Image by: dflorian1980
By Michael Sterling
Big money is expected to land in the pockets of investors very very soon. As the economy grows, so do our wallets. Now is the time put your money where your mouth is. A global recovery is bound to occur in the next year, and if you’re not there to reap the benefits, you might miss out. Take a peek at some of the best stocks to buy in 2014, who knows, you might just hit the jackpot:
#1) Amazon (AMZN)
Amazon has been a give and take type of investment for most people. This fiscal year, for example, it is set to record roughly $75 billion in revenue with hardly any profits. But despite that, AMZN stock keeps climbing, and in 2014, investors are banking on the continuation of its growth while the company maintains the top ranking in online sales.
At the beginning of 2009, shares of AMZN were trading for around $50 (that was during the recession). Today, they’re worth over 350, which is basically 50% return per year. However, though it’s bringing in a lot of money, it’s also spending it just as much.
The best part is that they’re putting their money towards a better customer experience, i.e. discounts and cheaper products. Since going public in 1997, Amazon has grown sales every year and basically doubles its revenue every two years. The momentum doesn’t seem to be stopping soon.
#2) U.S. Silica Holdings (SLCA)
Forbes recently named U.S. Silica Holdings the eighth best small company in America, having become the largest domestic producer of silica sand, thanks in large part to the huge growth in fracking and horizontal drilling. According to a U.S. Geological Survey, frac sand revenues are growing immensely.
In 2001, 5% of silica sand was used for fracking. In 2012, it was up to 41%. Between 30 – 40 million metric tons of frac sand is predicted to have been mined in 2013, and in 2014 some experts say that number could double.
Having only been public for just under 2 years, the company’s stock has gained 106.3% through the end of October. Given America’s move towards energy independence, it’s a safe assumption to say that growth is inevitable for U.S. Silica Holdings in the next year. Though it might not grow in huge numbers, their returns will be solid.
#3) CalAmp Corp. (CAMP)
CalAmp is on fire right now, and has been trading at levels the market hasn’t seen in nearly 13 years, according to InvestorPlace. In late February the company was selling at $9.25. In just eight months the stock’s worth gained an additional 175%. In the month of October, alone, it gained over 48%. Needless to say it’s definitely showing to have a lot of potential next year.
Since going public in 1983, the wireless communications company wasn’t always this popular. But since closing its $53 million acquisition of Wireless Matrix, a GPS fleet-tracking business, revenues and profits have been steadily growing. In three to five years, many investors are predicting CalAmp to be a mid-cap stock. Buy it while you can.
#4) General Electric Co. (GE)
GE has given itself a huge makeover within its infrastructure, especially since coming out of the recession. The oil and gas equipment business is the fastest growing in the company, and it’s expected that a major portion of its future growth will be from this segment as well, and all of its investors receive a 2.8% dividend. On November 12, GE closed at $26.85. The best time to buy the stock, if you don’t have it already, is now.
#5) Halliburton Co. (HAL)
Halliburton has a lot of potential for 2014. Not only is it one of the largest oilfield service providers in the world, but it’s also domestic which will make investing easier for those spending the dollar. The company recently announced that it bought back 68 million common shares during the third quarter, for a total consideration of $3.3 billion. Not bad.
Over the next year, as we become more energy-friendly, Halliburton’s energy sector will become much more needed. This will welcome tremendous growth and significant returns for investors.