Most stocks are not good investments.
It’s a sad truth, but market-beating stocks are a small minority. That’s why many investors are up day and night trying to find the next winner.
Fortunately, that doesn’t have to be you. Our research revealed one of the best stocks to buy now expects 177.9% earnings growth on the year.
Here’s the sad truth: Most professionals can’t help you find those market-beating stocks.
You think Wall Street bankers and analysts are somehow “better” at beating the market? What if we told you that 81% of active fund managers don’t beat their benchmarks?
You see, one study showed that 70% of global stocks can’t even beat one-month Treasury bills in returns.
So in that case – and in most cases – risk-free cash is a better option.
Think about that for a second.
Bank of America Merrill Lynch did a study in 2018 showing that if we took the “FAANG” stocks – Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), and Alphabet Inc. (NASDAQ: GOOGL) – out of the S&P 500, the index’s return would have been negative for the first half of the year.
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That’s why pundits might tell you to just buy an index fund and passively ride the growth of these superstars.
But is that really your best bet?
Right now, it looks like your options are: a) cash, b) mediocre gains from an index fund, or c) try to wade through the thousands of publicly traded companies on your own to find the few winning plays.
If none of this sounds like a winning formula, here’s the great news.
We’ve developed a powerful algorithm that analyzes the best stocks on the market and ranks them based on their breakout potential.
We’ll even say we found one of the best stocks on the market without breaking a sweat.
With 713.60% surprise earnings this quarter, this has been one of the best stocks to buy for almost a year now.
And just like the FAANGs, it’s plugged into one of the biggest economic catalysts in the United States: the Internet.
And the stock is primed to keep leading indexes higher. Here’s how we know…
How We Found the Best Stock to Buy Now
Money Morning has a proprietary tool called the Money Morning Stock VQScore™. It looks at many factors affecting a stock and condenses them all down to a single number.
The higher the score, the more likely the stock’s price will be to break out in the near future.
One of the top-scoring stocks right now is Twitter Inc. (NASDAQ: TWTR).
What was once a new-issue darling fell upon hard times for a while. The stock struggled after its IPO in 2014. And for the next two years, TWTR was basically left for dead.
“Experts” swore the company would never monetize its user base. But something changed for the better in 2017, and the stock rallied from a low of $14.12 per share.
Today, Twitter trades at $42.08, with a 3.75 VQScore – which means it’s a hot growth stock right now.
It also broke out 5.7% last week after the company’s revenue and user numbers topped expectations. Its report included 5 million daily active users, putting the old bearish argument to rest for good.
And this stock is poised for a great 2019.
TWTR priced $27.99 in early January, so its current $42.08 represents growth of more than 50% in just seven months.
But the growth trajectory is just getting started.
Our VQScore formula allows us to be confident in these projections.
It provides insight into the financial stability of the company, rather than just the market’s demand for shares. In fact, TWTR’s high VQScore means its earnings are accelerating.
Right now, the stock trades at 13.84 times earnings. When you compare that with Facebook’s (NASDAQ: FB) price/earnings (P/E) ratio of 32.09 and an Internet software industry P/E of 55.08, it’s clear the stock is still incredibly undervalued right now.
And that’s even after huge earnings surprises in the first and second quarters of 2019.
For Q1, Twitter beat earnings expectations by 146.70%. And for Q2, the company blew them out of the water with 731.60% surprise earnings.
Now, as far as total earnings growth for 2019, Twitter anticipates 177.90%.
Twitter stock gained 60.2% since its December 2018 low. The S&P 500 gained 25.9%.
So it beat the market once already. But the VQScore points to even more upside.
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