Netflix, Inc. (NASDAQ: NFLX) has released its third-quarter 2019 financial results today.
You can visit the company’s investor relations website at http://netflixinvestor.com to view the Q3’19 financial results and letter to shareholders.
A video interview with Netflix Chief Executive Officer Reed Hastings, Chief Financial Officer Spence Neumann, Chief Content Officer Ted Sarandos, Chief Product Officer Greg Peters and VP, IR & Corporate Development Spencer Wang will be available at 3:00 p.m. Pacific Time at youtube.com/netflixir.
The interview will be conducted by Michael Morris, Guggenheim Securities. Questions that investors would like to see asked should be sent to [email protected].
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Interested in what stocks to look out for this year? Then you’ll love this list of the best stocks in 2019.
These funds purchase multiple stocks and spread risk appropriately across the top companies. This is the advice of Warren Buffett, who once said,
“By periodically investing in an index fund, for example, the know-nothing investor can actually outperform most investment professionals.”
If you’re looking for a stock index fund, check out Vanguard’s 500 Index Fund.
With that aside, here are the most promising stocks in 2019:
1. Chipotle Mexican Grill
Chipotle is an international chain of restaurants specializing in tacos, burritos, and other Mexican style cuisines. They have establishments all over the world from the United States to Germany and France.
This beloved food joint performed very well in the first two quarters of 2019 and are expected to continue to grow.
P/E ratio as of August 2019: 87.81
2. Constellation Brands, Inc.
Constellation is an international beer and wine producer. They are the largest importer of beer in the United States and command 7.4% of the market share.
P/E ratio as of August 2019: 17.00
3. Lululemon Athletica
Lululemon Athletica creates athletic apparel such as performance shirts, shorts, and pants, as well as yoga accessories. They’ve built a brand over the years that millions recognize and love.
P/E ratio as of August 2019: 47.51
4. Coty Inc.
Coty Incorporated is a multinational company that specializes in beauty products and services such as cosmetics, fragrances, skincare, and nail care.
Coty owns over 70 brands, such as CoverGirl, Clairol, and Bourjois. In 2018, the company’s revenue was over $9.4 billion.
As of August 2019, Coty Inc. stock is valued at 10.42 USD. Their P/E ratio is not yet available.
5. Anadarko Petroleum Corporation
Anadarko is in the natural gas and petroleum industry. This entails everything from gathering resources to treating and transporting gas. The company is also in the hard mineral business.
In early 2019, Anadarko had an estimated 1.47 billion barrels of oil in reserve, making it one of the biggest players in the industry.
As of August 2019, Anadarko’s stock is valued at 73.48 USD. Their P/E ratio is not available yet.
6. Brookfield Infrastructure Partners L.P.
Brookfield Infrastructure Partners acquires and manages infrastructure assets all over the world. They specialize in utilities, energy, and transportation infrastructure.
The company invests in ports, toll roads, pipelines, and telecommunication lines. In other words, things that people will always need and use.
P/E ratio as of August 2019: 75.27
7. ONEOK Inc.
ONEOK (pronounced “one – oak”) Incorporated is in the natural gas industry and is a key leader in the gathering, storing, processing, and transporting natural gas in the United States.
P/E ratio as of August 2019: 22.62
TerraForm Power Inc.
TerraForm Power specializes in renewable energy, particularly solar and wind power. There is an ever-growing trend that demands less damage to the environment.
As the world values green innovations, companies like TerraForm are expected to be favored in the coming years.
P/E ratio as of August 2019: 227.44
Netflix is a service provider and production company with their main product being a subscription-based streaming service.
Streaming TV and movies have largely replaced traditional television. With no commercials and instant access to thousands of products, Netflix is suspected to continue to grow.
P/E ratio as of August 2019: 120.23
iRobot is an advanced technology company that specializes in military and domestic robots. They designed the Roomba, which is an autonomous vacuum cleaner.
The U.S. military has purchased and uses thousands of robots from iRobot and are contracted to make more.
P/E ratio as of August 2019: 22.24
Amazon is a multinational company that specializes in e-commerce and cloud computing. It’s considered one of the big four technology companies along with Apple, Google (Alphabet, Inc.), and Facebook.
Amazon is well known for distributing goods through technological innovation and on a massive scale. Some estimate that Amazon commands 50% of all goods sold online.
P/E ratio as of August 2019: 73.65
11. Apple Inc.
Apple is a multinational tech company that develops and sells computer software, electronics, and online services. They designed some of the world’s greatest tech products including the iPhone and Apple Watch.
Being a leader in tech devices, many analysts believe Apple is one of the most promising stocks to invest in.
P/E ratio as of August 2019: 16.61
12. Alphabet Inc.
Alphabet Inc. is a multinational conglomerate founded in 2015. It’s the parent company of Google, which is the dominating search engine on the internet.
Google performs 90% of all searches on the internet. Alphabet has additional subsidiaries such as Calico, Capital G, and Deep Mind.
These subsidiaries have their hands in industries such as autonomous cars, biotechnology, video game software, and internet tech.
P/E ratio as of August 2019: 23.87
13. Facebook Inc.
Facebook is the popular American social media site founded by Mark Zuckerberg. In 2018, Facebook had a net income of $22.11 billion and its total assets were $97.33 billion.
Facebook has subsidiaries such as Instagram and WhatsApp, which are also very popular social media outlets.
P/E ratio as of August 2019: 31.00
14. MarketAxess Holdings Inc.
MarketAxess is an international company that specializes in financial technology, also known as fintech.
They operate an electronic trading platform for various credit markets such as corporate bonds and income products.
P/E ratio as of August 2019: 70.82
15. AT&T Inc.
AT&T is a multinational conglomerate holding company and is the world’s largest company in telecommunications.
AT&T is the parent company of Warren Media, which makes it the largest entertainment company in the world in terms of revenue.
P/E ratio as of August 2019: 14.17
16. Verizon Communications Inc.
Verizon is a multinational telecommunications conglomerate. They are well known for their subsidiary Verizon Wireless, which is its mobile network.
Together with AT&T, these two companies dominate the mobile and landline market. Since our needs for communications will develop, these two stocks are poised to grow.
P/E ratio as of August 2019: 14.49
17. Axon Enterprise Inc.
Axon Enterprise Inc. is a U.S.-based company that develops weapon products and technology for civilians and law enforcement. This company developed the Taser, a line of electric shock weapons.
Since then, Axon developed other technologies including body cameras and a cloud-based management system that empowers police departments to manage and review evidence.
P/E ratio as of August 2019: 129.55
18. Intuitive Surgical Inc.
Intuitive Surgical Inc. develops and manufactures surgical equipment to make surgeries less invasive. As of 2017, they had 4,271 bases worldwide.
P/E ratio as of August 2019: 48.51
19. Ford Motor Company
Despite the localized recession in Detroit, the automotive giant is doing very well.
The market continues to demand their SUVs and commercial vehicles, not to mention their luxury vehicles, which are usually created under their Lincoln brand.
P/E ratio as of August 2019: 16.90
20. General Motors Company
General Motors is a multinational manufacturer of vehicles and own automotive brands like Buick, GMC, Cadillac, and Chevrolet. They have nearly 400 facilities on six different continents.
P/E ratio as of August 2019: 6.19
Let’s point out two trends from this list:
- Tech and software companies are dominating
- Utility-related companies are tried and true
About half of the world still doesn’t have internet access. And a large portion still doesn’t have access to common devices like cell phones and laptops. That means these industries are set up to grow significantly for years to come.
Of course, that doesn’t mean other industries will simply disappear. As you’ve seen in the list, there are still key industries that our society relies on, such as energy and infrastructure companies.
Some of the most promising stocks are in tech and software, such as Apple, Facebook, Google, and Amazon.
Nevertheless, the wisest investment is still a stock index fund, which bets on the collective market rather than individual companies.
Not All 401k’s Are Alike: How to Recognize and Fix a Bad 401k
Most people believe that a 401k is beneficial. This type of investment can provide the same percentage of a retired person’s income that pensions once provided. However, there are millions of people haven’t a clue whether their 401k plan is a good one. Many have inadequate funding options and excessive fees.
It could end up causing you to lose hundreds to thousands annually. The costs associated with a plan will range, making it a complicated ordeal to find out what you are paying. According to an AARP survey, there are not many who catch that they are in fact paying someone to invest into their plan.
What Do the Fees Look Like?
There is a lot of confusion around the charges these plans can have. The largest of three standard fees is known as the investment management fee. The costs can vary from up to 2% to 3% of assets for actively managed funds down to 10 basis points for institutional shares of index funds. There is also a plan administration fee paid to businesses that run day-to-day management of the plan. Expect to pay around $100-$200 if it’s out of pocket. The last of the three is the 12b-1 charge – a recurring fee used to fund commissions for salespeople and brokers.
On top of these three main fees, count on an individual service fee for additional services, like loans from your 401k or for using a brokerage window.
David Walters, CPA and certified financial planner with Palisades Hudson Financial Group said that altogether, the charges can range from 50 basis points (which is half a percent) up to 3%. He believes people should be suspicious of those that ask over 1%. He also noted that it could make a significant difference in what workers get to spend when they retire.
A report by the liberal think tank Demos found that married couples who invested consistently and never made withdrawals would have lost up to $154,000 in fees, about a third their entire savings.
Are There Any Stats?
It may not always be possible to get the best plans out there. Small companies, in particular, have more fees as they don’t have any negotiating leverage to reduce them. They often do not in-house experts to research plans and find the best deal for the employees.
Yoav Zurel, CEO of FeeX, says one shouldn’t assume that working for a large company means you will have minimal fees or optimal investment options. He adds that only about 40% of the largest companies have optimized their 401k.
The good news is that according to BrightScope, 401k charges have been dropping annually since 2009, and the pattern is expected to continue.
This is most likely because more people are learning to pick the best plans possible for them. Brooks Herman, Bright Scope’s director of research, said that it’s because of the rise in plan sponsor awareness. In 2012, the Department of Labor mentioned that companies are to disclose fund fees to their customers each year.
Rick Meigs, president of 401khelpcenter.com, said that even with that, few people ever take the time to read over their plans. Still, he commented there is always that one individual from the pool of employees that will take the time to read it and when they take the time to do go through it, it benefits the majority.
Is it Possible to Make a Bad Plan Work?
FeeX has researched and analyzed annual reports and individual plans. They suggest alternative investments within each plan to lower charges.
Even with new disclosures, some workers may still be stuck with less than ideal plans. If you are in that predicament, Walters believes it’s best to find workarounds to place yourself in a better financial position.
You can begin by using index plans as they often have lower charges and 88% of plans include them. However, don’t think that’s the only answer. S&P 500 funds can charge 80 basis points when you can get the same thing from Vanguard for only five basis points. Nearly 50% of 401k plans have brokerage windows that allow you to invest in any mutual fund, exchange-traded stock or fund which is available at any brokerage. Doing so may also help with lowering costs as you have access to an entire universe of low-cost fund options and exchange traded funds.
It’s time to start taking financial matters into your hands. Start talking to your spouse about it if you are married, and sit down with your boss. Talk to your boss about improving the plan for the company as a whole.
If you are currently working in a small business, the company owner will likely be the plan’s biggest participant and shouldering a majority of the charges. Keep that in mind and remember to tread gently when bringing up the topic. Zurel, of FeeX, says you should never accuse your employer of anything, and instead, believe that they are doing the best that they can. After all, they too have the same interest as you and would like to have lower fees themselves.
It’s Easier Than You Think: 3 Smart Moves That Will Allow You to Retire Rich
As you’re nearing retirement, you might be feeling anxious about it or you’re excited at the possibility of what you’ll do when you finally retire. Ideally, you’re spending your time traveling and or your favorite hobbies when they retire and not worrying about paying the bills. Unfortunately, this is what many Americans are facing. According to a survey conducted by Fidelity Investments, they found that most people are not saving early enough. In addition, certified portfolio manager and financial planner with FBB Capital Partners, Kathleen Hastings, mentioned she never witnessed a soul complain about having “too much money” for retirement. She adds it sucks to be a senior, especially one with no money.
Even if you may not currently have enough for retirement, it doesn’t mean that you can’t retire. Here are a few strategies you can to if you wish to live rich enough to live comfortably.
Save More Now
If you want to retire wealthy, the first step is to start saving as much money as you can in your savings account. Thanks to compound interest, a little bit will go far no matter how small your monthly contributions may be. The longer you can contribute, the more you will have.
Let’s say you decide to put $400 away per month once you hit 25 then increased the amount by 2.5% annual and earned 7% each year. That person would have about $1.5 million by the time they are 67. Waiting a decade later to do this would mean they would only have about $66,000 at the same age.
Don’t think of savings as a choice, think of it more as a requirement. Michael Hard, certified financial planner at Mollot Hardy, says everyone should save on either a monthly or weekly basis through automation. Those that add funds to their retirement accounts can have their money taken from their paychecks or via a scheduled deposit plan. Hardy adds that setting it up like that will eliminate the chances that you stop putting money aside for your retirement. According to Fidelity’s retirement preparedness study, Americans on average, save only 8.5% percent of their earnings each year. It’s recommended that you save at least 10% –ideally 15% — of what you earn. If you can do more than that, do it.
Reduce Unnecessary Spending
Some people may just believe that they do not have enough money to put on the side to retire, which is simply not true. You can save more than you think if you carefully comb through your budget. Tom Corely, author of “Rich Habits: The Daily Success Habits of Wealthy Individuals” states everyone should look at their statements monthly. He says you are likely to unveil payments for things you no longer use or want. It also helps to shop often for the internet, phone, and TV services for the most competitive rates.
Ken Weber, author of “Dear Investor, What the Hell Are You Doing?” and president of Weber Asset Management, believes in some risk. He mentioned that most individuals believe the key to investment success is to just save. Although this is true to a certain degree, he believes people should not just store their money in an in savings vault. Weber says you have to be willing to take some risk to get the reward later. He mentioned that for every stage of life, they should be invested with as much risk as they can tolerate. Ideally, people would put a majority of their retirement savings into a stock mutual fund when you are in the 20s or 30s.
As you get older or are near retirement age, you have the choice to lower that risk by investing in fixed-income assets like bond funds or stocks. Alternatively, you can think about a target-date fund that will automatically fix your allocation of bonds and stocks.
Mollot Hardy also adds that a person should never put all of their retirement funds in one basket. The best thing you can do is to diversify your portfolio with a combination of bonds and stocks. Getting a hold of mutual funds would be even more ideal since they contain an array of bonds, stocks, or both.
If you decide you want to invest in mutual funds, monitor the expenses and fees companies charge. It is important to keep your eyes completely peeled on this one because they can eat into your returns and decrease the amount of money you can have saved for retirement. According to the US Department of Labor, if expenses and fees on your account are 1.5%, for example, you will have a balance that is 28% less once you hit retirement compared to somewhere else where the fees were only .50%. You will likely have several plans offered to you via your 401, which all have various fees, so think about switching to investments with lower rates.
If you work somewhere where your employer matches any contribution you make to your workplace retirement plan, ensure to contribute enough to get a complete match or else you are losing cash. Most will match 50 cents for every dollar. Continuing on the investment route, you can also get tax-free retirement income with a Roth when you contribute to a Roth IRA, which can help you with taxes when you’re retired. Another option is to create a side business to increase your income. You can also get a second job or start doing the hobbies you love while making money from it. One example is to think about purchasing income-generating real estate. Todd Tresidder, a financial coach and founder of FinancialMentor.com says that the trick is to buy and finance a place carefully and not rush through it. If you are thinking about working as a self-employed, you may be able to contribute to a Simplified Employee Pension (SEP) plan or solo 401k. Using either of the two will still be tax-deductible for you.
You might also want to consider downsizing your home when you’re ready to retire. Cutting costs from rent or mortgage to utility, insurance, and maintainable fees will be reduced. While you are thinking about that, you may want to relocate to a different city or state that is cheaper.
If you feel overwhelmed, find professional help from an advisor if you feel you need help creating a financial plan and want to stick with it. You should look for help from a Financial Analyst (CFA), Chartered Financial Consultant (ChFC) or Certified Financial Planner (CFP)
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