The appeal to invest in stocks in 2019 is understandable. But building a portfolio that provides healthy returns is not easy. Based on research, there were 7,322 domestic companies listed on US stock exchanges in 1996. Today, the number has declined to fewer than 3,600 companies trading in NASDAQ or NYSE.
The US economy growth is expected to slow down in 2019. To build a growth-oriented portfolio, find great stocks to buy. Where? From strong companies poised to grow.
What are the best stocks to invest in? In this article, we discuss the top 5 best stocks to buy in 2019.
Market cap – 97.107 B
Forward & Yield 2.74 (1.67%)
PE Ratio (TTM) – 25.53
EPS (TTM) – 6.40
Diageo is a global leader in beer, wine, and spirits making. Popular brands the company produces include Guinness Beer and Johnnie Walker. At the time of writing, the share price was $163.20 up from $163.13.
As one of the top stocks to invest in, the company announced plans to scrap plastic packaging. Instead of plastic, Diageo is planning to use 100% recyclable and biodegradable cardboard.
Apart from this, Diageo has plenty going on. From building a new distillery in Kentucky to a partnership with a cannabis company. Thanks to uninterrupted growth, Diageo is an ideal investment.
Market Cap – $2.60 billion
Forward & Yield- N/A
PE Ratio (TTM) 57.83
EPS (TTM) – 0.45
Stitch Fix is a startup that offers bespoke and big data services. As an online service for customers too busy to shop, Stitch Fix offers virtual stylists. They help you select the best clothes depending on your personal preferences.
In 2018, the company’s revenue was more than $1.2 billion while its earnings stood at $44.90 million. Since its 2017 IPO, the shares have been volatile. The good news is experts foresee a 20% growth making it one of the great stocks to buy.
Market cap – $66.677 Billion
Forward Dividend & Yield – N/A
PE Ratio (TTM) 17.23
EPS (TTM) – 5.51
Celgene is a biotechnology company that develops medication for inflammatory disorders and cancer. Based in Summit, New Jersey, the company’s biggest seller is Revlimid. This drug treats multiple myeloma and its expected to drive sales for the company.
In April 2019, Bristol-Myers shareholders approved a $74 billion acquisition deal of Celgene. The deal will close in the third quarter. This will turn Celgene into a valuable biotechnology company and one of the top stocks to invest in.
Canadian National Railway
As one of the best railroad stocks, the Canadian National Railway is a Class I freight railway. It serves Midwestern and Southern United States. Headquartered in Montreal, Quebec, the company also serves Canada.
In April 2019, the company announced plans to invest more than $80 million. This is to expand the Minnesota railway infrastructure. This announcement came after a record capital program in 2018.
These capital investments will boost the rail company capacity and infrastructure driving growth.
Johnson & Johnson
Market cap – $363.208 Billion
Forward Dividend & Yield – 3.60 (2.61%)
PE Ratio(TTM) – 24.33
EPS(TTM) – 5.61
Johnson & Johnson is a multinational company. It has three profitable divisions – medical devices, pharmaceutical, and consumer goods. Founded in 1886, it is the world’s largest biotech company with a market cap of $363.208 billion.
What makes Johnson & Johnson a great stock to buy in 2019 is the broad diversification. For years to come, consumers will need Band-Aid or Tylenol for headaches.
The company recently announced that the FDA had granted accelerated approval for erdafitinib. This is an FGFR kinase inhibitor and will be marketed as Balversa.
Great Stocks to Buy in 2019
Diageo, Stitch Fix, Celgene, Johnson & Johnson represent the great stocks to buy in 2019. This is true for long term investors. Given their potential, these stocks are the right fit for a growth-oriented portfolio.
Want to find good companies to invest in 2019 and the top 10 stocks? Check out our blog.