Back to top

Image: Bigstock

How To Double Your Stock Returns In 2020

Read MoreHide Full Article

The market was on fire last year with all of the major indexes soaring to new all-time highs, with the Dow up 22.9%, the S&P up 28.9%, and the Nasdaq up 35.2%.

And 2020 is already off to a great start.

But none of this should come as any surprise.

Given the robust economy, unemployment at a 50-year low, household income at a 20-year high, and corporate earnings that continue to impress, it’s easy to see why stocks had a banner year last year.

And why stocks are expected to soar in 2020.

So as an investor, you should be handily beating the market right now. If not, now would be a good time to reflect on what you’re doing right in the market, what you’re doing wrong, and what you'd like to do better.

This includes patting yourself on the back for your successes.

Being honest with yourself for your failures.

And setting big goals for what you'd like to accomplish this year.

Like doubling your investment returns. (That’s right, double!)

Think Big

It takes no more mental energy to work on a big goal than it does to work on a small one.

But the end results can be enormous.

Most people set their sights on small ideas because they don't yet know how they'll achieve them.

But in today's day and age, somebody has likely accomplished the very thing you've set out to do -- and left a roadmap on how to do it.

That goes for the market too.

Continued . . .


------------------------------------------------------------------------------------------------------

Beat Wall Street to Zacks' Top 4 Stocks for Q1

There’s still time to get in early on our just-released Ultimate Four. These aren't just 4 promising stocks. They were handpicked from hundreds of strong companies by Zacks experts because they present the greatest upside over the next quarter.

1) A leading biotech firm that’s breaking new ground in a $33 billion per year cancer treatment niche.

2) A multinational specialty retailer with surging EPS growth recently that raised its dividend for the 6th consecutive year.

3) An established player in the tech space that transformed its business to catapult growth.

4) One of Apple’s top suppliers that is also benefiting from the expansion of 5G technology.

See Stocks Now >>

----------------------------------------------------------------------------------------------------

And the market looks poised for even bigger gains to come.

In spite of last year’s record gains, stocks were held back due to uncertainty over tariffs and the U.S.-China trade deal. Same goes for the USMCA trade deal as well.

But those trade deals will soon become the law of the land with next week’s signing of the phase one trade agreement with China, and the Senate’s expected passage of USMCA by month’s end.

And those 2 historic trade agreements with our top 3 trading partners are expected to usher in a wave of new growth and prosperity, as pent-up demand is unleashed, and new demand is created.

So it looks like stocks have a lot more upside to go.

Do What Works

So how do you fully take advantage of this historic opportunity?

By focusing in on which stocks should move up the most. That means sticking with tried and true methods that work to find the best ones.

For example, did you know that stocks with a Zacks Rank #1 Strong Buy have beaten the market in 26 of the last 31 years with an average annual return of 25.1% per year? That's nearly 2.5 x the S&P. But when doing this year after year, that can add up to a lot more than just two and a half times the returns.

And did you also know that stocks in the top 50% of Zacks Ranked Industries outperform those in the bottom 50% by a factor of 2 to 1? There's a reason why they say that half of a stock's price movement can be attributed to the group that it's in. Because it's true!

Those two things will give any investor a huge probability of success and put you well on your way to achieving your goals.

But you’re not there yet, as those two items alone will only narrow down a field of 10,000 stocks to the top 100 or so. Way too many to trade at once.

So the next step is to get that list down to the best 5-10 stocks that you can buy. 

Proven Profitable Strategies 

Picking the best stocks is a lot easier when there’s a proven, profitable method to do it.

And by concentrating on what has proven to work in the past, you’ll have a better idea as to what your probability of success will be now and in the future.

For example, if your strategy did nothing but lose money year after year, trade after trade, over and over again, there’s no way you'd want to use that strategy to pick stocks with. Why? Because it's proven to pick bad stocks.

On the other hand, if your strategy did great year after year, trade after trade, over and over again, you'd of course want to use that strategy to pick stocks with. Why? Because it's proven to pick winning stocks.

Of course, this won't preclude you from ever having another losing trade. But if your stock picking strategy picks winners more often than losers, you can feel confident that your next trade will have a high probability of success.

Stock Picking Secrets of the Pros

One of the best ways to begin picking better stocks and doubling your returns is to see what the pros are doing.

Whether you’re a growth investor, or a value investor, prefer fast-paced momentum stocks, or mature dividend-paying income stocks, there are certain rules the experts follow to maximize their gains.

This applies to large-caps and small-caps, biotech and high-tech, ETF’s, stocks under $10, stocks about to surprise, even options, and everything in between.

Regardless of which one fits your personal style of trade, just be sure you’re following proven profitable methods that work, from experts who have demonstrated their ability to beat the market.

The best part about these strategies is that all of the hard work is done for you. There’s no guesswork involved. Just follow the experts and start getting into better stocks on your very next trade.

Roadmap to Success

As you can see, there’s a clear roadmap to success to help you achieve your goal of doubling your stock returns in 2020, and for years to come.

No need to reinvent the wheel. The path has already been created. Now it’s just about doing it.

And there’s never been a better time.

These are historic times for the economy, and historic times for the market.

And historic times bring historic opportunity.

So make sure you’re taking full advantage of it.

Where to Start

As we talked about earlier, one of the smartest ways to maximize your gains is to find out what the pros are doing and consider following along.

Here’ an easy way to do that:

Download our just-released Ultimate Four Special Report.

These are 4 stocks hand-picked by our experts. Each has strong fundamentals and exceptional growth potential. They’re ideally suited to ride tailwinds of this historic market.

Stock #1: A leading biotech firm that’s breaking new ground in a $33 billion per year cancer treatment niche. After reporting 181% YoY increase in revenue, shares of this stock are prepped for a major move higher.  

Stock #2: A multinational specialty retailer with surging EPS growth recently that raised its dividend for the 6th consecutive year. This stock is one of the bright spots in the retail sector.

Stock #3: An established player in the tech space that transformed its business to regain consumer interest and catapult growth. The company’s strong cash flow and position in the market are fuel for outperformance.

Stock #4: One of Apple’s top suppliers that is also benefiting from the expansion of 5G networks and devices. The stock is cheap relative to its industry, even though the company’s earnings and margins are climbing.

I suggest you beat other investors to the punch and download this Special Report today. Opportunity ends Sunday, January 12.

Look into these elite 4 stocks now >>

Thanks and good trading,

Kevin

Kevin Matras serves as Executive Vice President of Zacks.com and is responsible for all of its leading products for individual investors. He invites you to download Zacks’ newly released Ultimate Four Special Report.