The Official Rankings of the Hottest Stocks To Buy in 2016 & 2017
What are the stocks we recommend in 2016 to 2017?
Here are the following. where In the banking sector, there are three. Goldman Sachs; GS, Wells Fargo; WFC, and BAC. That’s Goldman Sachs, Wells Fargo, and Bank of America; BAC. In the aerospace industry: Northrop Grumman, NOC; Lockheed Martin, LMT; and Elbit Systems, ESLT.
In the biotech industry, we see four, one more than the other industries, and that they are a bit more opportunity for growth to beat the S&P, which is BIIB, Biogen; GILD, Gilead, JUNO, Juno, and that’s Juno Therapeutics; and INO, Inovio. Those are the four we would recommend for the 2016-2017 years holding those for at least two years. In the energy sector, there’s PSX, Phillip 66; MRO, Marathon Oil; as well as EOG and EOG Resources, EOG.
Why are we recommending this? In the banking sector, we think there’s tremendous opportunity. The interest rates rise, and this is spread on what banks such as Goldman Sachs are able to lend out. The spread increases. We believe that there’s a level of capital and the capital appreciation that banks will have, the valuations and the price to earnings, PE, that these companies are trading and it’s quite low.
Why are we recommending these stocks?
The future cash flow is obviously the way to determine an accurate valuation although we see these three Goldman Sachs, Wells Fargo, and Bank of America just having the biggest upside into 2016-2017. As well as in aerospace industry, we bundled these in the sense of aerospace, i.e. military aviation.
All three of these would have potentially massive upside in the event of a crisis abroad and Middle East. We’ve seen turmoil over there for months, if not years now. Frankly, these companies will benefit the most with new procured contracts as well as drone aviation flying.
Ninety-five percent of all battles now are conducted above ground via aviation. You’re looking at companies that investing heavily in drones, drone capabilities, satellite. These are the companies we recommend that you take a look at and put in your portfolio. Obviously, again, you need to do your own due diligence. We’re not telling you to buy these per se, but that’s what we’re doing.
Biotech are the following: Biogen, Gilead, those two, because they’re bigger market caps. That doesn’t necessarily mean an investment, but the bigger market caps with a historical swing in research and development. They are investing heavily. The price earnings are built in. I think frankly, with their acquisitions, they are not doing inversions. They’re doing more intelligent acquisitions at this point that add to their product pipeline.
One thing I’d like to mention is that, when you’re investing in biotech or pharmaceutical companies, go to the website and look at how many drugs they have in their FDA pipeline, how many drugs are in the pipeline that could bring about major upside once those drugs are approved.
Before investing in biotech companies, research how many drugs they have in their FDA pipeline that could bring a major upside once approved.
That’s better than investing in a smaller tech or a small cap biotech that just has one drug that’s up for approval. You had to risk a little bit there. Biogen, Gilead, and then Juno and Inovio, those two are higher risks. If you’re going to invest in biotech and you want to beat the S&P, you do have to take calculated risks.
Juno Therapeutics does offer a bit more upside. Their partnership with Celgene which gave Celgene the option to buy Juno’s stock in upwards of around $90 a share. By mid-February of 2016, the Juno stock is trading in the mid-20s.
If all goes well in the immunotherapy, which is what Juno is about, deep analytical cell analysis, and the ability to create oncological drugs or cancer therapy for patients, they will see potentially a 3X or 4X return on their current valuation.
Inovio is more of a tried-and-true player in the vaccine industry. They’re developing new vaccines for big diseases and viruses, for example, the Zika virus.
They’re working heavily on that vaccine as well as the MERS vaccine, which is something that came out of the Middle East in the last couple of years, 2014, 2015. Inovio is the one to look at.
In the energy sector, there are three. Energy obviously is taking massive hit by WTI Crude. PSX, MRO, and EOG are all solid players. The WTI Crude now is trading, just hovering around $30 a barrel.
Buy company stocks that have solid balance sheets and excellent cash on hand.
Obviously, when there’s blood in the streets, people are afraid to go out, but I say, when there’s blood in the streets, go out and buy. Buy company stocks that have solid balance sheets, excellent cash on hand. Phillips 66, to start out with, is a company that’s been around for many years. It’s a larger market cap.
As some sort of validation, although I wouldn’t say it’s the exact reason you should buy a new stock, it’s that Warren Buffett has been loading up on Phillips 66 stock. I think that speaks to a fundamental balance sheet that Phillips 66 has and the fact that he knows how to pick winners, and we do at Angel Kings as well. Look at Phillips 66, Marathon, and EOG as well.
As a disclosure, this isn’t an offer or solicitation to buy your own stocks. In fact, we don’t benefit at all if you buy these companies. We just want to help you out.
Frankly, if you are an investor and you want to get more inside access, I mean I’m talking about the best access there is out there, and you want to be part of the next big thing, make sure to get in touch with us. You won’t regret it. Also, make sure to sign up for our course to learn more about how to become the next billionaire investor. Reserve your spot today!