Show

Five stocks worth investing in 2016

February 11th, 2016

 

2016 is looking to be another volatile year for the stock market. With the uncertainty in China and questions about the Fed moving to raise interest rates many are unsure with how they should invest. Many may suggest a watch and wait strategy in this bearish market, but if you pick the right stocks you can continue to grow your investments.

 

Over the past week Acadia Healthcare stock has been a hot topic. Acadia Healthcare is part of the health services industry.

 

Headquartered in Franklin, Tenn., Acadia deals with a variety of healthcare solutions. According to Acadia’s website, the mission of the company is to “create a world-class organization that sets the standard of excellence in the treatment of specialty behavioral health and addiction disorders.”

 

It has shown a substantial growth in revenue of 62.2 percent compared to the industry average of 9.9 percent for the 2015 year, according to the Chicago Sun Times. Acadia’s net income has grown 16.3 percent, which will continue to trickle down to the investor.

 

According to Bloomberg, its net operating cash flow grew 29.7 percent, giving investors’ confidence in the liquidity of Acadia. All signs point to a strong future for Acadia as the young healthcare company continues to grow.

 

There is another stock that has been a hot topic in the news recently, but not for the same reasons as Acadia. Delphi Automotive’s stock dropped on Wednesday prior to the 2015 fourth quarter earnings report released Thursday, Feb. 4, 2016.

 

Delphi Automotive is headquartered in Gillingham, U.K., but is a global company with locations in 44 countries, including many in the U.S. According to Delphi’s website, their company’s operations strive to create “a high-technology company that integrates safer, greener and more connected solutions for the automotive sector.”

 

Delphi reported increased revenues of 3 percent and increased earnings per share of 7 percent, according to The New York Times. Both of these stats were higher than Wall street’s expectations.

 

Delphi also acquired the Hellermann-Tyton Group for 1.85 billion dollars. Hellermann-Tyton Group will be part of the electrical department at Delphi and is expected to bolster revenues according to the Chicago Sun Times. Delphi’s continued growth and expansion in strong industry gives this stock major upside in 2016.

 

Disney’s recent success has been hard to ignore. “Star Wars Episode VII: The Force Awakens,” a Disney production, has soared at the box office as the world cannot seem to get enough.

 

According to Bloomberg, the Star Wars brand alone is worth $10 billion dollars. Hopefully that brand will help to increase revenue in Disney’s first quarter earnings report, set to be released this Tuesday.

 

On Sunday, Feb. 7, people around the world tuned in to watch the Super Bowl between the Carolina Panthers and the Denver Broncos. Those dressed in light blue may not have been the only ones cheering for Cam Newton.

 

The young quarterback is one of the newest additions to the Under Armor family, signing a five-year deal worth $103.8 million, according to Bloomberg.

 

Having successful athletes signed to your brand is essential for your marketing. Just take a look at Under Armors other MVP, Stephen Curry. Under Armor released a Stephen Curry line of basketball shoes, which spurred shoe sale growth by 57 percent in 2015 reported the Chicago Sun Times. Sales and earnings per share rose beating Wall Street’s expectation in 2015. Under Armor looks to be a first round pick in 2016.

 

A fifth and final company to invest in is Home Depot. The home improvement retailer based out of Atlanta has seen increased market interest in the past month. Part of that can be attributed to Winter Storm Jonas, which hammered the east coast. This led people to buy rock salt, shovels, and other home care needs.

 

Aside from the storm, Home Depot has seen continued growth this past year. In the last quarter Home Depot has revenue growth of 6.3 percent, higher than the industry average of 4.4 percent Earnings per share is expected to increase by 13 percent in the 2016 year which should catch investors’ attention according to The New York Times.Home Depot should continue its healthy growth in 2016 giving investors a solid return.

 

Editor’s Note: Information from The New York Times, The Chicago Sun Times and Bloomberg was used in this report.