Stocks To Buy Today {2020}

Soon, 2019 will be over… therefore it’s time to start looking at some of the top stocks to buy for 2020.

⇑⇓ Today’s Stock Market Quotes ⇓⇑

United Technologies (UTX). Following a strategic review, the company decided it would spin off its Otis elevator and Carrier heating/air conditioning businesses. Once the transactions are completed (expected sometime during the first half of 2020, UTX is expected to complete its merger with Raytheon. )

Cowen analyst Cai von Rumohr recently lauded higher margins at United Technologies’ Pratt and Otis subsidiaries, and also cited proposed synergies from the Raytheon merger as reasons behind his Outperform rating on UTX. He also bumped up his price target, from $150 per share to $169, implying 18% upside from current prices.

Other reasons for investor optimism? During its most recent quarter, United Technologies reported an earnings beat thanks to strength in its Collins Aerospace Systems and Pratt & Whitney aerospace segments. Management also lifted its expectations for full-year 2019 earnings per share, to a range of $8.05 to $8.15.

UTX has received six Buy ratings versus just one Hold over the past three months, with the three most recent price targets coming in above the Street average.

Intuitive Surgical (ISRG) has been one of the health-care sector’s best performers over the past five-, 10- and 15-year periods, generating average annualized total returns of 26.6%, 19.7%, and 30.1%, respectively, through Nov. 14. It’s a different story in 2019, with Intuitive Surgical’s stock trailing both its medical-device peers and the U.S. stock market as a whole.

Like UnitedHealth, Medicare for All could be weighing down ISRG as investors contemplate whether hospital spending cuts will reduce the number of da Vinci robotic systems bought as a result of any changes to the current health-care system.

Nonetheless, the number of Intuitive Surgical procedures performed globally continues to grow. In the third quarter, worldwide da Vinci procedures increased by almost 20% year-over-year. And ISRG shipped 275 da Vinci systems during the quarter – 19% higher than a year earlier.

As a result of its strong third-quarter results, Morgan Stanley analyst David Lewis reiterated his Overweight rating (equivalent of Buy), writing, “Phase 1 is still driving significant growth, the company is just scratching the surface on Phase 2, and it is building the foundation for Phase 3.” Piper Jaffray’s Adam Maeder (Overweight) says he expects Intuitive Surgical will remain the “clear cut leader” in robo-assisted surgery.

Takeda Pharmaceuticals (TAK) reported strong second-quarter earnings at the end of October that demonstrated its 14 global brands have plenty of growth ahead of them. But perhaps the reason TAK belongs among the best health-care stocks to buy in 2020 is its January 2019 acquisition of Shire Pharmaceuticals.

The $62 billion deal made Takeda one of the 10 largest pharmaceutical companies in the world with annual revenues of more than $30 billion. As a result, the combined company now boasts solutions for oncology, gastroenterology, neuroscience, rare diseases, plasma-derived therapies and vaccines. More importantly, the pharma giant gains geographic diversification.

During the first half of fiscal 2019, a six-month period ended Sept. 30, Takeda’s Japanese business accounted for just 18% of its $15.3 billion in revenue. A year earlier, its Japanese business accounted for 31% of its overall sales. Revenues from its U.S., European, Canadian, and Latin American regions all doubled through the end of the second quarter.

Takeda said at the time of the acquisition that it expected to gain $1.4 billion in annual cost synergies by January 2022. It planned to use those gains to pay down some of the debt incurred to buy Shire. In the company’s first-half results, it noted that it paid down $5.4 billion in debt. Meanwhile, net debt at the end of September was 3.9 times adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), down from 4.7x at the end of December.

Realty Income (O) is, hands down, one of the single best long-term income investments in the history of the U.S. stock market. Since going public in 1994, the REIT has grown its dividend at a 4.5% annual clip. It also has made 592 consecutive monthly dividend payments and has raised its dividend for 88 consecutive quarters.

But it’s more than just an income machine, Realty Income has managed to deliver compound annual average total returns of 16.8% per year… if you’re looking for a stable, long-term monthly dividend payer that won’t give you any drama, O shares are a solid choice. Indeed, Realty Income is probably the closest thing to a bond you’re ever going to find in the stock market.

Chevron (CVX). Stable oil prices and cost savings are projected to help Chevron put up strong share-price gains in 2020.

The integrated oil giant, with operations in natural gas and geothermal energy, was forced to slash spending in the wake of the 2014 oil-price rout. But the strategy is paying off in today’s steadier environment. Analysts forecast shares to hit $135.04 about 12 months from now, giving Chevron’s stock implied upside of nearly 12%.

“CVX has an attractive global asset base with the potential for solid production growth and best-in-class cash margins versus global integrated peers,” says JPMorgan analyst Phil Gresh, who rates the stock at Overweight and has a $139 price target.

A dividend yield of almost 4% will add juice to Chevron’s outperformance. With more than three decades of uninterrupted dividend growth under its belt, this Dow Jones stock has a track record that instills confidence. Chevron’s most recent hike came in January, when the company boosted its quarterly payout by more than 6% to $1.19 per share.



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