November is the best month to rebalance your portfolio by selling underperforming stocks and buying those that appear promising. If you sell the laggards now, you have the opportunity to write off the losses on your tax return.
You can use the free cash flow resulting from the sale to buy undervalued and highly promising stocks.
Top shares to invest in November
There is no better time to buy than now as the UK and China markets appear to be highly undervalued according to the Berkshire Hathaway valuation indicator.
The fundamentals are also strong in the US with the Federal Reserve recently slashing interest rates for the third time this year. A Fed rate cut makes stocks more attractive than bonds whose yields tend to plummet in a lower rates environment.
Furthermore, the US trade tensions with China are cooling off, creating an optimistic outlook for the end of the year. Brexit is still a concern, but there is high hope that an amicable deal is on the way. A good Brexit deal is a win-win for all stock markets across the globe.
If you are wondering about what shares to invest now, we have compiled a list of what we believe are the best buys today. Here are the best stocks to invest in November for investors looking for a global touch in their portfolios.
Amazon Inc. (NASDAQ: AMZN)
Amazon tops our list of stocks to invest now. Even with the weak performance in the last few months, this stock appears to be highly undervalued. According to Morningstar Analyst, RJ Hottovy, AMZN is likely to hit $2,300 by the end of the year from $1,789.44 today.
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The analyst has come to this conclusion by analysing and assigning a price to each business unit of Amazon. Amazon web services appear to be the most promising with Hottovy estimating that they are worth more than $300 billion, which is more than half of Amazon's market cap.
RBC Capital market analyst Mark Mahaney is a little bit more optimistic predicting that AMZN will hit $2,600. According to Mahaney, Amazon’s Total Addressable Market is the largest of all top internet tech platforms. He estimates it to be worth 20 trillion with the company only penetrating 10 per cent of it.
Netflix Inc. (NASDAQ: NFLX)
Netflix is another top stock to invest in November. The stock is currently trading at its lowest level for a year thanks to the sell-off resulting from Disney Co. and Apple announcing that they will be offering free streaming services.
Investors are worried that this will affect Netflix revenues as more people move to free streaming services. However, analysts predict a bright future for the stock even with the rivals offering freebies. According to Tom Vandeventer, as quoted on MarketWatch, the Netflix stock is a buy for investors looking to hold it for at least two years.
But why should Netflix investors not be worried about the competition? First, Disney and Netflix offer different content. Disney is more focused on the family, while Netflix is the one-stop-shop for almost everything. Secondly, Netflix has a global reach of over 151 million subscribers abroad.
Analysts conclude that the stock is currently undervalued and hence a good buy. The price may decline further as the sell-off continues but will rebound by early 2020.
Facebook, Inc. (NASDAQ: FB)
Facebook is another strong buy for investors looking for the best shares to invest in November. The stock has fallen back from July highs. Analysts predict that the price will rebound by 37.62 per cent by early 2020.
This social media behemoth user base will keep growing into 2020 and beyond. Data from Statista shows steady growth in the second quarter of 2019. Facebook Inc. boasts of over 2.2 billion users per day on its Facebook, WhatsApp, and Messenger services.
Furthermore, it is the world's second-largest seller of digital ads after Google. Some analysts predict that it will surpass Google to take the top position by 2025. However, this remains to be seen with rivals such as Amazon showing explosive growth in the last few years.
Facebook, Netflix, and Amazon can be considered the top 3 picks for investors looking for highly promising growth stocks. These stocks are undervalued and backed by strong fundamentals. Investors who buy these stocks can expect a significant value growth in the next 12 months.
Stay tuned to the latest market news, which can make top traded stock markets highly volatile. Track the performance of the stock market gainers live and trade CFDs on major global stocks with Capital.com.