Last year, the ASX ended on a high with the decade closing on just over 20 per cent.
As always, some performed better than most in 2019 – but which stocks will be the ones to watch this year?
2019 highlights: These were the best performing ASX 200 shares in 2019
2019 lowlights: These were the worst performing ASX 200 shares in 2019
Looking forward: What's ahead for the Australian economy and markets in 2020
According to the experts, these are the Australian companies to keep an eye on this year:
Nickel Mines (ASX: NIC)
Nickel is our preferred commodity exposure as there is a lack of supply following Indonesia’s export ban. Nickel Mines (NIC) is undervalued compared to its peers and continues to grow production and earnings.
Medical Developments International (ASX: MVP)
The healthcare sector has outperformed Australia’s market benchmark index, the S&P/ASX200 over the last 10 years from 30 November 2009 to 2 December 2019, rising 401.64 per cent, vs the ASX200’s 45.96 per cent.
Within the sector, MVP is our pick. The company developed the analgesia drug dubbed the "green whistle’, which is usually provided as pain relief to patients in emergency situations. The business is expecting to launch in China, in 2021 which should result in improved sales from this new market. MVP’s earnings before interest tax depreciation and amortisations (EBITDA) is tipped to grow, along with its earnings per share (EPS) in 2020 and 2021.
City Chic Collective (ASX:CCX)
Plus-size (size 14+) women’s apparel business, City Chic Collective (CCX) has a strong management team and partners with global major retailers including US based Macy’s, Nordstrom and ASOS. Earnings will ramp up after buying cash-cow, US e-retailer, Avenue Stores.
–Jessica Amir, Market Analyst, Bell Direct
TWE, KGN, NDQ
I’d be careful of technology companies trading at ‘optimistic’ multiples of sales and/or earnings. Sentiment has pushed them into the stratosphere in some cases, and a reversal could, well, reverse that trend.
I would exclude the supermarket giants – especially Woolworths – from that list; the company seems impossibly highly priced for those seeking market-beating long term returns from here.
Forecasting share prices, particularly over short time periods (and 12 months is ‘short’, believe it or not) is a mug’s game.
If you’re looking for long term value, Treasury Wines (ASX:TWE) looks inexpensive; I expect Kogan (ASX:KGN) to be a long term winner; and exposure to some of the best tech companies in the world, through the Betashares NASDAQ 100 ETF (ASX:NDQ) would be three companies on my Christmas list.
–Scott Phillips, Chief Investment Officer, Motley Fool Australia
Note: Some quotes have been edited for brevity.
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