At this time of the year it becomes wise to think about how you want to invest next year. It would be good if Donald Trump could sort out his trade and tariff tiff with China, so we could work out whether we want to be aggressive or defensive with our strategy. But as we’re flying blind on this crucial subject and given the US job numbers came in much better than expected, I’m going to stick with my general view that being in stocks for 2020 is a sound idea.
With that in mind, I tried to find 20 stocks for 2020 using some of the most reliable stock pickers I know but I could only come up with 13 that my experts thought would have luck and good business outlooks on their side! Some of these stocks I’ve shared with you in recent weeks but as they’re so fresh and they were delivered by experts with the longer term in mind, I’ve decided to lump them altogether to give you a smorgasbord of companies to think about or even put together in a 20-stock portfolio for 2020!
Let’s start with my new ones, which I garnered from my market buddies last week.
Rudy Filapek-Vandyck from FNArena likes Amcor (AMC). And he’s not alone as others agree. His team of analysts think the company has 6.6% upside.
Elio D’Amato from Lincoln Indicators is a Macquarie (MQG) man and here’s why: “The pick has to be the only place that if you really want a bank you should hold and that is Macquarie. Unlike the others it has a growth thematic, and is a perennial under promiser and over performer. From a bottom up perspective in a very tough sector that is our pick for the coming.”
Raymond Chan from Morgans is also stocking with an old stager. “I still like Telstra (TLS) after the encouraging investor day.”
Michael Wayne from Medallion Financial has an interesting techie-one. The stock is Elmo Software (ELO). “Elmo is a rapidly growing HR Tech company providing cloud HR, payroll, rostering and attendance management technology to more than 1,100 companies primarily throughout Australia and New Zealand. While Elmo is growing rapidly and now holds an impressive estimated 9% of their total addressable market in ANZ, at Medallion we are particularly interested in the large addressable market opportunity, which is estimated at a figure of $1.7 billion or 13,000 organisations.”
FNArena sees 39.5% upside!
Charts specialist, Michael Gable, thinks Woodside (WPL) shows potential for next year and OPEC seems to be working hard to keep oil prices elevated.
Charlie Aitken, who has a foreign focus with his fund nowadays, remains a big fan of Nike.
Jun Bei Liu of Tribeca Investment Partners has been on show over the past two weeks and the two companies she likes for 2020 are A2Milk (A2M) and Tyro Payments Ltd (TYR), which made its debut on the stock market last Friday at $2.75 and ended at $3.38. And yes, I took her tip.
Geoff Wilson from Wilson Asset Management likes AMA Group (AMA), which is in the auto business. And FNArena’s experts think the company has 45.5% upside!
Last week, Julia Lee of Burman Invest and Michael McCarthy of CMC Markets both like oOh!media (OML), which had a big rise last week after the company had an upgrade on its earnings outlook. She also likes to think an improving economy over 2020 will boost the ad spend.
Julia argued the case for Domain (DHG) which she says has the best growth outlook compared to REA, which has been a great performer for years.
Another stock Julia likes is EML Payments (EML), which is into salary packaging and even sports betting. “It’s a small company but it’s primed for growth.
Michael McCarthy and Julia both like Mineral Resources (MIN) but so do a hell of a lot of fund managers with runs on the board. FNArena thinks MIN has 13.3% upside.
So there are 13 stocks for you to consider as you set yourself up for 2020. I’m sorry I could not get 20 but I didn’t want to write a story to simply fit a cute headline!
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.