With the S&P at a record, not to mention skyrocketing since the start of the year, all indicators are that 2019 is going to be another banner year for investors. (The Motley Fool)
Even when the stock market is pricey, there are still lots of great businesses to buy. So which stocks do we like right now? We asked a team of Motley Fool contributors to weigh in, and they picked Illumina (NASDAQ:ILMN), Tanger Factory Outlet Centers (NYSE:SKT), Adobe Systems (NASDAQ:ADBE), Whirlpool Corp (NYSE:WHR), and PayPal (NASDAQ:PYPL).
A game-changing enabler of genetic discovery
Todd Campbell (Illumina): Shares in the gene-sequencing giant Illumina are trading 15% below their 2018 peak, and over the past few weeks, share prices have dropped about 8% on worry over decelerating operating margin. You shouldn’t ignore this recent slowdown in profitability, but a longer-term view could be more profit-friendly.
Illumina’s first-quarter earnings were hardly bad. Revenue rose 8% to $846 million and net income increased 11% to $237 million. The company expects revenue to grow 13% to 14% this year, resulting in adjusted EPS of at least $6.63 in 2019. That’s up from its prior guidance for at least $6.50 per share, and it’s up 16% from the $5.72 reported in 2018.
So why the sell-off? Illumina’s earnings are being weighed down by an uptick in research spending, which accounted for 20% of sales in Q1, up from 17.5% last year. As a result, operating income fell to 24% of sales from nearly 28% last year.
Read more here to see where The Motley Fool’s analysts put their money.