Published On: Wed, Sep 9th, 2015

Stocks to watch over the next 12 months

Successful investment in the stock market can be lucrative, but to make the most of the stock market, you need to know when to sell and when to buy. You also need to know which sectors are going to be going up and which are going to be going down.

For those who are new to investing in stocks and shares, or even those who have some experience, expert advice is useful. A glance at Pete Briger’s resume confirms that he has considerable experience in the financial field. Investing in stocks and shares can be lucrative, but you can also lose a lot of money if you make the wrong decisions. Finding the right professional advice can make the difference between success and failure.

It can be difficult to predict which stocks will be worth buying. Amazon for example has grown by at least 20 percent for 20 years, but despite its tremendous growth, Amazon’s winning streak came to an end in 2015 when its sales growth was just 19 percent. It is difficult for companies to maintain such growth rates. Out of 1,500 companies, only 16 are likely to be able to boost sales by that amount.

Of the companies that are likely to perform strongly, Facebook and Priceline.com look set to achieve £10 billion in sales. Strong growth can occur across a range of industries. Cabot Oil & Gas has drilling plans that are expected to result in a big spike in its output over the next few years. The company has continued with its development plans even while its rivals scaled back theirs. Natural gas prices have risen by 10 percent in recent weeks, so it appears that the company’s strategy may pay off with rising sales and profits.

Eagle Materials is another company that may do well. A maker of drywall cement and materials used in housing construction, its fortunes are hostage to the economy. If the housing market falls, then so do the company’s profits. However, the company has been enjoying a revival in its fortunes even before housing construction has returned to normal levels. If the housing market begins to grow at a steady rate, it could maintain its current growth rate.

Alexion Pharmaceuticals is another company to watch. It specializes in rare and severe diseases and has built up a platform of drugs for their treatment. Over the past eight years, its growth rate has never been below 37 percent, and it looks likely that in future years, it will be able to achieve 20 to 25 percent growth.

Of course, it has to be said that many of the companies that are currently showing strong growth will be hard-pressed to maintain that growth if the economy falters. Also, the share prices for companies with strong growth rates are not cheap and are therefore more strongly affected if the market falls.

Investors might also consider looking at Europe. While Europe has been mired in low growth, its shares could rise by as much as 70 percent by the end of 2016. Europe’s stocks are currently cheap compared with credit.

There are many promising companies and industry sectors to invest in, though much can change in the next 12 months. Getting advice from a financial expert is an option to consider so that you make sound investment decisions.