hey guys how's it going it's Andy from Magoo investing and happy Wednesday today we're going
to be wrapping up the kind of the four part series that I’ve been doing talking about the best stocks
to buy from every stock market sector going into 2021. the first two videos were my opinions on
bank of America where they gave their 11 favorite stocks and then the video I did yesterday
talked about the first five sectors and if you missed that video I’ll link it above right now
and then we're going to be wrapping up today with the final six stock market sectors that I
didn't cover yesterday are these my favorite 11 stocks to buy overall no but I think it gives a
wide variety of stocks in all of the different stock market sectors I’ve been seeing a lot of
some of the other youtubers that are making content talking about the stock market
they usually focus on one or two sectors it's usually technology and the up and coming
stocks that have a lot of upside and I think it's beneficial to talk about
all the stocks in the stock market because not everyone's looking for these high growth stocks
some people are looking for more conservative approaches to invest for the long term and I
think talking about all 11 of the stock market sectors gives that wide variety of stocks so that
everyone can get some important information out of these videos and since there are a wide variety of
stocks in this video there are time stamps in the description below if you'd like to bounce around
between stocks so before we get started I do have to say that I’m not a licensed financial advisor
and this is not financial advice anything you hear in this video is just me giving my own opinions
on the stock market and you need to do your own research before making any investment decisions
also if you've been enjoying these videos I really appreciate it for the like and subscribe button
as would help my channel out a lot with that out of the way let's hop into the first sector we're
going to be talking about information technology where bank of America picked QUORVO ticker symbol
QRVO Stock and I’m going to be going with Adobe Stock (ADBE Stock) ticker symbol $ADBE
information technology is such a wide umbrella it has all the tech stocks in there all of the
service docs and so I could pick something like a Microsoft Stock (MSFT Stock) or an
Apple Stock (AAPL Stock) that I think has fantastic upside but I think it just gets
talked about so much that I wanted to kind of spread my wings a little bit and talk about
what I think is one of my favorite tech stocks out there with Adobe Stock (ADBE Stock) ticker symbol
$ADBE which is currently trading at 500 and it's up 52 on a year and so similar to the last video
I’m going to be doing uh three main points for why I like all of these stocks and the first reason
why I like Adobe Stock (ADBE Stock) a lot has to do with its really high margins and so I really
like investing in software companies because they usually have crazy high margins and for people
that don't know margins are kind of how efficient a company is at turning revenue into income and
the higher that is the better the company is at doing that and with these software companies since
they're not having to spend as much on producing these actual products the margins are usually a
lot higher and we see that a lot with Adobe Stock (ADBE Stock) right now Adobe Stock (ADBE Stock)'s
net margin is at a recent high at above 40 percent which is very impressive and this
makes sense when you see the revenue chart that has just been steadily increasing over time when
you break it down into their two main businesses digital media makes up a majority of their revenue
and when you see that business it has a gross margin of 96% so this is the business that has to
do with a creative cloud the way that I edit these videos with premiere photoshop that type of stuff
with those subscription services bring in a lot of the money and since it is a subscription-based
model uh it has a gross margin of 96 percent uh and with year of year revenue growth of 26 and 22
since 2018 this is an area that's expected to increase over time and it's been growing at a
rapid rate already so reason number one high margins and reason number two that it has no
real competitors when it comes to their creative business and so competition is good when it comes
to actual consumers because it forces these companies to innovate and come out with the
best products possible but when you're looking at a the business side of things competition
usually results in lower margins because you're trying to price out the competition and since
Adobe Stock (ADBE Stock) doesn't really have any main competitors when it comes to their creative
or their digital business they're allowed to have really high margins and it doesn't really eat up
into their profits they have the best products out there and since they lack that competition that's
how they result in having profit margins for their gross margin of 96 percent and with their switch
to the subscription model in the past decade that has resulted in constant revenue streams
which I absolutely love reason number three that I like Adobe Stock (ADBE Stock) comes with their
fight to try to take over the CRM market from Salesforce Stock (CRM Stock) with Microsoft Stock
(MSFT Stock) and so I talked about how the margins for the creative part of their business at 96% but
their overall business is sitting at 40 percent the reason behind that is that the CRM market
is such a competitive market right now because it's growing at a rapid rate from the numbers
that I could find is that the CRM market is expected to have a compound annual growth rate
of 14 until 2027 and as of right now it's already massive Salesforce Stock (CRM Stock).com which is
ticker symbol $CRM is probably the largest and the most exciting of these CRM stocks but since they
focus primarily on that I don't like investing in CRM because there's so much competition in that
overall sector whereas Adobe Stock (ADBE Stock)'s main business with their creative doesn't really
have any competition and recently Adobe Stock (ADBE Stock) has been trying to take more of that
market share from Salesforce Stock (CRM Stock) and the way that they've done that is with a
deal that they had with Microsoft Stock (MSFT Stock) where they're going to be partnering
together to try to create an ai driven CRM product and so I absolutely love that and
when you partner these two massive companies that are very good at software and tech I think
it'll be a huge benefit for the company and it should result in their margins significantly
increasing over time because I think they're just going to only be better and take market share
from Salesforce Stock (CRM Stock) so the three reasons why I love Adobe Stock (ADBE Stock) for
a long term investment number one comes from their extremely high margins number two comes from the
fact that they have no real competitors when it comes to their digital products for the creative
and then number three they're fighting to take more of the CRM market from
Salesforce Stock (CRM Stock) after a recent partnership with Microsoft Stock (MSFT Stock) next
up we're going to be talking about health care and bank of America picked HCA healthcare which I gave
a big thumbs down and I’ve decided to talk about Teladoc Stock (TDOC Stock) ticker symbol $TDOC
when I first was doing research for this video I was not expecting to find anything in the sector
that I loved I don't love the idea of for-profit healthcare but I’m a big fan of what I’ve been
seeing with Teladoc Stock (TDOC Stock)when I talked about the 2019 IPO’s I talked about how I
really love the fact that Chewy Stock (CHWY Stock) which is the online pet sales company I love how
Chewy Stock (CHWY Stock) has been focusing on the online telehealth visits for vet visits
and that's pretty much exactly what uh Teladoc Stock (TDOC Stock)has been doing with actual
doctor visits and they've seen incredible growth in 2020 and so with that impressive
2020 they're currently trading for 208 dollars and they're up 149 on the year so you've seen
incredible growth when I look at these stocks that have done very well in 2020
first off I want to know why they've done well and with a company like Teladoc Stock (TDOC Stock)it
makes sense because with the pandemic people are not trying to go to the actual doctor's office
because you know the hospitals are a little busy right now so the number one reason why
like Teladoc Stock (TDOC Stock)comes from the incredible growth that they've seen in 2020. so
obviously telehealth visits became significantly more popular during the pandemic the company saw
their total visits increased by 163 percent in the first nine months of this year and when you
look at the data from the past four quarters you can see the crazy growth that this company has had
and so once you see this incredible growth during this wild 2020 my next question is
this sustainable or is this going to be a one-off thing because of the situation with the pandemic
and when I look at number two reason why I like the stock with acquisitions I feel like this is a
stock that is going to be doing well going forward and so for companies that have done well this year
I want to see them leverage their stock success into acquiring other businesses that's exactly
what Teladoc Stock (TDOC Stock)has done a few months ago Teladoc Stock (TDOC Stock)announced
an acquisition with lavongo that focuses on digital health monitoring tools for
mainly the older generation with chronic problems and while the stock market didn't exactly love
this and the stock fell 10 because of this news I think this was mainly a result of the fact that
it got rid of a stock because they were required that has had incredible growth in 2020 levongo
was up 400% and so people don't like that because it usually slows down the growth
and height between these two stocks but when I look at the long-term potential of the company
since they've been able to leverage the success of their stock price in 2020 they were able to
buy out a levongo and an all stock purchase which is what I absolutely love to see because it shows
that they're looking more to the future instead of just focusing on the incredible success that
they've had so far this year and so the number three reason is probably the biggest reason has
to do with a change in market sentiment and their compound annual growth rate so as I mentioned
2020 has been great for them but how are they looking going forward
and when I see a stock that has a one-off year I want to see growth going forward and the numbers
that I’ve been seeing seems very impressive and so this graphic shows the huge dump in
telemedicine users in 2020 and how it's expected to grow over the next couple years and so it's
expected to grow at a compound annual growth rate of 38 from 2021 to 2025 which is a massive jump
and so when I see that when you have the leader in this sector for telehealth and you see a compound
annual growth rate of 38% they're likely going to be the leaders in the sector going forward in a
market that's only going to continue to expand and so Teladoc Stock (TDOC Stock)estimates that the
total market right now is 120 billion dollars of potential but right now they only have a
market share of one percent of that meaning that they are a still a smaller cap company
that has a lot of room to grow going forward even though they have doubled so far this year
right now surveys that I was finding found that 76 of consumers are interested in telehealth well
that number was only 11 before the pandemic so what we're seeing with the pandemic is that we're
seeing a changing sentiment towards telehealth and how it's going to be more popular going forward
um and I was very impressed to see that 43 of seniors plan to use telemedicine after the
pandemic is over this was a kind of a question that I had going in because obviously when you
put the older generation and technology together you don't expect to see a lot of
success but seeing 43 that is a large base to expand their products to and so as of right now
Teladoc Stock (TDOC Stock)does have the risk of having a pullback going in 2021 when the pandemic
eventually ends but with the numbers that I’m seeing with the expected growth in the industry
I think this could be a great long-term investment even though it does have a
little bit of risk in the short term so I’m very curious to see what you guys have to say about
Teladoc Stock (TDOC Stock) example $TDOC in the comment section down below next up I’m going to be
going to industrials where bank of America picked Alaska Airlines Stock (ALK Stock) ticker symbol
$ALK I did give that a thumbs up and I thought about mentioning southwest airlines because
this is a stock that I own and absolutely love but I wanted to go away from the actual airline
industry because I talked about that at depth in yesterday's video and so I decided to talk about
another stock that has a huge bounce back potential with Boeing Stock (BA Stock) ticker
symbol $BA currently Boeing Stock (BA Stock) is trading for 221 dollars and it's down 32%
on the year and so this is definitely more risky compared to the other airlines but the number one
reason why I like the stock has to do with the discount and so this is a massive discount as a
result of the two 737 max crashes in the past two years and the resulting groundings of those planes
and then the pandemic happened and that removed a lot of the demand for the new planes
that was already pretty much at a low because of the lack of confidence with the max plans
looking at the all-time chart you can see how significant of a discount this is
and with the importance of this business to the us economy to the airline industry
and to actually the us government I think this could be a great bounce-back potential
and I think this is a stock that you could consider to be at a discount the number two
reason why I like Boeing Stock (BA Stock) has to do with its government protections with bailouts
and defense and so Boeing Stock (BA Stock) is one of these companies that benefits the most from the
us government and defense contracts the numbers I could find is that Boeing Stock (BA Stock) was the
largest US exporter they benefited a lot from tariffs and competition relief against airbus
which is their main competitor and so as a result of that Boeing Stock (BA Stock) has a lot of
support from the us government they are a US based business and so this is not something that I think
the government will let slide or decline anytime soon in addition Boeing Stock (BA Stock) has some
of the largest defense contracts out there just below Lockheed martin which is ticker symbol $LMT
from the numbers that I could find in 2017 they had 23.4 billion dollars in government contracts
that accounted for one-fourth of their overall revenue and what we know about the us government
spending is that they're likely not going to be touching the defense budget anytime soon
what this means is that Boeing Stock (BA Stock) is going to have consistent revenue streams
uh with the us government contracts even if maybe we don't see the recovery in the airline industry
like maybe we kind of expect speaking of that the number three reason has to do with the recovery of
the industry and the reason I think it is a bounce back stock so while the pandemic obviously was not
good for Boeing Stock (BA Stock) because it kind of made the demand for their planes go to a zero
it could be argued that it helped negate some of the problems with their 737 max planes because
there were groundings already because the demand was not as high and maybe have helped them for a
bit and so these planes are grounded for 18 months and they have now been given the okay to fly from
the FAA and those first flights with the 737 max planes are expected to happen towards the end of
this month with American airlines and while many airlines have cancelled their 737 max orders we
recently have seen Alaska Airlines Stock (ALK Stock) ticker symbol $ALK make some deals to
replace their airbus planes with the new 737 max planes and so hopefully with the pandemic ending
in 2021 this could be a decent recovery play and since this is a stock that has a lot of risk I
wanted to talk about some of the downside and some of the risks associated with it and so one of the
negatives that I could see is that there's been a lot of scrutiny about the airline industry and
Boeing Stock (BA Stock) with the amount of stock buybacks that they've been having considering that
they spent so much money on the stock buybacks which could be some of the reason that explains
the incredible increase in price I’ll put up the five-year chart again that had it shoot up to 400
a share and so there has been a lot of scrutiny behind that and at this point stock buybacks
are not going to be coming back anytime soon for these airlines because of the huge risk that it
puts on the company and so it does have that also you have the 737 max planes that have
a lot of uncertainty behind it and so this is a stock that I see as being a great long-term play
it was my favorite stock to buy going into 2020 then the pandemic kind of hampered that a little
bit but I still like Boeing Stock (BA Stock) for a long term investment even though it is pretty
risky in the short term so next up I’m going to be talking about real estate where bank of
America picked realty income Corp. ticker symbol $O and I’m going to go with innovative industrial
properties to resemble IIPR Stock which is currently trading for 186 dollars and it's up 145%
on a year so the number one reason why I like the stock has to do with its track record it is
up 145 on the year and the one-year chart is very impressive and the five-year chart is even better
and so this is a company that's been rapidly expanding at the end of 2019
they had 46 properties in 14 states and now it's up to 64 properties and 16 states
and in the past they've seen a 1400 increase in revenue in the past three years so as I
mentioned this company is a great track record for the stock and they are rapidly expanding
number two reason why I like the stock has to do with the dividend this is an reit meaning that by
law they are required to pay out 90 of their net income in the form of a dividend which currently
gives them a dividend yield of 2.9 percent after raising it by six percent in the last quarter and
so 2.9 percent isn't on the high end of some of the reits that you can find but when you put that
together with 145 percent increase the stock is seen in 2020 it is just additional cash flow to
put into your portfolio number three reason is it gives exposure to the cannabis industry
and so in my cannabis stock video I talked about how I don't really love a lot of the
weed stocks out there the individual ones how I talked about I like the ETF $MJ
and I liked IIPR Stock and so it's hard to find many cannabis stocks that have been doing well
this year and then going back even further it's hard to find any that have done well over the
past five years and IIPR Stock has a track record to back it up they do have exposure
to the cannabis industry and the way their business runs is that they allow the cannabis
industry to get around the problems that are set in place considering that weed is still
illegal at the federal level and what this means is that these companies are not able to get
financing from banks and so these weed companies are trying to rapidly expand
and so it's not a great time to be doing stock offerings because the stock prices are
at recent lows so you're not going to get incredible value from that and so what they do
is that these weed companies own their properties they sell them to IIPR Stock to get the cash flow
and then they uh lease them back to the actual weed companies what this does for benefits
for both sides it allows the weed companies to expand rapidly and it gives IIPR Stock the steady
revenue streams with their actual rent IIPR Stock is unique because it is the only wheat reit out
there it has incredible returns that will do very well with the expanding wheat industry
this is an industry that's expected to grow at a compound annual growth rate of 18 until 2027
and so there are some risks especially if weed becomes legal at the federal level
IIPR Stock won't have the type of leverage that they've had in the past but I don't see that
becoming legal anytime soon so I love IIPR Stock I think it's a great real estate stock I also like
um ticker symbol oh I think it's also great so next up we're going to be talking about materials
bank of America picked VALE Stock I give that a big thumbs down and I’m going to be talking about
Freeport McMoran Stock (FCX Stock) which is ticker symbol $FCX this is not an industry that i love
very much because materials are a very cyclical business but i did decide to pick fcx stock for
pretty much one main reason number one is this is a stock that I’ve traded in the past
this was a stock that was recommended to me by my dad when I was first trying out the
wheel strategy at the beginning of this year and you can see how volatile the market was at this
point from the returns I was able to get on some of my options my first trade I was able to get
5.5 on a put that only lasted 10 days and then a month later I sold a one-month put and got 13
from it obviously I missed out on a lot of cash considering these trades were at 5 and 50 cents
and eight dollars and now it's sitting at 25 and it's up 91 on the year so I did miss out on
a lot of that but there is a type of confidence that happens when you're looking to invest in a
company that you've owned in the past it makes me feel more confident compared to some of the other
material stocks out there and I have not found a lot of them that absolutely love
and so the number two reason has to do with copper prices similar to what I talked about with veil a
lot of these material products uh gold iron copper at recent highs and copper is at a 7-year high
and so since copper makes up 52 of their overall revenue this has resulted in huge spikes in price
especially in November where I think they saw a 25 increase in their price they do stuff with gold
and have exposure all across the world so it does give them some diversification of their portfolio
but it's hard for me to really like a materials company for a long-term investment because
it's such a cyclical stock and I don't really feel confident buying into these types of companies
but I will put FCX Stock as my favorite material stock out there and then finally we're going to
go with utilities, bank of America pick NextEra Energy Stock (NEE Stock) and I’m also going to
be picking NextEra Energy Stock (NEE Stock) ticker symbol $NEE currently it's trading for
75 dollars and it's up 24% on the year and since I’ve talked about it twice in the past
two weeks I’m just going to give a quick summary of what I like about it number one it's the US’s
largest energy company they took that spot from Exxon Mobil Stock (XOM Stock) ticker
symbol $XOM back in October they have enough capacity to power Greece or 10 of the us
it has a great track record over the past five years when I put up this chart and then when I
go to the all-time chart it's even better so has a lot of stability and since it's the largest
energy company in the us fantastic number two has to do with their work with renewables they have a
large focus on renewables which is very attractive for someone like me they are going to be spending
one billion dollars in energy storage in 2021 and that is expected to be the largest investment in a
single year for energy storage of any company ever and so they're also starting to work with hydrogen
power and that'll be exciting after they've seen incredible success with solar and wind energy they
also have a dividend of two percent which is a nice bonus and they've raised that for 25 straight
years making them a dividend aristocrat so I’ve already talked about them in a couple videos so
I just want to give my summary so overall those are my 11 favorite stocks from each of the stock
market sectors we had some good ones I didn't absolutely love bank of America’s list from the
track record they had all these stocks that they picked in 2019 going into 2020 underperformed
compared to their overall sector so hopefully I’m going to have a better track record at the end of
this year compared to bank of America so let me know what you thought about my list and let
me know what stocks you guys are looking to buy going into 2021 I’m probably going to be taking
the rest of this week off I may be planning a fun video to go up on Saturday but I will see
you guys in the next time I upload so thanks for watching and thanks for supporting the channel