Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Universal Credits Christmas Scrooge Nightmare for Weekly Pay Recipients - 18th Nov 17
Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom - 18th Nov 17
Facebook Traders: Tech Giant + Technical Analysis = Thumbs Up - 18th Nov 17
Games Betting System For NCAA Basketball Sports Betting - Know Your Betting Limits - 18th Nov 17
Universal Credit Doomsday for Tax Credits Cash ISA Savers, Here's What to Do - 18th Nov 17
Gold Mining Stocks Fundamentals Q3 2017 - 17th Nov 17
The Social Security Inflation Lag Calendar - Partial Indexing - 17th Nov 17
Mystery of Inflation and Gold - 17th Nov 17
Stock Market Ready To Pull The Rug Out From Under You! - 17th Nov 17
Crude Oil – Gold Link in November 2017 - 17th Nov 17
Play Free Online Games and Save Money Free Virtual Online Games - 17th Nov 17
Stock Market Crash Omens & Predictions: Another Day Another Lie - 16th Nov 17
Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe - 16th Nov 17
Announcing Free Trader's Workshop: Battle-Tested Tools to Boost Your Trading Confidence - 16th Nov 17
Instructions to Stop a Dispossession Home Sale and How to Purchase Astutely at Abandonment Home - 16th Nov 17
Trump’s Asia Tour: From Old Conflicts to New Prospects - 16th Nov 17
Bonds And Stocks Will Crash Together In The Next Crisis (Meanwhile, Bond Yields Are Going Up) - 16th Nov 17
A Generational Reset That Will Redistribute Wealth to the Bottom 60% Is Near - 16th Nov 17
Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - 16th Nov 17
Gold’s Long-term Analogies - 16th Nov 17
Does Stripping Streets of ALL of their Trees Impact House Prices (Sheffield Example)? - 15th Nov 17
The Trump Administration’s IP Battle Against China - 15th Nov 17
5 Ways Bitcoin can Improve its Odds of Becoming the Future of Money - 15th Nov 17
These Headlines Say Gold is Building a Base for Something Big - 15th Nov 17
Protect Your Savings With Gold: ECB Propose End To Deposit Protection - 14th Nov 17
Gold on the Ledge, Trend Forecast - 14th Nov 17
The Unbearable Slowness Of Fourth Turnings - 14th Nov 17
Silver Sign’s Confirmation & More - 14th Nov 17
Could This Be The End for Tesla? - 14th Nov 17
Harry Dent’s Fourth Cycle: More Evidence of Stock Market Downturn - 14th Nov 17
Why Having Good Credit Is Important If You Want to Invest - 14th Nov 17
The Bitcoin Bubble Explained in 4 Charts - 13th Nov 17
How the US Has Secretly Subsidized China to Produce Eco-Unfriendly Solar Panels - 13th Nov 17
The Increasingly Unstable Middle East Must Be On Every Investor’s Radar - 13th Nov 17
Stock Market Critical Supports are Being Challenged - 13th Nov 17
The One Chart All Investors Should See Before 2018 - 13th Nov 17
Short-Term Stock Market Uncertainty Following Recent Rally, Will Stocks Continue Higher? - 13th Nov 17
Is Hillary Just the “Fall Guy” for the Intel Agencies and their Moneybags Bosses? - 12th Nov 17
Stock Market Correction Phase - 12th Nov 17
Finally, The Fall Of The House Of Saud - 12th Nov 17
Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - 11th Nov 17
E-franc, E-krona... E-volution? - 11th Nov 17
Gold Investment Stalled - 11th Nov 17
Smart Ways to Get Loans Online - 11th Nov 17
What Can Pot Teach Us About Economics and Government? - 10th Nov 17
Can Stocks and Bonds go Down at the Same Time? - 10th Nov 17
Gold Market 2017 Will We See a Replay of 2015 and 2016? - 10th Nov 17
Oil markets turn bullish with shift to backwardation - 10th Nov 17
The Strange Behavior of Gold Investors from Monday to Thursday - 10th Nov 17
Where to Start Your Cryptocurrency Company - 10th Nov 17

Market Oracle FREE Newsletter

Forex Trading Free Week

Hit or Pass? An Overview of 2017’s Best Ranked Stocks

Commodities / Sector Analysis Jun 14, 2017 - 06:08 AM GMT

By: Submissions

Commodities

Subject to an entire array of occult myths, the stock market is, in fact, the platform through which companies raise money. After an IPO – initial public offering – based on the estimated value of the company at the time, the ownership is split into a number of shares. Each share is a piece of the company.

However, the primary activity of the stock market takes place after the IPO. Having been attributed a value, the shares are constantly being bought or sold on the stock market, increasing or decreasing in price. The largest markets, such as the NYSE or NASDAQ, have millions of shares issued, with thousands of investors who buy or sell in a single day. This high volume of shares that change hands means that in that particular market, it is easy to buy or sell shares.


Source

For companies, the value of their shares after the IPO is a paramount indicator of their performance. If a company is expected to grow and reach high profits, the value of its shares rises. A lively financial year already, 2017 requires an overview of the five best-ranked stocks.

GOOG – Alphabet

Google and its lesser known parent-company Alphabet generate income through supporting advertising on its many services, apps, and content. Found in a sharp rise in the second half of 2015, the company was less successful in 2016, with a stock increase of only 4% despite the 16% growth in earnings.

However, Google reinvested about $85 billion of profits back into its programs and services. 60% of that sum is overseas, so any tax cut upon repatriation in the U.S., as proclaimed by the new administration, would greatly benefit the company and the shareholders. Google is and will remain one of the most resounding names in the IT industry. However, at $1000 per share, investing into Google might take a toll on the budget.

GM – General Motors

After being hit by the 2008 crisis, the mammoth company General Motors is currently still trading at around $30-33 a share. However, it is on a powerful upwards trend, and the price will likely continue to rise. This is because GM is investing into the production of multiple electric and hybrid cars, like the Bolt, which are intended to be sold at prices much lower than those made by Tesla, the perceived leader of this market.

If GM’s current price-to-earnings ratio on the market is 4.3, the company averaged around 12.2 over the past five years. It is therefore currently at a low point, but the indications are that it will rise again and soon.

XOM – ExxonMobil

A giant of the oil industry, ExxonMobil’s activities include everything from the exploration and production of crude oil and natural gas to the production of petroleum products and their sale. Since oil prices are up 50% from January 2016, the company is set to make a big profit. Moreover, Exxon appears to be on its way to cash flow neutrality, not depending on outside money for recapitalization.

Expectations in the oil industry are also looking up as the U.S. policy towards Russia might change with the new administration, giving Exxon access to huge reserves of oil. Also at a low point at around $80 per share, seats in the oil industry are up for grabs for anyone with a meta trader 5 account; and Exxon is a good choice to be made.

RTN – Raytheon
Still playing on the expectations of the market regarding the policy of the new administration, investing into Raytheon, a manufacturer of diverse military equipment, may be very profitable. A cynical beneficiary of the new tensions on the global stage, in 2016 the company’s backlog hit $35.8 billion, an increase of $2.2 billion from 2015. Currently, at $163 and rising, the Raytheon’s stock prices increase when most others fall.

JNJ – Johnson & Johnson

A diverse investment portfolio has to include a company dealing in pharmaceuticals. With an entire array of products and customer-centric services, Johnson & Johnson is a conglomerate of 250 operating companies. The company enjoys an AAA-rated balance sheet, organically produces cash flow and its returns are above average.

Due to uncertainty regarding drug prices, the pharmaceutical industry has not been in its very best shape throughout 2016. In 2017, the market is poised to recover, and Johnson & Johnson will be leading the charge. Trading at $127 a share, the company provides a relatively cheap and secure entry into the pharmaceutical domain, disproving the words of those who say that investing is not unlike gambling.

Overall, 2017 is a year of recovery for some of the most important sectors of the economy. After a slow growth or even a decrease in value, investing in the leaders of each industry while the prices are still low is a golden opportunity for both well-versed investors and first-timers. By holding a diversified portfolio split among the most important companies in IT, car manufacturing, pharmaceuticals, oil and armament, profit from at least a few sources is almost certain – as much as anything on the stock market can be certain.

This is an paid advertorial. Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife