The U.S. initial public offering market is slated for its largest week since 2015, with several upcoming stocks to watch. Uber kicked off the latest round of IPOs on Monday, May 6. It was also the biggest IPO since Alibaba in 2014 and Facebook in 2012. Curious about which stocks you should watch over the coming months? Check out this list that highlights the hottest companies with the most growth potential through the rest of 2019.
Roku as a company remains unprofitable after its IPO, but it has a user base of more than 28 million monthly active users (MAU). It is also one of the fastest-growing userbases, thanks to Roku licensing its software to smart TV manufacturers. Looking at Roku from a pure subscriber standpoint, the stock has already surpassed traditional cable companies like Charter. It trails behind AT&T and Comcast, but Roku is quickly catching up.
Traditional cable subscribers continue to shed MAUs thanks to the cord-cutters movement driven by companies like Roku. Roku is expected to turn a profit soon, and international markets remain largely untapped for now. Roku is a risky stock pick, but it has seen high levels of growth over the last year with no signs of stopping.
Pharmaceutical companies are often avoided by short-term investors thanks to the negativity surrounding healthcare as a whole. But Pfizer has some undeniable potential even admit that negativity. It is the most valuable drug manufacturer in the world. PFE also offers a 3.4% dividend yield. Drug prices are one point of political scrutiny that could result in PFE being a risky investment. Revenue growth has also flattened out, despite the company growing its earnings. Adjust EPS of 1.3% suggests a similar increase for 2019.
American Eagle Outfitters (AEO)
It may seem counterintuitive to see a mall retail brand on a list of hottest stocks, but it’s worth noting. American Eagle has thrived in the world of online retailers dominating the retail space. The American Eagle Aerie line is one point of interest that continues to help the brand meet earnings expectations. The AE line focuses on women’s clothing and lingerie like bras, panties, and swimsuits. The products are available online and continue to be relevant despite Amazon’s dominance in the retail category. AEO could perform well over the long term as the Aerie brand provides a cheaper alternative to luxury brands like Victoria’s Secret.
United Parcel Service (UPS)
UPS is the entrenched leader in parcel shipping, though Amazon’s partnership with UPS may soon turn into a rivalry. Amazon is looking at creating its own fleet of package delivery services to manage the millions of Amazon packages that are shipped around the country daily. UPS as a company has been spending to add capacity to its service but will co-exist alongside Amazon and FedEx just fine. E-commerce growth increases demand for UPS services, making it an attractive stock for investors. Even with Amazon starting its own package delivery service, there is plenty of demand for multiple players in the pond.
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