Market volatility has been high this year, but there are still plenty of stocks to buy as we close out 2020. With a lot of uncertainty in the economy, November is poised to be one of the most volatile months this year. It is now Election Day, and the pandemic is still wreaking havoc across the nation. That said, investors are definitely not out of the woods yet.
In periods of uncertainty, it is important for investors to safeguard their portfolios with stocks that show strong long-term prospects. And while no stock is immune to movements in the market, some investments will emerge as winners despite any short-term pullbacks.
With that in mind, here are the top stocks to buy in November no matter what happens:
- PayPal (NASDAQ:PYPL)
- Facebook (NASDAQ:FB)
- Apple (NASDAQ:AAPL)
- Amazon (NASDAQ:AMZN)
- Quest Diagnostics (NYSE:DGX)
- Nike (NYSE:NKE)
- Moderna (NASDAQ:MRNA)
Now, let’s dive in and take a closer look at each one.
Top Stocks To Buy: PayPal (PYPL)
Tech stocks have been all the rage this year, and PayPal stock is one of the top performers in the sector. The company supports an online payment system, a service that has become essential in an era of contactless payments. In fact, the stock saw a strong rally this year from a low $85 in March to $203 in late October — a 140% increase.
When people switched to digital payments at the onset of the pandemic, PayPal experienced a spike in its transaction volume. That said, the company hopes to keep this momentum going with a number of new ventures. One of its efforts is a credit card designed around the Venmo platform, which will make it easier to split payments. It has also introduced a way for users to split payments into four installments — like buy now, pay later platforms.
Overall, as remote work and play continue to remain the norm, PayPal is poised for a greater upside. The company also reported their third-quarter earnings, and the numbers were pretty strong. Thus, PayPal is a great stock to buy in the novel coronavirus economy.
The stay-at-home environment has been a boon for social media stocks. That said, Facebook is one of the biggest players in the sector and saw a considerable rise in its value this year. And although the company is always making headlines, its fundamentals remain stronger than ever. A diverse portfolio of high profile companies like Instagram will keep Facebook in the limelight for years to come.
The company reported Q3 earnings on Oct. 29, and the results were impressive. According to CNBC, revenue for the period amounted to $21.47 billion versus an estimated $19.8 billion. Earnings per share also increased to $2.71 per share versus a forecasted $1.91 per share. Monthly active users were also up by 12% from the previous year at 2.74 billion. However, they also reported a decline in users located in the U.S. and Canada.
Although there was a lot of uncertainty at the start of the year, Facebook’s growth in Q3 is a result of accelerated ad revenue. As businesses moved online, the social media giant saw an increase in demand for advertising on its platform. The company expects this activity to carry on to the next quarter and predicts its ad revenue will be higher in Q4.
Overall, the increased engagement on Facebook’s platforms in lieu of online shopping in the digital age will keep this momentum going. And strong Q3 earnings coupled with greater growth in ad revenue makes FB stock a winner for the long-haul.
Thus, this is one of the top stocks to buy in November.
Top Stocks To Buy: Apple (AAPL)
An investment in Apple stock is a no-brainer in almost any economic environment, but especially so in the digital age. The company is a leading producer of consumer electronics, and experienced a strong rally this year despite a global pandemic. This surge can be attributed to the company’s strong focus on innovation and products that cater to the stay-at-home environment.
Additionally, Apple recently launched its packaged service — Apple One — which gives users access to a multitude of services. This includes Apple TV, Apple Music and iCloud among others. The goal is to keep users in the Apple ecosystem as they live, work and play from home. To add to this momentum, the company also introduced its first 5G-enabled iPhone this month. In turn, this rollout is expected to serve as a major catalyst for growth.
Collectively, Apple’s diverse business and its successful line of products is a major reason why many analysts remain bullish on this stock. Thus, this is a fool-proof stock to buy in the currently volatile corona-economy.
The wildly popular e-commerce giant is on everyone’s buy list, and with good reason. Online-shopping is dominating much of the retail sector this year, and Amazon is poised to benefit from this. The wide range of products on its platform coupled with next-day delivery makes Amazon a necessity in today’s environment.
Furthermore, another growth catalyst for the company is ad revenue. As e-commerce bites into a larger share of the retail market, there is a consequent increase in ad spend as well. That said, Amazon is a major player in this space and accounts for 1 in 3 ad dollars spent in the U.S. This value will only grow as the company continues to gain a larger market share in the future. And Amazon’s access to data like customers’ shopping habits will also enable them to create more targeted ads.
With all of that in mind, a profitable ad business and a strong business model makes Amazon one of the top stocks to buy in November. The stock is up 66% this year, and shows potential for even higher growth levels.
Top Stocks To Buy: Quest Diagnostics (DGX)
As the race to the coronavirus vaccine pushes full steam ahead, healthcare stocks are having a major moment. Quest Diagnostics is a test-maker that has thrived in the corona-economy. The company is not as popular as giants like Pfizer (NYSE:PFE) and Moderna, but is still a major player in the sector.
Quest Diagnostics operates an end-to-end service with the ability to run more than 150 million patient tests each year. That said, this will be an essential service as countries look to ramp up testing in the coming months. In fact, since the start of the pandemic, the company has run over 16 million tests in its labs. And the shift to a “new normal” has only increased the demand for its services. For example, Quest Diagnostics recently secured a partnership with Clear which is a biometric program used in airports.
Moreover, in its most recent quarter, the company achieved blowout results and beat analyst estimates. Earnings per share (EPS) rose by a surprising 164.6% and revenue rose by 42.5% year-over-year to $2.79 billion. Quest Diagnostics may be an underdog in the health sector, but this is definitely one of the top stocks to buy in November for long-term returns.
The coronavirus pandemic has served as a death-knell for many retailers, but Nike is well-positioned to emerge as a winner. In the era of e-commerce, the company has successfully leveraged its digital footprint to grow sales. And as one of the most famous brands in the world, Nike’s diverse product portfolio will keep this retail-giant afloat.
In its most recent quarter, Nike saw an 82% jump in digital sales, which is a massive feat for the company. Online sales only make 30% of its total business, but could account for half of its sales in time. This could also impact its bottom-line because Nike has a higher average selling price when selling direct-to-consumer than to wholesalers.
With a more digitally focused path forward, the pandemic is likely to change how Nike and other apparel giants operate. In addition to this, the e-commerce industry is projected to be worth $6.54 trillion by 2022 — hinting at a bright future for Nike.
Therefore, this is a top stock to buy for strong returns.
Top Stocks To Buy: Moderna (MRNA)
Moderna is a stock that has made headlines since the onset of the pandemic. The company is among the top contenders for the Covid-19 vaccine, and is currently in Phase 3 of its trials. Its vaccine is currently under approval in Canada, and is approved for review eligibility in the European Union (EU).
Additionally, Moderna has also signed supply deals with various nations such as the EU, where it has agreed to supply up to 160 million vaccines. While the company does not have enough revenue to hit this number at the moment, it expects to produce 1 billion vaccines by 2021. In terms of cash flow, Moderna is fully funded and received $1.1 billion in deposits to create the mRNA-1273 vaccine.
So, if Moderna’s vaccine is approved by the FDA, it could create a steady revenue stream for at least a couple of years. And with much greater upside ahead, this is a great stock to buy right now.
On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial writer and analyst who has written stories on various financial topics from investing to personal finance. Divya has been writing for InvestorPlace since 2020.