Stocks to Watch in 2016

Value investors may be concerned that the global financial markets are headed into a period of instability as the Greek debt drama plays out. With economic growth slowing in places like China, Great Britain and the United States, many analysts are wondering how an uneven economic climate will impact their portfolios over the next 18 months.

Below is a rundown of established and emerging stocks to watch for in 2016. Their current and projected revenue growth, earnings and vision make them viable options for yield-seeking investors. Our picks for 2016 provide a good balance between stable investments and riskier high-reward stocks we believe might yield significant gains in the year ahead.

Amazon.com (AMZN)

Our list wouldn’t be complete without Amazon.com, one of the world’s largest retailers. As a consumer discretionary stock, Amazon has grown by at least 20 percent for 20 straight years.[1] Although consumer discretionary stocks may experience dips when the economy goes awry, Amazon has been remarkably consistent. Analysts have little reason to expect otherwise in 2016.

BlackRock (BLK)

BlackRock, a multinational investment management company headquartered in New York, has been touted as a “long-term winner” by Morgan Stanley. The company manages nearly $5 trillion in assets[2] and is known for its “ETF platform and strength in alternative and multi-asset classes.”[3] The stock boasts an EPS of $19.70 and a dividend yield of 2.54 percent.[4]

Celldex Therapeutics (CLDX)

This promising biotech got off to a great start in 2015 with extraordinary gains stemming from its award-winning brain cancer drug Rintega.[5] Celldex’s focus on treating cancer and other terminal illnesses, combined with its innovative immunotherapy technologies, have earned it a strong buy rating from analysts.

Concurrent Computer (CCUR)

Concurrent Computer provides digital technology services that enable the airing of video on multiple screens. With a market cap of $63.9 billion and a stock yield of 6.8 percent, the company is being driven by huge demand for over-the-top video streaming services such as Netflix.[6]

Gilead Sciences (GILD)

Analysts are strongly bullish on Gilead Sciences, a biopharmaceutical company involved in the research and commercialization of medicine. Earlier this year the company reached a deal to buy a liver-disease treatment program from Phanex Pharmaceuticals AG, a privately-held biotechnology company.[7] With a focus on the unmet medical needs market, Gilead has a market cap of nearly $170 billion and an EPS of $8.81.[8]

MGM Wireless Limited (MWR)

Although still considered a speculative investment, MGM Wireless provides cloud computing technology to schools in order to help improve productivity by reducing administration. Cloud computing is one of the defining trends in the technology market because it enables users to access essential computing resources at a fraction of the cost of traditional servers and hardware. MGM currently has over 1,000 schools signed up to its services. The company’s net profits increased by 9 percent in 2014, with a dividend of 1.1 cent per share.[9]

Nearmap (NEA)

While still considered a risky investment, Nearmap’s aerial mapping services are essential for sectors such as construction, solar power and municipal governments.[10] The company has already made significant inroads in Australia, where its capture program covers 85 percent of the population,[11] and is looking to expand in the United States.

Procter & Gamble (PG)

The globally renowned consumer staple is always an excellent stock choice, according to top investors like Warren Buffett. Procter & Gamble has a solid rating from top analysts for its sound financial position. During the past fiscal year Procter & Gamble had an EPS of $3.87, a figure expected to grow in the coming year.[12]

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[1] David Sterman (2016). “The Top 16 Growth Stocks Through 2016.” Investing Answers.

[2] BlackRock (2015). About Us.

[3] David Sterman (2016). “The Top 16 Growth Stocks Through 2016.” Investing Answers.

[4] MarketWatch. BlackRock Inc.

[5] Keith Speights (29 March 2015). “2 Ups and Coming Biotech Stocks to Watch.” The Motley Fool.

[6] John Dobosz (26 November 2014). “Buying Stocks for 2015 with the Market at New Highs.” Forbes.

[7] Tom Rojas (6 January 2015). “Stocks to Watch: Walgreen Boots Alliance, Gilead Sciences, Coach.” The Wall Street Journal.

[8] MarketWatch (2015) Gilead Sciences Inc.

[9] MGM Wireless Ltd. 2014 Annual Report.

[10] Tom Richardson (16 June 2015). “3 top growth stocks to buy for financial year 2016.” The Motley Fool.

[11] Nearmap (2015). 2014 Nearmap Limited Annual Report.

[12] Stockpickr Staff (18 May 2015). “Warren Buffet’s Top 10 Dividend-Paying Stocks for 2015.” The Street.

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