When choosing an investment strategy, start by setting your financial goals and determining your risk tolerance. You simply select a portfolio with an acceptable risk profile. One of the main rules when choosing a strategy is the shorter the investment period, the greater the share to allocate to conservative instruments. Remember that diversification allows you to offset your portfolio volatility even if it contains high-risk assets. The most important thing is to include a wide variety of uncorrelated assets.
Choosing a stock, one should consider 5 steps:
- Assess the market trends.
- Identify a sector.
- Screen for individual stocks.
- Review the fundamentals.
- Check the charts.
Here are the 5 best stocks to watch and buy. Although, the word “best” here is a pretty relative concept.
Apple
This tech giant has been one of the leaders in the technology sector for years. The stable shares’ growth and the high customer loyalty make it more than justified to invest in AAPL. Apple is actively developing new products and technologies, which promises even greater success for the company shortly.
Key points about Apple
- Apple went above and beyond the Nasdaq last year.
- Apple’s product range has strategically kept consumers coming back.
- A booming services business increased reliability in Apple’s revenue streams.
NVIDIA
NVIDIA develops graphics processing units, artificial intelligence and computing solutions. Growing demand for the company’s products makes investments in NVDA promising.
Key points about Nvidia
- Nvidia released the latest version of its high-end processors, which uses AI for games.
- The company had a couple of perfect bullish pronouncements by Wall Street analysts that helped drive stocks higher.
Tesla
Tesla is one of the leaders in the electric car market. It is also actively investing in the development of charging stations. Steady growth and product diversification make TSLA an attractive investment. Tesla proves that electric mechanisms are not only eco-friendly but also profitable.
Key points about Tesla
- Tesla has a premium valuation from Warren Buffett.
- Buffett says he can’t forecast Tesla’s earnings for over five years into the future.
- Buffett dislikes the company’s CEO, Elon Musk. He doesn’t own Tesla stock.
NextEra Energy
This company is a leader in the green energy market. NextEra Energy continues to develop and implement alternative energy sources such as solar and wind. Investments in NEE might provide steady returns, as green energy is a promising segment.
Key points about NextEra Energy
- NextEra Energy owns a large utility business and a fast-growing clean energy operation.
- The company’s projected earnings growth is 6-8% annually through 2026.
- The target for dividend growth is 10% through 2024.
Moderna
Moderna has been a medical breakthrough with COVID-19 vaccine development. Investments in MRNA promise high returns due to the company’s innovative approach and the prospects of the biotech market. Moderna plans to use its technology to develop a wide range of various drugs and vaccines. The company is collaborating with Merck in oncology and developing vaccines against influenza and cytomegalovirus.
Key points about Moderna
- Moderna might have a revenue drop this year with fewer sales of its COVID-19 vaccine.
- The company is profitable and has much potential in its mRNA technology.
