Investing Online Like a Pro for Q4 2017 â€“ 3 Stocks to Look at According to Forbeswritten by Bella Palmer
It’s been a stellar year for equities markets so far as they just seem to keep rising. That should of course prompt
First up among the picks is
However, Alphabet now has subsidiaries which are all leaders in their field in high growth areas expected to be extremely profitable in
Despite recent high share price growth Alphabet trades at less than 24 times next year’s expected earnings, which leaves room for growth for a company that is highly profitable and consistently shows double-digit growth. The company is also sitting on a cash pile of $9 billion so is likely to take advantage of any future stock market sell-offs by preying on bargains and swallowing up other companies at attractive prices when the time is right.
While Alphabet is a growth stock tip, Forbes’ next idea is a value pick. ArcelorMittal is the world’s largest steelmaker but has had its issues in recent years. However, a successful deleveraging strategy over the past couple of years and rising steel prices as China cuts back production in an attempt to help the country’s pollution problems mean that Forbes thinks the company could now be a bargain.
The steelmaker’s share price is currently much cheaper than its historical average, changing hands at a multiple of ten to forward earnings against a five-year average of nearly times sixteen despite the company currently outperforming its industry. ArcelorMittal also recently announced a $1 billion investment in Mexico aimed at taking advantage of growing steel demand from the central American country and is said to be planning a buy-out of Italian competitor Ilva S.p.A.
Finally, the third Forbes tip is Warren Buffet’s Berkshire Hathaway as the shares are currently trading at a price-to-earnings ratio of 21, a discount to the market. The company is currently being rated as a ‘hold’ by most analysts who feel its current trading price of around 25 times forecast 2017 operating earnings-per-share is fair value in the context of the average multiple of 19 for peers. However, with the company currently sitting on a mammoth $91 billion cash pile, big acquisitions could soon see Berkshire Hathaway motoring again and now might be the time to make the most of future upside for investors willing to take a risk on Buffet’s track record.
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