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3 Growth stocks to invest in for 2020

Dimitar Bogdanov
  • December 31st, 21:25
  • Last Updated: January 2nd, 21:58
  • Mondelez is still considered to be undervalued despite a strong 2019
  • AstraZeneca is seen as a “top performer” in 2020 by analysts
  • Cloud solutions could pave the way for Accenture to grow even more next year

This year has seen stock market hit an all-time high. The benchmark index, S&P 500, has gained more than 33% since the beginning of the year. We identified three growth stocks that could significantly outperform the average of the market in 2020.

Mondelez International (NASDAQ: MDLZ)

The world’s largest snack company, has seen its value increase 40% this year. On average, analysts’ outlook on MDLZ price target is positive and many see the stock as undervalued at current price. 

It is worthwhile noting that the company has raised the dividend for six consecutive years since the 2012 divestment of Kraft Foods, which is well covered by earnings and free cash flow.

Bernstein, a highly regarded global research firm, sees Mondelez as a “solid standalone” investment.

“With ~80% exposure to the faster-growing snacking category and close to 40% of sales in emerging markets, Mondelez has the potential to grow the top-line at ~4% based on its category and geographic exposures”

it is noted in the note to Bernstein’s clients. 

Bernstein analysts believe that Mondelez may hit levels near $80 in three years time, which is more than 40% higher compared to the current market price. 

AstraZeneca (LON: AZN)

A London-based British-Swedish multinational pharmaceutical and biopharmaceutical company, is considered to be potentially one of the top performers in 2020. 

The stock gained 25% in 2019 and that momentum is expected to continue even though shares are trading near the all-time high. 

The company has managed a successful transition from being a general therapeutics company to a fast-growing firm with a number of well-established drugs. 

“Drug stocks with these characteristics can outperform for extended periods as management executes, and there is opportunity for upside as forecasts are below AZN guidance/ambitions,” an analyst from Cowen said while adding that “these attributes should drive AZN to top performance in 2020”.

Accenture (NYSE: ACN)

A Dublin-based consultancy, is one of the top performers in 2019 as it managed to increase its value by more than 50%. Despite a fantastic rate of growth, analysts believe that there is more room for growth. 

Accenture has built an impressive reputation as a fast-growing firm through acquisitions and partnerships. Its cloud product is seen as Accenture’s big strength. It is worthwhile noting that cloud revenues are expected to grow 17% in 2020, which leaves Accenture’s cloud solutions with a gap to fill. 

In the past, Accenture reported better-than-expected financial results in the trailing four quarters, which sets a good base for the future results.

Summary

We expect 2020 to provide us with plenty of opportunities for growth investments to thrive yet again. In this article, we picked three growth stocks for your consideration as these stocks are well-positioned to outperform the rest of the stock market. 

About the author

Dimitar Bogdanov
Dimitar Bogdanov
I have been a journalist for Invezz since 2012 and am one of the oldest on the team. My focus is on cryptocurrencies as well as general equity markets, although my experience is broad overall.

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