Have you always wanted to invest in stock, but have no idea on where to start? The stock market can feel like a big scary place, but once you find the best companies to invest in, you might see your wealth growing tremendously.
Money that then you can use to invest in your own life, like that car you always wanted, the renovation your kitchen desperately needs or your child’s college fund.
Here are some tips on the best companies to invest in right now.
Finding the Best Companies to Invest In
Before you invest in a company, do your research. Find as much information about that company and its history as possible. Check up on that company in the news, have they recently made any changes that can positively or negatively affect their wealth?
You might even want to consider looking into a wealth management organization to help guide your financial decisions, like this company.
1. Exxon Mobil
You might be surprised to see the Exxon Mobil Corporation (NYSE: XOM) on this list of companies to invest in, but according to Yahoo Finance, it’s actually one of the safest bets in oil you can make today.
This is because Exxon’s management is predicting that XOM’s earning will double by 2025, adding a growth component. While there is a risk that these Exxon is being a little bit too optimistic about their future, especially if companies like Tesla leads the electric car revolution, then there would be less of a demand and hence lower pricing for oil.
But at this point, the market is pricing a close to zero chance of Exxon hitting its targets, which is what makes it an attractive stock. It’s status quo still gives investors a 4%+ income annually, and any improvements in production or pricing tend to be an upside.
2. Nathan’s Famous
It may seem silly to invest in a restaurant, specifically a hot dog restaurant in this market. But there’s surprisingly actually a strong case for Nathan’s Famous, Inc. (NASDAQ: NATH) at this time.
While NATH has recently seen some sharp pullback, it did touch a 52-week (and all-time) high of just over $100 in November. Since then, it’s been down about 25%, bit one-sixth of this decline can be credited to it’s $5 a share special dividend paid in December.
While the restaurant industry has been choppy, it does stay profitable, and franchise models like Nathan’s Famous Inc., Domino’s Pizza, Inc, (NYSE: DPZ) and Yum! Brands, Inc. (NYSE: YUM) have been doing really well.
NATH has been stable over the past few weeks with Q4 earnings in June that could make the company do well making more investors wanting to invest.
3. Bank of America
While Bank of America Corp (NYSE: BAC) trades at the highest levels since the financial crisis, it has also gained over 150% since it’s July 2016 lows.
While trading has been recently choppy, don’t give up on this Bank yet, earnings should be solid for the immediate future, due to the rising Fed rates and the strong economy.
BAC is also not expensive, trading in at less than 11x 2019 EPS estimates unless the economy turns quickly, that may seem too cheap. Meaning the Bank of America stock has potential to be a good long-term investment.
Nutrisystem Inc. (NASDAQ: NTRI) is another company you might want to buy on a pullback. While it had some disappointing Q4 earnings in February, this commercial provider of weight loss products and services disclosed a rough start in 2018.
Which isn’t good, at this time known as diet season is usually the most profitable period for weight loss companies, as customers are focused on their New Year’s Resolutions.
This rough start could be due to some marketing mistakes that lead to the companies lack of growth, but analysts and Nutrisystem’s management have predicted a positive change, and expect a 13% increase over this year, making now the perfect time to invest.
With more and more people getting rid of cable and binging shows on streaming services, you’d think there would be more of a need for streaming services like Roku.
Roku Inc (NASDAQ: ROKU) may be perceived as one of the riskiest stocks on this list, and you should invest in this with caution. The company does remain unprofitable, but management sees an interesting future for ROKU.
The company is looking to build a true ecosystem, from a subscriber standpoint has already surpassed companies like Charter Comminications Inc. (NASDAQ: CHTR), AT& T (NYSE: T) and Comcast Corporation (NASDAQ: CMCSA).
This is a high-risk investment, that could potentially have a high reward opportunity, as Roku could become profitable very quickly.
It looks like Brunswick Corporation (NYSE: BC) is due for a breakout. This boat, engine and fitness equipment manufacturer has resistance around $63 and has stayed around there for almost a year now. Even though the boating sector has soared lately, BC which is an industry leader has been left out.
In just this last year, smaller manufacturers like Marine Products Corp. (NYSE: MPX), Malibu Boats Inc (NASDAQ: MBUU), and MCBC Holdings Inc (NASDAQ: MCFT) have all gained 51%, 71%, and 68%, respectively. While BC has gained less than 2%.
This could be because of BC focus to build out their fitness business, which has lead to mixed results. Now, Brunswick is going to return to focusing on boating, which has proven to be a more profitable business than fitness at this time.
If this works out, it looks like BC will easily breakout towards $70+, making it a smart company to invest in right now.
Not many investors are a fan of the pharmaceutical space right now or even the healthcare industry. However, Pfizer Inc. (NYSE: PFE) has made an exception as it remains the most valuable drug manufacturer in the world, coming in close to Novartis AG (ADR) (NYSE: NVS).
PFE trades at just 12X EPS, which means that profits should stay pretty flat, and it also offers a 3.8% dividend yield.
Of course, there are risks. High drug prices continue to be in the news, although recently the focus has been diming, after President Trump’s plan to lower prescription drug costs. In turn, revenue growth has flattened, but Pfizer’s earnings are still growing making it a wise investment.
8. Valmont Industries, Inc.
Valmont Industries, Inc. (NYSE: VMI) has a diverse portfolio, but their business hasn’t been that strong lately. This irrigation company has been hit by years of declining farm income, and mining weakness has also an impact on Valmont’s smaller businesses.
On the upside, many of Valmont’s contracts are “pass-through” which limits the direct impact of higher costs of the company. Even with an uneven demand, it’s EPS has been growing steadily and should continue to grow, so the time to invest in Valmont Industries, Inc. is right now.
9. American Eagle Outfitters
American Eagle Outfitters (NYSE: AEO) is actually one of the best stocks in retail, which is kind of a problem. With the increase of online shopping, mall retail has been a tough space over the years.
But American Eagle is a survivor as it keeps having positive comps and stable earnings. This stock trades at around 12X EPS, and it’s brand’s sales rose 27% in fiscal in 2017, keeping up with its 23% rise from 2016. And it should continue to grow this year.
At the beginning of June of this year, AEO stock rose 1.6% after it announced a better than expected first-quarter results on May 31.
American Eagle isn’t going anywhere and should have more growth as it’s 2.6% dividend gives income in the meantime. If you want a reliable stock that keeps proving its reliability, American Eagle Outfitters is for you.
10. United Parcel Service, Inc.
This might also seem like an unexpected investment since the United Parcel Service, Inc. (NYSE: UPS) fell with the broad market did in February and hasn’t recovered.
UPS also endured a bad Q4 earnings report, where investors saw signs of higher spending, drove some of the declines. Then UPS stock fell 22% over the course of a few weeks.
UPS will have to spend, and like retail, there’s also the ever-present threat of Amazon here. But UPS along with its rival FedEx (NYSE: FDX) still remains to be the top delivery companies that can co-exist with Amazon.
This is because E-commerce growth should continue to increase demand; there’s enough room for multiple players in the global market. So UPS stock is priced as if that deceleration will happen.
Invest in Stock Today
Now that you have all this advice and background on the top 10 best companies to invest in, make those investments.
Like any investment, keep an eye on it, and continue to stay informed on the company you invest in.
In a second, a good stock investment could become a bad investment, with the constant changes in our economy. So keep an eye on not only the stock market, but also the news, and perhaps sign up for google alerts on the company you’re investing in.
Timing is everything, especially when it comes to the stock market and investments. For more tips on finance and investment advice, check out our blog.