It’s that time of year again. The time of lists. There are Christmas lists, New Year’s resolution lists, food shopping lists, and of course, lists of the best and worst investments for 2017.
Before the holidays, I thought it would be better to focus on the upside of those investing lists, so following are 10 “best of the best” stocks to buy for 2017.
They come from various sectors and while some might be familiar to you, this isn’t just skimming off companies in the S&P 500 Index. I ran the numbers and came up with the best stocks with the best potential to turn 2017 into a very profitable new year. They are positioned from their fundamentals and their momentum to have a great year.
It’s not the first time I’ve recommended some of these “straight A” players, but in the spirit of one big holiday feast, here they all are. Now, get the season started on the right foot.
“Best of the Best” Stocks to Buy: Digital Realty Trust (DLR)
What’s to Like: 3.7% dividend yield
Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust specializing in technology-related real estate.
Basically, that means if you’re a tech firm or a decently sized business that stores its own records or operates online, DLR has space for you. Even big players in the data storage business will subcontract DLR space instead of buying, owning and operating space themselves.
A nice bonus of investors is the fact that DLR is a REIT, which means that all net profits are distributed to shareholders through a dividend. Right now, DLR is handing out a solid 3.7% dividend. And that nice payout is after the stock has had a nice 26% run year to date.
A great total return play.
“Best of the Best” Stocks to Buy: Dorchester Minerals (DMLP)
What’s to Like: 5.8% dividend yield
Dorchester Minerals LP (NASDAQ:DMLP) is in the oil and gas business. It’s also a limited partnership, which means DMLP considers investors owners and distributes net profits through a healthy dividend. Right now, that dividend sits around 5.8%.
That’s after a 72% run for the stock this year.
But this is just the beginning. Operating income is up significantly in 2016, as is revenue. This should continue as oil prices rise to a level where U.S. production is once again profitable. And given a Saudi price target of $60 a barrel oil, most fields in the U.S. are profitable above $50.
That means DMLP should have a very good 2017, as more and more of its properties come back online.
“Best of the Best” Stocks to Buy: Health Insurance Innovations (HIIQ)
What’s to Like: Obamacare restructuring
Health Insurance Innovations Inc (NASDAQ:HIIQ) is certainly in the right place at the right time. It’s a health insurance provider that works with health insurance agents and brokers. You won’t see HIIQ fingerprints on your policy, but it helped create policies that are then passed on to you.
Considering that the new Republican-dominated House and Senate are already working on plans to restructure Obamacare, HIIQ will be a beneficiary since health insurers will have a much more prominent seat at the table as new health insurance laws are passed.
You can see this in HIIQ’s stock price. In the past three months the stock is up 163%, mostly because of the Trump victory. This is one of the top picks by healthcare insiders and this is just a taste of what’s to come.
“Best of the Best” Stocks to Buy: Heska (HSKA)
What’s to Like: Undiscovered story
Heska Corp (NASDAQ:HSKA) is an unlikely top pick simply because the story about it and its sector is not discussed on the financial networks or in the financial press.
Essentially, HSKA is digitizing veterinary care. It’s cutting the costs of doing lab work and also speeding up the turnaround time of lab work. No longer do vets have to ship out samples to a lab and then set up another appointment to bring an animal back in. Much of the work can be done in house. Most importantly, it’s cheaper for both the vets and the animal owners.
In the past six months the stock is up almost 100%, with plenty of upside left.
“Best of the Best” Stocks to Buy: InterDigital (IDCC)
What’s to Like: Internet of Things
InterDigital Inc (NASDAQ:IDCC) is a telecom firm specializing in connectivity and the next decade’s biggest computer sector, the Internet of Things.
IoT is basically the technology that allows “smart” devices to interact with one another. For example, if you have a smart dishwasher, thermostat and oven, you could start your dishwasher, turn down your thermostat and preheat your oven remotely. IoT also has major implications for cars and all manner of transportation modes.
IDCC just reported its third-quarter earnings and it looks like the 84% the stock gained last year is just the start of its run. It just announced its fourth-quarter numbers will come in above expectations and it just inked a long-term deal with Apple Inc. (NASDAQ:AAPL).
“Best of the Best” Stocks to Buy: Malvern Bancorp
What’s to Like: Rising interest rates
Malvern Bancorp (NASDAQ:MLVF) is a bank that has served the Philadelphia region since 1887.
It is the regional banks that have recovered the best in the whole financial mess because they always stuck to who and what they knew. They were in the community and knew about neighborhoods and home values. They could see opportunities and emerging risks.
Bigger banks that don’t have that local feel can be in dangerous territory that can’t be solved by having national exposure and deep pockets.
With a $137 million market cap MLVF isn’t a major force, but it is well-positioned for an expanding economy and rising interest rates. The stock is up 24% in the past three months.
“Best of the Best” Stocks to Buy: MasTec (MTZ)
What’s to Like: Infrastructure boom
MasTec, Inc. (NYSE:MTZ) is in what is seemingly the yawn-inducing field of infrastructure development.
But don’t let that vague and less-than-stirring description fool you. MTZ builds oil and gas pipelines, sewer and water treatment systems, telecommunication, renewable energy and electricity projects. This is where some of the biggest spending will be happening over the next decade.
With a $3.3 billion market cap, it’s not the biggest fish in this sea. But that means there is outsized growth for MTZ. And if Trump does build out the U.S. infrastructure, it will become a very tantalizing takeover target for bigger players.
That is much of the reason it’s up 127% year-to-date.
“Best of the Best” Stocks to Buy: Nvidia (NVDA)
What’s to Like: Data visualization
Nvidia Corporation (NASDAQ:NVDA) is one of those companies that has lived up to its hype again and again.
Basically, it started as the go-to maker for high-end graphic processors. That meant everyone from online gamers to pharmaceutical labs kept its products in great demand. But as a chipmaker, you end up in a commodity-based business model and it’s hard to add value.
NVDA pivoted. It has gone beyond simply punching out new versions of graphics cards and is now focusing on the massively popular data visualization market. That means everything from driverless cars to Big Data visualization to commercial and institutional graphics.
NVDA is up 200% year to date — and it’s best days are ahead of it.
“Best of the Best” Stocks to Buy: Psychemedics (PMD)
What’s to Like: Likely takeover target
Psychemedics Corp. (NASDAQ:PMD) is a small firm — around $120 million market cap — but it has a very well-established niche. It sells drug-testing equipment to the professional, academic and personal markets.
Specifically, PMD has developed the most effective method of drug detection in hair samples available. You see, hair samples tend to hold onto drugs longer than blood or urine. That means there is less likelihood that someone can “game” the test by stopping their drug use days or weeks before a test. It also means the test is less intrusive to get samples — no blood-taking or supervised bathroom visits.
PMD is up 120% year to date and each quarter it keeps on reporting solid earnings. This could be a big takeover target, but even if it’s not, PMD has a good thing going.
“Best of the Best” Stocks to Buy: USD Partners (USDP)
What’s to Like: 8.9% dividend yield
USD Partners LP (NYSE:USDP) is a master limited partnership that’s in the energy sector. But it doesn’t drill or explore. It manages the logistics of rail terminals and other logistical operations. It gets the oil from the well to the midstream players that send the energy through their pipelines.
That means USDP is a especially sensitive to the exploration and production that happens in the U.S. energy patch. And in recent months we’ve started to see oil and natural gas come back online in the U.S., which is very good news for USDP.
Another very attractive piece to USDP is its status as an MLP. That means its net profits are directly shared with shareholders (aka unitholders). Right now the stock is pumping out a 8.9% dividend yield and it’s up 100% year-to-date.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.