REVEALED: Our Top Picks For 2019
Here at StreetAuthority, we spend a great deal of our research efforts digging through hundreds of investment ideas, SEC filings, earnings reports and analyst reports so we can identify what we believe are the best investment opportunities for our subscribers.
We wouldn’t continually waste our efforts if it didn’t prove fruitful. Over the years our hard work has delivered some incredible gains for our premium readers. And perhaps no single piece of research we do has been more profitable for more people than our annual Top 10 Stocks report for the coming year.
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This report, which is produced by the Top Stock Advisor research team, has proven to be one the most anticipated pieces of research we produce each year.
When we first started this ambitious project in 2003, our stocks beat the market by twelve percentage points. Then in 2004… 2005… 2006… 2007… we trounced the market.
In the market crash of 2008, we saw losses like everyone else — but we still made fantastic gains, like Panera Bread, which soared 45.8%.
#-ad_banner-#It didn’t end there either… for instance in 2014, our stocks doubled the S&P 500’s return… then again in 2015 and 2016. Even in 2017 when the S&P 500 returned a staggering 21%, our Top 10 Stocks still beat the market.
In fact, had you invested with us over the past three years, you would have bagged winners like the 35.1% return from 3M (NYSE: MMM), 39.1% from Packaging Corporation of America (NYSE: PKG), 44.3% from Intel (Nasdaq: INTC), and even 101.8% from Skyworks Solutions (Nasdaq: SWKS)… All in 12 months…
So it’s easy to see why this has become one of StreetAuthority’s most popular reports.
And I’m happy to announce that this year’s report — Top 10 Stocks For 2019 — has just been released.
Some of the names you’ll see in this report are companies you’ve likely heard about before. But there are others that I’d be surprised if you have ever heard of at all.
But no matter what their story is, they all have one common thread: My team and I think each one has the potential to beat the Dow… the Nasdaq… and the S&P 500 in the coming year.
Of course, there aren’t any guarantees, but when you read the profile of each pick, it’s easy to see why we’re excited about this exclusive group of 10 investments. Again, these are our top picks for 2019 that we think offer investors some of the best chances for positive returns in the coming years.
The Secret To Our Top 10 Report’s Success
One of our guiding principles at StreetAuthority is that investing doesn’t have to be hard… or stressful… or akin to gambling.
In fact, after years of research we’ve found that companies with a few basic characteristics are the ones that can make you a lot of money over the long term.
Sure, we spend a small fortune each year on a research team and tools to find the best stocks in the market. But the bottom-line is that it doesn’t take complex formulas, intricate options strategies, day trading, algorithmic trading, black-box trading systems… or any other method that only a Ph.D. math quant can understand in order for us to derive our picks.
Instead, we simply like to focus on companies with the following characteristics…
1) Companies that enjoy huge, long-term, advantages over their competition.
2) Companies that produce goods and services necessary for everyday life.
3) Companies that pay investors by growing dividends or buying back massive amounts of their own stock.
Sounds pretty simple, right?
But the thing is, there are hundreds of stocks that have one or two of these individual traits. And many of them have beaten the market over the years. But if you want to stop taking chances, and stop gambling with your money, then you need find those rare companies that sport all three qualities.
Again, we’ve found — after years of research — that companies with these three qualities can make you the most money over the long term.
Now, of course, I can’t reveal all of the names of these picks in today’s issue. For one thing, we simply don’t have the space. For another, it simply wouldn’t be fair to my Top Stock Advisor subscribers. (But you can claim your free copy of the report here.)
That being said, I do want to share one of the stocks we’ve selected this year, just to give you a taste of what we’re talking about.
Top Stock #1: Revealed
Most of you are certainly familiar with the specialty coffee retailer Starbucks (Nasdaq: SBUX). After all, it’s the go-to source for millions of consumers worldwide.
I know, I know… before some of you start in complaining that this household name isn’t exactly the sexiest pick in the world, just stick with me here…
Remember, I said you’ve heard of some of these picks before (but not all of them). If you’re looking for a little-known stock to talk about over cocktails at the Christmas party this year, I’m sorry to disappoint you. (Although you’ll find a couple of these in this year’s report.) But shareholders certainly have reason to brag — all the stock has done is absolutely crush the market this year by nearly 5-to-1 when accounting for dividends.
Simply put, Starbucks offers one the greatest growth stories around. When it opened its first store in Seattle back in 1971, it simply wanted to serve the world’s finest fresh-roasted coffee. But Howard Shultz — former CEO — had a different idea. A trip to Italy altered the course for both Starbucks and Shultz…
The coffee bars and coffee experience in Italy were unlike anything Shultz had ever witnessed. They were a place for conversation and a sense of community. And he wanted to bring this experience to America. So in 1987, Shultz, along with a few local investors, purchased Starbucks. The company blossomed from one shop in Pike Place Market in Seattle to more than 29,300 coffeehouses worldwide. And it’s nowhere close to being done…
Solid Numbers, Promising Growth
For fiscal-year 2019, which runs from October 2018 through the end of September 2019, Starbucks plans to open 2,100 new stores worldwide. Plus, Starbucks has proven that it’s capable of quickly opening and turning these new stores into profit-generating machines. Its return on invested capital is a remarkable 28.9%, while its average cost of capital is 8.6%. In other words, Starbucks is making about $1.21 for every dollar it puts into its business.
In major metropolitan areas, it seems as if there’s a Starbucks on every corner. Heck, Starbucks has even introduced new, now easily-recognizable terms to the public… teaching customers that a “venti” is a large drink, for example. So many would assume that at some point the opportunity cost of opening a new location in the United States would diminish, but in fact, it’s quite the opposite. For example, in Seattle, where there is quite literally a Starbucks on almost every corner, sales per capita are more than double than in Los Angeles. And overall, the number of Starbucks locations still trail peers like McDonalds and Subway.
Starbucks revenue continues to grow. In fiscal-year 2018, sales grew 10% to more than $24.7 billion, compared with the same period a year ago. Cash profit margins sit around 48%, meaning that for every $4 latte the company sells, it rakes in nearly $2 in pure profit.
On top of that, the coffee giant produces solid free cash flow (this is money left over after all bills and reinvestments back into the company have been made). In fiscal-year 2018, Starbucks generated nearly $10 billion in free cash flow, up from the $2.6 billion the year before.
The company has a strong history of using that free cash flow to reward shareholders through dividends and share buybacks. Its five-year dividend growth rate is 24%, and since 2016 the company has purchased more than $5 billion of its own stock.
A Common Language
It doesn’t matter where in the world you go, you can always find common ground over a cup of Joe. And it’s this simple notion that forms the basis of Starbucks’ business: create a place for consumers to meet and enjoy a cup of coffee or tea.
In the United States, many of us find ourselves rushing through the drive-through at our local Starbucks to grab a quick Venti Americano before we head to work. But in many other parts of the world, where life doesn’t move at such a fast pace, consumers will sit back and enjoy a conversation and a warm drink.
This is where the real growth potential for Starbucks lies — in the international markets, namely China, Brazil, India and Japan.
The company has made great strides to grow its international operations — growing from just 4,327 international locations in 2007 to more than 12,000 today. In 2018 the company announced two strategic partnerships to further promote its brand around the globe. The first was a global coffee alliance with Nestle, which will accelerate and grow the global reach of Starbucks brands in consumer packaged goods and foodservice. The second was a partnership with Chinese ecommerce behemoth Alibaba (NYSE: BABA). The collaboration will help transform the coffee industry in China. It will provide delivery of Starbucks goods, as well as provide a “virtual” Starbucks coffee experience through its “Starbucks Delivery Kitchens.”
But Starbucks’ growth alone isn’t what we think makes it a great investment…
Starbucks sells its products at premium prices. The company has tremendous brand loyalty. It doesn’t worry about government regulation, even though it sells an addictive product. (Yes… like it or not, the caffeine that permeates your morning coffee is an extremely addictive substance.) And we’ve shown you the tremendous growth potential that Starbucks has in the international scene.
The bottom line is that Starbucks is a premier company that should continue to reward shareholders through capital gains and dividends for years to come… and the best part is that in today’s market environment (where high-flying tech companies are getting all the love) Starbucks seems to have fallen off the radar for most investors. But that likely won’t last long, which is why this is one of our favorites for 2019.
Get Your No-Risk Copy Of This Report Today
Remember, this is just one pick out of 10. And while Starbucks is a household name, we expect big things from it in 2019.
But some of the other picks in this report will be less familiar to you.
And, while nothing is certain, we’re convinced — based on our cumulative decades of experience and expertise — that these stocks are your best bet for building wealth in 2019 and beyond.
You’ll find all the details of every one of our 10 picks in this brand-new report. And we’d like to share it, with you. Follow this link to learn more.