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There certainly has been a lot of talk about cryptocurrencies, especially bitcoin, in the past few weeks. It’s not surprising. Every investor loves the zero-to-hero story, although most never realize that dream.
These kinds of “profit rockets” look much better in the headlines than they do in real life. For example, while bitcoin soared to amazing levels, within a few days half of its value was lost. This kind of volatility is expected in new investments like bitcoin.
But stocks still offer great returns and far less of a roller coaster ride. That’s why I found 10 stocks to buy instead of bitcoin. They will serve you well and keep your blood pressure at reasonable levels at the same time.
You don’t need drama to make money. As a matter of fact, just the opposite should be your goal. Good stocks that are on a solid growth path will help you remain cool while crypto investors are watching every uptick and downtick.
Stocks to Buy: Caterpillar (CAT)
Caterpillar Inc (NYSE: CAT) is the 800-pound gorilla of the heavy-duty machinery business. And that means, it’s one of the leading indicators of the global economy.
When growth is in the air, companies and countries start to look to expand or repair infrastructure, build out offices and expand services. These are huge, often-times multi-year projects. And they need heavy equipment.
For the past decade, CAT stock has been floundering because there wasn’t much growth, so there was no demand for equipment. But now, finally, things are changing. Orders are coming in.
After a 10-year average return of sub 17%, CAT stock is up almost 31% in the past six months. The good times are back for this construction giant.
Stocks to Buy: Ligand Pharma (LGND)
Ligand Pharmaceuticals Inc (NASDAQ:LGND) is a new generation of biopharmaceutical company. It’s basically an R&D operation that helps biotech and pharmaceutical firms discover new drugs.
With the cost of getting a drug through FDA testing running around $2 billion, drug companies need to operate as lean as possible, so many are deciding to outsource their R&D labs. They get a company that will focus on the specific area they’re interested in, or LGND can pitch a company on a discovery they made.
Most of the work is a split between a fee and licensing rights on any drug that goes to market. With the growing opportunities for pharmaceuticals in this tech-driven era, LGND is set to prosper. LGND stock is up almost 20% in the past six months.
Stocks to Buy: Polaris (PII)
Polaris Industries Inc (NYSE:PII) is not only inventor of the modern snow machines, but it’s a leading player across the off-road vehicle marketplace.
Now, for city folks, that may not mean much. But outside the concrete jungle, PII machines rule. All-terrain vehicles are used in everything from checking fences on a farm, to accessing remote hunting trails, to simply getting away from it all in the backcountry quickly and easily.
In many rural places, they are even viable replacements for cars or trucks.
What’s more, PII also builds the legendary Indian motorcycle brand as well as Victory motorcycles. Both are well regarded touring and cruising bikes, for those baby boomers looking for some wind in their hair on the open road.
Stocks to Buy: Westlake Chemical (WLK)
Westlake Chemical Corporation (NYSE:WLK) is a leading chemical firm, supplying industries with vinyls, polymers, olefins and other materials.
This is a cyclical industry that has been slogging through the slow-growth economy. But starting in the last quarter, things are starting to look up.
As the economy expands, there’s more demand for WLK products across all the industries it supports. In the past six months, WLK stock is up 41%.
What’s more, WLK is small enough — a $14 billion market cap — to be able to reflect this growth directly to its bottom line. And once this sector gets going, which it is, it’s a multi-year cycle.
Stocks to Buy: Omnicell (OMCL)
Omnicell Inc (NASDAQ:OMCL) is one of those healthcare tech companies that is in a very specific niche that will continue to grow, but isn’t exactly the stock that you’re going to talk about on the golf course.
It’s not a sexy biotech that has come up with a unique drug delivery system or made some breakthrough in gene therapy. Rather, it makes software and equipment that improves drug delivery and medication adherence for patients inside and outside hospitals and care centers.
Now, that doesn’t sound too exciting to most of us. But if you’re in the healthcare sector, this is the kind of tech that improves your patient results, helps your bottom line and keeps lawsuits to a minimum.
And that’s pretty sexy stuff for hospital and healthcare administrators.
Stocks to Buy: HollyFrontier (HFC)
HollyFrontier Corporation (NYSE:HFC) is a relatively small independent refiner. It has a number of refineries around the Midwest and Southwest.
While the U.S. shale fields have been up and down in recent years, it finally looks like Saudi Arabia and OPEC are no longer interested in making life tough for U.S. shale firms and have move on to other big clients like China.
That’s good news for U.S. energy independence since it means prices will stay high enough for U.S. producers to make money. That means refiners like HFC are also winners in this scenario.
That’s the main reason HFC stock is up 31% in the past six months. It has come off its bottom and is truly back in business. As the U.S. and global economy expand, so will the coffers at HFC.
Stocks to Buy: Boise Cascade (BCC)
Boise Cascade Co (NYSE:BCC) is a North American wood products manufacturer. It has certainly had its ups and downs over the years. It almost went under in the 1970’s when it unsuccessfully tried to diversify its business.
In 2003, it bought OfficeMax Inc (NYSE:OMX) as a way to vertically integrate its paper business. But by 2008, it sold off its pulp and paper division entirely.
That leaves a lean, focused firm that can concentrate on the construction market, which is starting to heat up. In the past six months the stock is up 34%. That’s a bullish sign that a building boom is on its way. And given BCC’s focus, this could be a very good ride.
Stocks to Buy: Control4 Corp (CTRL)
Control4 Corp (NASDAQ:CTRL) has a market cap of about $820 million and it does about more than $210 million in annual revenue. It’s not a big company.
But that is what makes it so interesting. It’s in the smart home and business solutions sector. And this is getting very hot now.
That’s why CTRL stock is up 53% in the past 12 months. Because it’s smaller company in a ground floor sector, growth is going to be outsized for a while. And because of its size and growing reputation in the space, it’s also becoming a very tempting takeover target for bigger firms looking to expand into the space or simply acquire its list of business.
CTRL stock will likely have more volatility than other bigger stocks in this list, but the ride could be very rewarding.
Stocks to Buy: Abiomed (ABMD)
Abiomed, Inc. (NASDAQ:ABMD) makes one thing — the world’s smallest heart pump.
Heart disease is responsible for more than a third of all deaths in the U.S. And a heart transplant costs about $780,000. The Impella heart pump costs around $25,000 and it has been shown to be more effective than more traditional intra-aortic heart pumps that cost up to $100,000.
These kinds of numbers make ABMD stock a very attractive way to play the changing of the guard in the medical technology. And bear in mind, ABMD invested the first artificial heart in 1981, so it knows its way around matters of the heart.
ABMD stock is up 117% in the past 12 months and it’s only the beginning.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.