One year can make a world of difference for a company’s share price, or as with 2018, it can see the price rising high before dropping down again. With machine trading dominating the stock market, stocks could see an early rally in 2019, according to JP Morgan.
“Signs of capitulation by institutional investors are creating a window of opportunity for equity markets into Q1 assuming the Fed reacts to market stress,” said J.P. Morgan analyst Nikolaos Panigirtzoglou said in a note to investors earlier this month.
If stocks see a rebound in 2019, investors can make some serious profits off buying discounted big names. If the markets continue to pullback with Federal Reserve rate hikes, a few companies will be well insulated into 2018. Regardless, here are a few stocks every investor should have their eyes on leading into the New Year.
Nvidia stock, once a darling among tech investors, has been absolutely hammered over the past three months. The downturn, which began in early October, has brought the share price down from $286 to $131. While its selloff is due largely to a waning crytocurrency market and overreaching inventory, the stock has been in freefell, and should be bottoming out soon.
On the “bear” side for Nvidia is RBC analyst Mitch Steves, who recently lowered his price target from $230 to $200.
“When we look at the price trends, we notice a slight downward move that aligns with our belief that sales could be a bit more muted in the month of December,” said the analyst. “While this is likely a near-term issue and doesn’t impact the long-term story, we think it is prudent to remain conservative for next quarter.”
With the recent selloff from stocks across the board, many traditional dividend names have become even more attractive. After selling off from $64 to $48 over the past three months, Altria’s dividend yield has risen to an attractive seven percent.
With any upturn, investors willing to hold the stock for a few years will likely see some impressive dividend payouts as well as an increase in the overall share price. Moreover, after the company’s recent $15 billion investment in Juul, its balance sheets may lead to another near-term selloff, furthering the discounted price.
This over-the-top hardware provider has taken investors on a wild ride over the span of 2018. After bottoming out in April at around $30, it gained more than 100 percent to hit a 52-week high of $77 in early October. Now, it has been another victim of this quarter’s headwinds, and is trading near a 52-week low.
Roku has a long history and boasts large market adaptation in the current over-the-top world.
The company saw a slight turnaround in trading this week, as Needham named the stock as its Top Pick for 2019.
“Engagement lengths are highly correlated to revenue and Roku now commands nearly 3 hours/day/household of users’ viewing,” wrote analyst Laura Martin in a note to investors earlier this week.