Top 10 Best Stocks to Buy Now (January 2019)

Top 10 Best Stocks to Buy Now

If you pay any attention to the world of finance, you are probably aware that 2019 is expected to be a big year for stock exchanges around the world. As investors scramble to find the best additions to their investment portfolios, dubious advice abounds. It can be difficult to determine which options are best suited to your goals. Regardless of where you are in life and what type of investment capital you have available for the new year, there is an option on our list of the top 10 best stocks to buy now suited to your needs.

FAQ for the Top 10 Best Stocks to Buy Now 

1. What Are the Common Features of the Top 10 Best Stocks to Buy Now?

The equities described below have few if any underlying similarities. The companies we reviewed include tech giants like Amazon and small-cap companies that make video games. If they have a commonality, it is that market analysts have seen the financial potential for these companies in 2019 based on their business models and shifting economic circumstances.

2. What Type of Volatility Do the Stocks on This List Present?

The top 10 best stocks to buy now hold varying degrees of risk depending on the company in question. The largest companies on our list offer blue-chip stocks and even if their share price decreases, dividend payments will reward investors and long-term value is likely to be static. The smaller companies on our list have less leverage in their markets and hence present a greater risk, but also a greater possible reward.

3. How Does a Stock Make the List of the Top 10 Best Stocks to Buy Now?

In short, it inspires visions of profitability. Most of the top 10 best stocks to buy now promise to bolster the value of investors’ portfolios by increasing in value drastically in 2019. However, some offset modest or negative growth predictions with generous dividend income.

4. Where Can You Find the Top 10 Best Stocks to Buy Now?

 Where Can You Find the Top 10 Best Stocks to Buy Now

The top 10 best stocks to buy now can be found on almost any major trading platform or through a mutual or index fund depending on which financial institutions hold your investments.

How We Reviewed

We reviewed forecasts for trends in equities on the NYSE using information from major market indexes like the NASDAQ and the S&P 500. We combined those forecasts with predictions furnished by a variety of media outlets and academic journals that cover finance. We looked at recent news impacting all the companies on our list and their subsidiaries. We cross-referenced this with concurrent coverage from other reputable sources to ensure accuracy in all analysis of the top 10 best stocks to buy now.

Overall Price Range of the Top 10 Best Stocks to Buy Now

The highest-priced shares on our list of the top 10 stocks to buy now are Amazon stocks priced around $1600 after a recent pullback. The least expensive stocks on our list are in the ballpark of $3-$4 a piece. The more expensive shares we reviewed are more likely to be in a well-established company that pays dividends to its investors while the cheaper options tend to be younger companies with a fighting chance at success but more risk for investors.

What We Reviewed

Stocks

Company Logos

Details

Company profile

Eaton Corp. (ETN)

eaton corp. logo

Eaton Corporation is a multinational power management company.

Summit Hotel Properties (INN)

summit hotel properties logo

Summit Hotel Properties is an Austin, Texas-based hotel investment company with hotels operating under some of the most popular brands in the country like Marriott, Hilton, Hyatt, and Holiday Inn.

UDR, Inc. (UDR)

UDR inc. logo

UDR Inc. is a multi-family real estate investment trust company based in Highlands Ranch, CO, a suburb of Denver.

American Water Works Association (AWWA)

AWWA logo

American Water Works is the largest publicly traded utility in the country with a presence in 47 states and one Canadian province.

A. O. Smith Corp. (AOS)

A.O. Smith Corp. logo

The A. O. Smith Corporation generates the bulk of its revenue manufacturing residential and commercial water heaters which they sell throughout the United States and China.

Amazon.com, Inc.(AMZN)

Amazon inc. logo

Unlike most companies with a sprawling market share, Amazon still has many growth opportunities.

NVIDIA Corp. (NVDA)

NVIDIA Corp. logo

NVIDIA is a Santa Clara, CA tech company that produces graphics processing units (GPUs).

Zixi Corp. (ZIXI)

Zixi Corp. logo

The market for secure online messaging applications is growing rapidly. This growing market is reflected in the success of ZIX Corporation, a technology security company headquartered in Dallas, TX

Arotech Corp. (ARTX)

Arotech Corp. logo

Arotech is a leading producer of drone and virtual reality technologies for military and law enforcement organizations.

Glu Mobile. Inc. (GLUU)

Glu Mobile Inc. logo

Glu Mobile makes video games for tablets and smartphones.


Eaton Corp. (ETN)

eaton corp. logo

Description

Eaton Corporation is a multinational power management company. Founded in the United States, the company is currently headquartered in Dublin, Ireland. Through the Eaton Corporation’s two major arms: electrical and industrial, the company offers myriad environmentally conscious products for manufacturing.

After a very strong performance in 2017 and a strong start in 2018, Eaton’s share price has taken hit after the company missed its earnings and revenue goals for the third quarter of 2018. Because the share price is artificially low, this is the perfect time to buy a stake in Eaton. Median forecasts for stock performance in 2019 indicate a likely gain of roughly 33% for Eaton Corporation.

Pros

  • A leader in the Carbon Disclosure Project
  • A member of the Green Suppliers Network
  • Recognized for corporate responsibility

Cons

  • Missed revenue and earnings goals in 2018’s third quarter

Summit Hotel Properties (INN)

summit hotel properties logo

Description

Summit Hotel Properties is an Austin, Texas-based hotel investment company with hotels operating under some of the most popular brands in the country like Marriott, Hilton, Hyatt, and Holiday Inn. Though the company generates most of its revenue in the upscale and mid-upscale hotel room market, Summit also invests in real estate across the country.

The company’s share price is down nearly 25% thus far in 2018, after reporting very solid growth from 2014 to early 2018. The most conservative forecasts for Summit’s stock price in 2019 suggest a 30% increase in value suggesting a stake in Summit is definitely one of the top 10 best stocks to buy now.

Pros

  • Forecasts for revenue and earnings are spectacular
  • Offers solid dividend income to shareholders

Cons

  • Negative earnings growth in 2017 and 2018
  • Rough third quarter in 2018

UDR, Inc. (UDR) 

UDR inc. logo

Description

UDR Inc. is a multi-family real estate investment trust company based in Highlands Ranch, CO, a suburb of Denver. The company operates properties, both acquired and developed, in non-mature communities in the burgeoning Denver metropolitan areas and other growing cities across the country like San Francisco, Los Angeles, Boston, and Dallas.

In the last five years, UDR has garnered a 37% payout growth for investors. The company is not expected to grow much in 2019; however, the company’s generous dividend payments make UDR a solid investment nonetheless. For investors interested in dividend income, UDR is the best option among the top 10 best stocks to buy now.

Pros

  • Healthy dividend payouts           
  • Revenue is concentrated in growing markets

Cons

  • Forecasts for minimal growth in share price over the course of 2019
  • Share price is currently near its 52-week high

American Water Works (AWK)

AWWA logo

Description

American Water Works is the largest publicly traded utility in the country with a presence in 47 states and one Canadian province. In addition to operating as a standard utility, American Water Works generates income by producing operating systems for military bases and exploratory outfits in search of natural gas deposits.

After massive growth and returns over the last five years, American Water Works is expected to stabilize in 2019. A plateau like this is normal for utilities in an environment where interest rates are rising and borrowing for infrastructure updates becomes more expensive. Despite modest growth projections, American Water Works solidifies its place among the top 10 best stocks to by now by offering its investors stable and increasing dividend payments.

Pros

  • Growing dividend payouts           
  • Stable investment option for older investors

Cons

  • Negative earnings growth for last year
  • Modest growth projections for 2019

A. O. Smith Corp. (AOS)

A.O. Smith Corp. logo

Description

The A. O. Smith Corporation generates the bulk of its revenue manufacturing residential and commercial water heaters which they sell throughout the United States and China. The Milwaukee-based company is expected to grow as the ascendant middle classes in India and China find the disposable income to invest in water heaters for the first time.

So far in 2018, A. O. Smith’s share price is down by more than 25%, meaning now is the time to buy. Forecasts indicate the value will increase by more than 50% by the end of 2019. These projections are informed by growth in international markets. Considering these factors in tandem with the company’s modest but increasing dividend payments, A. O. Smith presents an excellent investment option.

Pros

  • Solid sales and earnings growth in early 2018
  • Modest but increasing dividend payments

Cons

  • Missed third-quarter revenue expectations in 2018
  • This sector will be compromised by interest rate hikes

Amazon.com, Inc. (AMZN)

Amazon inc. logo

Description

Unlike most companies with a sprawling market share, Amazon still has many growth opportunities. The tech giant based in Seattle has been growing steadily on the domestic side and is expected to make a move on international growth opportunities. Besides e-commerce abroad, the company has been generating encouraging sales numbers in its cloud-computing service business, a segment of its business in which it is second only to Microsoft.

Amazon’s share price is up 35% in 2018 but experienced a pullback beginning in September. This makes for an ideal time to purchase this blue-chip option and a key reason why it is on our list of the top 10 best stocks to buy now.

Pros

  • Encouraging growth forecasts     
  • Massive market share
  • Multiple growth opportunities

Cons

  • Investors must decide what to do with all their money

NVIDIA Corp. (NVDA)

NVIDIA Corp. logo

Description

NVIDIA is a Santa Clara, CA tech company that produces graphics processing units (GPUs). The company’s GPU market serves gaming, professional visualization, data centers, and automation market segments. NVIDIA’s strongest opportunity for growth is in Artificial Intelligence (AI) where the company devotes most of its research and development resources.

It’s no surprise that the 2019 share price forecasts vary wildly when you consider the stiff competition NVIDIA faces from well-established competitors like Texas Instruments. However, NVIDIA would have to lose substantial market leverage to stray too far from the median projections for a 40% increase in the value of stocks for the coming year.

Pros

  • Fantastic five-year return since 2014
  • Works in a growth industry

Cons

  • Stiff competition in the development of AI
  • Poor third quarter performance in 2018

ZIX Corp. (ZIXI) 

Zixi Corp. logo

Description

The market for secure online messaging applications is growing rapidly. This growing market is reflected in the success of ZIX Corporation, a technology security company headquartered in Dallas, TX. ZIX creates secure messaging systems that are popular among corporate and governmental entities and prioritize privacy and security.

The company is still small but sales have risen by 65% since 2014 despite inconsistent earnings numbers in 2017 and 2018. For investors willing to take a risk on a low-cost stock with a strong upside, ZIX is the best option on our list of the top 10 best stocks to buy now.

Pros

  • Works in a growth industry         
  • Low share price

Cons

  • Inconsistent earnings in recent years
  • Inconclusive forecasts for 2019

Arotech Corp. (ARTX)

Arotech Corp. logo

Description

Arotech is a leading producer of drone and virtual reality technologies for military and law enforcement organizations. The defense and security company also sells emergency services and weapons simulations for aircraft and missile defense systems. Because Arotech provides military technology at a point when drone and AI technology is receiving substantial attention from investors, the company presents investors with an interesting opportunity.

Arotech is currently trading near its 52-week low in an already cheap price range. After a shaky third quarter in 2018, the company is poised to rebound based on a Marine Corps contract worth $29 million won by one of Arotech’s subsidiaries in the summer of 2018.

Pros

  • Low share price
  • Recent contractual windfall

Cons

  • No definitive forecasts for 2019 share price
  • Sub-par five-year return

Glu Mobile, Inc. (GLUU)

Glu Mobile Inc. logo

Description

Glu Mobile makes video games for tablets and smartphones. The company sets itself apart from the competition by marketing celebrity-based games directly to female gamers, the fastest growing segment of the video game market. The company is in the process of working out of its substantial debt. While operating income is still in the red, revenues are on the rise and share prices are trending upward.

Success in the online gaming market is heavily predicated on producing a hit game which is difficult to predict. If Glu Mobile is able to succeed in finding the next big game, their share price could soar in 2019. If not, stakeholders will probably see at least a stable value in their investment.

Pros

  • Low initial investment costs
  • Online games are gaining popularity

Cons

  • Forecasts for 2019 predict moderate growth
  • The company works in an unpredictable industry

The Verdict

Our list of the top 10 stocks to buy now deliberately includes investment options suited to a wide range of investment goals and situations. For investors looking for a solid addition to a diversified investment portfolio, Eaton Corp and Summit Hotel Properties are the strongest bets for solid returns in the coming year. If you are closer to retirement and need an investment that stability and dividend income to your portfolio, American Water Works is the best option. And finally, for those readers with minimal start-up capital, Zix Corp, Arotech Corp, and Glu Mobile Inc all offer exciting opportunities and small share prices.

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