Investing in the stock market is one of the best options for building long-term wealth. After a massive selloff when the COVID-19 crisis first started taking off, the stock market actually reached new highs within six months.
When To Invest In Stocks
Few would have expected this increase in just a few short weeks. With new highs, many people might wonder if this is a good time to invest in stocks. The best time to get into the stock market was decades ago. The second-best time is now. Those who are able to invest and hang on for the long run will usually be able to see massive returns over time. Time in the market will generally beat trying to time the market. However, it's always a good idea to consider what the best stocks to invest in right now are.
Alibaba
Alibaba, an online Chinese retail giant, is one stock that you might want to consider. Trading under the ticker symbol BABA, Alibaba is expected to earn $7.20 per share over the course of 2020. According to the experts at Money Morning, “Those earnings are expected to climb 23% to $8.80 in 2021 and 27% to $11.24 in 2022.” There is the possibility that these numbers are understating the success that BABA might achieve over the next couple of years. Indeed, revenues are anticipated to increase by at least 30% in each of the next two years. If that happens, Alibaba shares could continue to soar into the future.
Eli Lilly
This American pharmaceutical company has a strong track record, and it could continue to pay off into the future. If the novel coronavirus has been the leading news topic in 2020, attempts to develop successful treatments have been an important subset of this news. Eli Lilly is currently involved in phase 3 trials related to an antibody treatment for COVID-19. Last year, Lilly earned $6.04 per share. By 2021, that number is expected to increase to $7.70 per share. Higher EPS numbers generally lead to higher stock prices. If Lilly's antibody treatment pans out, the company could be on its way to some impressive growth in the next couple of years. Additionally, there are a number of new treatments for other ailments that are in phase 2 and phase 3 trials. Success in these areas could lead to even more success.
One of the hottest stocks in the past decade has been Facebook. At first, the company started out as a social networking app. Now, it's much more. The advent of Facebook ads started to bring in a massive amount of revenue. The company expects to see revenue increases in the mid double digits over the next handful of years, and if the stock's price increases at a commiserate rate, the price of the stock could more than double in that time frame.
You may never get a better opportunity to invest in a number of great stocks. Over time, the market tends to go up, and you'll likely want to invest sooner rather than later to maximize your returns.
