The economy of the United States is headed for a bear market, at best, and a full-on recession at worst. Tough words, but, they are the best wisdom of the brightest minds Money Examiners knows. Does a bear market/recession mean we should all put our money in gold and guns? No, but it means careful investment choices and prudence going forward.
To that end, your friends here at M.E. examined over 350 stocks with an eye to a solid investment strategy for next year. Is the next Apple IPO in here. Not likely, but solid stocks that can anchor a decent return through difficult times are here, and that is going to look pretty good in the very near future.
TABLEAU (NYSE: DATA)
Tableau is known for analytics dashboards and chart applications, but it is expanding its line to add machine learning and data cleanup tools. These will enable it to better compete for the reporting and data-warehousing market. Expected growth over the next 13 months: 10.1%.
IQVIA (NYSE: IQV)
Formed just two years ago through a merger of Quintiles and IMS Health, IQVIA already is the top shop in the competitive health research market. The recent acquisitions of new clientele and a broadening range of service are positioning it for a growth spurt. Expected growth over the next 13 months: 15.4%.
ENERGY TRANSFER (NYSE: ET)
By uniting Energy Transfer Equity and Energy Transfer Partners this August, Kelcy Warren made the propane and natural gas company a formidable player in the gas world. The change is already lowering costs and boosting project returns. Expected growth over the next 13 months: 18.7%.
CHENIERE ENERGY (NYSE: LNG)
Cheniere Energy is sweet-spotted as rising demand in Asia keeps prices of LNG high, even offseason. The company is insulated against retaliatory tariffs from China by long-term signed contracts that safeguard cash flow. Expected growth over the next 13 months: 21.2%.
KNIGHT-SWIFT TRANSPORTATION HOLDINGS (NYSE: KNX)
Trucker Knight-Swift should produce earnings and revenue growth that will outpace the competition through the end of next year. But, exact gains are dependent on management’s ability to increase efficiency and truck driver availability. Expected growth over the next 13 months: 25.2%.
PRUDENTIAL (XLON: PRU)
Prudential is three separate businesses in Asia, the U.K., and the U.S. It announced this March that it will spin its U.K. business off by the end of next year, signaling the company’s breakup. As the uncoupling nears, though, investors will value the U.S. and Asia operations. Expected growth over the next 13 months: 27.9%.
INTERGLOBE AVIATION (IN: INDIGO)
InterGlobe, is the dominant carrier in India, claiming 42% of the fastest-growing aviation market in the world. Also, with 431 planes in the order pipeline, InterGlobe should have no difficulty cementing its position on top. Expected growth over the next 13 months: 34.6%.
TESLA (NYSE: TSLA)
It has been a wild ride through 2018 for Tesla, but analysts expect a smoother and more profitable year in 2019. This is speculative, but Tesla’s potential is hard to resist. The company must own up to capacity, liquidity, and operational needs, build a credible team of managers and cease its balance-sheet flim-flammery, all while addressing a diminished price/sales ratio as it produces more Model 3s. Expected growth over the next 13 months: Unknown.
That’s eight from Money Examiners’ stable of analytical talent, so pick and choose for your own portfolio. Money Examiners will stand firm in the face of the news, even if it’s bad.