Investors looking ahead to next year seek companies that show growth potential. For some investors, the hunt concentrates mostly on low-priced stocks. Others are sector hunters in areas like tech. Most are interested in well-known names, priced right and ready to grow over the next 12 months.
Here are some stocks considered by experts to be worthwhile for next year, broken down by the 3 categories mentioned above.
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Some investors look for stocks under $10 because frankly, those are the stocks they can afford. Zacks recently offered several of their “Buy” rated securities priced for average investors.
Groupon, Inc. (NASDAQ:GRPNC), currently selling around $5.50 per share, has reached a point where profitability is finally somewhat consistent. Zacks consensus estimates call for Groupon earnings growth to exceed 200% by the end of 2017, suggesting continued expansion into 2018.
LSI Industries Inc. (NASDAQ:LYTSC), is an image solutions company that provides commercial and retail lighting. Sitting at about $6.50 currently, the company offers a respectable 3% dividend and enough momentum to suggest positive movement in 2018.
Glu Mobile Inc. (NASDAQ:GLUUA), currently selling just under $4.00 per share is a leading global publisher of mobile games, including titles based on major brands from Activision and Hasbro. The company is expected to show positive profitability by the end of this year with the surge continuing into 2018.
Tech Worth Touting
As one of the strongest sectors in the market, tech is an area that attracts capital. In fact, Goldman Sachs recently told investors the two best sectors are tech and financial.
Micron Technology, Inc. (NASDAQ:MUC) is a booming semiconductor stock that has already gone up almost 140% in 2017. The company just announced it will redeem $2.25 billion in debt ahead of schedule. Analysts love that news and are predicting good things for this company in 2018.
Criteo SA (TSX:CRTOC) is an ad tech player you may not have heard about – even though you have almost certainly see its work. Criteo is behind those online ads that pop up to remind you of similar products you previously viewed (and just might buy). The company says it has a 90% customer retention rate and is currently a $2 billion revenue business.
Facebook Inc. (NASDAQ:FBC) needs no introduction and is one of the most well-known names in tech. Perhaps thanks to recent negative publicity regarding Russian ad buys, the company is showing room to grow in the coming year. It is currently trading 9% below its historical forward average.
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All Around Winners
According to Morgan Stanley, here are some of the best stocks to own in 2018. Last year’s list posted a return of 11.38%, about 1% behind the S&P 500 total return. Criteria included stocked rated Overweight by Morgan Stanley analysts and favored by the company’s U.S. Equity Strategy Team. Stocks chosen for 2018 included: Alexion Pharmaceuticals (NASDAQ: AXLN), Bank of America (NYSE:BACD), Cisco Systems (NASDAQ:CSCOC), Citigroup (NYSE:CC), Constellation Brands (NYSE:STZC) and several others.