Best Stocks To Invest In For 2016

Best Stocks To Invest In For 2016What are the best stocks to invest in for 2016?  We all know that the market is striding back from the latest correction and you have to wonder if another correction is in store in the next few months.  But no matter what happens to the market, there are always solid companies that are growing like a weed and can make us a ton of cash.  So we are going to show you a few of our best stock picks as of today which we feel will give us the best chance to double or even triple our money.When it comes to finding the best stocks to invest in, you need to use your head and not just follow the crowd.  Keep in mind that the market crushed last year and so most stocks had fantastic gains and therefore, anyone recommending stocks look like gurus.  But did these stock selections perform better than the Dow’s gains?  Most of the time…NOT!  So our goal is to help our readers find some fantastic opportunities that give them a good chance of double digit  or hopefully triple digit gains.  I have written about why Facebook looks to be a great investment going forward, but let’s take a look at 3 other fantastic opportunities that I feel will create massive gains above what the market offers with a standard EFT.

1.  So let’s start in the financial industry and see what company in that niche I believe is one of the best stocks to invest in right now.  Before naming this great stock, let’s review why we are heading into the financial industry for a stock to invest in.  The United States is cruising right now with tons of cheap money flowing to the banking industry from the Fed’s easy money policies and just about any other industry that needs to raise cash is taking advantage of it as well.  Most experts, with this one included, don’t expect major changes in the next 12-24 months in the Fed’s interest rate.  It may be up about 1% at most in the 18 months based on a slow schedule of raising the interest rates.  I would consider this still being low for the Fed’s interest rate and thus I would also consider the money very cheap by historical standards.  This means one thing, that the financial industry will continue, for quite a while, to enjoy massive profits from this cheap money.  This gives us a timeframe of about 18-24 months of holding time for the stock we are going to recommend.  Who is the financial king that I think is one of the best stocks to invest in?  It is non other then Discover Financial Services. (DFS $48.53)  You know, the “Discover Card” company.

Best Stocks To Invest In for 2016Here is the first reason I fully believe you will be loving the returns on this stock a year from now and why it qualifies as one of the best stocks to invest in today.  Take a long look at the stock’s price to earnings ratio that it is carrying as of today.  It has a very low P/E of 9.47, which is crazy for this overall bull run that we are going through.  With the financial services industry having an average price to earnings ratio of about 23, you can see quite a bit of upside potential for this bad boy.  The stock price for them as of close of 3-4-16 was $48.53 a share.  Based on this very simplistic ratio of what it has today to what it should have, we could expect Discover’s stock price to increase to $117 a share within the next 24-36 months in order to “catch up” to where the industry is at a whole.  Now the good news is that we have started to see the stock price rise in some very high clips.  It has enjoyed about a 10% gain since May. (I would take 10% gains over 90 days every time)  We see this trend continuing going forward and those that are riding this stock will continue to enjoy the returns.Best Stocks To Invest In for 2016

The next reason Discover Financial Services has made the grade as one of the best stocks to invest in is their earning’s growth.  The price of any stock will be directly affected by the actual earning’s growth of the stock.  During their last reporting session, Discover Financial Services announced a nice gain for the most recent quarter.  This is a huge sign of many positive things to come.  If they can continue this kind of growth rate, which I think they can, you can look at their forward P/E and just salivate over the possible gains we will realize.  In other words, the stock price will go up substantially and we could be looking at doubling our money in about 2 years.    They have continued to diversify their loan portfolios to alleviate some of the risk and maximize long term stability.

Another couple of reasons for Discover Financial Services being one of the best stocks to invest in today is that they have been able to increase their revenue by about 6% for some of the recent quarters.  People are starting to feel better about using their credit cards and their loan programs again.  This trend should continue for the near future and thus their revenues should continue to climb at a nice rate.  They have increased their cash reserves to over 11 billion dollars.  That is BILLION with a B.  The company as a whole is worth about $20.1 billion and they have $11 billion sitting in reserves.  That is fantastic for stability going forward and more importantly, possible stock buy back programs.  They have also been increasing dividends over the last 4 years consistently and I see no reason for that to end which can help them from funds looking for solid dividend stocks.  Remember that any increase in demand will only help the stock price rise and thus help us profit.

Let’s keep the reasons coming for having Discover Financial Services making our list of best stocks to invest in.  How about the fact that they are tied with my old employer, American Express, for having the best customer satisfaction in the business.  (I still consider myself first in this category :) ) Could it be because they are thinking outside of the box with ideas such as getting your credit score for free every month or the basic idea of increasing the places that you can use their cards, such as Sam’s clubs across the U.S?  Whatever the reasons, one thing is for sure, they are a company worth investing in and should stay as one of the best stocks to invest in.

2.  Our next selection for the best stocks to invest in is quite different than our first.  We have all heard about Tesla being the car company to invest in, but are they the best?  At their current stock price, I say no.  Let’s take a look at what I do consider to be one of the best stocks to invest in.  Ford (F $13.59) is sitting very pretty with growing earnings and a very low price to earnings ratio.  They currently have a P/E of 7.38 and the forward P/E is looking to be even lower.  The current P/E of the auto industry is 17.63.  This allows us to see that Ford is trading at a very heavy discount compared to the rest of the industry.  Comparing it to the likes of Tesla shows this.  Tesla has a negative P/E, while our Ford selection has that low super attractive 7.38 P/E.  Now we are not saying to short Tesla, but it would seem much more prudent to put our investment dollars into a company that shows a much higher chance of large returns and a low chance of negative returns.Best Stocks To Invest In for 2016

The sales of cars in the U.S. are finally starting to get back up to where they should be.  Are they there yet?  Not quite.  But what does that mean in general for the auto industry?  Well, I feel that we have a ton of pent up demand that is finally starting to make its way to the showroom.  Heck,  I just bought a new car this month myself.  I always like to pin my stock selections together when there is a connection.  You remember that I wrote that people are using more credit for the Discover card selection, well that goes for people willing to buy new cars as well.  The graph below will continue to grow upward on a less steep curve but grow nonetheless.  Is the population of consumers higher or lower from 2004?  We know that answer is that we have a much larger consumer base now.  People were basically not spending money for fear of losing their incomes.  People are slowly getting back into the buying game and this will only continue as we move forward.  The Great Recession was one of the worse financial episodes in this country and you will see this “Great Recovery” to be one of the best ever.  It only makes sense with all the basically free money the government is throwing at the economy to prop it up.  It doesn’t get much simpler than this…cheap money equals more new cars sold.  Can you go to your local credit union and get a new car loan for 72 month at 1-2%?  The answer is yes.  This money is being lent at lower than inflation rates.  You will see an all time high in U.S. car sales before you see a decline in annual car sales and that is a solid reason why Ford is one of the best stocks to invest in today.

Best Stocks To Invest In for 2016

Let’s get into more of the fundamentals of why Ford will be one of the best stocks to invest in today.  We already spoke about their current price to earnings ratio of 7.38.  With the industry having a P/E of 17.63, we would need to have the share price go from $13.59 to $32.46 for it to be on par with the industry.  Now that in itself is a very nice reason to jump on Ford’s stock, but what about forward earnings?  Is the price to earnings ratio going to go the wrong way in the next 24 months?  2016 has an earnings of $1.97 and 2017 has earnings of $2.07 a share.  This gives us a P/E for 2016 of 6.89 and a P/E for 2017 of 6.56.  Today’s price of $13.59 is an absolute steal based on the future earnings over the next 24 months.  I would say that you will probably get a real nice return between the 18-24 month period when these gains are realized.  So not only is the price of Ford’s stock lagging the industry, it is also lagging the market as a whole and we will eventually see it catch up to where it should be.  All signs fundamentally point to continued growth and stock appreciation which will easily continue to make this one of the best stocks to invest in for the near future.

best stocks to invest in for 2016

3.  The third selection of the best stocks to invest in now is Charter Communications. (CHTR)  This company is a little different play then all my above picks.  They are a company with a horrible price to earnings ratio and they also just missed expectations for the latest round of earnings reports.  They just recently released earning per share of negative 42 cents a share for the quarter, which was way underneath the positive 8 cents per share they were predicted to make.  Now that I got all the bad news out, let’s see why I think this is easily one of the best stocks to invest in today.

You only have to do a little research to find gems in a pile of rocks.  This happens to be one of those gems.  Sure, everything now is looking like a moss covered stone.  But let’s go ahead and remove the moss and see what we have underneath it.  The current earnings per share is about -$2.43 a year.  I can tell you that I would normally never invest in a company that has negative earnings such as this.  But this is a different beast.  They have revenue of $2.259 billion, which is up a crazy 7.3% over last year.  It has also been able to increase revenue per subscriber by a little under 2%.  They are one of the best cable companies when it comes to keeping their customers loyal.  Even with all the bad numbers over the last five years, Charter Communications has been able to take their stock price from about $30 a share to over $184 a share.  Now let’s do a little simple math…that is 6 times your money in under 6 years.  A 600% return is incredible and you have to wonder why it is going bonkers when it is reported lukewarm results.  Don’t fret, we will show you why this is one of the best stocks to invest in today.

best stocks to invest for 2016

Let’s take a look at the recent news for this company.  It has just been released that Comcast is going to trade off about 3,900,000 of its customers/subscribers to Charter Communications in order to avoid antitrust issues coming from the deal they made to buy Time Warner Communications.  That is a very large amount of subscribers that Charter Communications just picked up.  This will put them as the number 2 largest pay television company in the United States with 5,700,000 subscribers.  That means that the 3.9 million subscribers that Comcast is giving them will triple their subscriber base instantly.  How do you see their revenue going forward with such increases?  Where do you see the stock price going in say 3-5 years?

Best Stocks To Invest In for 2016

They are already projecting earnings for 2016 of ($2.04) a share and earnings for 2017 of $1.46 a share.  They easily could be looking at much more at about the 5 year mark.  This is showing us that they will be making a profit finally in just a few more months.  If management takes the correct steps of maximizing the revenue from these new subscribers like they are doing with their current subscriber base, we could be looking at huge gains.  This company offers quite a bit of return on our investments in the very near future.  Where do I see this  stock in the 3-5 year range?  I would say that it should be trading at the $350 to $450 range if earnings continue to rise as they have been based on prior year results.  Here is a last little thought, Warren Buffet just added this stock himself to his portfolio and decreased his holdings in DirecTV, why do you think he did that?  Not to lose money, that is for sure.

When it comes to finding the best stocks to invest in, I think it is becoming very difficult to find gems.  The market is continuing to rise to never before seen levels.  Are the three stocks above going to make us all rich?  Maybe. :)  But probably, they will get us a nice return over the next 3-5 years and as always, if there is a major sell off in the market, we will reevaluate our positions.  Until then, we will all ride these stocks to the huge gains that we will probably realize.  What are the best stocks to invest in…these ones.  And as always, you could always take a look at this penny stock program and have them help you possibly get to the million dollar mark much quicker.  They show you some of the best stocks to invest in concerning the penny stock range.

Best Stocks To Invest In For 2016

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Notice: Any information that is written on this site is for educational purposes only. It should never be considered as financial or investing advice. Anything you read on this site is just informational and that is it. I am no longer a registered financial advisor and licensed by the SEC. I am now just a blogger who enjoys writing about stocks and making money online. You should always seek a professional financial advisor for advice on investing and any stock you are considering. Remember that investing is inherently risky and you could lose all of your money. I am also an affiliate of some of the items discussed on this site. In other words, I may be paid for people buying stuff off of this site and the links on here as well. This is how I am able to keep the site up and running.