Please note I am not financial adviser, I highly encourage doing your own due diligence before purchasing any of the stocks listed below.
Stocks To Buy April 2018
Apple Inc. (AAPL)
Market Cap: $836 Billion
Dividend: $2.52 (1.49%)
Apple stock has grown tremendously over the past ten years, however do not confuse Apple as a value stock as their is still plenty of room for growth in the near, as well as distant future. It currently sits at a trailing P/E ratio of around 17, and a forward P/E of only 12.52. Meanwhile the Shiller P/E currently sits at 31.68. This makes proves Apple is still a great buying opportunity with great long term value. Along with this, Apple has a massive pile of cash on the balance sheet that Apple could put towards several things.
- Acquisitions of other companies
There has been rumors of some time now that Apple is looking to make a big move and buy out a large company to bring on a new stream of revenue. Here are some possible acquisitions:
- Spotify (SPOT)
- Disney (DIS)
- Netflix (NFLX)
- Tesla (TSLA)
- Cirrus Logic (CRUS)
- Rewarding shareholders
Apple has plenty of room to hike their dividend to reward shareholders. They also could start buying back stock back to benefit shareholders.
Apple buys lots of different parts for the devices they create from different companies such as audio chips from Cirru
s Logic (CRUS). One option could be to just straight up buy out companies they use like Cirrus Logic, or they could begin manufacture their own audio chips and other parts of their popular devices. This would increase the profit margin on products such as the Iphone or Macbook. This is seems to be an option Apple is currently exploring, on March 19th 2018 there was a leaked report of Apple using a secret US facility to develop micro LED screens for the Apple Watch.
Apple has the largest market cap in the whole world which currently sits at $836 billion at the time of this writing. They are also on pace to be the first company to hit the one trillion dollar mark. They are way ahead in the largest market cap race, with Alphabet (Google) in second at only $711 billion. Along with all these statics Apple has proven to be one of the best run companies in the world giving it the valuation it deserves. Altogether, Apple still looks like a great buy for April 2018.
eBay Inc. (EBAY)
Market Cap: $40.19 Billion
Coming in at number two on our list is the popular online auction and sales platform, eBay. Ebay has a forward P/E of only 15.7 and has seen a nice growth of earnings over the past few years and is expected to continue growing in the future. Recently eBay and Paypal have been drifting farther and farther apart after splitting off in 2015. However, eBay and Paypal will not be completely split apart until the year 2020. Before this they had together as one company for over a decade, however the split makes sense for both companies.
Paypal benefits from the split by being able to work with other e-commerce monsters, such as amazon. Ebay will benefit by being able to process payments with lower fees. This will allow them to increase their margin per sale, on top of this eBay continues to grow year after year. Why has eBay been growing for so long? I see two main reasons, one being it seems like it’s because ebay seems to always have some of the best deals compared to amazon and big box retailers. They also are often referred to as the number one marketplaces to buy and sell used items. Analysts suspect eBay to finish the year of 2018 with a 14.8% growth of sales followed by another 8.10% for 2019.
All in all, Ebay’s stock is a solid pick for either a growth heavy or a value oriented portfolio. It’s also one of the less volatile e-commerce stocks on the market right now.
Market Cap: $10.34 Billion
Zillow is currently the most popular online real estate website. The next most popular site is Trulia, however this is also a Zillow owned site. These two sites serve as online directories for the buying and selling of real estate. The real estate industry is a nearly constant growing industry with consistent growth opportunities over time.
One static that puts Zillow’s company strength into perspective is a stat in a CNBC interview with CEO Spencer Rascoff, it was revealed that more people now google “Zillow” rather than “real estate”. This proves that the online housing market is a huge industry, bigger than most people realize. In the interview, Rascoff spoke about Zillow sacrificing bigger profit margins in the short term to put more efforts towards keeping up with rapid growth. He also stated that this short term plan will provided bigger margins on profits in the long term. Zillow has been also experiencing record high traffic on their site, since the end of 2018.
Zillow has post strong growth over the last couples of years and is estimated to continue to in the next 2 years, with 2018’s expected sales growth to be 22%, and 2019 ending with another strong year of growth at a sales increase 18.20% (Growth estimates via yahoo finance). Most of the current business Zillow does is US based, however they still have growth room for the US and tremendous upside potential for growth internationally. Collectively all this information reveals that, Zillow has a strong grip on a growing industry, this should allow for the advancement of the company stock price up for years to come.