Go for growth: the best bets in the US stockmarket
Nellie S. Huang and Anne Kates Smith of Kiplinger’s Personal Finance choose their favourites for 2021.
Hilton Worldwide Holdings
2020 has been a year to forget for this global hotel brand, which operates in over 100 countries. Earnings are expected to have fallen by 64%. “Revenue per available room” has slumped from $102 in 2019 to $47 today. But a “cash pot” of $3.5bn gives the firm the means to weather the storm and with any luck next year should bring a swift rebound in the travel sector. “A bet on a post-Covid-19 recovery.” $93
JPMorgan Chase
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Shares in this Wall Street giant have slipped by 15% this year as a weak economy and low interest rates have put the squeeze on financial services. However, the investment bank and trading division have enjoyed “record revenues” in 2020. JPMorgan Chase is a best-in-class operator and the recovery will boost earnings next year. In the meantime, the shares yield 3%. $103
This image-sharing social media app is used by people looking for some inspiration. Those stuck for interior-design ideas or deciding what new dish to cook can type in a few key words and find a gallery of ideas. The platform isn’t profitable yet but that could change soon: it has partnered with Shopify to allow advertisers to upload catalogues. Users will soon be “just a few clicks” between inspiration-hunting and purchase. $65
Tennant Company
This cleaning business makes industrial-grade floor scrubbers for clients such as supermarkets and warehouse operators. There is growing demand for its robotic floor cleaner. They don’t come cheap: $60,000 compared to about $15,000 for a human-operated equivalent. Yet more and more retailers are finding that the cost savings in terms of staff time are worth it, with Walmart ordering 1,400 last March. $62
Twilio
This communications-software specialist helps businesses stay in touch with their customers. When you receive an automatic text reminding you about an appointment or chat with a robot on a firm’s website to organise a delivery, Twilio may be behind it. Social distancing has turbocharged the rush online. Twilio’s annual sales growth could keep topping 30% for four years. $292
UPS
Soaring e-commerce demand and the complications of a pandemic are likely to expose “capacity limitations” in the global logistics business next year. That will mean price hikes, and this delivery behemoth is well placed to cash in. UPS is a two-way bet: a vaccine-enabled recovery will bring new business, but if the world takes longer to return to normal then that will just mean even more reliance on online ordering and package delivery. $167
Stryker
Stryker makes medical devices such as surgical kit and implants used for joint replacements. The cancellation of so many elective surgeries has made this a rocky year but there should be a recovery in 2021. Stryker is strong across developed markets and China is also promising. “A core position for growth-orientated investors.” $213
Wayfair
This online home goods and furniture seller is going from strength to strength. Its most recent quarterly results comfortably beat analysts’ expectations, with the group adding “ten million more active customers” than it had 12 months ago. Evidently those looking for a comfy couch no longer feel the need to try before they buy. That trend is likely to continue as traditional furniture stores close and more of the industry moves online. Deutsche Bank sees scope for a 16% rise in the stock. $301
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published
-
Why undersea cables are under threat – and how to protect them
Undersea cables power the internet and are vital to modern economies. They are now vulnerable
By Simon Wilson Published
-
Share buybacks rise in the UK – what effect will it have?
Share buybacks are gaining popularity in the UK – good news for investors
By Rupert Hargreaves Published
-
Should you bet on US stocks?
You don’t have to be bearish on US stocks to worry that they are now such a large share of global indices
By Cris Sholto Heaton Published
-
Is now the time to buy Marshalls?
Former market darling Marshalls, a landscaping and building products supplier, looks too cheap. Is it time to buy this once-admired stock?
By Jamie Ward Published
-
Top UK stocks with healthy cash flows and dividend yields
Three promising UK stocks according to Alan Dobbie, co-manager, Rathbone Income Fund
By Alan Dobbie Published
-
Warren Buffet invests in Domino’s – should you buy?
What makes Domino's a compelling investment for Warren Buffet's Berkshire Hathaway, and should you buy the UK-listed takeaway pizza chain?
By Dr Matthew Partridge Published
-
Invest in Grainger: a landlord with growth potential
Grainger is putting years of uncertainty behind it and investing for expansion
By Rupert Hargreaves Published
-
UK equities are set for a bull market – buy now
Investors shouldn’t wait for a crisis to buy UK equities, says Max King. Do so now, in the expectation of much better returns in due course
By Max King Published