Going into 2020, we had 129 months of a bull market that started back in March 2009. While this sounds promising, the last time we had this long and uninterrupted rally was in the 1990s. Eventually, the 113-month bull market of the 1990s came to an end with one of the historic stock market crashes, the Dot-com boom. Therefore, it is not possible to say that history won’t repeat again. Recently, experts warned the market participants to invest wisely and not to fall prey for another market crash. Hence, if you are like many others, an average wall street investor, then it is important to play it safe. Meanwhile, here are the 10 safest and profitable stocks in the market today.
NRG Energy Inc. [NYSE: NRG]
Based out of the United States, NRG Energy Inc is an energy company with over 40 power plants across the country that collectively serve 3 million retail customers. Since this integrated power company has one a low 12-month trailing price-to-earnings ratio(2.3), their stock is worth a look for your portfolio. Essentially, a low price-to-earnings ratio implies that you are paying less for each dollar of profit generated. As of writing this, their price is $34.17 and their market cap is $8.8 Billion.
Vornado Realty Trust [NYSE: VNO]
Owned and operated by the American real estate investor, Steven Roth, Vornado Realty Trust is one of the best value stocks in the market right now. With a 12-month trailing price-to-earnings ratio of 2.6 and a market cap of $7.5 Billion, the price of one share as of now is $39.06. Recently, analysts calculated its gross margin as 50.90% while boasting a return of equity as 48.80%. Since the majority of the metric points are highly attractive, Vornado Realty Trust is the next bullish target you can consider buying.
MGM Resorts International [NYSE: MGM]
This hospitality and entertainment mammoth based out of the United States is one of the fastest-growing stocks of this year. In the sense, the company boasts a high year-over-year earning per share growth for the last quarter. The essence of rising earnings is the expansion of the company. The more they expand, the more they can reinvest or return to shareholders. Hence if you are looking for a safer bet, you can buy MGM stocks. Currently, their stocks are trading for $17.76. Although many might refrain from buying financial instruments from the hospitality industry at this point in time, MGM is different. Despite the closure of their casinos, MGM was cash-rich and reportedly had $6 Billion in cash at the end of March.
AmerisourceBergen Corporation [NYSE: ABC]
As per reports from stock market pundits, it is ideal for you to retain AmerisourceBergen’s stocks at this point in time. Being a drug wholesale company based in the United States, ABC has a market cap of $19 Billion. However, analysts believe that the earnings of the company are expected to see a surge of around 7% over the next five years. The reason for this is the company’s strategic acquisitions and pharmaceutical distribution network. In addition to that, the company made some big deals within the medical community that ensures bigger and stable profitability. Currently trading for $101 .51, it is not risky to buy ABC’s stock.
Align Technology Inc. [NASDAQ: ALGN]
Align Technology is a dental care company that markets and sells aligners and dental scanners. In addition to that, they are the leading company that offers computer-aided design services for dentists. Even though novel coronavirus had a huge impact on dental and orthodontic industries, Align Technology is sustaining the damage and growing more profitable. Just before the pandemic, the company saw an increase of 22.4% in its revenue since 2018. Furthermore, the company has a gross margin of 72% and an operating margin of 23%. As a matter of fact, the company reportedly has $791 million in cash with no debt. Hence, you can surely bet on Align Technology if you are looking for a good profit.
NVIDIA Corp. [NASDAQ: NVDA]
Perhaps one of the best momentum stocks out in the market, NVIDIA has a diversified revenue stream with the majority of it coming from their computer graphics processors. If you are an avid gamer, then you would surely recognize NVIDIA. As a result of its market presence, NVIDIA has a gross margin of 65.1%. Furthermore, the company has a 135.8% 12-month trailing total returns. Needless to say, with a market cap of $234.36 Billion, the company will only grow further in the future. Hence, it is ideal for you to leverage their growth by investing some money in buying financial instruments.
Advanced Micro Devices Inc.[NASDAQ: AMD]
Along with NVIDIA, Advanced Micro Devices holds the position for the most sought after momentum stocks. If you don’t know what a momentum stock is, then it is defined as a stock that had the highest total return over the past 12 months. For AMD, this entity is 99.5%. Being a global semiconductor company, products of AMD span from microprocessors to multimedia products. In the previous quarter, the company reported revenue growth of 40% and announced that they have hit the highest gross margin in eight years. If you are looking for a stock to invest, then AMD is worth a chance since this is the right time to invest here.
DexCom Inc.[NASDAQ: DXCM]
While Align Technology focuses on dental care, DexCom has made a good name for itself within the general healthcare industry. Developing technology that monitors glucose levels for diabetes patients, DexCom has a market cap of $33.9 Billion. Stock market pundits forecast earnings of $0.28 per share with year-over-year growth of 250%. However, looking at the full-year estimate, the earnings of $2.23 per share is inevitable. In other words, DexCom is a great stock for you if you are looking to ante-up your stock market game!
AbbVie manufactures the world’s best-selling drug, Humira, and is currently in the process of researching a new drug to treat COVID-19. Needless to say, AbbVie is a stock that many investors are closely watching. The reason being the share’s 8.1% surge and an expected earnings estimate of 7.4% for 2020. Recently, the company is in and out of many expansion deals. In addition to that, AbbVie gained approval for two new drugs whose combined revenue is expected to reach $1.9 Billion. To sum up, it is indeed worth buying AbbVie’s stock as it seems stable, considering the sales of Humira.
What is safer than a company that serves 2.5 billion people across the world, with a market cap of $510 billion. Recently, safety and privacy concerns badly affected the company’s reputation. However, experts say that individual investors will still make a profit despite the company’s dying privacy. Since 2017, the shares of Facebook climbed 50% which is double the S&P 500’s 25% return. Furthermore, Facebook was named the best stock for 4 consecutive times since 2017 by US News. With the Facebook marketplace and Instagram monetization being developed, Facebook’s future is bright and “bullish”.