5 Cheap Stocks to Buy Today { October 2019 }


5 Cheap Stocks to Buy Today { October 2019 } – StockMarketNews.Today


1 – General Electric (GE)

ge-news

Once one of the most valuable and important companies in the world, industrial giant General Electric, has tumbled over the past several years. Now the company is a shell of its former self. About 20 years ago, this was a $50 stock. Today GE stock trades below $10.

GE stock has tumbled to below $10 for a good reason. The business became overly complicated and convoluted, and once one of the moving parts in the GE machine started deteriorating, the whole machine started to fall apart. At the same time, in order to build the big and overly complex GE machine, GE took out a ton of debt, so when GE’s businesses started to shrink over the past several years, they did so against the backdrop of an overly levered balance sheet — which just made everything worse.


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But, everything could get better over the next few quarters to years. That is, General Electric is dramatically simplifying its operations by shedding non-core, unprofitable businesses and assets. The company is taking the proceeds from those business and asset divestitures to pay down debt. Thus, GE going forward is going to be simpler, more profitable, and less indebted. Ultimately, that means GE is turning into a better business, which should be rewarded with a higher multiple and bigger earnings power — a combination which produces a bigger stock price for GE.

Consequently, at current levels, GE stock looks fairly compelling. This beaten up company is doing everything right to make things better. As things do get better over the next several quarters, GE stock should bounce back.



2 – VipShop (VIPS)

VIP

China’s economy started slowing in late 2017 and early 2018. Around that same time, the VipShop growth narrative started to slow dramatically. In late 2017, this was a near 30% revenue growth company. Throughout 2018, VipShop’s quarterly revenue growth rates slowed to 25%, 18%, 16%, and 8% by the end of the year. In early 2019, revenue growth slipped 7%.

In mid-2019, though, this slowdown has reversed course. Last quarter, VipShop reported 10% revenue growth — its first sequential revenue growth acceleration quarter in a long time. This improvement makes sense. Multiple signs are emerging that China’s consumer economy is finally starting to stabilize and improve again. At the same time, the fundamentals underlying China’s digital economy remain favorable, and VipShop dominates the secular demand off-price niche in that market.



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3 – Plug Power (PLUG)

fuell-cell

PLUG stock is perhaps most infamous for being one of the few stocks which has, quite literally, lost 99.9% of its value over the course of the past twenty years. That’s not a great thing to be know for, and it happened because while there was promise for hydrogen technology early in the auto market, such promise has all but disappeared. Electric batteries became the viable alternative fuel source, and hydrogen cells became an afterthought. As they became an afterthought, Plug Power became irrelevant.


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That’s changing now. Plug Power has rattled off consistent 20%-plus revenue growth over the past three years, as hydrogen fuel cells are starting to be adopted in bulk in the commercial market. Sure, the consumer hydrogen market remains sluggish because of infrastructure shortcomings. But, such shortcomings aren’t as important for the commercial market, where a lot of vehicles are operated on-site. As such, big enterprises are starting to come around to the benefits of hydrogen fuel cells, which is that they last longer and have shorter recharging times than their electric battery counterparts.

Can the commercial hydrogen market maintain red-hot momentum, and can Plug Power continue to fire off 20%-plus revenue growth with big margin expansion? Management thinks so. They just laid out an aggressive five-year target which calls for huge revenue growth and even bigger margin expansion into 2024. If Plug Power does hit those aggressive targets, then PLUG stock could soar from here.


4 – Aphria (APHA)

Apriha

Aphria is best known as the first cannabis company to strike a profit in the very profit-barren cannabis market. How did Aphria do this? They focused on becoming the lowest cost supplier in the market.

They spent all their resources on figuring out how to reduce the cash cost to produce a kilogram of cannabis. They did just that, and the company now has the lowest unit cash costs in the business. The result? Aphria is able to sell a bunch of cannabis at discount prices into the market, and yet still net a profit on those discounted prices because the production costs are so low.


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This sounds a lot like Aphria is becoming the “discount” player in the cannabis market. That’s a valuable niche to dominate. Regardless of the economic environment, consumers are always attracted to low prices. Thus, so long as Aphria can continue to dominate the low price end of the cannabis market, this company will guarantee itself a slice of the global cannabis pie at scale — which could be quite large.

In the long run, then, the bull thesis here is that Aphria leverages its low cost production capabilities to become the discount leader in what projects as a several hundred billion dollar cannabis market at scale. If things do play out like that, then APHA stock should soar in the long run.



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5 – GameStop (GME)

Gamestop-store-News

Perhaps the most depressed and hated stock on this list is video game retailer GameStop (NYSE:GME), and with good reason. In the long run, GameStop is doomed. This is the Blockbuster of the video game world, so as the video game world moves into all-streaming, all-the-time, then GameStop will become irrelevant because no one will need to buy physical video games anymore. This is the inevitable outcome for GameStop, so it makes sense that GME stock has lost over 88% of its value over the past five years.

But, on the way to the graveyard, GameStop should be able to generate tremendous value. That is, the physical video game segment isn’t dead yet, nor will it be dead anytime soon. Instead, the physical video game market could actually go through a few big growth years over the next several years.


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Why? In 2020, new video game consoles are coming to the market for the first time since 2013. Consumers will need to buy those video game consoles, and some of those consumers will buy those consoles at GameStop. Further, these new consoles are going to have physical disk drives, so physical video game sales should surge in 2020 and 2021, too.



10 Best Stocks to Buy { Second Half of 2019 }

Stocks To Buy During Stock Market Correction


 

10 Best Stocks to Buy { Second Half of 2019 }

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< StockMarketNews.Today > … Stocks to buy in the second half 2019 … Here are 10 stocks to buy today { Second Half of 2019 } …


  1. Netflix

  2. iRobot

  3. Amazon.com

  4. Intuitive Surgical

  5. Alphabet

  6. Axon Enterprises

  7. Wayfair

  8. Facebook

  9. Constellation Brands

  10. Lululemon athletica 


5 of the Best Stocks for Beginning Investors

Let’s start with five that are particularly good for beginning investors because of their strong balance sheets, positive free cash flow, and competitive advantages:


Amazon.com
Alphabet
Facebook
Intuitive Surgical
Axon Enterprises


The first three stocks are all “FAANG” (Facebook, Amazon, Apple, Netflix, and Google) stocks. These Big Tech companies have their hands in seemingly everything and have the potential to disrupt the parts of the economy they don’t. Their large market capitalizations reflect the fact the market knows this, too. That said, beginning investors are generally better off sticking to well-known large cap stocks with strong brand recognition as they start off on their investing journey versus getting too cute with under-the-radar smaller cap stocks.

Amazon dominates online retail to the tune of about half of all U.S. e-commerce! If that doesn’t amaze you, how about the estimates that over 100 million Americans are now paying the $119/year price tag to be Amazon Prime members?

And that’s not even where it gets most of its profit. That comes from Amazon Web Services, its cloud computing offering. While its retail segment sells us literal picks and shovels, Amazon Web Services sells the virtual picks and shovels of the Internet.

As a bonus, Amazon throws in other goodies like its burgeoning original content as well as its subsidiaries like high-end organic retailer Whole Foods and the gaming-related live streaming video platform Twitch.


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Alphabet (aka the owner of Google) is no less impressive. Its search engine might be better termed a “money engine.” That’s what happens when you have around a 90% market share worldwide.

In addition, YouTube is the #1 video platform in the world while Android is the #1 mobile operating system.

Also within the Alphabet umbrella are a whole bunch of futuristic moonshots and other “alpha bets”. As a result, Google is involved in everything from driverless cars to virtual reality to drones to artificial intelligence (AI).

Rounding out the FAANG companies here is Facebook, the ruler of social media with Instagram and WhatsApp in addition to its namesake Facebook and Facebook Messenger platforms. Each of those four platforms counts at least a billion monthly users. Pretty impressive when the world’s population is also counted in the single-digit billions. And yeah, don’t forget about their Oculus VR tech and other bets, too.

Getting out of the Big Tech space a bit, there’s healthcare pioneer Intuitive Surgical, which makes robotic surgery a reality with its da Vinci surgical systems. The technology assists surgeons in making procedures less invasive, leading to better patient outcomes. Far from an unproven flyer, Intuitive Surgical already has billions in annual sales and has been consistently wildly profitable — think gross margins in the 60% to 70% range and net margins in the 20% to 30% range.

It’s easy to see a growth path forward with increased adoption by surgeons and hospitals and increasing numbers of approved procedures.

Finally, we come to Axon Enterprises, known for its law enforcement and self-defense products. To wit, its Taser stun guns, Axon body cameras, and Evidence.com (uses AI to analyze uploaded video footage) offerings give an integrated solution to police departments.


5 of the Best Growth Stocks

In contrast to dividend stocks, growth stocks often pay little (or none) of their earnings back to investors as dividends. In fact, many are at the pre-earnings stage or have such small earnings that their P/E ratios are stratospheric. And if they do have earnings, they tend to plow them back into their businesses.


iRobot
Lululemon athletica
Wayfair
Netflix
Constellation Brands


iRobot is known for its Roomba line of robotic vacuum cleaners. Bears worry about the threat of increased competition. Bulls, however, point to the huge potential for optionality (i.e. a company morphing and pivoting over time to become something we can’t envision today). iRobot is already expanding its offerings into robotic lawn mowers, so it’s not hard to imagine it going after other household and commercial applications soon. More broadly, though, there’s a lot of room for pivoting into interesting spaces when you’re an early ish mover into robots, machine learning, and artificial intelligence. It’s hard to speculate on exactly what iRobot could become, but at just over $3 billion in market capitalization, it’s still less than 1% the size of Facebook, Alphabet, or Amazon, meaning there’s lots of room for the stock price to run if its wildest goals come true. And plenty of room for success in between if there’s a more conventional outcome.


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Springing from its core yoga apparel base, the Lululemon brand has become an absolute force in athleisure. There are debates about whether athleisure (e.g. wearing spandex as if it were denim) is merely a trend or here to stay. While the answer to that debate may affect shorter-term growth, consumers will need fitness apparel for a long time to come. Beyond that, Lulu can grow internationally, beyond its North American stronghold (while Lululemon is a Canadian company, about 70% of its sales come from the U.S. and only about 10% of its sales come from outside the U.S. and Canada). Another potential growth driver is expansion beyond its traditionally female target demographic.

Wayfair is an online destination for furniture and other home items. Retail in any channel is tough, and it’s no different for Wayfair. Competition is fierce, featuring major online players like Amazon, all the traditional bricks-and-mortar players, and a host of online boutique start-ups. To buy the Wayfair story, you’ll probably want to believe that Wayfair can build up a brand, customer loyalty, and scale that’ll enable it to boost margins to a point where it can be sustainably profitable. One favorable indicator for that case is Wayfair’s 5-year sales growth rate near 50%.


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Netflix needs no introduction. It’s been able to stay steps ahead of doubters as it has vanquished Blockbuster, pivoted from mailed DVDs to online streaming, created award-winning original content, and kept total content costs contained enough to be consistently profitable. The worries today include ever-present competition (including other streaming service entrants from formidable content owners), fears of domestic saturation, and even higher content costs. On the other side, Netflix seems to have brand and pricing power, the notion that cable cutters can sign on to more than one online service, international expansion possibilities, and economies of scale as it continues to grow the top line (30%+ the past few years).

Constellation Brands is aptly named. Even if you haven’t heard of the company, you know many of the alcohol brands it either owns outright or markets. These include beers like Corona, Modelo, and Ballast Point, wines like Robert Mondavi, Clos du Bois, and Ruffino, and spirits like SVEDKA Vodka. It’s accomplished much of this through acquisitions over the years (and decades), a strategy that is generally riskier than growing organically. So far, however, it’s worked out pretty well for Constellation.