Best stocks to buy in 2020
With 2019 coming to an end, many, irrespective of the performance of their current stocks, are already looking to the future, for which stocks to buy next.
Below we detail which companies could provide a promising opportunity to those looking at the best stocks to buy in 2020.
1. Netflix –
Starting 2019 at around $364 per share, Netflix currently (November 2019) stands at around $313 per share. This YTD (Year-to-date) decline mainly owing to Disney removing all of their content from Netflix, who they also have started competing with by launching Disney+. In embracing this competition, Netflix plans to continue launching new series and producing more films which they believe will attract more subscribers. Simply by releasing the latest series of their most popular shows such as The Crown and Stranger Things, user growth beat expectations in Octobers earnings report. With the release of feature length film “The Irishman”, Q4 earnings could still surpass this, and with further projects on the horizon, this stock could be one to watch.
2. Facebook –
Stock buying isn’t always about buying the best performing stocks, with favourable media coverage. At times the best investments are in companies which are currently being scrutinized. Facebook and Mark Zuckerberg have had poor media coverage over the last few years, with scandal after scandal, however regardless, the company still nears it’s all time high share price of $209.94 – currently trading at $199.79. If the company is still performing well with a “bad reputation”, what would happen to the value when and if we see good news headlines? Could 2020 be the yeah where it breaks its all time high?
3. APPLE –
Similar to Facebook, we’ve seen the recent level of innovation questioned, with many not seeing the same level of innovation in place since the passing of the late Steve Jobs. However regardless of the overwhelmingly underwhelming recent products releases, they continue to set and breaks historical highs. Currently trading at $266.37. What could 2020 bring. Also entering the TV streaming race, could we see the new launch see further see this stock continue to grow?
Guide how to buy stocks
Looking for the best stocks to buy in 2020? This is simple. There are many online brokers like eToro which provide interested investors the opportunity to not only own physical stocks but also speculate via CFDs (which you can buy with lots of payment methods, including paypal). If you are interested in not only finding the best stocks to buy, but actually investing in them, below is the easy process to follow.
Step 1: open a broker account
Step 2: decide your investment level
Step 3: deposit and start trading
Understanding stock buying
Buying a stake in a company with the hope that the price increases in value. These are the simple principles when it comes to buying a stock. All a stock simply is, is a share/stake in the ownership of a company.
Stock buying is viewed as a longer term endeavor as there usually needs to be months if not years of good performance for the value of the company/stock to increase. In addition to this being a longer term investment, the level of investment is usually a more substantial amount of money than that of a day trader.
Stocks buying is usually attractive to those who wish to avoid the day to day uncertainty of markets. Stock investors once they decide which to buy, usually are either users of the product/service provided by the company or have an underlying belief that the company will perform at a high level for a sustained period, and are willing to play the long game in order to be correct.
In saying this there are only a certain type of company that is available to buy for members of the public, we explore this below.
What stocks are available to buy?
When it comes to buying or investing in stocks, there is a certain type of company which is available for investors to put there money into. We all encounter many companies providing us products or services on a day to day basis, and we may swear by the service they provide, like our local cinema, or the neighbourhood restaurant. Yet these are companies we likely will not be in a position to buy stocks in.
We can only buy stocks in publicly listed companies. These are companies who have chosen to become PLC’s (Publicly Listed Companies) and listed on local exchanges and open to outside/public investment. Companies go public by filing for an IPO (Initial Public Offering). Once listed, anyone with the financial means will have access to buy the stocks in said company.
Below is a list of the top 10 exchanges around the world, by market cap.
How to pick what stock to buy?
Most countries will have a local exchange which lists these publicly traded companies. Estimates suggest that there are currently around 630,000 of these such companies around the world. So there isn’t a shortage of options when it comes to stocks which are available to be purchased, the issue is deciding which ones to buy.
Everyday investors may look at buying stocks in companies they work for, companies who provide a product that they cannot live without, or even just companies recommended to them.
More sophisticated investors may look at fundamental news surrounding the company, like profit forecasts, new product releases, expansions into new territories etc. Regardless of which type of investor you are, it is essential that you ensure you are well informed in the stock you are hoping to buy, understand what could impact the value increasing or decreasing. Once you feel you have enough information to make a guided decision, then comes the time to buy.