We all know that there’s no such thing as a safe bet when it comes to the stock market. The most secure-looking stock can be affected by events on the other side of the world, in an industry that doesn’t appear to be related, and values come crashing down. Everyone who’s ever traded on the stock market does so in the understanding that while their next move could lead to making a fortune, it could also lead to a complete disaster.
Not every move you make as a trader has to flirt with disaster, though. There will always be an element of risk involved in trading and investing in stock, but it doesn’t have to be an outright gamble.
Investing on the market can sometimes feel a little like playing mobile slots, in the way that you don’t always know how your bet is going to turn out, but you don’t have to go into it completely blind. By applying a little knowledge and taking on advice, you can move away from playing mobile slots and toward making informed bets.
Before we list our five exciting picks for 2020, a little disclaimer:- This article doesn’t constitute professional financial advice. We present the article for information only, and you should always consult a qualified professional for individualized advice before considering making any investments. With that out of the way, here are five stocks we think you should be keeping a close eye on as we move into the next year.
Siemens
If you’ve been following Siemens over the past twelve months, you might think this is a strange pick. As has been well documented in the press, Siemens’ energy business has been enduring a torrid time, and has been underperforming for far longer than anyone within the company is comfortable with. That’s all about to change.
Siemens is spinning off three-quarters of its energy division, and cutting its losses in the process. Just that move alone could lead to a three percent boost on profits, and that welcome boost would be reflected in its share pricing. There could be further news to come, too.
While the market is already reacting to the news that the energy division is to be spun off, there are also rumors that the rail division of the company could soon be heading down the same road. 2020 might see a leaner, meaner, and more profitable Siemens, and their stock could therefore deliver handsome profits for investors.
Roku
This might have escaped your attention if you don’t watch a lot of television, but the streaming wars are coming. They may even have arrived already. Netflix, Apple, Amazon, CBS, Disney, and several other companies are all competing for your subscription money, and not all of them will survive the battle. While they’re all focusing on that, Roku is focusing on being the best service to provide you with all of the options at the same time.
Not every platform has access to all the major providers, but Roku does. That’s what’s kept them ahead of both Amazon and Apple during 2019, and it’s what’s likely to see them creep further ahead during 2020. Roku doesn’t care about exclusivity, they care about accessibility – and that’s what’s likely to see them increase their market share in the weeks (and possibly years) to come.
Cellnex Telecom
Because of what we said at the start of this article, we’re reluctant to refer to investing in any company as a fool-proof move. Even with that in mind, it’s hard to see how Cellnex Telecom won’t have a great 2020. They’re the only independent communications tower company in all of Europe, and they’ve just made significant acquisitions in the UK, Italian, French, and Swiss markets.
The contracts they have in place are long-term and inflation-proof, and their internal forecast says that they’ll double their revenue by 2023. That might mean that they’re a better investment choice in 2022 than they are right now, but we still expect to see positive movement from them in 2020. They could even turn out to be a great five-year investment if you have the means and the patience.
Ping An
You may not have heard of Chinese company Ping An before, but you’re about to. They’re already the fourth largest company in their home country, and we’re seeing them make aggressive moves internationally within the field of virtual banking.
Ping An specializes in blockchain, are innovators in cloud computing, and have some very exciting projects in the work when it comes to virtual reality. In short, they’re dealing in the technology of the future. Even more enticingly, they’re dealing with the technology that financial institutions will rely upon in the future. Blockchain and crypto are here to stay, and the global financial markets will eventually embrace them and make them mainstream.
Ping An will be heavily involved in that process, and that will be reflected in their value sooner rather than later.
Tullow Oil
There’s still money to be made in oil (and probably always will be), and Tullow Oil is in a great position to make it. So are their investors and shareholders. The company has had a few difficult years in terms of restructuring debt, but they have the situation under control, and they’re moving forward. They could scarcely have a better platform to build from, either.
The two oil projects they’re most closely associated with are in Ghana, and both are performing well, but the big news for Tullow is that they’ve just discovered a major oil source off the coast of Guyana – and it’s all theirs to exploit. With new oil comes new money, and with new money comes a rise in share price and stock value.
The question of how quickly Tullow can get the oil out of the ground may play a role in how fast and how far their value rises, but so long as the source is as viable as it appears to be, there can be little doubt that the rise is coming.
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