The S&P 500 shot up 28.9% last year, making it one of the best years on record to be an equity investor.
However, 2020 is shaping up to be even better.
There are several macro catalysts that speak of amazing profit opportunities just around the corner…
For one, Canada, Mexico, and the U.S. just renegotiated NAFTA to benefit Americans more. Soon after, President Trump and China signed the “phase one” trade deal, ending the trade war.
With these new rules, American businesses are about to see billions of dollars worth of new business.
We’re talking more jobs, more profits, and rising shares!
Meanwhile, unemployment is already at the lowest it’s been in 60 years, interest rates are nothing, and the Fed says it won’t raise them until 2021 at the earliest. With loans cheap and unemployment low, both businesses and consumers will have plenty of cash to spend this year.
Add to that the billions the Fed is pumping into the financial system – more than $370 billion since September – and you have the perfect recipe for a rising market.
So how can you best invest to profit from this?
To help you answer that question, we’ve put together this list of the six best stocks to buy in 2020:
[Editor’s Note: If you want to skip straight to our #1 Overall Stock to Buy for 2020, click here.]
No. 1 Tech Stock for 2020
Amazon.com Inc. (Nasdaq:AMZN) has almost single-handedly revolutionized the book and retail industries, with one- or two-day delivery model, low prices, unfathomable selection, and best-in-class customer service.
That’s been a winning combination for investors, as Amazon’s shares rose 23% in 2019 and 44% in the last two years.
After a winning streak like that, some Wall Street “experts” would now have you believe there’s no steam left. After all, it’s well-established as the leader of online retail, and is only one of several competitors in the online video streaming space.
But as is usually the case, these so-called experts are missing the point.
The most important part of Amazon isn’t e-commerce or streaming. It’s Amazon Web Services (AWS), the company’s very successful cloud computing service. In the first three quarters of 2019, AWS grew its revenue more than twice as fast as the retail and streaming divisions… and made about 50% more money.
In other words, Amazon’s cloud division is rapidly growing and has high margins, meaning the best is yet to come for AMZN investors.
No. 1 Retail Stock for 2020
With Amazon’s dominance, the rest of the retail industry is often overlooked by investors. But one retailer has bucked the trend.
In fact, it's the only retailer to BEAT Amazon.
We’re talking about discount warehouse club retailer Costco Wholesale Corp. (Nasdaq:COST). With the U.S. economy and consumers set to remain strong in 2020, Costco has a great year ahead of it. Especially with the company’s successful e-commerce and delivery efforts, its low prices, and over 90% of members renewing their memberships every year.
Add to that the $2.2 billion of cash Costco has after subtracting its debt, and plans to raise their membership fees, this is the top retailer to buy for 2020.
No. 1 Dividend Stock for 2020
2019 was a volatile end to a volatile decade. We saw tension with Iran, oil and gold prices jumping up and down, Brexit, a politically divided America, and trade conflict with China. The result was a stock market that jumped up and down. And 2020 promises to be at least as stressful.
That’s why a dividend stock should be a part of your portfolio. Not only do dividend stocks tend to be less volatile, they also ensure you’re getting paid no matter what the market is doing.
What you need is a company with a history of success, a dividend yield higher than the market’s, and a long history of paying dividends.
The Home Depot Inc. (NYSE:HD) ticks all these boxes. The company’s shares are up 114% over the last five years and it pays a dividend yield of about 2.5% – much higher than the S&P 500’s 1.8%. And this isn’t a recent thing, as Home Depot has paid a dividend for more than 30 years, and has grown its payout for six years in a row.
No. 1 Finance Stock for 2020
Look, big banks have a bad reputation, and for good reason. As if the 2008 Financial Crisis wasn’t enough, we’ve had a stream of scandals ever since, like HSBC's money-laundering accusations and Wells Fargo's scandalous actions opening accounts for clients behind their back.
But don’t let that sour you on the rest of the finance industry. There are some super investment opportunities in the space.
Our favorite is Visa Inc. (NYSE:V). As a credit card company, Visa operates mostly behind the scenes, But it’s absolutely integral to the U.S. economy. For example, the company gets a cut of 53% of American credit card transactions – 31 percentage points higher than the closest competitor.
And because credit card usage doesn’t really dip during downturns or market corrections, Visa is a more stable investment than most. But that doesn’t mean it’s not going to grow – far from it.
85% of the world’s transaction are still handled in cash, which gives Visa plenty of space to expand and grow revenues.
No. 1 Healthcare Stock for 2020
Most people know CVS Health Corp. (NYSE:CVS) simply as a pharmacy chain.
But this juggernaut has been busy revolutionizing healthcare in America. In addition to running pharmacies, CVS also has MinuteClinics that offer basic health services all over the country.
Recently, the pharmacy chain has also launched its HealthHUB program, where patients will be offered a full range of primary-care services, all integrated with CVS’s pharmacy division.
The end result promises to be a cheaper, faster, and more convenient network of clinics than most currently available, and that spells insane upside ahead for investors.
However, we’ve saved our best for last…
No. 1 Overall Stock for 2020
34-yr-old Matt McCall made history when he predicted five 1,000% winners on national TV.
Now he’s doing it all over again.
200 stocks he’s recommended soared 100% or more.
Sixteen recommendations soared 1,000% or more.
And he just went public with his #1 pick for the new year.
If you’ve ever wondered how legendary investors find stocks that shoot up 10X – and how you can do it too – click here.
This recommendation is 100% free. And you can act on it immediately.
