Top 5 Stocks in 2020

Updated: Dec 12, 2020

October and November showed quite a bit about what an election, stimulus talks, and vaccine talks can do to the market! There’s so much going on in the world that some things don’t go the way we expect them to. But that’s okay. Let’s make some money this end of the year. Playing swings or short calls/puts can be exciting, but every single day is unpredictable.

My Top 5 Picks for 2020

1. Square

2. Zoom

3. Draftkings

4. Power Shares S&P 500 High Dividend Low Votality

5. Boeing

The market goes up and down all the time and, as long as you hold you’ll come out of every position profitable. I hope you’re excited about this month!

Here are my top five stocks for 2020!

Square ($SQ)

Square, Inc. is an American financial service, merchant service aggregator and, mobile Payment Company based in San Francisco, California. The company markets software and hardware payments products and has expanded to small business services.

As Oppenheimer writes, the COVID-19 pandemic has initiated a “massive shift in digital commerce, requiring merchants to rapidly adopt Omni-channel solutions.”

Of course, it was already obvious before the pandemic that the retail landscape was barreling toward e-commerce, but the pandemic has sent the trend into hyperdrive. (Yahoo Finance) Square has a fantastic business model. Since the world is in a Pandemic and electronic transactions are becoming more and more common, this stock is only going up from here. They help support businesses with their mobile payment transactions and, that’s going to be crucial from this point going forward. I am very bullish on Square.

Zoom ($ZM)

Zoom has been a rollercoaster ride of a stock. It’s incredibly volatile, but at the end of the day, it’s extremely profitable and continues to surprise us with its bounce back.

People all over the world are utilizing this video chatting service to their advantage for work, schooling, and communication with people in their lives. There is so much potential for this video service to take off even higher than it already has. If you’re in Zoom, you can either take some wholesome profits or hold on and see what happens. The demand and incorporation of this company into schooling and, work might not ever be undone. It’s too convenient and, everyone knows about it by now. While Zoom’s stock price jump today didn’t have anything to do with company-specific news, investors aren’t wrong to be optimistic about this company. Zoom’s revenue increased by 355% and, the number of customers contributing more than $100,000 in the trailing 12 months jumped 112% in the second quarter (reported on Aug. 31). And with no end in sight to the pandemic, Zoom’s business is likely to continue growing.

Draftkings ($DKNG)

With football being back, sports betting is surging at an all-time high right now. People have been itching for football to come back and, now that they have it, they’re able to treat themselves to some sports betting entertainment. The NFL season has already kicked off and, it seems like they have contained the spread of COVID thus far. Unless there is breakout news that several players are getting the disease, I don’t see Draftkings slowing down its bullish run anytime soon. They could be a long hold or a hold until the football season ends. Michael Jordan joining the board of directors and ESPN picking up Draftkings was incredible help in boosting this new 2020 stock.

Power Shares S&P 500 High Dividend Low Votality EFT ($SPHD)

If you want to pick up a stock that pays a nice 5.66% dividend yield then $SPHD might be what you’re looking for. The price per share is nothing too crazy, but owning a bunch of them could treat you incredibly well over time. This is an ETF that has room for small, steady growth in the future, and is treating many investors very nicely with its healthy and consistent dividend payouts. Pick up some $SPHD over time and, you won’t be disappointed. After all, it’s low volatility. If you want to keep your blood pressure under control, I would grab at least $2,000 worth of equity in SPHD and hold over a long period. With its focus on high yields, SPHD seems well-positioned to benefit from the Fed’s current lower for longer interest rate environment. The ETF is a value, income, and, low volatility play — three investment styles that have fallen out of favor with the market recently. This may be about to change, however. The recent stock market correction has seen a rotation out of growth and momentum stocks which, should it continue, could see improving sentiment towards the kind of less expensive and higher-yielding stocks which SPHD is invested in.

Boeing ($BA)

To date, Boeing is incredibly underpriced and I believe that not enough people are talking about it. With regards to travel and the manufacturing of airplanes, now is not the greatest time. But when travel starts picking back up and we find a vaccine to treat COVID, more and more people are going to be itching to travel. If you have more customers wanting to travel, then you’re going to have a higher demand for planes by airline companies. Shares of Boeing are down more than 50% year to date, hit by a one-two punch of issues with its 737 MAX and airlines scaling back flying due to the COVID-19 pandemic. The MAX has been grounded since March 2019 following a pair of accidents, and Boeing bled through nearly $10 billion in cash in the first half of 2020 largely due to expenses related to that aircraft.

Pick up some Boeing if you have the capital and you won’t regret it long-term.

I hope that this breakdown of my top 5 stock picks gets you excited for October! It can be a scary time to invest, and if you feel like eliminating the fear of losing all your money, just hold for the long term. Everything will work out and you’ll be just fine if you hold for many years to come. I wish you all the best of luck in the markets! Remember, it’s not a casino! Calculate your risks and be strong with your emotions and think logically (if you can).

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