Top 5 Stocks To Buy: May 2020
High growth stocks to add to your portfolio
Below are 5 stocks top investors believe as strong investment choices for May 2020. If you would like to understand how these stocks were picked, please read until the end of this article.
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#1: Gilead Sciences
Gilead Science is an American biopharmaceutical company that researches, develops, and commercializes drugs. The company is one of the leaders in developing a drug to defeat Coronavirus, as recent clinical trials have shown promising results. Even if Gilead Sciences fails to develop a drug for COVID-19, the company already has an impressive portfolio of drugs for HIV/AIDS, liver disease, cardiovascular disease, and inflammation/respiratory disease. All these reasons make Gilead Sciences a promising stock to add to your portfolio.
Quick Stats
- Year to date, the company’s stock has risen by 18.81%
- Current Trade Price: $77.20
- 52 Week Low: $60.89
- 52 Week High: $85.97
- Net Income in 2019: $5,386,000,000
- CNN Money forecasts that this stock could reach $97 in the next 12 months (26% increase in value).
#2: Clorox
Clorox is a global manufacturer and marketer of consumer and commercial cleaning supplies. Due to the COVID-19 pandemic, the company’s products are in high demand and sold out in many stores across the United States. Clorox’s line of everyday cleaning products includes hand sanitizers, disinfectant wipes, and bleach. The COIVD-19 pandemic will last for months, if not years. With the increased need for cleaning and sanitizing, Clorox is a hot buy for investors.
Quick Stats:
- Year to date, the company’s stock has risen by 30.26%
- Current Trade Price: $200.00
- 52 Week Low: $144.12
- 52 Week High: $214.26
- Net Income in 2019: $820,000,000
- CNN Money forecasts that this stock could reach $215 in the next 12 months (7% increase in value).
#3: Southwest Airlines
Southwest Airlines is one of the most popular domestic airline companies in the United States. Although the stock has dropped over 50% this year due to travel restrictions with COVID-19, many investors are confident this airline will bounce back once the pandemic ends. As described by The Motley Fool, Southwest Airlines has a rock-solid balance sheet. This year (maybe even next year) will be rough for Southwest Airlines. However, investors looking for long-term investment opportunities will find value in this stock.
Quick Stats:
- Year to date, the company’s stock has dropped by 53.82%
- Current Trade Price: $24.93
- 52 Week Low: $24.77
- 52 Week High: $58.83
- Net Income in 2019: $2,300,000,000
- CNN Money forecasts that this stock could reach $55 in the next 12 months (121% increase in value).
#4: Facebook
Facebook is an American based social media and technology giant. The company generates most of its revenue through advertising. During the most recent earnings call, Facebook reported a 10% increase in monthly users compared to the previous year (Mashable). The trend follows as more people are stuck at home due to shelter-in-place regulations. Facebook shared that the company beat Wall Street expectations on revenue goals (TechCrunch). Many investors find Facebook’s continued growth and increasing revenue two solid reasons to purchase this stock.
Quick Stats:
- Year to date, the company’s stock has increased by 1.56%
- Current Trade Price: $208.46
- 52 Week Low: $137.10
- 52 Week High: $224.20
- Net Income in 2019: $18,485,000,000
- CNN Money forecasts that this stock could reach $285 in the next 12 months (37% increase in value).
#5: ServiceNow
ServiceNow is a software company that develops a cloud computing platform. The company helps other companies manage digital workflows for enterprise operations. ServiceNow is seeing an increase in enterprise usage with a 97% retention rate in the last quarter. The company is projected to double free cash flow every three years. In addition, ServiceNow is predicted to reach $10 billion in revenue by 2024 (Seeking Alpha). These stats make the stock a recommended buy for investors.
Quick Stats:
- Year to date, the company’s stock has increased by 29.43%
- Current Trade Price: $365.40
- 52 Week Low: $213.99
- 52 Week High: $379.45
- Net Income in 2019: $626,698,000
- CNN Money forecasts that this stock could reach $410 in the next 12 months (12% increase in value).
My Strategy:
When looking for a company to invest in, there are many factors to consider. First, look at the financials and make sure the company is generating positive revenue year over year. Then look to see how much the company is burning through cash each year. Companies with positive net revenue are worthwhile investments.
Moreover, scour the web to see if the company is growing each year. Are the products and services the company is selling in hot demand? Are people buying the company’s products and services? These are also important factors that will impact the longevity of a company.
Another piece of advice that many top investors recommend is to buy and hold for the long term. Investopedia states:
The main reason to buy and hold stocks long-term is that long-term investments almost always outperform the market when investors try and time their investments.
Make sure to do your research prior to investing in any company.
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