Stocks to Watch in 2019
As we begin a new year, what stocks could we potentially be considering in 2019? Analysts are cautious about the economy in 2019 with many forecasting a sluggish economy and lower stock market returns. However, the strategy and worldwide investing leader Goldman Sachs appears to be sticking with traditional methods of buying high growth, undervalued stocks. Its list of 13 stocks to consider for 2019 is as follows (the source of this information is originally from a Goldman Sachs research note dated December 14, 2018 which I did not have access to, but the information regarding these stock picks was widely reported including on https://markets.businessinsider.com/news/stocks/stock-picks-13-stocks-set-to-soar-goldman-says-2019-1-1027846872):
1. American Airlines (commercial airline)
2. Albemarle (specialty chemical manufacturer)
3. Aptiv (software solutions for automotive and transportation)
4. Tiffany and Co. (jewelry)
5. Noble Energy (oil and natural gas exploration company)
6. Alliance Data Systems (loyalty and marketing services)
7. Tapestry (Coach, Kate Spade and Stuart Weitzman)
8. Freeport-McMoran (mining - world's largest publicly traded copper producer also has gold and molybdenum)
9. Netflix (entertainment)
10. Alexion Pharmaceuticals (success with Soliris drug)
11.Nektar Therapeutics (biopharmaceuticals)
12.DXC Technology (information technology)
13. PG&E (utility company)
Some interesting choices, most reflecting a need for safety and stability in what might be a challenging 2019. I was particularly interested in Albemarle which is the world's leading lithium supplier. Lithium is used in batteries which have for some time been a huge part of everyone's lives from smartphones to electric cars. Most of the world's lithium comes from brine water and the highest concentrations of brine water in the world are in Bolivia, Argentina and Chile. The remainder of the world's lithium is found in traditional mines where it is found in hard rocks. The lithium required to fuel the electric car demand in the coming future is significant. One electric car requires the same amount of lithium as 10,000 smartphones and the lithium market is controlled by only four firms, one of which is Albemarle (source: https://blog.grabcad.com/blog/2018/02/20/how-does-lithium-mining-work/). So this company is definitely one to watch given its hold on the market and the upcoming demand for its product. Not many companies are able to secure their product market like Albemarle has been able to with lithium.
I will also continue to keep watch on AI companies and the blockchain space as we move into 2019. The companies listed in the AI ETF covered in the article on this site Investing in an Artificial Intelligence ETF are a good place to start.
What companies or industries are you watching for 2019?
*** Top photo by Wes Hicks on Unsplash