Category: Best Stocks Right Now

In this section of the Traders-Paradise’s website, our experts estimate what Best Stocks Right Now investors and traders can buy. It doesn’t matter if someone is interested to trade or invest in them. An opportunity is an event, that can comes once and disappear, or last for a long time. Traders-Paradise gives the readers a hint on both.

Best Stocks Right Now aims to spotlight trading and investing opportunities that might be beneficial and profitable.
For traders and investors, providing investing ideas is extremely important. In the section Best Stocks Right Now, readers are not getting ideas only. All posts are full reviews on suggested investment opportunities, sometimes explained trough writing on particular asset classes but mostly they are comprehensive reviews on companies.

Why Best Stocks Right Now?

By adding this section, our aim wasn’t to give advice. Our aim is to give you an idea of where to invest right now, what are the hottest investments in particular periods of time. Also, we point some asset classes that could be the best investment choice for particular periods depending on events, news, and market conditions primarily.

Also, we suggest to our readers the best investing or trading strategy for a particular stock or asset class. The visitors can read fully explained strategies in the section Best Stocks Right Now based on technical and fundamental analysis.
We hope you’ll here find an investment that suits you best.

The Hottest Investing Trend Today – ESG

ESG investors who combine these stocks with traditional assets and generate better returns. ESG stocks become the hottest investing trend.

By Guy Avtalyon

Everyone would like to know what is the hottest investing trend today. Despite many expectations that it easily could be pharmaceuticals or biotech stocks due to the current pandemic, the new investing trend is quite surprising. Some would expect that developing a new vaccine for the new coronavirus could attract investors’ attention. But it looks that some other industry has more potential. Some other stocks are able to generate better returns. We are talking about ESG investing.

Yes, that’s true. ESG stocks generate better returns than the overall market all the time. And it is pretty interesting if we know the ESG stocks carry less volatility then many many other stocks. Even if it is surprising, ESG investing is a fast-growing trend. So if anyone asks you what is the hottest investing trend today, you\re free to say ESG and you’ll be right.

What is ESG investing?

ESG investing is also known as sustainable investing. It is all about environmental, social, and governance. These three classes are massively under investors’ attention and a lot of money is already invested in this sector. We can discuss whether it is a smart investment decision or not but data shows it is. Take a look at this chart below.

The chart shows the S&P 500 ESG index’s relative performance. We can see that it has outperformed its benchmark by approximately 3 percentage points during the past 52-weeks.

Investing is related to the future. No matter what are you looking for the main goal of investing is to improve your future. Stocks also want to develop their better performances in the future, so it looks like they have the same goal as investors. But why is ESG the hottest investing trend today? How does it become such a profitable class for investors? As we said, ESG stocks generate better returns, they generate profits and hence, reward all investors involved.

Why is ESG the hottest investing trend now?

The global trend for many years is sustainability. That means the sustainable company plans the future and plans to be present in the future, not just to shine for a few years, to get a few bucks and turn all operations off.
ESG investing is a common term for investments that seek better returns. The other goal is the long-term impact on the environment, society. Sustainable investing comes in forms of ESG, impact investing, socially responsible investing or SRI, and also, values-based investing. The other school of thought adds ESG under the umbrella of SRI where there is also, ethical investing and impact investing.

The Financial Times describes ESG as “a generic term… used by investors to evaluate corporate behavior and to determine the future financial performance of companies.”

Today, almost the whole of civilization is working on sustainability, and the businesses that do the same are popular and supported. Bank of America published a study that shows that 86% of customers believe companies should consider ESG problems. For example, data from that study reveals that 94% of Generation Z and 87% of Millennials are very interested in this issue. For them it is important, (well, not only for these two generations), that the companies’ focus is on renewable energy, waste management, diversity. Also, consumers showed a great level of determination in the answers about the company’s reputation toward their focuses on the environment. How the companies treat it is maybe one of the main criteria when customers have to decide if the company has a good or bad reputation.

Sustainable investing strategies

ESG is the hottest investing trend today. It outperformed the market in recent years. So it looks the gap in returns will only grow as time goes by.
ESG investing is influential, and it’s only increasing. Bank of America estimates that $20 trillion is going to flow into ESG funds in the next two decades. For the purpose of comparison and to have a real picture how big is that amount you have to know that the entire S&P 500 is worth about $25.6 trillion.

ESG investing strategies are not new but here are some tips.

Choose the best in the class. This strategy includes the selection of the best performing or most modernized companies recognized by ESG analysis.

Investing strategy based on engagement activities such as active ownership of shares, voting on company governance is one of them, for example. The goal of this long-term process is to influence the behavior of the ESG company.

ESG integration into traditional financial analysis and investment decisions. This strategy focuses on the possible impact of ESG issues on company outlook. That in turn may change the investment decision. For example, if the impact of ESG is positive, the company is likely to look more favorable as an investment opportunity.

As you can notice, momentum is growing. Shareholders are demanding action more and more. The consequences arise for companies that fail to adjust.
Conscious capitalism is a management strategy that highlights adjusting the business with shareholders to share success. A company that matches that goal not only runs for profits to shareholders, but also takes care of employees, the environment, clients, and community. That generates long-term profitability.

How to trade ESG stocks

First, do your research. Open an account to trade ESG stocks. Fund your account and pick the company. You can use your account to invest in ESG stocks by buying shares or trade on the price movement using spread betting or CFDs. You can go long or short on ESG stocks like with any other stock. Also, you don’t need to take ownership of any shares.

Where to find the hottest investing trend?

For example, tech startups are some of the hottest investing trends. They broadly implement sustainable practices and make up a respectable part of ESG investing. Innovation-focused companies that develop advanced technologies, do it in a way that is in the best interest of civilization. For example, Microsoft or Apple, both are among the largest sustainability-focused companies. They generated great returns to their investors in the past few decades. And also, the important part is their reputation among customers. It’s excellent.

Since ESG investing isn’t all about the environment, something is about community impact or employee satisfaction. These companies are recognized as employee-friendly, also. These characteristics will drive their share prices in the future to stay on the top in the investment world.

Still, some will argue that taking this approach in investing could mean reducing returns. But some researches advise otherwise. For example, you can choose the easiest approach and buy ESG-focused ETFs that track the index. Some of them outperformed their benchmarks last year and continue this year also. ESG investments had record amounts of capital inflows in Q1 this year.

ESG has a great influence on reducing risk. Adding ESG stocks in investment portfolios can help investors to reduce risk. Consider ESG and prioritize stocks. They have to align with the values most important for you. Use the ratings from an ESG agency to examine the company.
One note, climate change ruled the headlines at the beginning of this year. Seizing fossil fuels is an issue per se, many companies announced that would limit investment in coal, for example. So, ESG investments are possible to have strong growth in the coming years and decades. ESG investing is the hottest investing trend today and an excellent way to profit.

25th June 2020
What is GARP And GARP Investing?

The definition of GARP stock can vary but is based on the P/E to PEG ratio, which divides the P/E ratio by the growth rate.

What is GARP or longer, Growth At a Reasonable Price? Growth at a reasonable price or short GARP is an investment strategy. This strategy unites the principles of both growth and value investing. How does it do that? When you find the companies that have consistent earnings growth but don’t sell at too high valuations. This term was introduced by investor Peter Lynch.

While combining principles of growth investing and value investing it serves traders to pick individual stocks. GARP investors look for companies with steady earnings growth that is higher than market levels. That means they are eliminating companies that have very high valuations. The general goal is to avoid the extremes in any type, growth, and value investing.

GARP investors invest in growth stocks but such that have multiples low price/earnings (P/E) in average market conditions.

What is GARP Investing?

GARP investing or growth at a reasonable price is a combination of value and growth investing, as we said. GARP investors seek companies that are slightly undervalued but with sustainable growth potential. Their criteria are almost the mixture of those that the value and growth investors use. Stable earnings growth is still on top position as one of the most important features but also valuation has a great influence on whether they pick a particular stock or not.

Building such a portfolio that consists of “Growth At a Reasonable Price stock” isn’t just picking the stocks with an equivalent amount of growth and value. The point is to choose the stock that each has qualities of both, value and growth.

Aggressive growth investors never pay too much attention to the value of the stock. Here are some reasons why they should consider the value of the stock. Let’s say that growth investors profiting from stocks with excellent earnings growth. Such companies are beating all earnings estimates all the time. Do they have any guarantee that the companies will resume performing with success and how long? They could make a profit only if the company proceeds to generate high profit and grow constantly. But what will happen if it stops to do so?

Here we have the value in the scene. Value is important to understand the level of investors’ expectations related to the particular stock. Also, value is helpful to gauge how far some growth stock could drop if it starts to sink. To put this simple, value adds a portion of reasonable thoughts and exact estimates into the calculation.

How does GARP work?

A basic formula for finding GARP is the PEG ratio. It is aimed to measure the balance between growth and value. The optimal PEG ratio should be one or under the one.

Here is how it works. Let’s say the company is trading at $50 per share with EPS forecasted to rise for15% over the year.

P/E ratio = $50/$5 = $10
PEG ratio = 10/15 = 0,66

This PEG which is less than 1, makes this company a good candidate for GARP.

Why does Growth At a Reasonable Price matter?

This could be an added explanation of what is GARP. GARP helps investors to avoid the possible problems or traps that they may have with complete investing in growth or value stocks. If growth stocks rise too high they may create a bubble that could burst in a minute. On the other hand, value stocks can stay the same in the price for a long time. With GARP investors could find the golden middle zone. The investment stability where they can benefit from rising prices of growth stocks but, at the same time, they’ll be protected with value stocks if the growth starts to fall.

Some may say that GARP stocks will underperform growth stocks in a growth market. Also, such will notice that GARP stocks will underperform value stocks too but in the value market. Despite these criticisms and objections, GARP could easily outperform in combined markets and could do it over a long time.

What is a GARP strategy?

It is a mixed approach to growth and value stock-picking. This kind of investor obtains a combination of returns. In other words, the GARP investing strategy is hybrid.
In GARP investing it is necessary to look for low price/book ratios and a PEG ratio of less than one, as we said.

P/B ratio = current price/book value per share
PEG ratio = P/E ratio/predicted growth in earnings

We said a GARP investor will obtain a combination of returns. This actually means, when markets are dropping it is better for value investors. Hence, markets are rising. It is better for growth investors. On the other hand, GARP investors could benefit from any market condition because they are somewhere between the mentioned types of investors but unite characteristics of both.

What is it in essence?

Growth At a Reasonable Price investing doesn’t have inflexible limits for adding or eliminating stocks. The basic benchmark is the PEG ratio. The PEG presents the ratio between a company’s valuation (P/E ratio) and its required earnings growth rate for the next several years, for example. If stocks have a PEG of 1 or less, that means the P/E ratio is in line with predicted earnings growth. This helps to find a stock that is trading at a reasonable price.

During a bear market or other declines in stocks, the returns of GARP investors could be higher than the growth investors can get. However, in comparison to the value investors, GARP investors may have average or under average returns. But since GARP investors hold stocks with characteristics of both growth and value stocks, the average returns they get is higher than average returns for growth and value investors can get from their investments separated.

Bottom line

GARP stocks are picked by a joining of earnings growth and valuation when investors want to evaluate the right picks. The idea behind this is to recognize cheap stocks with a growing possibility in the future. Hence, the earnings growth of GARP stocks is notable above that of the market.

GARP is the abbreviation for “growth at a reasonable price” and represents truly a combination of value and growth investing. So, GARP investors seek for a stock that is trading for somewhat less than its predicted value but has earnings growth potential. GARP stocks are slightly lowered but can grow soon. So, what is GARP? It’s all about how to find stocks that have a future.

23rd June 2020
Defensive Stocks Are Excellent Investment But…

Defensive stocks provide dividends and stable earnings but the low volatility may cause fewer gains during bull markets.

By Guy Avtalyon

Several days ago, the website U.S.News posted an article about defensive stocks. As always, great and concrete suggestions. You can find their suggestions with an explanation of why the proposed defensive stocks are best picks for this June.
Here is one quotation about these stocks.

“More conservative investors who value both capital appreciation and preservation of capital might look to these stocks.” was written The U.S. News.

This might mean this kind of stock is less risky than most of the stocks in the market.

Further, in the same article, you’ll find a short description of what criteria investors should use when picking defensive stocks. For example, market capitalizations should be above $50 billion, such companies should have at least a 10-year track of continuous paying dividends, etc. All is followed by the list of these stocks that look like the best choice for June this year.

That simply imposed the topic, what are these stocks. Why buy them? How to choose? Where to look for them?

What are defensive stocks?

A long time ago it would be very easy to answer. You could be easily trapped listening to some financial experts saying how defensive stocks are boring investments. Moreover, you could hear they are too conservative. It might be true, even today. These stocks come into utilities, healthcare, and staples sectors. Well, one could think: Yeah, these sectors are not excited, not at all, so why should I invest there. We would like to ask you something. Would you like to invest in some company that generates steady cash flow, pays dividends regularly? Yes? We didn’t expect any other answer. Would you be surprised if we tell you that, for example, tobacco companies were viewed as defensive stocks?

But recently, investors changed their views of what these stocks are. Today, you can see that some technology companies are considered defensive stocks. Even if the definition is changed, the purpose isn’t, these stocks still have to play well during the recession. Nevertheless, these stocks have, as it always was, to provide stable earnings and regular dividends no matter what condition is the overall market. Period!

Are the defensive stocks less risky?

Since there is a constant demand for such companies’ products, these stocks seem much more steady and strong during many different aspects of the business cycle.

And here is the confusing part for some investors, especially if they are beginners. They aren’t the same as defense stocks. Do you know what we mean? Defense stocks are stocks of the companies that are producing munition, guns, war jets, etc.

Nowadays, companies with stable earnings growth, but also with innovative goods, pricing strength, are recognized as defensive stocks. Don’t be surprised if they can stir the waters. If we consider cash flow and the company’s power, nowadays Alphabet could be such a company, for example.

How to recognize defensive stocks

When uncertain time in the market comes everyone would like to protect the investment portfolio, the capital invested. Especially if it is connected to high volatility. Investors are looking for stable investments during such rough times. They would like, for sure, to increase their exposure to these stocks. For example, giants like Coca-Cola are recognized as defensive stocks. Non-cyclical stocks are recognized as defensive stocks also.

These companies have stable performances and the ability to overcome weak economic circumstances. They are also paying dividends. That might be a good reason to choose them primarily because dividends can mitigate the influence of the stock’s price dropping. These companies will rarely go bankrupt during the market downturn.

When things in the stock market get insecure, why would you like to own any stock? Honestly, you could find more safe places out there to invest in. The answer is profit. Defensive stocks provide a higher dividend yield than you can get with safe-havens. For example, Treasury bills will never provide you such an amount in interest rate. Moreover, defensive stocks mitigate investors’ fears because they aren’t as risky as other stocks. Take a look at what investment managers do when uncertain economic times come. They are moving to defensive stocks.

Better isn’t always the best

Defensive stocks are better performers than the overall market during recessions, for example. But nothing is so perfect even these stocks. Due to their low beta, when everything is blooming in the market, they could perform below the market. Less risk, less profit, that’s it.

For example, suppose a stock has a beta of 0,5 and the market falls for 2% in one week. Not a big deal, you’ll lose 1% of your investment. But what if we have the opposite situation and the price increases 2% in one week? Well, the defensive stock with a beta of 0,5 will increase by only 1%.

Beta shows the stock’s vulnerability or risk. Defensive stocks have beta under 1 which means they are less volatile. A conservative investor, who is, by default, with less risk-tolerance type, will choose defensive stocks that will deliver stable returns.

Advantages and disadvantages of Defensive stocks

They are often suitable for long-term investors because they are less risky than other stocks. These stocks together have a higher Sharpe ratio than the entire stock market. With less risk involved, you could beat the market. What else we need to understand is that defensive stocks are better investment choices than other stocks.

But there are some disadvantages also.

The low volatility of these stocks is one of them. This means smaller gains when the market is bullish. That could be the reason why some investors if not many, don’t like defensive stocks. These stocks usually cannot outperform the market in such a period. So, when investors need them most to profit more, they could betray them. There is one interesting thing about defensive stocks. When the market downturn is finished, some investors move to these stocks, but the truth is they had to do that earlier. After the market downturn is too late. The only thing that investors could catch is a lower rate of return. Think ahead of these stocks.

Why should you choose to invest in them?

For example, you don’t have a decent knowledge of the market condition. Also, if you are the risk-averse type of investor. Seeking for dividend-paying stocks is one of the reasons because these stocks provide regular dividends. Additionally, defensive stocks are a great choice when the markets are volatile.

These stocks managed to perform well even during the recessions. There are some goods that people will always need no matter what the economic situation is. For example, electricity, soap, or gas, everyone would need gas or soap even if the apocalypse is coming.

To summarize, defensive stocks have beta lower than 1, they are less volatile, they provide regular dividends. The main drawback is that they usually couldn’t generate high returns. But during the recession, they are excellent as protection for your other investments. Beta indicates the stock’s vulnerability or risk factor. This kind of stock has beta lesser than 1 which implies that they are less volatile. A conservative investor who is afraid of taking risks can invest in defensive stocks that will give stable returns.
These stocks are also recognized as non-cyclical stocks because they are not deeply associated with the business cycle. Here are a few types of defensive stocks. Such stocks are utilities, consumer staples, healthcare, gas, electricity, pharmaceuticals.

21st June 2020
How to Invest When the Coronavirus Pandemic Sends the Stock Market Down

The markets entered the bear territory but it isn’t the reason to stop investing. Actually, despite the coronavirus pandemic and oil wars, it is the opposite.

By Gorica Gligorijevic

When the market comes into this situation the logical question that smart investors ask is how to invest when the coronavirus pandemic sends all markets down.

Should we stay away and wait for market consolidation or to act and profit? Let’s change our positions for a sec. Instead of being investors, let’s try to assume how managers of the companies are acting now. Yes, some closed up. But we don’t want to talk about them, we would like to discuss serious, responsible managers with the ability to project future actions related to their business and the companies. Like them who are investigating and planning how to beat the competition, or how to become more competitive after all, the investors should do the same thing. Investing should be a game without ending, renewed all the time. Investors may move their assets from one industry to others but should never stop investing.

So, the question of how to invest when the coronavirus pandemic sends all markets down sounds logical for amateurs. Professionals are looking even now for new and better opportunities.

One reason is to overcome this market down and the other is to find market players that can produce a bigger profit. The market is here and it will never stop working. So, why would we do the opposite?

What can generate gains during the pandemic?

This pandemic influences markets all over the world. Coronavirus outbreak hits almost all countries on the globe and as well their economies.

Global markets had been beaten almost overnight. The main problem, according to some analysts, is investors getting panic in the downturn markets. The events are accelerating sharply, faster than spreadsheets and charts could predict them. Advanced investors shift into funds, options, or some commodities to hedge their investment portfolios. The others with a lack of experience, haven’t time to do that. Also, badly timed and wrongly settled hedges may produce big losses. Moreover, put protection is becoming incredibly expensive. Market makers avoid the opposite side of the trade.

But maybe it is even worse for those who shifted into cash to find a better buying opportunity after the outbreak. Yes, cash is the position too, but if you stay too long in that position might cause the earning of zero. Yet, it is better than losing capital but you’ll miss the opportunity to profit. Yes, even now while markets are down you can still earn. There are some industries and sectors where you can invest especially now. Of course, no one can guarantee that stocks will rise forever, but why don’t we call stats as help.

How to Invest in Biotech stocks

Here are some ideas on how to invest when the coronavirus pandemic causes all markets to drop.

So, according to data biotech stocks are a good choice right now. Also, health care. Maybe more than ever both sectors are active these days. The virus COVID-19 is still greatly new and the subject of many scientific types of research. They are all looking for COVID-19 treatments. The companies involved can be a great opportunity. For example, large and mid-cap companies from that sector. According to data, closed near 52-week highs at the end of last week. On the last trading day, they played very well. For example, MASI which is a large seller of pulse oximetry to hospitals. Or CNC, and some others like QDEL, just take a look at its historical data.

Or maybe Roche Holding AG ROG, which gained 3.7% in premarket trading today (Thursday, March, 19) just after they announced its plans to work on Phase 3 clinical testing Acterma. It is a drug used in rheumatoid arthritis treatments but showed good results in treating patients with COVID-19 with severe pneumonia.

Roche announced it is in consultations with the FDA. This company needs the authorities’ approval to start research with the Biomedical Advanced Research and Development Authority. It is expected that about 330 patients from all over the world will take part in that. Recently, Roche got FDA’s approval for manufacturing COVID-19 tests for the U.S.

Roche’s stock fell 7.7% in the last 12 months.

Small-cap companies from the same sector are not such a good choice because there are too many speculations around them and it is possible for investors to end up with losses faster since those companies could disappear overnight.

How to Invest in Safe-haven stocks

Do you know how important soup is important today? What do you think, can some producers of soup be a safe-haven investment? The example of Campbell Soup Company shows us it can.

Popular safe havens are running a bit better than their growth equals. They are paying high dividends reducing the losses caused by lower prices. For example, Campbell Soup Company is paying a 2.84% forward dividend yield. Moreover, the company is trading near a 52-week high after its earnings report.

Also, Mondelez International traded at $46.55 and with a dividend yield of 2.45%. This sweets producer is a super-force: Toblerone, Oreo, Cadbury, Belviva, TUC. The company produces pre-packaged goods. And that kind of producer is among the most desired safe-haven stocks right now since its goods can be used at consumers’ homes. There is no need for visiting restaurants and being in the crowd.

MDLZ stock is outperforming the S&P 500 by more than 10%. For some investors, the problem with this company can be its exposure to China, and store shelves are less stocked now. But the company’s branch in China is very close to setting the situation to normal.

Maybe Johnson & Johnson a 134 old company? It is one of the largest healthcare companies in the world. The company covers pharmaceuticals, medical materials, and devices, surgical and orthopedic robotics, etc. It has well-known products Band-Aid and Tylenol. The analysts are optimistic about the company’s long-term growth prospects.

How to invest during the coronavirus pandemic?

This can be an ethical and financial question. Both are inappropriate. Money has to work.

It is true, in just several weeks, the Coronavirus pandemic hit almost a third of the world market cap. The Sensex is 20% below from its highest highs reached just two months ago. The Indian equity market bounced back last Friday. The other markets have fallen even more.
The coronavirus spreading caused panic all over the world and lessened the confidence of investors.

The other unpleasant events happened also. For example, the crude oil war between Russia and Saudi Arabia has added volatility to the markets. But something has changed. It isn’t all about the coronavirus outbreak, the other things influence the markets also.
The commodities and currency market are in turbulence because of the crude oil war. This is a crash of huge magnitude. It will take time for confidence to come back but that doesn’t mean we have to sit aside. This can be a great opportunity to invest.

The stock market condition today

Stock market volatility is normal, and also discouraging but doesn’t have to be. For some investors, it is almost impossible to avoid panic and sell-off, we know that.
One of Wall Street’s main stock benchmarks, the Dow Jones, dropped and entered bear market territory on Wednesday, March 11. Dow Jones has been in a bull market since the financial crisis in 2008-09. Also, the big volatility is present, partially due to the oil price war but also, due to the fears of the coronavirus. Of course, that is stressful for investors. But they know, as much as we know, that stopping investing is the worst scenario ever.

So, how to invest when the coronavirus pandemic sends all markets down sounds illogical for professionals. Investing must continue. And we show you where and how. Stay invested! Maybe this can help.

19th March 2020
NextEra Energy Could Be The Top Stock Of The Next Year

NextEra Energy’s date of posting quarterly earnings reports is almost here. What investors could expect?

NextEra Energy (NEE) traded the Wednesday, December 24 at $240.51. The most recent price rose for 0.72% from the previous trading day. On the same day the S&P 500’s 0.02% loss, while the Dow lost 0.13%, but Nasdaq scored an increase of 0.08%.

NEE is approaching its next quarterly earnings report. The analysts expect NextEra Energy to post earnings of $1.53 per share. That would represent the growth of 2.68% in comparison to the prior year. Also, there is an expected revenue of $4.69 billion or 6.77% more than in the same period last year.

Speaking about the whole year, analysts’ expectation is earnings of $8.37 per share (an increase of 8.7% compared to the last year) and revenue of $19.27 billion (an increase of 15.09% compared to last year).

The beginning of NextEra Energy

Long-time ago, it was 2001, NextEra Energy’s market value was $10 billion, today it is $117 billion. The company is, in other words, the largest publicly traded utility in the world.
The company has large cash flow thanks to onshore wind-power infrastructure in promising areas, low-cost production and, also, the federal support.

NEE is a good dividend stock too, that paid out $2.1 billion in common stock dividends last year. The current dividend yield is 2.1%. NextEra generates cash flow from a power generation subsidiary NextEra Energy Resources (one of the biggest producers of electricity from the wind and sun) and two Florida utilities.

NEE stock

Currently, the stock’s P/E ratio is 28.53, while the average P/E ratio for the industry is 20.45.

The data shows that the stock price has been in an uptrend for the past 12 months. NextEra Energy stock price has a rising tendency. So we can conclude, the future price of NEE easily could hit $390 which means to increase for more than 28% at the end of the next 12 months period. NextEra Energy stock is a good long-term investment. The experts’ recommendation is to HOLD this stock since the further rise is expected.

But for the short-term traders, this is a good opportunity to sell, because the stock is in the upper part of a weak growing trend so it can be expected the move back towards the lower part of the trend. If the stock passes the level of $242.93 it will be the sign of a strong raising rate. The stock could hit this price in the next 3 months or less, and rise further up to near $250 over the next 3 months.

The company’s ABOUT

NextEra Energy’s headquarters is composed of five buildings in Juno Beach, Florida. It is a leading clean energy company and is the largest rate-regulated electric utility in the US by retail electricity produced and sold.
The center of NextEra Energy’s business is Florida Power & Light. This utility serves about five million customers. It is also the low-cost provider of electricity. The average customer cost is under $100 per month, which is lower than the average of $140.

Recently the company announced that will start the new year with the lower customer bills. The monthly bill for a typical 1,000-kWh residential customer will decrease by nearly $4 due to lower operating costs. That will be about 30% below the national average.

NextEra Energy also owns NextEra Energy Resources, LLC, which is the world’s largest generator of renewable energy and also a global leader in battery storage. The company produces electricity from eight nuclear power units in Florida, New Hampshire, Iowa, and Wisconsin. NextEra Energy is rated as No. 1 in the electric and gas utility industry on Fortune’s 2019 list of “World’s Most Admired Companies”. Also, last year it was rated among the top 25 on Fortune’s list of businesses that “Change the World.”

25th December 2019
Pharmaceutical stocks – Risk and Reward Of Investing In

The pharmaceutical stocks belong to the larger healthcare sector.
With faster drug approvals and increasing customers, investing in pharmaceutical stocks could be a good choice.

Pharmaceutical stocks increased in 2019. The best pharmaceutical stocks have strong Composite Ratings and Relative Strength Ratings. That recommends buying them.
As we can see the healthcare industry will only intensify. The new technologies are developed or in the phase of developing with good predictions to get approvals for use. This industry will continue with modernization, it is obvious.
The increasing development of tech in healthcare also will give new chances for the industry. Prescript medicine sales CAGR from 2019 to 2024 is set to be three times that in the period from 2010 to 2018.|
The forecast annual CAGR of +6.9% for the next 5 years is $1.18trn in the US.

Pharmaceutical stocks to diversify the investment portfolio

Investors who want to diversify their investment portfolios would do well to look at the pharmaceutical stocks.

Pharmaceutical stocks are high-risk investments, but companies from the industry can be very good for investors seeking long-term investing. The changes in this field, almost on a daily basis, approval of new treatments, new drugs and therapies, great returns, make this industry favorable for investors. It shows profitable opportunities.

If you want to invest in publicly traded pharmaceutical companies, just keep a close eye on them when they enter clinical trials. The results of clinical trials are extremely important for investing in pharmaceutical stocks. Why? Well, those trials can be ended with the make-it-further option or break it.
The auspicious results can reach big gains in the stock market, but failures or loss of progress can have a reverse impact.

Approvals before market

Before selling their products, drug companies are required to first test them. Results from pharmaceutical products are sent to the relevant government organizations or agencies to examine the safety, proposed use, and efficacy.

The approval means that they have analyzed the medication’s consequences and that there are more positive than negative effects. There are various approval stages: analyzing the disease the drug is targeting, treatment options, analyzing effects from clinical trials and how to handle any risks linked with the drug or method.

Since there is a lot of examinations, the approval can take years.

Well, drug approvals are possibly the most attractive in pharmaceutical stocks investment opportunities. They are always on the radar. New drugs are innovation on the market, especially when it gets to rare diseases.

For example, during 2018, the US FDA’s CDER approved 59 new pharmaceuticals. Among approved medications were the first to treat smallpox and the first treatment for hypophosphatemia. Over the first 6 months of 2019, the approvals got 16.

All this taken together, represent the excellent market conditions for pharmaceutical companies.

Pharmaceutical stocks: the trends

In the pharmaceutical market currently exist 10 main therapeutic sectors, which shows data from Statista.
The global sales for medicines generated a total revenue of US$36 billion. The top sales go to pain therapy, anti-diabetic drugs, and oncology.
In terms of revenue, pain therapy generates sales of $79 billion, anti-diabetic drugs $40 billion, and oncologic $100 billion.
Treatments and drugs for depressive disorder and anxiety also generate greater revenue. For example, Eli Lilly Company (NYSE:LLY) reached $36 billion in revenue this year.
The main fields of developing new therapies or drugs, so far this year, were treatments for non-small cell lung cancer and breast cancer.

Pharmaceutical stocks: market growth

The global pharmaceutical market is ready for outstanding growth. Big and famous brands are always interesting but small and micro-cap stocks are good too.

According to many reports, the industry reached $1.2 trillion in 2018, up to $100 billion from 2017. In the next 4 years, the market is predicted to grow at a compound annual growth rate between 4% and 5% and to reach $1.3 trillion. But this rate is less than between 2014 and 2018.

Nevertheless, investing in pharmaceutical stocks could be a good addition to everyone’s portfolio. You don’t have to invest in leading pharmaceutical stocks, some are not as big as leaders but have great growth potential. And, they are cheaper, also.

In the next 5 years, the sales volume in the pharmaceutical market is possible to reach $1.18 trillion. It looks like a great opportunity.

Here are some Traders Paradise’s picks:

Merck & Co., Inc. (MRK)

The last price $91.58 (December, 20)
Market Cap $233B

Merck is rapidly growing, the CAGR is 10.9%.

Merck & Co., Inc. offers therapeutic and preventive agents to treat a huge range of diseases such as cardiovascular, type 2 diabetes, chronic hepatitis C virus, HIV-1 infection, insomnia, neuromuscular blocking agents, cholesterol, anti-bacterial and vaginal contraceptive products. Also, the company is focused on products to prevent chemotherapy-induced and postoperative vomiting, treat non-small-cell lung, breasts, thyroid, cervical, and brain cancers, vaccines for measles, mumps, rubella, varicella, rotavirus gastroenteritis, and pneumococcal diseases. Additionally, the company produces antibiotics and anti-inflammatory drugs to treat fertility disorders, and pneumonia in cattle, bovine, and swine, and antibiotics and vaccines for fish, dog, cat, and horse vaccines, and many others. It has collaborations with many bio-pharmaceuticals companies. The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.

Roche Holding AG (RHHBY) (SIX:ROG)

The last price $39.88 (December, 20)
Market Cap $271B

Roche Holding AG is the leading trend in biotechnology, with a forecasted $38.7bn of sales in 2024

On December, 23 Roche announced that it entered a $1.15 billion worth licensing agreement with Sarepta Therapeutics to get the right to start and commercialize Sarepta’s investigational gene therapy for Duchenne muscular dystrophy outside the US.
Roche will make a payment of $750 million in cash and $400 million worth in equity. Sarepta’s micro-dystrophin gene therapy SRP-9001 is in clinical development.
Roche said the agreement is supposed to close in the first quarter of 2020.

Eli Lilly & Co. (LLY)

Last price $132.43 (December, 20)
Market Cap $127B

Lilly published a better-than-expected financial outlook for 2020 while confirming the previously announced 2019 sales and earnings plans. Lilly awaits adjusted earnings from $6.70 to $6.80 per share in a year ahead. Revenues are expected from $23.6bn to $24.1bn. If the company reaches this planned sales range, it will exceed its 7% revenue CAGR target. Lilly is expecting important results for several key pipeline drugs. Also, it awaits approvals for two new drugs and three new launches in the next year.

Eli Lilly’s stock price has a rising tendency and it looks like a good long-term investment.

Bottom line

These stocks are just a suggestion. Of course, you may choose some other pharmaceutical stocks. For example, Pfizer Inc. (PFE) with Market Cap: $227.87 billion that generates an 18.7% annual return. Or Johnson & Johnson (JNJ) with a Market Cap of $375.67 billion. Zoetis Inc. (ZTS) can be a good investment choice with 17,7% of the annual return.

If you are looking for long-term investment for your portfolio, investing in the pharmaceutical industry could be one of the best places to invest in.

But be conscious, the overall performance for the industry was worse in 2018. The leading pharmaceutical sector market index (S&P Pharmaceuticals Select Industry Index) made negative returns of -16.87% last year. The index started at a closing value of 5,082 and ended at a value of 4,225 at the end of the year.

23rd December 2019
Three Best Stocks to Buy In 2020

2019 is almost done, so it is time to think about where to invest next. These three stocks could be the top stock picks to buy in 2020.

By Guy Avtalyon

It is always hard to point three best stocks to buy or pay attention to, but the next year could be really challenging. Firstly, this year that is almost ending, was extremely exciting in the stock market. While some economists and analysts predicted market crashes and economic downturns, crisis, and inflation, the others claimed totally opposite.

The facts are, over this year the stocks boosted prices to the levels we could see only several times in history.

Our opinion, at Traders Paradise, is the next year could be even more volatile than this one. So, we paid a lot of our attention to pick three best stocks to buy in the next year.

First of all, we had to examine which stocks will have a possibility to grow but also, stability too. Thousands of stocks are trading on the stock markets but we wanted to find the very best stocks able to generate massive gains. Matching these two criteria wasn’t so easy but we pick them. Here are the three best stocks to buy in 2020. Our opinion is based on news available about these companies and their stocks.

Trading stocks based on news

Walt Disney (NYSE:DIS)

The market cap $268 billion
Current price $148.46

No, we didn’t pick Walt Disney company among three of the best stocks to buy in 2020 from sentimental reasons. Instead, we did it based on the fact that this company generated almost $70 billion of revenue over the last fiscal year.

It’s marvelous to imagine how this all empire is founded by Walt Disney, started from a small studio in 1922 and a secondhand movie camera. With his brother, Roy, Walt created Oswald the Lucky Rabbit. After that, the new character was born. A lively, dynamic, and a naughty mouse called Mickey. It was planned to create only two movies with Mickey Mouse but Disney created at least 25 but Mickey appeared in at least 130.

Today, Walt Disney (NYSE: DIS) has a valuable group of entertainment franchises. The great revenue for the company comes from TV networks, movies, Hulu, merchandise, and theme parks. Disney’s ideas have delivered shareholders a bunch of money.

Disney’s studios’ solely generated an awesome $11 billion in revenue in fiscal 2019, which is an 11% increase from the last year. The company’s Board of Directors announced this summer a semi-annual cash dividend of $0.88 per share.

The most interesting part with DIS, the stock is more popular with time. So, the stock will likely continue to hit new highs and generate satisfying returns. Traders Paradise thinks that DIS is a good mid and long-term investment.

Fortinet, Inc. (FTNT)

The market cap of $18.1 billion
Current price $107.24

Fortinet, Inc. is a provider of network security devices and Unified Threat Management network security solutions covering enterprises, service providers, and government entities. Its shares attempted to break out on December 13 but closed just below the entry.

The estimated earnings growth rate is 31% for this year.

For the current quarter, Fortinet estimates revenue from $595 million to $610 million. The analysts’ estimated $584.7 million in sales. It’s easy to explain why this stock takes place among the three best to buy in the next year.

Fortinet FTNT also announced the acquisition of SOAR provider CyberSponse but for an unrevealed amount.

CyberSponse is Fortinet Security Fabric’s partner for some time and this acquisition will support Fortinet sin its security operations especially in incident response capabilities. This covers Fortinet’s offerings FortiAnalyzer, FortiSIEM, and FortiGate.

AstraZeneca PLC (AZN)

The market cap of $130 billion
Current price $49.31

AstraZeneca (AZN, $49.32) is a biopharmaceutical company based in the UK.

It is focused on treatments in oncology, cardiovascular, renal, respiratory, and others. It has a lot of approved drugs. But the main advantage comes from a 155 trial-stage treatments, and nine new molecular testings in late-stage.

Among its leading products are several cancer drugs. For example, Tagrisso is approved in 87 countries, and it is AstraZeneca’s best-selling drug. This particular product generated $2.3 billion in sales over the first 9 months of this year. It is 82% growth in the past 12 months in sales and represents 13% of the company’s annual revenue.

AZN stands out among the three best stocks to buy in 2020.

The company recorded strong growth in China. Over the first 9 months this year, the company had $3.7 billion in revenues. That was 30% more than in the same period last year. AstraZeneca should work well in the next year.

Trading stocks right now

Here are the three best stocks to buy in 2020, that Traders Paradise thinks will shine. Some of them are typical defensive stocks able to resist possible recession. Some have characteristics that could shield them from trade turbulence. But all of them deserve a place in stock portfolios in the next year.

For the stock market, 2019 was a fantastic year. The S&P 500 rose by almost 25%. The tech sector has done especially well. But it’s not the time for complacency. Soon, 2019 will be over and all eyes will be on the year ahead.

So, it’s time to start watching some of the best stocks to buy in 2020. With that in mind, we are suggesting you three best stocks that may be top stock picks to buy in 2020.
Just follow the trading stocks rules.

17th December 2019
Tellurian Inc – Large Reward But With High Risk

Even without a product and with big risk, this stock could generate a large reward.

By Guy Avtalyon

Tellurian Inc trades on the NASDAQ under the ticker symbol TELL.
The large rewards always come with risks. So, if you want to make a big profit be prepared to take a big risk. But a smart investor can assume where the potential traps may occur.

Tellurian stock is such potential.

This is the natural gas company but without the product yet. Instead, it has plans to make the Driftwood export terminal and Driftwood pipelines. Tellurian, a natural gas company based in Texas, owns and manages the LNG processing and export facility through its wholly-owned subsidiary Driftwood Holdings.

The U.S. Federal Energy Regulatory Commission issued the final environmental impact statement for the LNG project in January and granted authorization to build and operate the LNG facility along with the pipeline in April this year. Tellurian Inc. is building the terminal that will be able to export up to 27 million, 600.000 tonnes of LNG per year to customers.

This project is still in the early stages of development, but it’s where investors see the final achievement of Tellurian’s potential. For example, India’s Petronet signed a memorandum of understanding with the LNG and took a stake in the project. Its expectation is to get five million metric tons of LNG per year.

On December 13, the stock traded at $6.57.

The analysts’ forecasts range from $6.00 to $20.00 with average expectations for Tellurian’s share price to reach $12.33 in the next twelve months. This implies the potential for the stock price to increase by 87.7% from the current price which is $6.56 today, December 16.

Tellurian Inc stock is likely a very good long-term investment.

Based on analysts’ estimates investors may expect an increase up to $11 over the next 5 years and also, the revenue to be about 70%. If you invest $10.000 today, your investment will be over $17.000 worth at that time.

Where is the risk with Tellurian Inc stock?

Investing in the company without the product is a big risk. Tellurian isn’t an exception. There is a risk but this company can easily be one of the few where the risk pays off.

Tellurian Inc (NASDAQ: TELL) published its quarterly earnings results on Wednesday, November, 6th. The company reported $0.18 earnings per share for the quarter, while analysts’ consensus estimates were $0.13 by $0.05. Tellurian Inc reported revenue of $9.34 million, while analysts expected $13.60 million. Also, the company had a negative return on equity of 57.16% and a negative net margin of 677.62%.

Why buy this stock?

The 50-day moving average for the TELL stock price trend is bearish. Currently, the stock price is decreasing from 50 SMA.

The company showed a return of 10.50% from the beginning of this year. The stock dropped for the last three days after a significant increase.

As we said, there is a lot of drawbacks with this stock but at the same time a lot of possibilities. Risk provides a profit. Maybe you just have to leave the comfort zone. But be careful and trade smart.

You can test as long as you want. The app is easy to use and all data is accurate. You just have to enter your exit strategy (stop-loss and take-profit levels) and the app will show you how it was executed in the last 7 days, 3 months, and one year. The ability to check your exit strategy will help you to significantly decrease the risk and make a profit.

That’s the end of every good trade!

16th December 2019
Revance Therapeutics – A Wrinkle-Causing Year

The company is a biotech pioneer establishing a new category of long-lasting neuromodulators.
The Revance Therapeutics stock can be a good addition to the investment portfolio

by Guy Avtalyon

Wednesday was a rough day for shares of Revance Therapeutics (NASDAQ: RVNC). Investors were surprised by lowered the biotech stock for 16.4% on Wednesday and traded at $16.61.

Only a few days ago, or the day before, the shares had been rising. But the company submitted an application to the FDA for DAXI in November. On Monday, shares rose over $20 per share until the end of Tuesday’s session. On Wednesday it was announced $17 per share.

What happened with DAXI?

For a long time, DAXI is a neurotoxin, but better than Botox, a global favorite. Revance Therapeutics has proof that it works better. Botox sales have risen to $2.7 billion per year and the producer AbbVie has a lot of reasons to be satisfied.

But let’s go back to Revance

FDA’s evaluation of DAXI could take months and we still don’t know if and when it will start. Revance Therapeutics’ partner Mylan announced the possibility to fund late-stage development of DAXI until April 30, 2020. What if FDA doesn’t start its review until then? You see, despite a published good result of DAXI and great expectations for selling it, one paper can disappoint investors. Yes, it is an important paper and a lot of things depend on it. For example, the future of Revance Therapeutics and its partnership with Mylan.

If Mylan supports DAXI and gives Revance a two-digit percentage on sales, it could deliver a great return.

On an investment of $10.000 in less than 2 months, you may have a nice return of $1.047 if you set your stop-loss at 19,25% level from the current price and take-profit at 40,25% level. But once again check yourself.

Revance Therapeutics had the problematic announcement

Revance Therapeutics, Inc. is a biotech company. It develops next-generation neurotoxins for treating aesthetic and therapeutic conditions. On December 4, it announced the pricing of an underwritten public offering of 6,500,000 shares of its common stock at a price of $17.00 per share.

Revance has allowed the underwriters a 30-day option to buy up to 975.000 additional shares. The gross incomes from the offering are expected to be approximately $110.5 million. The offering is supposed to close about December 6, 2019. Revance Therapeutics plans to use this net profit of common stock to proceed to fund the commercialization of DAXI. The additional income will spend mostly on research and development.

Revance Therapeutics

Revance is fusing new science with the entrepreneurial vision of Silicon Valley. It is a modern biotech company with an innovative approach to aesthetic and therapeutic treatments.

The company stated on its website:
“Our lead investigational product, DaxibotulinumtoxinA for Injection (DAXI), combines a proprietary stabilizing peptide excipient with a highly purified botulinum toxin that does not contain human or animal-based components.”

It has been completed a Phase 3 program for DAXI in grimace lines. It showed fantastic efficiency and duration, and the company is seeking FDA approval.
The company is focused on developing products and treatments in dermatology and aesthetics. Its products are RT001, botulinum toxin type A (BoNT-A) for cosmetic and dermatologic treatments. The previous name of the company was Essentia Biosystems, Inc. Under the name Revance Therapeutics, Inc. it is founded in 2002 with headquarters in Mountain View, California.

As Traders Paradise can conclude the stock price of Revance Therapeutics can easily hit at least $18 in the next 10 days.

At the moment of writing this article, it is December 05, Thursday, the current price of RVNC stock is $16.840 which is a bit more than yesterday. This stock had a declining tendency for the past 12 months. Biotech stocks are really tricky. But Traders Paradise thinks the stock price could rise significantly in the next 2 months. Over the one year, the price could be almost doubled. Hence, this is a strong BUY stock.

5th December 2019
Biotech Stocks Are A Good Investment

The biotech companies have strong earnings growth
The Nasdaq Biotech Index (NBI) has slightly outpaced the S&P 500 over the past 12 months.

Biotech stocks are the most impressive, exciting and, at the same time, one of the trickiest assets of the stock market. Biotech firms use technological methods based on science to produce products. The majority of biotech companies are focused on clinical research and the development of new medicines.

But the whole industry has a lot of different purposes, the drugs are just a part of that. You can find biotech stocks on genetic experimentation, food modifications, health care, almost everywhere. One thing is common for every single producer: they have to go through a harsh, expensive and intensive experimental process before getting approval for the market.

The biotech companies have strong earnings growth

Discovering the best biotech firms to invest in can be difficult. Laboratory ideas don’t always come to success and frequently biotech stocks are subject to strict regulations and rules.

What you have to keep in mind is earnings growth. Biotech stocks are giving exactly that. If you are looking for great rewards, the biotech stocks are for you. One thing is important to be noticed here: these stocks carry a big risk too.

Biotech stocks have great potential

Well, there is an explanation of why that is. Every company needs time to develop its business, operations, presence in the market. Biotech companies frequently depend on the success of several trials of their products. During that phase, its stock isn’t expensive. Contrary, it can be very cheap. When the company gets approval for a drug or some positive news about testing comes, the stock price can skyrocket. Refusals or bans, though, can cause a disaster. So, for normal investors, it can be difficult to gauge how the testing of some drugs or anything from the field of the biotech industry will end. Well, here is one suggestion. Stay tuned on what the analysts who are well informed in the biotech industry are saying. If you see a stock that is frequently surrounded by bulls, it is a sign that something worth is nearby.

Recognize your biotech stock better than anyone

We will show one example of how to do so.

Axsome Therapeutics is developing new drugs for the treatment of CNS disorders. Yes, it is clinical-testing stage and biotech stocks can be uncertain for investors. But this stock is remarkably fit for any investor with an aggressive approach to investment.

AXSM stock has increased over 1.200% in this year. The investors are excited about the upcoming clinical study results. Axsome Therapeutics is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD. The company is expecting results from another study, a drug for treating treatment-resistant depression, by the end of the first quarter in 2020. Also, the company expects positive results from a study of AXS-05 for Alzheimer’s disease in the first six months of 2020. And stock market analysts are predicting a huge revenue for the company and the shareholders. So, the hint that some biotech stock is a good investment is coming from the news.

How to pick the best biotech stocks

Over the past year, the Nasdaq Biotech Index (NBI) has kept up with the market.
This year has been a hard ride for everyone. But the biotech sector, with its large firms, is definitely catching its pace. The index is rising. We were witnesses of interesting mergers during the past several years that starting to be profitable. Some new technologies are starting to gain excellent results which boosts hope for many patients. The cost of their tests is enormous, it is around $2 billion approximately. Also, it takes almost 10 years until some drug gets permission for distribution and human usage.
It sounds like a lot of responsibility. Moreover, producers need to form a strong base for future growth.

If you are focused on biotech stocks you should find biotech companies that are driving cutting-edge therapies. The brands that are well-positioned provide big premiums.

Traders-Paradise recently wrote about one of them, but stay tuned, there will be more.

4th December 2019