If youre having trouble figuring out which stocks and companies to invest in before 2017 arrives, consider these picks from a group of experts:
GENERAL MOTORS (GM)
Stock price (all listed as of Sept. 13): $30.94
Investors will never forget GMs dark history, said Brian Bollinger, president of Simply Safe Dividends. The U.S. government spent about $50 billion to bail out the company during the financial crisis. Fortunately, todays GM is much improved.
In the second quarter of 2016, GM reported net income of $2.9 billion, an increase of a whopping 157 percent.
General Motors and its (approximately) 4.8 percent dividend yield appear to offer an interesting combination of income and value for investors, said Bollinger. While vehicle sales can be volatile, todays GM is better prepared to ride the cycle.
ARISTA NETWORKS (ANET)
Stock price: $80.73
Arista Networks provides software-driven cloud networking solutions for large data center storage and computing environments, according to its website. And, it might be a good company to invest in before 2017.
What stands out right away is Aristas relative strength versus the S&P 500, said Adam D. Koos, a financial planner with Libertas Wealth Management Group. While the stock didnt fare so well during the Brexit flash crash, it never transitioned into a downtrend. And since then, (it) has maintained the strength its been building since February. Through the end of the year, I think the deck is stacked in the long investors favor.
Arista reported revenue of $268.7 million in second quarter 2016, an 11 percent increase over the previous quarter and an increase of a full 37.4 percent from second quarter 2015.
PHYSICIANS REALTY TRUST (DOC)
Stock price: $19.90
Koos also picked Physicians Realty Trust, a health care real estate investment trust that manages and leases health care properties, as one of the best companies to invest in.
What I really like about DOC right now is that its in an uptrend both on a short- and intermediate-term basis, he said. But its also pulled back nicely, offering an inexpensive entry point, which increases risk and reward for the investor. With that all said, assuming DOC can hold on through Election Day, I think this could be a good position to own especially through the end of the year.
According to its second-quarter financial results report, DOC revenue is up 79 percent year-over-year for a total of $53.2 million.
NEWMONT MINING (NEM)
Stock price: $39.02
Newmont Mining, a large gold producer, could be affected if the Federal Reserve increases interest rates, said Koos.
Mining stocks have been chopping sideways over the last two months as investors await the Feds decision on whether to raise rates in September, he said. If rates go up and I dont think they will then the increase in yields would hurt metals and mining company prices as money left these assets and moved into fixed income.
But, if rates remain unchanged again as I assume they will then there is a high probability that NEM will catch a bid, at least through the election and until the December Fed meeting, he added.
AMERICAN WATER WORKS (AWK)
Stock price: $72.96
Solid dividend payers like AWK will continue to command a premium in the market as investors are looking for any type of stable yield, said investment instructor and small-cap stock expert Jason Bond. AWK is growing well through accretive acquisitions and is producing a strong ROE near 10 percent.
Plus, this company is big. In fact, its the largest and most geographically diverse publicly traded U.S. water and wastewater utility company, serving approximately 15 million people in 47 states and in Ontario, Canada, according to its fact sheet.
AWKs large size gives it a competitive advantage through scale and lower financing costs, said Bond. It is a stable, low-volatility business with steady growth.
21ST CENTURY FOX (FOXA)
Stock price: $23.71
21st Century Fox is a household name and might also be one of the best companies to invest in this year and next year.
FOXA is a stock that we recently bought in our long-term portfolio, said Bond. Based on 9 percent revenue growth and an estimated 12 percent earnings growth between 2016 and 2017, we feel confident that this stock is a great investment. Plus, the upcoming presidential election should provide a strong revenue boost and expand overall viewership.
The company has a strong dividend payout ratio of 21 percent and market cap of more than $25 billion. And if youre looking for a short-term investment option, 21st Century Fox might be the best pick for you, along with these 11 stocks.
KINDER MORGAN (KMI)
Stock price: $21.86
According to its website, this is the largest energy infrastructure in North America, owning interest or operating more than 80,000 miles of pipelines that transport natural gas, crude oil and more.
While oil is changing hands today at roughly the same price it was in March, KMI is exhibiting relative strength versus its commodity counterparts, said Koos. Whenever were buying any sort of investment whether it be a stock, commodity, bond or currency we want its trend to be positive, for it to exhibit strength versus the market and relatable assets, and for it to ideally be in the midst of a pullback within the prevailing uptrend.
While Id really like to see it fall another 1 percent to 2 percent before pulling the trigger, added Koos, I dont think buyers would hurt themselves placing a trade here.
VANDA PHARMACEUTICALS (VNDA)
Stock price: $15.72
Investing in health care stocks can be tricky but worthwhile when done correctly. If youre looking for a viable health care company to add to your portfolio, you might want to do your research on Vanda Pharmaceuticals.
From the technical standpoint, VNDA has been in a strong uptrend since April of this year and is currently trading around the $16 mark, said Vic Patel, professional trader and founder of Forex Training Group. Since then, every time we have seen a minor correction in this stock, it has been met with strong demand and support. I project that the current momentum in VNDA will continue to rise over the next few coming months, and I am looking for a target of $20 to $22 by years end in VNDA.
HD SUPPLY HOLDINGS INC. (HDS)
Stock price: $31.23
Although this large North American industrial distributor might be down from prior guidance of 300 basis points, the company stated that the reduced guidance implies fiscal year 2016 revenue growth of between 3 percent and 6 percent, said Nicholas Wesley Yee, a certified public accountant and director of research at Gradient Analytics. The companys implied top line performance for fiscal year 2016 is still better than what the consensus was expecting.