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10 Stocks to Watch In 2016
With stock markets having recently entered correction territory for the first time in four years, now may well be an opportune time to start thinking about dripping some long-term investment money into the market. While the markets could well experience volatility in the short-term, investments made now might pay off in future years to come.
With that in mind, here are ten stocks that may be ones to watch in 2016:
- Amazon (AMZN)
In terms of scope and scale, Amazon continues to stand alone in the online retail and consumer discretionary space and it is this economic moat that will allow the company to go from strength to strength. The stock is already one of the top performers of 2015 and is forecast to grow earnings by 35% over the next 5 years.
- Chevron (CVX)
With a market cap of $145 billion, Chevron is one of the major players in the oil and gas industry and has long been a favourite energy asset for some of the biggest hedge funds and mutual funds. The stock is down 30% in 2015 in direct correlation with the fall in price of crude oil.
However, oil may rebound eventually and when it does, Chevron will probably go higher too.
- Costco (COST)
According to most reports, the trend for consumer ‘economising’ is likely to continue in future years and this will play into Costco’s strengths, as a popular discount retailer. The stock is up around 4% in 2015 and may be a defensive but reliable play for 2016.
- Estee Lauder (EL)
Estee Lauder is a $30 billion luxury cosmetics brand with a strong history of posting positive earnings and delivering shareholder value. The stock also has a big presence in China and may do well if Chinese markets resume their long-term bullish trend.
- Gilead Sciences (GILD)
Gilead Sciences is leading the way in new treatments for Hepatitis C. The stock has managed to grow earnings at almost 40% annually over the last 5 years.
- JP Morgan (JPM)
Financial shares may find the next few years harder going if the Federal Reserve embarks on a series of rate hikes. However, one of the better picks is JP Morgan with its strong track record and balance sheet.
- Starbucks (SBUX)
When it comes to high performing shares, you don’t get much better than Starbucks. The stock frequently tops the best performing charts and could continue to do so as it captures more market share from abroad.
- Symantec (SYMC)
Internet security provider Symantec has made over 20 acquisitions in the past few years and this has helped the company significantly boost its market share. In turn, that should help the company record higher earnings and increase share value in 2016.
- Tesla (TSLA)
Shares in electric car manufacturer Tesla have seen a rapid rise over the past couple of years and the stock now trades at an expensive 100 times forward earnings. But Tesla has many more exciting times ahead and with CEO Elon Musk at the helm anything is possible.
- Facebook (FB)
Facebook is another company operating in the online space with seemingly very little competition. The company recorded over $2.72 billion in net income over the last 12 months from a user base of ~1.5 billion. That equates to nearly $2 income per user and gives plenty of scope for improvement.
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