10
Stocks Every Millennial Should Add to Their Portfolio Right Now
Millennial investors -- that
is, those who were born between 1980 and 2000 and have been investing in just
the past 15 years -- have only known extreme unpredictability. Many of them
grew up in the 1990s, during one of the greatest economic and market expansions
in U.S. history. They saw the dot-com boom and then bust, the ravages of 9/11
and the global war on terror. They lived through the Great Recession, the flash
crash and now are seeing markets hit new highs and a roaring economy.
That's a lot of volatility to
take in in a short period of time. You could forgive millennials for being
skittish investors.
But, like every generation
before it, millennials need to be in the markets. Investing in
equities has long been a road to prosperity for Americans and millennials
will be no different. But which stocks should millennials own?
As a millennial myself, I can
tell you that we have been trained through the ups and downs of the market and
the constant news media coverage around it to chase the upside and ride the
downside. We would have been better off doing the exact opposite. So how do you
invest as a millennial?
First, you should start off
with a solid set of stocks that you can depend on for the long haul, a value
investing portfolio that, if prudently managed, should earn you good returns
for the length of your life.
Here are 10 stocks that every
millennial should own.
The company has built itself
a reputation. Exxon currently delivers a 3% dividend yield, undergoes low
selling pressure, and doesn't panic when oil volatility strikes. Another attractive
feature is its price-to-earnings ratio which is 11.0, which is attractive.
Given the current global oil situation, the stock has been affected and is down
5% over the quarter. Yet, the oil giant is predicting earnings-per-share growth
to be a little over 4% in 2015, despite its already big size. As the cost of
oil starts to trend back upward, so will Exxon Mobil.
With the recent launch of the
iPhone 6 and iPhone 6 Plus, Apple continues to experience record levels of
demand. The technology giant sold 39.27 million iPhone devices in the last
quarter alone. The number represents an increase of 26% on a sell-through
basis. Additionally, the company proved that its demand is continuing with full
momentum as it increased sales guidance. As far as valuation goes, the company
is attractive at 14.9 price-to-earnings ratio.
Google seems to be very
reasonably priced. The company has a forward price-to-earnings ratio of 18.0.
Investors in Google have been fearful as the company has reported earnings
below estimates for the past few quarters. The company's shares have also
suffered a minor setback but might be poised for a major comeback as the shares
are down.
Shares of Rocket Fuel have
consistently been in turmoil as the company lowered its guidance and its
full-year outlook. The company has only been public for a year and has already
seen highs of nearly $72.00 and lows of $13.75. The ad-buying platform debuted
about a year ago with an initial public offering price of $29.00.
Actavis is a stock packed
with growth. The company has a diverse portfolio of drugs. The company has made
some smart and strong decisions such as its recent acquisition of Forest Labs.
The company's net revenue has increased to a staggering $3.68 billion, an 83%
jump.
The online auction site
announced back in Oct. that it would be splitting itself and payment processor
PayPal up into two different companies. eBay has a strong balance sheet and
will only continue to strengthen while revenues will do the same. With PayPal
transforming, is eBay prepping itself as a buyout target?
The
handbag seller is going neck and neck with brands like Coach (COH) and Michael
Kors (KORS) . The
stock rallied 18 percent on its last quarterly earnings release as the company reported
momentous sales growth. Kate still has room to grow, the company recently
announced a deal with Gap, and additionally plans to expand its products into
Asia.
Unlike others in its
industry, the company is fundamentally solid with a great balance sheet.
Although shares of the company have proven to be very volatile,
SolarCity will prove to be a great investment as the company continues to
gain long-term contracts. Merill Lynch recently issued a new price target of
$95.00, while shares are currently trading near $50.00. Shares of the company
were higher this past Friday as the company announced its partnership with Bank
of America. Bank of America has agreed to finance $400 million
of its solar power projects through 2015.
The company is rock solid. It
has been around for nearly a century. The company is currently trading at
discounted valuations compared to previous levels. Kellogg also boasts a
dividend yield of nearly 3.2%. The company has historically traded at an
average price-to-earnings ratio of 18.5, with that in mind the stock is
currently trading at a mere 13.3 ratio.
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