Stock market is one of the hottest topics ever discussed on the entire planet, which manages to turn heads of even the people who haven’t been in the trading aura yet. Sure there is volatility, or what most people like to call it – uncertainty, but it is like the experienced say –higher the risk, higher the reward!
There are quite a lot of different personalities when it comes to trading. There is the standard kind of traders- who are beginners and looking to learn trading as they go. The second type are the intermediates, who understand some and research more in the hopes to understand the rest. Then there are the experts, who are well aware that one of the best ways to earn higher returns is to stay updated with markets at all times and learn from experts, who are giants in these markets, and follow their trends and trades well.
Moving on to stock markets itself, for a while it seemed like they were definitely sailing in the stormy ocean waters. However, it’s a very different and slightly calmer market now than what it was in the past couple of quarters.
There may be fewer investors who are bending towards the pharmaceutical sector or maybe even healthcare division as a whole, but there is something about this stock that is getting the world’s best investors all charged up! Pfizer Inc. (NYSE: PFE) is definitely a promising stock for the years to come.
Till date, Pfizer remains as the most valuable drug manufacturer in the world, even after almost being neck-to-neck with Novartis AG (NYSE: NVS). Trading at just 13x forward EPS, this pharmaceutical stock definitely seems promising, with profits that might stay flat even amidst the volatile markets and to top it off, a 3.35% dividend yield as well.
While the prices of drugs are subject to political scrutiny in the current market scenario and the revenue growth has flattened out lately, this spotlight seems like it could diminish anytime soon and pharmaceutical will race to the top in no time.
Amidst this political brawl, Pfizer still seems to be doing just fine in terms of growing earnings, with an EPS rising adjusted at about 16% last year and an even higher rate that’s expected this year!
Rich Duprey, the co-founder of Capital Growth Management has recently taken interest in this stock and it’s very easy to see why! Kohl is one of the few departmental store chains that is trying to stay ahead of its competition by reshaping landscape and changing the mindset of the customers to make it more in-tune with how they should perceive retail as a concept and departmental stores in particular.
Kohl’s partnership with Aldi, the supermarket giant, that is taking up unused space in the store to set up a grocery store and will have a separate entrance of its own too, has also added to its value as a departmental store and investors have been eyeing this share for its long term potential.
Kohl’s partnership with Amazon.com is also a value-added factor, where Kohl is also serving as a drop-off point for customer returns which have been bought on the e-commerce site and this is reportedly turning out beneficial for Kohl and its customer relationship.
With just a fraction of its sales and at 10 times this year’s earnings, Kohl has been trading on the exchange at some discounted valuation and because it goes 10 times lesser than the free cash it produces, this is definitely a bargain-basement stock in the making.
3. Royal Dutch Shell
Thanks to the quarterly reports of some of the world’s largest investment firms, we know that this oil behemoth was on the list of many. Joel Greenblatt of Gotham Asset Management increased his position in Shell by 38.2% in 2019’s Q1 and he was not alone! Ken Fisher upped his stake by 31.3% while some of the folks at NWQ investment Management also joined in and increased their position by 12.7%
Shell has the lowest P/E ratio amidst the biggest of oil companies and currently stands at 11.6% but it also has the highest dividend yield i.e. 5.8%. With a price-to-book ration that is the second lowest at 1.3, amongst the major players, Royal Dutch Shell seems to be a terrific bargain.
Due to the late April drop in the prices for crude oil, Shell still trades at a very attractive price.
If these magnanimous investors have given you some inspiration with their investments strategies then we suggest you get started with your Investment Journey right away! 2019 is a promising year for investments and there are many more stocks, just like these 3 listed here, which could earn you favorable returns and help save for the future as well.