7 Stocks that could make you millions in 2018
There are always opportunities to be pursued in the world of trading, and with the right investing education you can learn to spot a good lead. The economic climate is encouraging as we look forward to the rest of 2018. Jobs growth is positive, business confidence is beginning to recover after the Brexit bombshell, and corporate earnings are gaining momentum. The following are seven companies that span different industries and have the potential for huge growth this year:
Facebook has consistently been a highlight and deserves its place as one of the top stocks for 2018. Facebook (FB) and Alphabet (GOOG, GOOGL) have formed something of a duopoly in an industry that continues to be highly profitable with outstanding growth potential: digital advertising. There are more than two billion users of Facebook worldwide, and they continue to fuel growth in sales and earnings faster than Google. Nevertheless, both trade for similar ratios of price:earnings - just above 25. Still, Facebook is the better option for investment as it is a faster grower, with the expectation of 33% growth in 2018, according to US News.
2. Customers Bancorp
This is a small-cap bank stock which has somehow remained under the radar for a long time. Valued at around $800 million, Customers Bancorp (CUBI) is planning a spin of BankMobile, which is a digital banking division of the company that primarily caters to students. The deal is expected to close before mid-2018, with shareholders nabbing $3.57 per share of the equity. This could mean, even with conservative estimates, at least a 40% upside.
3. Store Capital Corp.
Shares of Warren Buffet's holding company Berkshire Hathaway have gained 394% since the turn of the millennium. Back in 2016, that company bought a stake of 9.8% in Store Capital (STOR), real estate investors with an emphasis on single-tenant operational properties such as cinemas and restaurants. Its portfolio is diverse, it has more than 99% occupancy and significant backing, so it looks like a great option for 2018.
4. Alibaba Group Holding
Shares in Alibaba doubled through 2017, but the company deserves another rally this year. Alibaba (BABA) is the only company valued in excess of $60 billion that's seen revenue increases of 50% annually for the past five years running. BABA has published revenue earnings that compete with those of Amazon, with growth through 2017 that actually outperformed the latter. That kind of growth is like gold dust, so BABA has to be a top stock pick for 2018.
5. Ryanair Holdings PLC
This is Europe's most popular airline, and despite the highly-publicised pilot shortages that caused the cancellation of 20,000 flights, it is still posting record-high profits. The budget airline just can't stop expanding its customer base, so the growth statistics are expected to continue at these impressive levels. The competition just can't offer the low fares Ryanair (RYAAY) boasts, so it has a strong competitive advantage.
6. Travelers Companies
Travelers (TRV) offer property, casualty and vehicle insurance, and survived a disastrous year for US insurers in 2017. TRV underperformed in the latter stages of 2017, but remained profitable even through the huge hurricanes that devastated the continent, as well as the California wildfires. TRV is resuming share buybacks, paying a 2.1% dividend plus benefits whenever rates rise.
7. Delphi Automotive
This is one of the very best stocks to invest in for 2018, with a risk-reward profile that can't be ignored. Delphi (DLPH) has two major divisions: one that focuses on self-driving cars and electric vehicles, and one that focuses on powertrains. The risk of overvaluation is always there, but at 20x earnings, the downside risk is relatively small. The upside is much greater, as the powertrain division is to be spun off to focus on the far hotter space of self-driving cars. Spinoffs frequently outperform the general market, and this one is a hot prospect.
To sum up, 2018 is looking like a good year for the wise investor. These are just some of the stock picks that could really pay off, but with some solid trading education and a little market experience, you could make the coming year an extremely prosperous one.
If you enjoyed reading this article from Trading Education please give it a like and share with anyone else you think it may be of interest too.