In the blink of an eye, the stock market will be heading on the final stretch of 2017. At present, there are thousands of publicly traded shares in the market that are trying to catch attention from investors, which is why it is never easy to find the best shares to buy for your portfolio.
Investors have different needs, preferences and resources, these should be taken into consideration when choosing a share to buy. With a new year approaching, where should you position your portfolio for 2018? To help you with your selection, here is a list of the four best shares to buy for 2018.
Facebook has been named as one of U.S. best shares to buy last year and Facebook is the only repeat name on 2018’s buy list. Alphabet (GOOG, GOOGL) and Facebook has formed a duopoly in digital advertising - a fast-growing and a highly profitable industry.
Facebook’s 2 billion users continue to fire rapid sales and earnings growth at a much faster pace than Google enjoys, yet both trade for similar forward price-earnings ratios, just above 25. Given the choice, it’s better to pick the faster grower which is FB. It is expected to grow 33 percent in 2018 compared to Google’s 19 percent.
Alibaba’s shares has doubled over the course of 2017, making way for a spot on the best shares to buy for 2018 list. Alibaba is the only company worth more than $60 billion that has increased its revenue 50 percent annually for the last 5 years.
Its revenue growth spiked this 3rd quarter, jumping to 61 percent on the heels of cloud-computing growth. In 2009, Amazon (AMZN)
Another candidate for the best shares to buy for 2018 is the e-commerce giant Amazon. It has achieved 60 straight quarters of 20 percent-plus revenue growth. On October 26, shares surged from just $972 to the current $110, following another quarter of impressive growth.
Amazon reported this year’s 3rd quarter growth of $43.7 billion (up 34 percent year over year) with all segments coming in ahead of estimates. Overall, Amazon has received an extraordinary 32 buy ratings and only 1 hold rating for the last three months. With the average price target of $1,247, analysts are optimistic that shares can climb further by 12 percent.
Alexion, the global biopharma, develops therapies for patients with adverse and rare diseases. Its key drug, Soliris, has been approved for the treatment of blood disorders and is now being trialed for further applications. Holding a lot of potential, this biopharma makes its way as one of the best shares to buy for 2018.The share has a strong buy analyst consensus rating with near 14 percent upside potential from the current share price. In the last three months, the Alexion has received 11 buy ratings and just 2 hold ratings. One of these buy ratings came from JP Morgan’s Anupam Rama who boosted the stock in early September and raised his price target from $163 to a very bullish $175 (22% upside).