Investors love to follow their stocks. They know about an earnings calendar and price targets. They know about the companies they are invested in. The following seven companies should have the highest chance of price appreciation in the second half of the year. In the last twelve months, they have each gained over 50%, making them major contrarian investments that could easily double. It is crucial to start getting ready now for these up-and-coming stocks to buy.
We are all familiar with Alibaba (NYSE: BABA), but many investors may not realize that China is its second-largest market. Yes, it generates the majority of its revenues in China, but its USA growth rate is among the best in the world. On top of that, BABA’s cloud computing business in the USA shows signs of success. For that reason, we can expect the company to keep on growing. After all, growth is what investors seek.
This year, BABA’s valuation is still somewhat high, making us hesitate to call it a stock to buy, but its projected growth makes it a company to watch. Regarding Cloud Computing, Alibaba is in the final stages of its build-out in the USA. There are only two major cloud service providers, Amazon and Microsoft, with Alibaba being among the two other companies.
We all know Tesla (NASDAQ: TSLA), a company that has changed the automotive industry over the past ten years. It began as a niche player producing a niche car, and today it is recognized as among the most innovative firms of our time. That said, Tesla is currently under pressure. It has been forced to cut prices to increase sales. And it has had a few setbacks recently.
Still, all of this seems to have been overshadowed by the stock’s current price. Tesla is down roughly 9% year-to-date, but there is still plenty of upsides ahead. For one, the U.S. government will begin to purchase electric vehicles from Tesla. This may increase demand for Tesla’s vehicles in the near term, but the eventual outcome should be even more lucrative.
Much has been made of Facebook’s potential to expand into video. Still, investors are more excited about the company’s core business, allowing users to keep up with friends and family and communicate and do business online.
On Tuesday, the company made its largest acquisition to date, agreeing to buy the online video startup WhatsApp for $16 billion in cash and stock. The move gives Facebook a WhatsApp app with more than 1 billion users and is increasing as people increasingly communicate online rather than face to face. Despite the purchase, Facebook’s stock is still trading near its all-time high. However, long-term investors believe that Facebook has a few things going for it that will allow the company to continue expanding and staying on top.
The streaming giant has seen its share price soar in the past year, gaining 46% for shareholders, and they’re on track to open higher on January 6 after a recent news announcement. The announcement was that the company would raise their prices by $1 to $2, depending on the plan a subscriber chooses. “Our focus is on what our members tell us they want — compelling programming that they can’t find anywhere else,” the company said. “We are investing in more exclusive TV shows and movies, independent series, documentaries, and features. We are also launching more local language titles and original videos to serve different audiences around the world.” They noted that since the company began streaming full-length movies back in 2010, its membership has grown to 125 million.
Apple Inc. (NASDAQ: AAPL) is still one of the best stocks in the market, but it has become a must-watch stock because it’s been seen as the laggard of the current tech boom. Yes, Apple has reached a $1 trillion market cap, and the stock is still trading at all-time highs, but recent competition and a lack of product innovation are hurting the stock. Let’s face it, AAPL had a solid run-up in 2017 and 2018, but the rest of the tech boom has left little for Apple to grow on. But some space is still left in Apple, so I have a strong buy rating on it.
The iPhone remains a must-have product. The company will also see a lot of demand for the Apple Watch, and if the iPhone ever slows down significantly, it can switch to the smartwatch, which is a decent product.
One of the best-known companies on this list is the online retailer Amazon (NASDAQ: AMZN). The company’s name has been synonymous with e-commerce since its inception. However, Amazon has made some surprising moves over the past few months. The most considerable development was its deal to acquire Whole Foods. This is a major move because it will give it access to its first brick-and-mortar presence.
Physical stores are likely to fuel robust growth in the stock since this is one of the fastest-growing online retailers. Investors who follow this company have been rewarded over the past year. The stock is up over 70%, and it has taken off for the past few months. Amazon is a strong pick for the next 12 months.
Alphabet Inc. (NASDAQ: GOOGL, NASDAQ: GOOG) has an ever-growing digital advertising market share. In 2018, Alphabet was expected to expand its market share even further, with revenues reaching $110 billion. With Alphabet’s platforms having many users, such as YouTube and Google search, they have an opportunity to take share away from rivals such as Facebook, Inc. (NASDAQ: FB).
The valuation for GOOGL stock looks reasonable as it trades at about 20x forward earnings and less than 2x sales. Furthermore, the company continues to expand its margins. Its margins are expected to expand this year, despite a rise in content costs. Of course, other factors are essential for GOOGL stock. For instance, Alphabet recently launched a fully electric vehicle.
Hot stocks and even more so unknown stocks are offering amazing investment opportunities. This particular article was written to highlight the top seven hot stocks to buy. The above seven stocks are sure to be on investors’ watch lists this year. They have a wide moat and a lot of demand, and they are the “next big thing” for investors looking to invest in stocks that will be “hot” soon.
The high-quality, high-growth companies will be fine-tuning their offerings or making moves that will benefit their future competitive positions. Investors need to be prepared to get in on them early while there is still significant upside potential.