The US stock market will get another 20% more than in 2018? Continue guess. With the abundant inventory pricing, the bull market nearly nine years old, and the Federal Reserve may raise interest rates three times in 2018, is expected to be much lower returns.
However, some stocks will still deliver substantial profits. Promising picks, I turned to Eric Marshall, at Hodges Fund (Symbol HDPMX) co-manager, had beaten the Standard & Poor’s 500-stock index from an average of 3.2 percentage points all-cap fund each year for the past five years. Here is Marshall’s 2018, all small and medium sized stocks 5 favorite. All, he said, will benefit from the new tax law, which slash the corporate tax rate. . Four-fifths of dividend payments
Remember: stay healthy as long as the economy, these stocks should do well. However, all cyclical stocks caught them in the economy, which will likely be affected. Together, these stocks appeal in 2018, but they are anything but forgotten to buy the stock. (Stock price of 28 December) of the
5 small stocks purchased for 2020
American Eagle Outfitters (AEO; $ 19.03), which operate 900 and makes 20% of its retail sales, online, take and run by a small clothing chain’s market share. The company sells casual clothing, from the large proportion of its own brand, boasting sales of higher profit margins. The company conservatively run, no debt, and $ 2 a share in cash. However, it’s reasonable price-earnings ratio of 15 times analysts’ consensus earnings forecast for the 2020 it produced 2.6%.
With the rise of Netflix and streaming movie, cinema is doomed? Marshall did not think so, even though attendance fell in 2017. “The reality is that there have not been many good movies recently,” he said. Cinema did well in 2015 and 2016 when there are new and better version. Cinemark Holdings (CNK; $ 34.68) operating more than 500 theater screens in the US and Latin America with nearly 6000. The stock is currently 16 times expected 2020 earnings and 3.3% yield.
WithStrong economy, demand for new housing has been strong. This is good news Eagle Materials (EXP; $ 112.28), which makes cement and gypsum wallboard, the two products is heavily dependent on the real estate market. The company also benefited from recent hours rebuilding urricanes. If Congress enacted major infrastructure projects, which will further boost the bottom line of the eagle. Only a few companies producing cement, and barriers to entry are enormous. The stock is 18 times 2019 earnings, and the yield was only 0.4%, the nominal
Tower Semiconductor Co., Ltd. (TSEM; $ 34.31), is another cyclical business, Marshall that It is hitting its sweet spot. Headquartered in Israel, and with Israel, the United States and Japan in factories, buildings make up semiconductors. Most semiconductor companies design, engineering and distribute chips. But few actually manufacture the chip, which is useless in the tower. As semiconductor everything from washing machines to the doorbell, demand is rising. Build a semiconductor manufacturing facility is expensive. But the tower has facilities it needs. Capacity at 80% or 90% instead of 60% of the running of the plant does not cost more, so the revenue stream to the bottom line. Earnings ratio of 14 times column 2018 PER estimate
Werner Enterprises . (WERN; $ ¥ 39.20) is a long-haul trucking company, Marshall said, profit from new government regulations. Safety rules require all truck drivers to maintain electronic logs to prevent drivers from working too many hours without a break. “It will take 5% to 10% of the capacity of the freight market,” Marshall said, let Werner boost prices. Werner also benefit from the new tax law. The stock 27 2018 profit forecast pricey. However, Marshall believes that Wall Street analysts are too conservative. He expects the interpretation of article 1 R margins and earnings to Werner after. Dividend generated a modest 0.7%.