The winning stocks for 2019 according to portfolio managers will be the stocks that have the ability to survive and also thrive regardless of how badly shaken things gets. According to them, the companies that would likely rebound will be the ones with the ability to increase their earnings faster than other stocks on the market, and that is regardless of the fact that the economy is slowing sharply.
Stocks that best suit this profile include the companies that’ll enjoy the benefits of newly introduced product cycles, those with technological innovations or those taking leading roles in emerging areas such as reality-enhanced gaming.
Some of the stocks include:
1. Take-Two Interactive Software
According to Alger’s Dan Chung, the company which makes video games has benefited from some core long-term trends and also the current shift to digital gaming which is considered more profitable. Also, it keeps enjoying the move towards games that are virtual reality-enhanced as well as the fact that millennial gamers are moving into the peak of their warning and also spending years.
Chung stated that the Software’s current lineup is made up of games that have a fan base considered very fanatic and they include titles like NBA 2K, Grand Theft Auto and Red Dead Redemption. What further makes the stock of the software company so attractive is that it is quite difficult for upstarts to break into this particular variant of entertainment business which is tech-centric.
It is also attractive because it has an offer of greater profit potential made possible by the digital distribution of games and also improved technology that will eventually attract more players. According to Chung, video gaming has come to stay, and it isn’t just a means of entertainment, it is also a way to socialize.
2. Tiffany
This American jeweler company is popular for its product including diamonds, blue box and a flagship store located on Fifth Avenue which is currently going to refreshing efforts aimed at increasing its cool feature. The reboot of the retailer is driven by Alessandro Bogliolo, its CEO and Reed Krakoff, its chief artistic officer.
The reboot according to Dan Chung is driving the stock of the company higher. According to him, the moves that are inspired by this new management team including unveiling its first engagement ring in almost one decade and also the launch of a new line known as Paper Flowers will help people see the brand as more contemporary and current. In turn, that would contribute to a boost in its sales as well as its profits. Chung noted that now is a good time to put the stock of Tiffany on the buy list as it is not going anywhere.
3. BorgWarner
The company manufacturers drive trains that power auto. According to Charlie Bobrinskoy of Chicago-based Ariel Funds, one reason why the stock of the company is undervalued and also has an allowance to rise is because most investors have a mistaken perception that its popular propulsion business is focused only on vehicles that are powered by gas and it is therefore not gaining from the revolution championed by the growing acceptance and usage of electric vehicles.
However, Bobrinskoy said the perception is wrong as the technology used by the company is also embedded in those electric vehicles as well as hybrids. BorgWarner on its website gives the estimation that by the year 2023, its content will be in about half hybrids and more than 30 percent of the electric cars produced globally. Further, the stock is more enticing because the company’s business on vehicles is still very big and Bobrinskoy has predicted that BorgWarner will continue dominating the fuel sector for up to 15 years from now.
4. Blackstone
Partnership structure of Blackstone isn’t working in favor of its shares, and that makes the firm ineligible to get included in index funds. Index funds which are sometimes called passive investments are where several dollars invested have been going to in the past couple of years.
According to Bobrinskoy, without the positive influence of cash driven by index, the shares of the investment firm are being sold at a relatively cheaper price. He added that everyone knows the company is great, but a lot of people are staying away from its stock because it is not on any popular index such as S&P 500.
