Best Stocks to Invest in on December 24, 2019

As an SEO expert, today we'll explore the top stocks to consider purchasing on December 24, 2019. This date marks a key moment in the stock market, as it offers both opportunities and challenges. Let's delve into the details of some notable companies, including ABB, Infosys, LT, Reliance Industries Ltd., and HUL.

AccionTransformer ABB

ABB has been a key player in the automation and digitalization fields. Following a demerger in December 2019, ABB has effectively separated its Power Grid business, marking a significant step forward in its strategic direction. Here is a detailed analysis of why ABB stands out:

Post-Demerger Concentration: With the Power Grid business no longer present, ABB's core business focuses on products and services, making it a pure play on digitalization and automation. Revenue Growth Potential: Despite the current economic slowdown, ABB expects a strong bounceback in order inflows, driven by recovery and investment trends. Historical Performance: ABB has shown consistent performance with an Adj. PAT CAGR of about 22% from FY13 to FY18, indicating strong earnings growth. Future Projections: For CY19 to CY21, ABB forecasts a residual business PAT CAGR of 29.5%, highlighting future profitability. Valuation: The stock is expected to trade at a premium to Siemens, given the transformation in its business model. Maintain a Buy recommendation with a TP of INR1460 based on a 45x CY21E EPS.

IT Giants: Infosys and LT

Infosys and LT (Larsen Toubro) are two of the leading IT and engineering conglomerates, known for their robust track records and reliable performance. Here's what you need to consider:

Transformative Potential: Both Infosys and LT are heavily involved in the tech and engineering landscape, offering a mix of software solutions and hardware services. Stable Revenue Streams: Their diverse portfolio and global client base provide stability, even in fluctuating economic conditions. Growth Opportunities: With ongoing digital transformation, both companies are set to benefit from increasing demand for modern IT solutions and infrastructure projects. Valuation: Both stocks offer good value for investors, with potential for significant growth, especially as the market continues to favor robust IT and engineering services.

Reliance Industries Ltd.

Reliance Industries Ltd. (RIL) is one of the largest and most diversified companies in India, known for its petrochemicals, telecommunications, and consumer goods businesses. Here's why RIL is a strong contender for investment:

Diversified Business Model: RIL's diverse portfolio includes everything from oil and gas to retail and telecommunications, providing protection against economic downturns in any single sector. Strong Revenue Streams: With significant contributions from oil, gas, and digital services, RIL offers a steady revenue base. Future Prospects: The 4G and 5G rollout is expected to drive growth in the telecommunications sector, benefiting RIL's Reliance Jio division. Valuation: Despite current market conditions, RIL's strong fundamentals and future growth prospects justify a Buy recommendation.

HUL: Homenative Universal Limited

HUL (Hossilite Universal Limited), often compared to the legendary singer Kishore Kumar, is a household name in India, known for its consumer/customer-oriented goods. Here's a brief analysis:

Evergreen Brand: As a testament to its strong brand and product quality, HUL has maintained consistent sales and market share for decades. Brand Power: With a widespread distribution network and a loyal customer base, HUL is well-positioned for long-term growth. Consistent Performance: Beyond its vast product range, HUL has shown steady growth, with CAGR estimates of around 10% in the consumer goods sector. Valuation: At a premium valuation, HUL offers reliable dividends and steady growth, making it a worthwhile investment for long-term investors.

These stocks present strong opportunities for investors looking to maximize their returns on December 24, 2019. By carefully considering the unique attributes and future prospects of each company, you can make informed decisions to grow your portfolio. Always remember to conduct thorough research and consult with a financial advisor before making any investment decisions.