What stocks to buy in 2020

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

The latest news reports on the fall of once stable industries, the rise of previously unknown corporations working in other directions. Let's take a look at the expert advice on what stocks to buy in 2020.

How to navigate the intricacies of the market

It is difficult for a beginner to understand specific terminology. Aside from the usual terms for stock brokers, experts give very vague advice on buying stocks in order to count on a guaranteed profit.

The pandemic that swept the planet in 2020 made it difficult and previously not very easy to select worthy candidates for cash investments. The main rule to consider is not to invest in one enterprise or even in one industry.

Today, you can save funds by investing half in the processing industry, and one third of the remaining amount can be distributed equally between companies in the field:

• information technologies;
• extraction of raw materials.

If we are talking about which stocks to buy in order to receive good dividends in 2020, then, according to experts, you need to think about the pharmaceutical industry, the telecommunications sector, the electric power industry and the chemical industry.

All countries are going through a difficult period, are under the influence of destructive factors - trade wars, destruction of economic ties and the system of mutual settlements, economic stagnation under the influence of coronavirus, external debts.

The common misconception that there are no enterprises in Russia that pay high dividends to shareholders is fundamentally wrong:

1. D. Puchkarev, an expert on the stock market, is confident that Tatneft shares can yield an expected return of 12%. In the same amount (9-12%) - Norilsk Nickel.
2. A. Kalanchev, an expert analyst, predicts the expected profitability of LSR Group and Detsky Mir from 9.5 to 10%.
3. D. Bazhenov, a leading analyst at Kit Finance, believes that it is necessary to buy shares in Gazprom, MTS and Sberbank. They will bring from 9, 5 to 10% at a relatively low cost of securities.

Experts recommend paying attention to domestic companies. Compared to other countries, Russia has undeniable advantages:

• budget surplus and lack of public debt;
• gold reserves.

Recommendations still valid

AUFI financial experts have compiled TOP Russian companies for novice investors that guarantee profits throughout 2020 and have the potential for economic growth in the coming years. When compiling, the opinions of leading analysts, stock brokers and specialists from the Ministry of Finance of Russia were taken into account:

1. Energy. FGC UES, which supplies electricity to half of the country's consumers. Over the past year, net income has grown by 19% and total income by 4.4%. The annual profitability is higher than that of other energy companies and exceeds the level of 9%. High growth potential will provide shareholders with profit in the near future.
2. Financial sector. Sberbank is today considered the largest financial institution not only in Russia, but also in Central and Eastern Europe. Among the arguments is the expansion of sites and the list of services. This is the use of electronic technology, opening brokerage accounts, car sales services and much more. The upside potential of the shares is estimated at a quarter of their current value.
3. Gold mining industry. The Polyus company is one of the ten world leaders in gold mining and owns the second largest reserves in the world. In 9 months, profit increased by 250%. At the same time, profitability rose to 66%.
4. Communication and digital services, communications. MTS operates in the Russian Federation and in the post-Soviet space. In 2018 it was at a loss, but last year it made a profit of almost 50 billion rubles. The growth of the profitability indicator was achieved due to the expansion of the scope of activities. The total return on securities may be around 10%.
5. Manufactured goods and retail. Experts recommend buying shares of the Detsky Mir group of companies. The government's policy aimed at improving the demographic situation has yielded results. Products for pregnant women and children, as well as the expansion of the trade range led to an increase in profits by 15%. In favor of this choice and the planned expansion of activities - delivery services, online orders and others.

These are the expert advice on which stocks to buy in 2020. Investments in securities are still classified as a profitable capital allocation.

Equity analysts and investment experts advise taking a close look at a company's profitability, trust level, and duration. Sometimes it is better to get a low but stable profit than to lose your investment, being tempted by the promised high dividends.

Summarize

1. Experts are increasingly focusing on the priority acquisition of shares of domestic producers.
2. The low cost of the package allows you to count on good dividends.
3. Many companies have expanded their activities in the new year and not only because of the pandemic.
4. You need to buy securities of companies in different sectors of the economy.