Below you will see the most promising S&P 500 stocks that analysts believe should be in an investor's retirement portfolio.
Do not forget that the opinion of analysts is not a guarantee of the growth of the shares of this or that company.
Royal Caribbean Cruises (RCL)
RCL for long term investors, the cruise industry has a high barrier to entry given the cost of new ships. Plus, the company itself is well run.
In mid-October, Macquarie analyst Paul Golding upgraded his rating on RCL from Neutral to Outperforming, and raised his $ 132 target. Assuming the company will make significant progress in the Asian market.
What's more, CEO Richard Fine has been named one of the top 30 CEOs named by Barron in 2019.
The Wall Street Journal recently reported that stocks in data center companies such as Equinix (NASDAQ: EQIX) have doubled in value since early 2015, while the S&P 500 is up 50% over the same period. The headwind that EQIX stocks may face makes their stock more risky to buy in the future.
While it is difficult to argue with regression to the average, Equinix continues to satisfy its shareholders as well as its customers. In the future, the performance of the company may please EQIX shareholders more than enough.
In the third quarter, Equinix's revenues increased 9% to $ 1.4 billion, and adjusted cash from operations increased 17.5% to $ 472.7 million.
In 2019, the company expects revenues of at least $ 5.6 billion, with adjusted cash from operations of $ 1.9 billion, margin of 34%.
Tyson Foods (TSN)
The beef and poultry producer reported fourth-quarter earnings on November 12, which fell. However, Tyson Foods (NYSE: TSN) shares rose more than 7% on the back of the company's optimism in 2020.
“We are very optimistic about fiscal 2020 and we currently expect to meet or exceed our long-term high adjusted earnings per share algorithm as we are well positioned to seize opportunities in the global marketplace,” CEO Noel White said in a press release Q4.
In 2019, Tyson's total revenues rose 5.9% to $ 42.4 billion, while adjusted net income fell 11.4% to $ 5.46 per share.
As Tyson continues to invest in plant-based food, its revenue and earnings forecast can be expected to grow over the next 3-5 years thanks to the Raised and Rooted brand. Tyson recently invested in New Wave Foods, a company that makes shrimp based on seaweed plants and natural flavors.
Intuitive Surgical (ISRG)
The only thing preventing Intuitive Surgical (NASDAQ: ISRG) from continuing to grow is the ongoing debate about the rising cost of healthcare. As Medicare for All continues to prepare for the 2020 elections, all healthcare companies should be concerned about what these discussions might mean for their little slice of American healthcare.
However, if the changes are not too drastic, owners of ISRG shares should expect that revenue and earnings will continue to grow at a decent pace.
In the third quarter, robotic surgical system maker da Vinci reported revenues of $ 1.1 billion, up 23% from a year earlier and above the consensus estimate of $ 1.06 billion. On an adjusted basis, Intuitive earned $ 3.43 a share, up 21% year-over-year and 47 cents better than analysts' expectations.
"Intuitive Surgical reported a fantastic quarter, which saw its share price rise 20% on a consistent acceleration both in the US and outside the US," said Evercore ISI analyst Vijay Kumar in his report to clients.
Roper Technologies (ROP)
The company that calls itself a "diversified technology company" has certainly done well for its shareholders. Between 2003 and 2018, Roper's total shareholder return was 1.084%, five times the return on the S&P 500.
Roper has generated free cash flow over the past six years. In 2012, free cash flow was $ 639 million. In 2018, it was $ 1.4 billion, with a compound annual growth rate of 13.6%.
More importantly, this company has a diversified group of businesses that generate between 12% and 31% of Roper's revenues. In addition, EBITDA margin is 34% or higher for all operating segments.
You can choose the iShares MSCI USA Equal Weighted ETF (NYSEARCA: EUSA) or MSCI (NYSE: MSCI), also known as Morgan Stanley Capital International, the company behind the index that EUSA tracks.
For the last five years until November 11, EUSA's total annual income was 9%. Meanwhile, MSCI had a total annualized return of 39.2%, more than four times the return of the exchange-traded fund.
There used to be a saying that you had better invest in a mutual fund provider than in a provider's mutual funds. Well, now the same is true for ETFs. At least this is the case with MSCI.
MSCI is much more than an index company.
It is also ESG research and real estate analysis. The numbers may not be big enough to be included in a separate financial statement, put together, their revenues rose 17% in the first nine months of 2019 to $ 104.7 million. This makes the duo the fastest growing part of the MSCI business.
Expedia (NASDAQ: EXPE) had a good, if not impressive, year in the markets until it fell 27% in one day of trading.
The reason for the fall? Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) dropped it and other travel companies online.
“In our opinion, the most worrisome trend is the decline in SEO (search engine optimization) marketing as Google promotes 'free' links down the page,” writes Piper Jaffray analyst Michael Olson.
“In particular, Google favors its own 'Hotel Finder' platform, as well as other paid links that are increasingly grabbing properties on the first page of search results. Therefore, Expedia has to resort to more expensive marketing channels, which negatively affects marketing ROI. ”
The company, meanwhile, is currently trading at a forward price-earnings ratio below 14.
Nvidia (NASDAQ: NVDA) is preparing to release its third quarter earnings report. UBS increased its 12-month chip production target to $ 240, an increase of $ 45. He continues to rate NVDA with a Buy rating. Meanwhile, Deutsche Bank, which has a Hold rating on the company, raised its target from $ 160 to $ 190, nearly 20%.
"Overall, NVDA remains one of our core ideas as we focus on product cycle stories rather than 'playing half cycle cycles," said UBS analyst Timothy Arcuri in a note to clients.
Of the 38 analysts who provide forecasts for NVDA shares, only three are rated underweight or sell on their shares, and 26 are rated outperform or buy. The average target is $ 203.53.
Perhaps this is why InvestorPlace's Brad Moon has been slow to recommend that investors buy Nvidia stock before profit.
Target (NYSE: TGT) CEO Brian Cornell got a job at one of Minneapolis's most successful companies. Since then, he has taken positive steps to bring the discounter back to its former glory.
Since the former PepsiCo (NASDAQ: PEP) and Walmart (NYSE: WMT) CEO was named CEO on July 31, 2014, target shares have surged 81%, with some of its biggest company profits likely to come in the coming months. years.
As we approach the holiday shopping season, analysts have begun to select the most successful retail chains. Target and Walmart are the leaders.
“We believe Target is currently better positioned in terms of valuation as the stock is trading at a significant multiple discounts to Walmart,” Cowen analyst Oliver Chen wrote in a November 7 note to customers. “Nonetheless, we expect both stocks to continue to operate as the respective management teams continue to successfully pursue internal initiatives and gain additional physical and digital market share.”
Target's sales in the same store were 9.9% in the last two second quarters, the company's best in a decade. Here, his digital sales have actually surpassed his in-store numbers.