What are the best stocks to invest in right now? Below, we discuss what constitutes an investment that grows over time. It is critical that an investor sticks to the prepared plan. Markets will fluctuate- it is in their nature. Those who are prepared and understand what is happening will be rewarded. Conversely, those who use emotion to make decision will be left penniless, a distant memory of the market.
The stock market is an important entity for those looking to grow capital and save for things such as retirement or education planning. Many individuals perceive the market to be confusing or even “rigged” against small mom and pop investors. Make no mistake; investing is not for the risk-averse. However, through planning and sound research, anyone can enjoy profits through stock market investing. Let us discuss the best stocks to invest in today.
Best Stocks To Invest in Right Now
Wal-Mart Stores, Inc (WMT: NYSE) operates retail stores in various formats worldwide. What makes WMT different from other depart or retail stores? The market experienced a game changing player in Amazon.com, Inc. (AMZN:NASD). For some time, panic set in and retail names plummeted on fears that AMZN would take market share from most other retail outlets. Some retailers will fail on the presence of this company; however, WMT made a series of acquisitions and business model changes in order to compete. The company has never been stronger and is not only surviving alongside AMZN, but they are thriving.
Why WMT and not AMZN? WMT is not considered a tech company, and therefore will fit the risk profiles of most conservative investors, as tech companies tend to be more volatile than department stores. This is shown through the company’s beta, or movement relative to the market as a whole. WMT has a beta of around .4, which means that for every $1 move in the market, WMT is expected to move $.40. The company shows a solid dividend yield of just over 2%. Showing the ability to thrive in a difficult environment (up 50% in a 12 month period), low volatility, and attractive dividend yield, WMT is one of the best stocks to invest in right now.
Best Industrial Stocks To Invest in Right Now
Deere & Company (DE: NYSE) manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide. DE might sound like an old, boring company. However, this company innovated like any other successful entity. The company is always on the cutting edge of agricultural technology.
DE creates products that harvest crops all over the world more efficiently and less expensive than methods of recent history. The company has been a going concern since 1837 and is still the industry front runner today. This shows true innovation and ability to adapt to changing trends.
In DE’s case, they are creating trends. The company will steadily grow earnings per share (EPS) over the next 5 years. This is an important metric on which Wall Street analyst value companies. Higher EPS growth means higher stock price, which is good for owners of the stock. The company shows institutional ownership over 80%, meaning the company is heavily owned by pension funds or mutual funds. These are professional investors handling massive sums of money.
Furthermore, if it is considered a solid investment by these professionals, it should be considered for the individual investor. Making money is important, because it shows demand for a good or service. This company is an industry giant, showing sales of close to $30 billion annually.
More Industrial Stock Considerations
United States Steel Corporation (X:NYSE) produces and sells flat-rolled and tubular steel products primarily in North America and Europe. This company is among the top 15 steel producers in the world. It is one of the best stocks to buy today since it gives investors exposure to the world economy. Steel is in demand when infrastructure and other projects are in demand. One cannot read a newspaper worldwide without seeing an article on outdated infrastructure. Clearly, steel is in demand and will be for some time. This is a relatively inexpensive stock to own, meaning an investor can buy more shares with less capital.
This stock has a beta of around 3, meaning it moves much more relative to the market as a whole. This can be a good thing for investors looking to benefit from share price appreciation. Conversely, it can hinder investors who are less risk prone and do not favor large swings. Luckily for X, the relatively low share price will aid investors because the dollar moves will be smaller. On the surface the stock may seem volatile, but in reality does not move more drastically compared to other companies.
X has survived different global economic conditions, varied political administrations, and a number of different business ventures. The company has shown the ability to adapt and innovate in new ways that sustain its place among the top stocks to invest in right now. This stock has grown EPS over the past several quarters by an alarming rate- over 100%. It is clear that the demand for steel is still quite strong, and will be in the future, and X is an excellent way to gain exposure to this phenomenon.
Finally, we discussed many top stocks to invest in today. There exists an underlying theme in this article. These companies have been in business for quite some time and continue to dominate their respective fields. This is a tell-tale sign of a healthy and innovative in which to invest. These are not speculative plays, but rather steady performers that have a historical track record of rewarding investors.