10 Best Stocks to Buy in 2019

Don't chase tech stocks — look for value buys instead.

Here’s some bad news: There’s no sure-fire way of knowing which stocks are the best to buy for 2019. If there were, financial writers wouldn’t be financial writers; they would be wildly successful hedge fund managers. After all, plenty of articles made projections about the best stocks to buy in 2018, but how many included Twilio (TWLO), the cloud communication company that represents the top-performing mid-cap or larger stock of the year?

However, although there’s no way to predict what will happen with stock markets — let alone the broader economy — in 2019, you can try to make some broad assessments based on recent activity. With that in mind, here are 10 stocks that could be solid investments for 2019.

Value Stocks, Dividends Could Make Sense for 2019

With stocks showing some serious volatility as high-flying tech companies appear to be returning to earth, it’s possible that 2019 could be a good year to own some more conservative stocks. Focusing on value and dividends means grabbing stocks that are more likely to maintain their current level or at least minimize losses in a bear market.

With that in mind, here are 10 companies from the S&P 500 that sport low price/earnings ratios, low price/earnings to growth ratios and dividend yields of at least 2 percent. It’s impossible to say for sure, but if markets continue to falter in 2019 — or at least grow at slower levels — these could be a good way to benefit.

Related: How to Use P/E Ratio When Picking Stocks

Allstate Corporation (ALL)

Chicago-based insurance provider Allstate has had a rough 2018 — with shares falling from highs over $100 to under $90 by mid-November — but that could just mean investors are overlooking the company. It currently has a solid price based on its earnings, revenue and projected growth in addition to its dividend yield of 2.1 percent. Allstate is also an affordable stock you can buy on a budget.

Bank of America Corporation (BAC)

Bank of America’s stock has been up and down all year, but the fact that it has failed to make big gains this year could mean next year will be stronger. The current mega-bank is sitting on a PEG ratio of just 0.52, indicating that it is both sporting solid value and projecting strong growth over the next five years. It also has a solid dividend yield that clears 2 percent. Find out how much Bank of America is worth.

International Paper Company (IP)

International Paper Company is a paper and packaging company that makes boxes and other packages for shipping. After losing a little over $10 per share from January 2018 through late-November, the company still hasn’t been reduced to a pulp. The stock’s P/E ratio of just over six and a P/S ratio under one both indicate a stock that’s trading a major discount despite a hefty dividend yield of 4.45 percent.

Find Out: 10 Best Dividend Stocks of All Time

Comerica Incorporated (CMA)

Commercial bank Comerica Incorporated is another stock that is projecting earnings growth over the next five years and is trading at a good price for it with a PEG ratio of just 0.55. Along with its dividend yield just over 3 percent, it could be another financial stock worth considering for 2019.

Morgan Stanley (MS)

Major investment bank Morgan Stanley offers solid value, projected growth and a pretty fair dividend that’s yielding 2.79 percent at the moment. If stocks continue to tumble into 2019, those factors could all make it that much more appealing for people looking for an alternative to inflated tech stocks.

General Motors (GM)

As CEO Mary Barra tries to steer the prominent car company toward a new future with investments in electric and self-driving vehicles, GM’s stock looks like it could be a pretty solid buy. It’s trading at a very attractive multiple to sales, earnings and projected growth, and it has a dividend yield that’s over 4.25 percent heading into the end of 2018.

Delta Air Lines (DAL)

Although Delta’s stock hasn’t exactly been flying high over the last year, it enters 2019 in a state that could be appealing to many investors. That’s because it’s relatively cheap at its current price based on the company’s financials and it is still sporting a dividend yield of almost 2.5 percent.

Discover Financial Services (DFS)

Although Discover started as a credit card network, it is widely known these days for providing personal loans, among other consumer products. And with a PEG ratio of about 0.52, it would appear to be a great value buy based on its current and projected earnings figures, all with a dividend yield of about 2.34 percent. Find out why Discover is much more than just a credit card company.

Phillips 66 (PSX)

Mid-stream oil company Phillips 66 showcases a lot to like for value-oriented investors, with a P/E ratio below seven and a P/S ratio below 0.5 on top of a dividend paying out over 3.60 percent a year. Caveat emptor, though: This is one stock that Warren Buffett was selling late in 2018, if you don’t want to go against the Oracle of Omaha.

Synchrony Financial (SYF)

Financial services company Synchrony Financial might be familiar to consumers for its role as the issuing bank for many co-branded credit cards, but it should be familiar to investors as a potential value stock. The company’s current trading price is pretty attractive based on its growth, earnings and revenue, and it’s offering a dividend that yields 3.29 percent.

Read about safe stocks for first-time investors to consider.

More on Investing in Stocks

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This article is produced for informational purposes only and is not a recommendation to buy or sell any securities. Investing comes with risk to loss of principal. Please always conduct your own research and consider your investment decisions carefully.

All stock information is accurate as of Nov. 27, 2018.