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Stocks you should own in 2018

Now that a major chunk of the year of 2017 is over, it’s time to look forward to next year’s stock market investments. With US markets at an all-time high currently, not every sector has done extremely well. While retail, gas and oil stocks have suffered, many even declined. On the other hand, there are great stocks to invest which are hiding in plain sight, biding their time and perhaps looking forward to performing well next year. Here are some such stocks to invest in right now to reap their rewards and returns in 2018:

Tractor Supply Company

With TSC’s 2017 return being -5%, it’s been a hard, long decline for the company’s stocks, which have fallen more than 30% in the last one year. The unexpected weather and e-commerce threats, the company has a real, established niche that puts it at an advantageous position to battle its online competition. With a price-earnings ratio of just 15, the TSC stock is bound to rebound once the sector settles, so watch out for one of these stocks to investin 2018.

Knoll (KNL)

The office furniture industry is a cyclical one, and stocks in the sector soared after the election, inducing Knoll. However, since then, Knoll is down 30%, albeit other companies in the sector are down too. Investors should now wait for the cycle to return, especially in the wake of a solid macroeconomic outlook. Moreover, Knoll’s is trading at a mere 12x EPS (earnings per share), which is a 16-month low, and its dividend payout is 3%, thus proving that this is but an overreaction. Watch out for Knoll among stock to invest in 2018.

Dollar Tree (DLTR)

Dollar Tree, which fell 9% in 2017, has also been suffering from some self-inflicted wounds, such as the 2014 acquisition of Family Dollar. Another factor that has affected it is the threat of e-commerce, but that is just another overreaction. However, the fact that Dollar Tree has had same-store growth in 37 successive quarters as well as growth in Q1 earnings as well as year-on-year shows that the sentiment will change in the near future, and that is when the stock will gain.

Netgear (NTGR)

Consumer Wi-Fi routers manufacturer Netgear Inc., which fell 18% in 2017, is set up for growth – what with the multi-year headwinds such as entry of cable providers competitors and sales decline slowing beginning to fade. After the company makes its additional marketing investments and will retain dominant market share in chief important categories, margins will improve, as will cash flow, and the company stock will see an upswing. Netgear could very well be one of the best stocks to invest in at this point for earning returns next year.

Anadarko Petroleum (APC)

Andarko Petroleum’s shares have tanked as much as 36% this year, hitting a 52-week low. It’s a decline, yes, but the decline is bound to reverse at some point – and oil rebound is something that as a savvy investor, one shouldn’t miss. The company’s diversified operations, solid balance sheet is what is holding the company at this point. Once oil prices rebound, this company’s stock is bound to enjoy good times.

BankUnited (BKU)

When it comes to regional banks’ stocks, BankUnited has probably been the worst performer, having dropped nearly 20% in 2017. However, the bank is bound to see a turnaround soon – it has had solid first-quarter earnings, its dual markets in NYC and Florida look stable, and increasing interest rates and a strong real estate market environment should affect the bank positively. What’s more, the bank is trading at just 1.3x its book value. For savvy investors looking for a good, safe banking stock to hold for 2018, BankUnited is a good bet.

International Game Technology

International Game technology is standing out like a sore thumb in the throng of gambling-related stocks, all of which have gone up this year. With 3 consecutive disappointing earnings seasons, the stock is down nearly 26% this year, and almost a whopping 40% down from its highs in late November. However, this decline has left IGT’s stock trading at a noteworthy notable discount as compared to its competitors, which is where its optimistic view comes from. For instance, Everi Holdings has increased by more than 250% this year alone, while Scientific Games Corp is up 90%, looking to rise even more. So, all IGT needs is some operational traction and, with sentiment in the sector tilting the right way, IGT could be a surprise stock for 2018.

J M Smucker Co (SJM)

2017 Return: -9%

Food stocks are usually looked on as expensive. However, JM Smucker is a standout exception, it seems. The company has a diverse portfolio (including jellies, pet food, coffee, etc.) which should give the stock some traction in the uncertain grocery space. With the stock trading at just 15x to earnings-per-share multiple, and its peers all trading at 20x, the stock is poised for growth.

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