From biotech to social networking, there are some bargains out there for investing in 2016.
In a special session at San Diego’s recent Investors Blueprint Live event, experts John Hutchinson, Michael Shulman, Jim Woods and Jamie Dlugosch gave their winners for next year.
The four trading and investing pros were tasked with giving a pick that they hadn’t presented before, and to use their independent analysis to find stocks that could be good long-term buys.
Here are their results…
Social network behemoth Facebook (FB) needs no introduction.
It’s no secret that hordes of businesses are buying online ads from Facebook and dropping other regular sources like Yahoo (YHOO).
“Nearly every publisher I know is spending the vast majority of its ad money on Facebook advertising,” said Hutchinson. “In the next few months as well as the next few years, [Facebook] will grow.”
The company is basically an Internet juggernaut. In September, it crushed analysts’ revenue expectations of $4.3 billion, posting $4.5 billion in the quarter. It also posted a profit of $896 million.
More importantly for investors, analysts report that marketers are happy with their returns from the ads they place on the site, too.
Next up: a pick that might surprise you…
Cepheid (CPHD) makes specialized molecular diagnostic medications.
It isn’t a speculative company—it’s a speculative stock.
“Cepheid’s chart isn’t pretty,” Shulman stated. “But we’re at an inflection point for the stock itself.”
The company has hit some not-so-stellar benchmarks, such as an FDA warning that its processes aren’t up-to-par in Sweden, for example.
But, the company’s latest outlook for 2016 and 2017 shows growth as it puts some things behind it. In its latest outlook, it expects a profitability breakthrough in the next two years.
Up next: a “gorgeous” stock for 2016…
Dycom Industries (DY)
Dycom (DY) makes the technology that enables telemedicine and video conferences.
“For our kinds of buying purposes, it’s gorgeous,” said Woods.
The stock has been on a tear, surging more than 200 percent in the last year.
Dycom also handily beat analysts’ expectation in its last earnings report.
The bigger news, however, isn’t that it’s beating its estimates, but that its major customers, such as AT&T (T) and CenturyLink (CTL) are buying more and more of Dycom’s products, and the demand seems to be growing as more consumers demand faster Internet connections.
Our last pick is from a company that produces an arguably ugly product, but it’s still selling like crazy…
Deckers Outdoor (DECK)
The maker of Ugg boots isn’t ugly, at least from an expert’s standpoint.
“The stocks that have taken a beating are the ones that can find their way onto the P/E Gap analysis,” said Dlugosch. “Deckers (DECK) will find its way onto the chart.”
Deckers is expecting profits, and beat expectations in its last earnings report.
Sales were up almost 6 percent, and revenue hit a new record at $506 million in its second-quarter results in October. The company also updated its earnings-per-share estimates, and instituted a stock-repurchase program.
This post originally appeared on mainstreetinvestor.com.