Written By: Ron Corker
The U.S.-China trade disagreement, several Fed rate hikes, global politics and volatile oil prices have created a whirlwind of turbulence in the 2019 global markets. Trump’s Tax Cuts and Jobs Act (TCJA), for instance, did increase spending and boost the confidence of the nation speculators. However, domestic and international economic trouble quickly wiped away the progress made with those short-term gains.
In the United States, concern over the most recent Treasury yields and increases in federal funding rates ended the year on a bit of a sour note. Additionally, the current economic environment is likely to reduce consumer borrowing and spending, and if this trend is too marked, it could lead to the next recession. Despite unnerving conditions, however, experts don’t foresee the onset of another economic downturn anytime in the near future.
Now, incredible advances such as blockchain technology, data analytics and artificial intelligence are radically transforming healthcare and other fields. As a new year settles in for speculators, it’s time to start looking for stocks that show potential for a solid return on investment.
The following synopses provide an overview of 5 companies that are positioned for substantial growth in 2019.
Company #1: Biogen Leads the Way in Neuroscience
Less aggressive investors may wish to seek stocks that perform well late in the economic cycle, according to PNC investment strategist Jeff Mills. The executive financial analyst expresses that healthcare stocks are exceptional choices for growth and safety, despite current economic conditions.
The neuroscience leader develops a range of multiple sclerosis therapies. Biogen also has plans to develop several treatments for Alzheimer’s disease. Moreover, the firm maintains a solid cash flow.
In the third quarter of 2018, for instance, the company generated $1.7 billion in cash flow out of approximately $3.5 billion dollars in revenue. Due to these historic variables, analysts believe that the company is in a position to weather any economic conditions that may arise in the near future.
Company #2: Humana Partners With Walgreens to Deliver Top-Notch Care
Already, the two influential market forces have developed a young joint venture to operate senior healthcare clinics, and they have plans to collaborate closely during the joint undertaking. According to Goldman Sachs analysts, the measures put in place to foster collaboration will give both organizations financial incentives to make the partnership flourish.
Furthermore, analysts believe that the collaborative will give Humana access to Walgreen’s massive senior demographic. In addition, express analysts, Humana is a solid investment on its own.
Company #3: Johnson & Johnson Is a Household Name That’s Still Going Strong
At $134.83 per share as of late February 2019, Johnson & Johnson JNJ[NYE] – $136.11 is well-known across America for their long-trusted baby powder product. In 2018, however, this household name came under fire for suspicion of causing mesothelioma.
Johnson & Johnson did win its court case, but the negative light shined on its staple baby care product caused significant damage. Furthermore, media reports surfaced that Johnson & Johnson officials were well aware that its highly popular baby product contained asbestos, which is known to cause cancer.
Despite company representatives’ protestation to the contrary, the controversy surrounding Johnson & Johnson in the courtroom and the news resulted in a $50 billion downturn in two short days. Nevertheless, consumer products are one of the smallest business units operated by the enterprise. While the company is in a bad place for now, it’s a strong long-term healthcare related pick.
Company #4: Bristol-Myers Squibb Is on Track to Make a Big Move in BioPharmaceuticals
Celgene Corporation (CELG[NGS] – $89.71 is another group that’s been taking a beating in the news. Throughout 2018, the company’s shares have waxed to $147.17 and waned to $74.13. Now, Bristol-Myers Squibb BMY[NYE] – $50.16 stands positioned to absorb the biopharmaceutical leader in its entirety to bolster its own research and development pipeline and value. Upon completion, the acquisition will represent the largest deal in biotech history.
Analysts predict that the merger will be a win for all stakeholders. A successful union will generate a 40-percent earnings-per-share boost for Bristol-Myers. It will also mean good news for Celgene stockholders, as Bristol-Myers cash flow will easily eliminate debt generated by fading Revlimid sales.
If all goes as planned, Bristol-Myers will pay a total of $74 billion to acquire Celgene. Among other benefits, existing Celgene stockholders will receive a $50 payout, one share of Bristol-Myers stock plus a $9 contingent value buyout (CVR) to facilitate the exchange. Analysts expect the deal to close by the third quarter of 2019.
Company #5: Align Technology Is Primed for Growth in Dental Equipment Sales
Sentiment among analysts is exceptionally positive for Align Technology ALGN[NGS] – $259.79, with a growth rate that’s nearly 100-percent higher than the S&P 100. For now, Align Technology shares are down nearly 50-percent, but the company has historically generated substantial earnings growth.
According to analysts, Align Technology’s growth trend will resume over the next year. Analyses show that the growth rate for this firm is exceptionally strong and has remained constant over the last half-decade. With the way that the stock has performed, expresses market watchdogs, the company looks like a good pick for long-term growth.
In America, approximately 43.1 million people earn incomes that are at or below the national poverty line. It’s never been more important for healthcare organizations to cut cost and improve efficiency to serve a consumer base with a steadily shrinking income.
For now, market conditions empower enterprises to do just that, while creating interesting opportunities for speculators. However, of course, it’s highly advised to seek the counsel of investment specialists to navigate today’s highly complex economic environment.
With research, expert guidance and the right timing, however, savvy speculators can benefit from the momentum of these and other stocks that are destined for growth in 2019. In a financial environment where another recession could arrive at any time, it’s a good idea to bear a little risk– if you can stand it –to prepare for an uncertain future.
DISCLOSURE: The author is not affiliated with and has not been compensated by the companies represented in this article.
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