This is Tim Luong with Stock Navigators reaching out with the five best stocks to buy in April 2020! I’m currently thinking about what industries have been affected the most by the complications of coronavirus. I believe that this is the beginning of the next recession. I’m looking to average in stocks over the next 6 to 18 months. Rather than trying to predict the bottom, I’m going to be looking to average in. “Average in” means that basically just means putting in a set amount each time, consistently over the next 6 to 18 months so that my average price will be very reasonable. What markets have been most affected? It’s airlines, it’s cruises and hotels. People can’t travel or go on cruises or travel because of coronavirus, and the markets demonstrate this.
Delta airlines (DAL) is currently trading at $28.50. A few months ago, they were trading at $63. That is around a 60% discount on what it was at before. I believe it should go down lower. As it goes lower, I’m going to be looking to buy more and more of Delta and other airlines as well. I’m not looking to just jump into Delta only and not into other airlines. I want to diversify my risk. The potential gain for most of these airlines is pretty similar. I mitigate my risk of one of these airlines going under, but I can keep my gains consistent for the most part and increase my probability.
United (UAL) is at $31.55 today. A year ago it was $97. Just even just a few months ago, it was at $94.00. That is a 65% to 70% discount on United- absolutely insane. I personally think United will go down even lower than $31.55. The lowest it has been was a week ago when it was around $17.
I’m going to average into these positions as they continue to go lower because airlines will continue to drop but they will rise back up long term. How else will we travel? Are people never going to fly in a plane again? Are we going to walk across the continents? That’s not possible. Airlines are sticking around long-term. This is a great opportunity to get into airline stocks over the next 12- 18 months averaging in. There’s a pretty high probability 10 years from now it should be as high as it has gone or higher. And again, I am only discussing Delta and United. There’s definitely more that you can research.
The next industry I want to talk about is cruises. The cruise industry is not doing well. World Caribbean is a very strong company, but their stock has been hit tremendously because of coronavirus. Royal Caribbean is currently trading at $32.00 and they were around $135 a few months ago. That is around a 75% discount. That is a huge discount. However I believe that the markets will go lower – my plan is to average in. The cruise industry is a great industry for long-term investments as well.
Royal Caribbean (RCL):
Hotels have also been hit very hard. For example Hilton. Buying stocks from the Hilton, or other hotels, in the next 6 to 18 months could be an amazing long-term investment. Hilton is trading at $68 and its high was $115. This is a 50% discount on Hilton. The lowest it got to was $45 about a week ago. It’s gone up in the past weeks, but I recommend looking very closely at this stock in the next few months.
Another industry that has been hit hard is oil. The strongest oil stocks are ExxonMobil and United States Oil Company. ExxonMobil reached a high of $105. Now it is at $38! This is a 65% discount. I’m looking to invest in things for the long term. For my long term portfolio, ExxonMobil and all oil is a very strong long term play. There will not be a foreseeable future without oil.
Exxon Mobil (XOM):
The last companies that I want to discuss are Facebook, Google, Apple, Netflix – tech companies like these. The market hasn’t priced in a good enough discount for them because they weren’t directly targeted by the complications of coronavirus. If the economy goes into a recession, that’s when these good companies will pull down as a whole. Facebook, that ticker symbol is currently $166. It’s peak a few months ago was around $225. That’s around a 33% discount. Facebook’s low was actually at $138 a week or two ago.The impacts of these bigger companies has not yet been factored. Their revenues will be affected eventually due to the complications of coronavirus. In a recession there is a downward spiral. I recommend watching Facebook, Apple, Google and strong tech companies to add to a long term portfolio.
Now is the Time!
It has never been a better time to get invested in the stock market. And for beginners this is the best time to start to learn and become interested in the stock market because there has never been this volatility. These are unprecedented times. Other companies like Barclays and JP Morgan are taking advantage of this. Barclays made 250 million in a day, and a division of JP Morgan made over $1 billion when volatility first shot up on February 24th! Airlines, cruises, hotels, oil and strong tech companies like Facebook, Apple, Google and more, are the five industries I recommend as the best stocks to buy in April 2020.
That’s all for now!