The U.S. stock market these days appears to be at its summit. The stock prices in recent days have increased at the highest rate in the past 25 years. The focus of investors’ attention is once again shifting to the stock market as the impact of the financial crisis of 2007-08 lesser in magnitude. Owing to the increased optimism among the masses as regards the future economic performance and their disposable incomes, it is being hoped that the stock market performance will continue improving in the future. U.S. corporations are witnessing high sales and profits. Increased consumer demand and dwindling energy prices have had a favorable impact on the earnings of manufacturers and service providers. Companies supported by discretionary goods and services are having a great season and earning record profits.
Given the increasing stock prices and improving financial performance of U.S. corporations, investment in the stock market represents a great opportunity to earn both revenue and capital gains. My list of the top seven stocks to watch include the following:
Monster Beverage (MNST, Financial): Part of the consumer goods sector Monster Beverage, has emerged over the years as a prominent soft drink producer in the beverage industry. The company’s recent performance at the stock market has been brilliant, which has attracted the attention of both investors and its competitors. Last year, the beverage industry giant Coca-Cola, acquired 16.7% of the ownership rights of the company for a total of $2.15bn. MNST can avail itself of the well-established global network of Coca-Cola in order to expand into new markets. The future of the company seems bright.
Tesla (TSLA, Financial): After an impressive financial performance in 2012 and 2013, Tesla’s growth seems to have been negatively impacted by internal factors and external environment. It caused Tesla stock prices to sink deep. The price of Tesla’s share has in the past 3 days increased from $209.41 to $218.60. Will Tesla able be to retain the sudden increase in its stock prices is hard to tell. Nevertheless, for long-term investors, Tesla is a great pick.
Google (GOOGL, Financial): For Google’s inability to achieve the financial performance targets in the last 5 consecutive quarters, its stock prices have decreased by 15%. However, the future financial performance of the company is expected to be great as it is heavily investing in expansion and growth projects, which has caused its costs to spike. Now is a good time to invest in Google’s stock.
Starbucks (SBUX, Financial): With a lot of unexploited room for expansion and growth and a barrage of opportunities yet to be capitalized upon, Starbucks is a great company to invest in. The company intends to triple its sales revenue and net income by 2019. The current stock price of Starbucks is $49.43, which is expected to increase to more than $52 during the current year.
Microsoft (MSFT, Financial): Although the financial performance of Microsoft has not been able to live up to the expectations of the investors, still sufficient reasons exist to fancy an improvement in the future performance of the company. Revenues from cloud services and smartphone sales are expected to positively impact the overall performance of the company. The stock prices are expected to increase, resulting in capital gains for the investors. Currently, Microsoft’s shares are being traded for $43.43.
Zendesk (ZEN, Financial): The growth in Zendesk’s sales revenues have been impressive over the past three years. From $38,228,000 in 2012, total revenues of the company increased to $127,049,000. The stock market performance has also been great. The future of the company seems bright. The current price of Zendesk’s share is $23.82.
Coca-Cola (KO, Financial): With an impressive Current Yield of 3.22%, Coca-Cola despite facing recent setbacks has a lot to offer in terms of revenue and capital gains to its investors in the future. The 1-year target price of the company’s share is $45. Now the stocks are trading for $40.95.
As the stock exchange continues to show signs of strong improvements, other slow moving stocks are expected to improve and with most stocks on the rise, the future of the economy will only get better.
