My Top Ten Stocks for 2020 is chocked full of new-economy companies, yet contains many names that have been on this list before. In fact, six of these stocks were on my 2019 list.
Four stocks on this year’s list are software stocks. Software is a great industry because there’s very little cost of goods sold, thus companies can plow up to 40% of revenue into sales & marketing.
As we roll into 2020 the market is — well, rolling. Still, I was able to find value in the market. Five of the stocks in this top-ten list have P/E ratios of 20 or less.
The charts used are one-year charts, with qtrly profit growth on the bottom/left, with Estimates for the next 2 qtrs bottom/right. Top stocks often beat analyst Estimates.
In my book, annual stock growth is often close to annual profit growth over the long-term. The faster the profit growth the better.
