10 Stocks for 2020

Since the Civil War, United States has been in a recessionary period once every 10 years. This has been the first decade long stretch when recession was kept at bay. On top of that, the stock market keeps climbing to new highs. The S&P 500 index was at 768.54 points on March 20, 2009, and it was at 3,221.22 points on December 20, 2019. The stock market has seen unprecedented growth. Needless to say that we are in uncharted territory. In this week’s blog post, I will talk about 10 stocks that I will be looking out for in 2020.

As I do not want to fall victim to consistency bias, I want to put it out there that the stocks mentioned below are just on my watch-list, and neither I nor Superior North LLC currently owns any of these stocks. I can change my views anytime, and these stocks would definitely need more research before I do invest in them. The intrinsic value calculated below is only a rough estimate. Now, let’s look at these 10 stocks in alphabetical order:

1. Accenture plc (ACN)

Sector: Technology
Industry: Information Technology Services
Current Price: $211.10/share (as of 12/20/2019)
Intrinsic Value: $143/share (DCF analysis using 5% growth in FCF and 10% discount rate) 

2. Alphabet Inc. (GOOG)

Sector: Communication Services
Industry: Internet Content & Information
Current Price: $1,329.59/share (as of 12/20/2019)
Intrinsic Value: $913/share (DCF analysis using 10% growth in FCF and 10% discount rate)

3. Amdocs Limited (DOX)

Sector: Technology
Industry: Software—Infrastructure
Current Price: $72.61/share (as of $12/21/2019)
Intrinsic Value: $60/share (DCF analysis using 5% growth in FCF and 10% discount rate)

4. Arch Capital Group Ltd. (ACGL)

Sector: Financial Services
Industry: Insurance—Diversified
Current Price: $42.67/share (as of 12/20/2019)
Intrinsic Value: $46/share (DCF analysis using 2% growth in FCF and 12% discount rate)

5. Costco Wholesale Corp (COST)

Sector: Consumer Defensive
Industry: Discount Stores
Current Price: $294.83/share (as of 12/20/2019)
Intrinsic Value: $137/share (DCF analysis using 7% growth in FCF and 10% discount rate)

6. Ecolab Inc. (ECL)

Sector: Basic Materials
Industry: Specialty Chemicals
Current Price: $191.22/share (as of 12/20/2019)
Intrinsic Value: $130/share (DCF analysis using 10% growth in FCF and 10% discount rate)

7. Lockheed Martin Corporation (LMT)

Sector: Industrials
Industry: Aerospace & Defense
Current Price: $386.47/share (as of 12/20/2019)
Intrinsic Value: $358/share (DCF analysis using 8% growth in FCF and 12% discount rate)

8. The Procter & Gamble Company (PG)

Sector: Consumer Defensive
Industry: Household & Personal Products
Current Price: $125.36/share (as of 12/20/2019)
Intrinsic Value: $76/share (DCF analysis using 5% growth in FCF and 10% discount rate)

9. Total S.A. ADR (TOT)

Sector: Energy
Industry: Oil & Gas Integrated
Current Price: $54.37/share (as of 12/21/2019)
Intrinsic Value: $52/share (DCF analysis using 2% growth in FCF and 15% discount rate)

10. W. R. Berkley Corporation (WRB)

Sector: Financial Services
Industry: Insurance—Property & Casualty
Current Price: $68.93/share (as of 12/20/2019)
Intrinsic Value: $51/share (DCF analysis using 2% growth in FCF and 12% discount rate)

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Hope you learned a little and found this blog post helpful. We talked about 10 stocks to look for in 2020. The 10 stocks are: ACN, GOOG, DOX, ACGL, COST, ECL, LMT, PG, TOT, and WRB. As always, you can sign up for our free mailing list here.  You can sign up for our paid subscription services here. Like us on our Facebook page here. Thank you!


Superior North LLC’s content is for educational purposes only. The calculators, videos, recommendations, and general investment ideas are not to be actioned with real money. Vyom Joshi is not a professional money manager or a financial advisor. Contact a professional and certified financial advisor before making any financial decisions. Please review the Disclaimer and Terms and Conditions.


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