Every market day we update the proprietary POWR Ratings model. Even as most of you were busy with New Year’s Eve preparations, the model ran once again with a fresh crop of 61 stocks upgraded to Strong Buy ratings.

Today as my Wisconsin Badgers were playing in the Rose Bowl, I had laptop in hand to focus  on these 61 stocks. In the end I boiled the list down to a diversified group of 5 with broad appeal for the year ahead. The ones that emerged were AutoZone (AZO), Barclays (BCS), ConocoPhillips (COP), Enterprise Products Partners (EPD) and Norfolk Southern (NSC).

Let’s me share insights on each below.

AutoZone (AZO)

AZO has been one of the best and most consistent growth stories in retail going back 10+ years. Their latest earnings beat let analysts know that the growth party is far from over leading to a fresh round of positive estimate revisions and target price raises. So even though AZO rallied a market topping 42% in 2019, Wall Street experts still see them climbing even higher in the year ahead. That includes a street high target of $1,435 from the top rated analyst from Citigroup.

Barclays (BCS)

Barclays is a global financial giant that took a turn for the worse in 2015 that led to 7 earnings misses in the years ahead. Gladly their mid-year 2019 earnings announcement looks like a turning point with their outlook and share price heading higher since. And as most investors know, few investment stories can outperform a sustained turnaround. The above average 3.1% dividend yield for BCS certainly adds to its appeal going forward.

ConocoPhillips (COP)

Energy prices have been rocky the past few years putting a large question mark next to top names like COP. However, this year we have seen energy prices stabilize and head a healthy notch higher. That is obviously a benefit to COP profits and share price which has rallied 22% in the past 3 months alone. Phil Gresh is the highest rated analyst following ConocoPhillips and he sees shares heading to $74 this coming year. Probably the improvement in the US China trade issue will only bolster worldwide growth. That usually is of benefit to oil prices and should help COP and peers outperform this coming year.

Enterprise Products Partners (EPD)

EPD is the right choice for folks that are a bit concerned about this bull market as it heads into its record breaking 11^th year. That’s because MLP pipelines are a much more stable business and there is little doubt that their hefty dividend will continue to flow. The most surprising part of the EPD investment story is how undervalued shares appear to be. The average Wall Street target is nicely higher at $32.50. However, the 5 Star Analyst at RBC sees $36 being a much more appropriate landing place for shares. That potential capital gain + 6.3% dividend yield makes EPD very attractive coming into 2020.

Norfolk Southern (NSC)

Railroad shares like NSC were consistent growth stories during this 10+ year economic expansion. That came under pressure last year as tariffs on China trade led to lower amount of goods needing to be transported. That concern is likely coming to an end soon and investors should return to the transport group and leaders like NSC by the carload.

Want more great stock picks? Then check out these additional resources:

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COP shares were unchanged in after-hours trading Wednesday. Year-to-date, COP has gained 6.63%, versus a 31.22% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

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