Best Shares to Buy NOW - November 2020
In this edition of our monthly stock market analysis, we are going to look at the best shares to buy in November 2020.
General interest in the stock markets has never been stronger. In fact, online brokerage firms saw a huge surge in account signups in the midst of the lockdown - which was a surprise to many.
Nevertheless, if you are a complete stock market newbie and you’re looking for a bit of inspiration about which shares to buy now - you’ve come to the right place.
Here, we discuss the best shares to buy in November 2020. We update this page each and every month to ensure your stock market portfolio is packed only with top-rated equities!
Top 5 Shares to Buy Right Now
Before we take a closer look at November’s best shares, here are our top 5 stock picks:
- AG Barr
You can buy all of these top shares, as well as many others, at eToro and pay 0% fees!
Best Shares to Buy NOW - November 2020
1. Tesla - YTD Returns of Almost 400%
Who would have thought it? While much of the markets are still yet to get back to pre-pandemic levels, Tesla stockholders are looking at YTD gains of almost 400%. These numbers are simply extra-ordinarily.
The shares began the year at just over $86 and took a slight turn for the worse in March as per the COV-19 related mass sell-off. However, even though Tesla's main California-based plant was forced to close for several months during the lockdown, the shares have been up, up, and away ever since.
Since then, Tesla has even initiated its first-ever stock split - with investors benefiting from a 5-for-1 offering. As such, the aforementioned figures are based on readjusted prices as per the split.
On the one hand, you might be reluctant to buy shares in Tesla as you have missed the boat on its three-digit surge. On the other hand, many would argue that Tesla is only just about getting going. As such, Tesla shares will likely remain in our portfolio for several decades.
Would you like to buy Tesla shares?
2. A.G. Barr - Stocks Trading at 15% Discount From Pre-COVID Levels
We’re big fans of defensive stocks during times of economic uncertainties. One such example is that of UK-based drink manufacturer AG Barr. Some of the firm's most recognized drink brands include Irn Bru, KA, Barr Cola, Bundaberg, Burdock and Dandelion, and Rockstar Energy.
The key point with a defensive stock like AG Barr is that in theory - its products will sell irrespective of how the economy is performing. With that said, we also like AG Barr for its short-term potential.
That is to say, the stocks are still trading at 15% below pre-COVID levels. As such, you can buy the shares at a reasonable discount. In particular, AG Barr has a robust balance sheet that saw the firm navigate its way through the pandemic with ease. At the forefront of this is a huge increase in free net cash flows.
Additionally, management at AG Barr made the sensible decision to temporarily suspend dividends during the lockdown, which again, freed up even more much-needed capital. Take note, you might need to be quick with this one - as in the four weeks prior to writing this article the shares are up 9.1%.
Should you be buying A.G. Barr shares?
3. Amazon - YTD Returns of 68%
There is nothing original about adding Amazon to our list of the best shares to buy right now. However, we’re more concerned about long-term growth than we are about originality - which is why this online powerhouse makes the cut.
It goes without saying that Amazon has benefited greatly from the pandemic. After all, with most governments around the world implementing a lockdown of some sort, this forced traditional shop front business to close their doors - often for months on end. In turn, consumers turned to Amazon in their waves.
With that being said, it is important to note that Amazon isn’t where it is just because of its online retailing division. On the contrary, the NASDAQ giant is behind a plethora of subsidiary ventures - most of which are performing very well. One of our favourite Amazon divisions is that of its subscription-based revenue model.
This includes its ever-growing Amazon Prime offering - alongside its content streaming service. Additionally, Amazon is also making waves via its AWS (Amazon Web Services) cloud computing service. In fact, it by far leads the way in this sector with the largest market share.
In terms of its stock price action, Amazon shares are up 68% YTD. This translates into an at-the-time market capitalization of over £1.6 trillion. There is no reason to believe that Amazon won't join the 2 trillion-dollar club alongside fellow tech giant Apple. We might see a bit of market resistance once this is achieved, albeit, this is likely to be short-lived.
Would you like to buy Amazon shares?
4. PayPoint - Grab Yourself a Huge 50% Discount on These UK Tech Stocks
Make no mistake about it - UK tech stock PayPoint was hit extremely hard in the midst of the pandemic. In fact, while the shares were priced at 1,100p in February, they hit 52-week lows of 389p just a few weeks later. This translates into a complete collapse of over 64%.
With that said, shrewd investors would have no doubt entered the market when the shares breached sub-400p. After all, with the stocks since recovering to 514p, this represents an increase of 32%. If you feel that you might have missed the boat with this one - you shouldn't.
After all, PayPoint shares are still trading at just under 50% less than they were in January. As such, we would argue that these shares are heavily underpriced. The main reason for this is that PayPoint is behind the payment technology found in over 27,000 UK retail stores.
This includes everything from post offices, supermarkets, petrol stations, and local convenience stores. While many of its partnered businesses were closed during the lockdown (and still are), PayPoint suffered greatly.
However, things will eventually get back to where we were before the pandemic, meaning that PayPoint will once again see its revenues meet market expectations. All in all, if PayPoint shares do eventually return to 1,100p, this would represent growth of over 114%- based on its current price of 514p.
Would you like to buy PayPoint shares?
5. SalesForce - 50% YTD Returns for This Newly Added Dow Jones Stock
In August 2020 - those behind the Dow Jones selection process shocked the markets to announce that it would be delisting Exxon Mobil from the Index, and replacing the oil giant with SalesForce.
Many would argue that this swap-over was highly warranted - especially when you consider the firm's performance since its 2004 listing. Backed then, you would have only needed to fork out about $4 (adjusted for stock split) for a single share. In today's market, the very same share will cost you $250 as of late October 2020.
Looking at the firm’s performance this year, the stocks opened 2020 at $166 - meaning that the shares are up over 50% YTD. As SalesForce is not a dividend-paying company, this gives stockholders ample room for additional upward growth. As such, SalesForce remains a strong buy.
Should you be buying SalesForce shares?
Shares to Watch in November 2020
While the above five shares are our top-rated picks for November 2020, there are several others that we are keeping an eye on.
Inovio - NASDAQ: INO
Inovio is a US-based pharmaceutical company. It specializes in biotechnologies and is one of many firms currently working on a vaccine for COVID-19. This NASDAQ-listed stock actually got a head start in the vaccine race and it is now in phase 2/3 of its clinical trials. This has been firmly reflected in its share growth this year.
With that said, the U.S. Food and Drug Administration (FDA) put a temporary hold on Inovio’s clinical trials a couple of weeks ago as it needs further information about the proprietary technology being used.
As such, Inovio shares have taken a slight hit since. This does, however, offer a new opportunity to enter the market at a more favourable price. Crucially, not only are we awaiting the outcome of the FDA advisory notice, but Inovio is due to release its Q3 results on November 9th.
Virgin Galactic Holdings - NYSE: SPCE
This particular share to watch is somewhat of a high-risk, high return selection. Reason being, Virgin Galactic is involved in a new, cutting-edge, and completely unproven industry. On the one hand, its space tourism project has already attracted 600 paying customers - reflecting income of over £150 million.
It is also believed that the first galactic flight could take off next year. On the other hand, Virgin Galactic is in a space race with two other key players. This includes SpaceX (Elon Musk) and Blue Origin (Jeff Bezos). Both of the aforementioned firms have huge, multi-billion dollar war chests behind them - so competition is going to be extremely fierce.
With that being said, there is every reason to believe that Virgin Galactic shares could be heavily undervalued at present. After all, with a current market valuation of just $4.2 billion, the upside potential could be huge.
Walmart - NYSE: WMT
US supermarket giant Walmart has had a great year to date. Starting 2020 at just over $118, the shares are now worth $142 on the NYSE. This represents growth of 20% in just 10 months of trading.
However, investors will be keen to see how the firm has performed over the last quarter, with Q3 results due in the second week of November. If Walmart once again exceeds market expectations, we could see the upward momentum continue for some time.
How to Find the Best Shares to Buy Now
With some online share dealing platforms now giving you access to thousands upon thousands of stocks across heaps of international exchanges - knowing which companies to invest in can be complex.
After all, those making consistent gains typically do so because they have a firm understanding of how to find undervalued shares through in-depth research and analysis.
The good news is that there are several ways that you can locate the best shares to buy - even without having much experience.
Check out the tips outlined below.
Tip 1: Assess the Current Economic Climate
First and foremost, it is wise to take a step back and assess what sort of economic climate we are currently in. For example, 2020 has been a year dominated by the coronavirus pandemic. This has resulted in several winners, but many, many losers.
Regarding the latter, it goes without saying that stocks involved in the hospitality, airline, and retail sectors have been hit hard by domestic and global restrictions. On the other hand, the tech space has been a clear winner. For example, the likes of Amazon, Tesla, Apple, Square, and Facebook are also looking at double (and triple in some cases) digit gains.
During times of economic uncertainties, keys sectors to look at are those involved in ‘staple’ products and services. This means that demand remains strong irrespective of how the economy is performing. Examples include stocks from the pharmaceutical, tobacco, and food/beverage sectors.
Tip 2: Catch Short-Term Slumps
This tip is something that can be achieved by investors of all shapes, sizes, and skill sets. Put simply, all stocks go through ‘slumps’. This means that the stock price takes a turn in the wrong direction. But, this might only last days or weeks before the upward trend resumes.
During the slump, this presents an excellent opportunity to buy the respective shares at a discount.
A great example of this is Tesla. For example, on August 31st 2020 Tesla shares hit all-time highs of $502. However, just 9 days later the shares hit lows of $330 - representing a staggering decline of over 34%.
Was a decline of this nature warranted? Absolutely not.
Fast forward to October 27th and the very same Tesla shares are priced at $424. As such, had you 'caught the slump' at $330, you would now be looking at gains of 28% in less than 2 months of trading.
Of course, some stock market declines are not short-term slumps - but more of an indication that the shares are going through a bear market.
As such - you shouldn’t just use this strategy because you expect the stocks to eventually recover. On the contrary, it needs to be used on companies that have a strong outlook and ultimately - in cases where you believe the share price decline is not justified.
Tip 3: Combine Dollar-Cost Averaging and Weighting
In all but a few niche cases, buying stocks and shares should be viewed as a long-term investment. If you’re looking to build your wealth over the course of time, then why not consider dollar-cost averaging?
This will take the pressure off of selecting the best stocks right now. For those unaware, dollar-cost averaging is the process of investing smaller, but regular amounts into the stock markets. For example, you might invest $200 at the end of each month into a selection of shares.
Crucially, the dollar-cost average strategy allows you to ride out market waves over many years. Moreover, when your chosen stocks do go through market slumps, you can buy the shares cheaper. This subsequently results in an average stock cost price that becomes more and more favourable.
In addition to this, we would also suggest creating your own ‘weighting’ system that mirrors your attitude to risk. For example, you might invest 70% of your money into strong and stable firms (think Amazon, IBM, Disney, Ford, etc.), 20% in growth stocks (think Tesla, Virgin Galactic, Square, etc.), and 10% in small-cap stocks - perhaps those listed on the Russell 2000 or AIM.
Ready to dive into equity trading?
Is Now The Right Time to Buy Shares?
Put simply, there is no such thing as ‘the right time’ to invest in the stock markets. After all, you are investing in companies in the long run, so short-term volatility and market corrections should be way down on your list of priorities.
With that said, timing the market can be a highly profitable exercise if you know what you are doing. As we noted above, this includes buying high-grade stocks when they go through a temporary market slump. Had you done this with tech stocks in March 2020 when the markets crashed in a matter of weeks, you would now be looking at unprecedented gains.
Ultimately, while seasoned traders will dip in and out of the markets in an attempt to follow wider trends, there is nothing wrong with sticking with a simple dollar-cost average strategy over the course of time - meaning that you can get started whenever you wish.
How to Buy the Best Shares of November 2020
If you’re interested in buying one of the top shares listed on this page - we would suggest checking out eToro. This online broker gives you access to over 1,700+ shares (including the 5 picks listed on this page) - all of which can be purchased on a commission-free basis, You can buy shares from $50 (£40) per trade,
While eToro is super-popular in the UK, Australia, and much of Mainland Europe, the broker is also experiencing a surge of account sign-ups from the US.
Nevertheless, if you’ve never bought shares online before, here’s a quickfire breakdown of what you need to do.
Here what you need to do to buy shares from eToro:
Step 1: Register an Account
To buy shares online you will need to open an account with a trusted broker. If using eToro, the registration process takes minutes. You simply need to provide some personal information and upload a copy of your ID.
Step 2: Deposit Funds
You are going to be buying your chosen shares with real money - so you’ll need to deposit some funds into your eToro account. This comes at a minimum of $200 and you have several payment methods to choose from. If you want to buy shares instantly - you’re best to use a debit/credit card or an e-wallet like Paypal.
Step 3: Search for Shares
Once your eToro account has been funded you will then need to search for the company you wish to invest in. You’ll then need to click on the ‘Trade’ button to go straight to the investment page of your chosen stock.
Step 4: Place a Commission-Free Buy Order
Finally, you will need to place a buy order to complete the share purchase process. This is easy - as all you need to do at eToro is state the amount that you wish to invest.
It doesn’t matter if you are buying shares in a firm like Amazon that has a stock price in the thousands of dollars - as eToro allows you to invest from just $50. This is known as ‘fractional investing’, as you will be buying a 'fraction' of a share.
Once you confirm the buy order, the shares will be added to your eToro portfolio. If the shares in question pay dividends, this will be reflected in your eToro account as and when they are paid. You can sell your shares at any time - as long as the markets are open.
If you want to invest in the stock market and consider the best shares to buy today, there’s no better place to do so than eToro. Simply click the link below to sign up today!
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Best Shares to Buy Right Now: The Verdict?
As always, the best shares to buy discussed in this article are the views of the author. As such, it is imperative that you perform your own research prior to making an investment.
Nevertheless, there are plenty of profit-making opportunities available in the markets at present - even during the turbulent times that we currently live in. In particular, with many companies still staring at a stock price that is lower than pre-pandemic levels, there are a lot of bargains to be had.
Tune back in next month - where we cover the best shares to buy in December 2020!
Warning: All trading carries risk. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. Past performance is no guarantee of future results.