chase & Co. (NYSE: JPM), one has to ask: where are the stocks hiding? It has recently risen after trading below $85 for much of the past year and may be ready to bust. If that happens, JPMorgan stocks will return to their 100-day moving average and quickly retest $103 or more. However, it’s not the only stock by a major bank that is rising: Wells Fargo & Co (NYSE: WFC) has risen more than 30% this year, though the Federal Reserve continues to punish the company for the fake-account scandal. JPMorgan never paid a penny for these damages.
Chevron Corp. (CVX)
Like other energy stocks, Chevron Corp. (NYSE: CLC) faces a bearish outlook in the form of lower energy prices. However, CLC’s profit is not tied to the oil price, unlike the oil and gas industry. Rather, it is a very diversified oil and gas producer. For example, this year, CLC focuses on the Permian Basin, which is benefiting from higher oil prices. This year, Chevron is well-positioned for a positive future. In fact, a 5% dividend and an aggressive repurchase of its own shares should boost shareholder returns. In addition, CLC’s debt position is relatively low, so it does not require the price of oil to be traded in a range before the business resumes growth. At the time of this writing, Josh Enomoto did not occupy a position in any of the titles mentioned earlier.
Exxon Mobil Corp. (XOM)
Exxon Mobil (NYSE: XOM) is a leading oil and gas company. The company is a global leader in crude oil and natural gas production. As a result, Exxon is well-positioned to withstand any potential market downturn. In addition, the company is also benefiting from the favorable winds in the sector. The US is currently pumping out record volumes of oil, which bodes well for the XOM. Exxon’s main strengths come from low-cost operations. The company has struggled to compete in a low-cost market. But thanks to efficiency measures, Exxon has greatly reduced its costs per barrel. In addition, the company is leveraging its low-cost oil and gas production to generate profit margins of up to 10% on Exxon shares in the US which are still somewhat expensive. For investors focused on current income, this is an action worth considering.
Walt Disney Co. (DIS)
Suppose you’re looking to enter Disney’s vast entertainment empire. In that case, there’s no better place to start than with your Walt Disney Co. DIS has a market capitalization of $156 billion and a dividend yield of 1.4%. The entertainment juggernaut has a long history of growth and boasts many impressive attractions, such as Disney World and its Star Wars-based entertainment company Lucasfilm. Disney also owns Pixar, Marvel, and Star Wars, among other well-known brands. DIS already operates several theme parks, including Disney World, Disneyland and Universal Studios. It also has the ESPN sports network, the most-watched cable sports network in the country. Disney currently trades at a small 14% discount on the general market as well as its five-year average P/E ratio.
United Technologies Corp. (UTX)
United Technologies is a diversified conglomerate that operates in many different industries. This includes aviation, aerospace and construction systems. According to TipRanks, analysts currently predict that United Technologies will deliver solid earnings growth. However, the current share price of $130 represents a substantial premium compared to the average of $108 over the past three months. Nevertheless, the positive side appears to be considerable, as earnings are expected to increase by nearly 10% per year over the next five years. On the other hand, the stock’s valuation is above average with a price-earnings (P/E) ratio of 18.8. This can certainly be a cause for concern, but if you believe that United Technologies has the potential to grow double digits, then I think the shares are worth buying.
Schlumberger Ltd. (SLB)
Source: Shutterstock As the world’s largest oil services company, Schlumberger Ltd. (NYSE: SLB) is always under pressure from pessimistic investors who want to see shares fall due to the company’s skyrocketing debt levels. However, this has not been the case recently. Instead, analysts expect SLB shares to appreciate more than 6% this year and more than 7% next year. Schlumberger makes money primarily by offering drilling services and buying and selling the equipment that oil and gas companies use. In turn, this equipment is used in prospecting for oil and gas on land and at sea. SLB shares also offer an impressive dividend of almost 4%. At the time of this writing, Charles Sizemore did not hold a position in any of the titles mentioned earlier.
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