5 Potential Stocks for Your Portfolio

  • Feb 07, 2020 AEDT
  • Team Kalkine
5 Potential Stocks for Your Portfolio

At the time when the world is under serious threat of coronavirus, and the nation is still bearing the pain of devastating summer fire season, it becomes imperative to choose your stock portfolio wisely.

Given this backdrop, market participants are evaluating the top stocks to watch in 2020, which have the potential to beat the market amidst ongoing uncertainties.

Let us discuss the five best potential stocks to look at this year.

Dragontail Systems Limited (ASX:DTS): Using AI Technology at its Best

Australian-headquartered Dragontail Systems Limited (ASX: DTS) is revolutionizing the foodservice and Quick Service Restaurant (QSR) industry with its two flagship products – Algo Platform and computer-vision QT quality system that utilizes AI machine learning.

Its Algo Platform is the first system in the world that can streamline and fully automate the kitchen flow to provide a significant and immediate return on investment to quick service and fast-food restaurants. Moreover, its QT system’s camera and sensor can monitor the preparation and cooking process in the kitchen automatically, improving the consistency and quality of meals.

In 2019, the Company’s installed base improved ~10-fold relative to December 2018, reaching more than 2,000 stores globally.

Dragontail’s DT Algo system has been proved to be a success in Pizza Hut stores, following which, the Pizza Hut Board of Directors decided to accelerate the deployment of the Algo Platform in Pizza Hut stores across Australia, allocating all the resources needed to complete the 250 stores' installation as planned.

The Company’s Algo Platform is targeted to be rolled out into 250 Pizza Hut stores across the nation and is expected to be completed by the end of Q2 2020.

With the completion of the Algo platform’s rollout in Australia across all Pizza Hut stores, the Company is set to make great strides in 2020.

EML Payments Limited (ASX: EML): Fintech Star With Over 750% Return in Five Years

Payment card technology solutions provider, EML Payments Limited’s (ASX: EML) stock has delivered a return of over 750 per cent in the last five years. Isn’t it fascinating? What’s more exciting about this stock is its 10-year return, which is over 8400 per cent.

Not only its long-term returns are captivating, its stock has generated a return of over 90 per cent in the last six months. Its stock performance in the short-term and long-term surely strengthens its position among the top stocks to watch in 2020.

EML Payments Limited makes your payment processing more efficient, offering innovative financial technology that offers solutions for incentives and rewards, payouts, gifts and supplier payments. Within last three months, the Company has signed two significant agreements, one with global shopping mall operator, Simon Mall Group and other with NSW Health.

It is hard to deny that the Company has so far made tremendous progress in the fintech space and is well on track to continue doing it further.

Orocobre Limited (ASX:ORE): Back into Action Amid the Lithium Rush

The electric- car maker, Tesla, Inc.’s plan to produce around 500,000 electric vehicles in 2020 and the UK government’s intention to ban the sale of diesel and petrol cars by 2035 is likely to blow tailwinds to lithium miners this year.

One such lithium miner that is expected to benefit is Orocobre Limited (ASX:ORE), that has observed substantial progress on its both growth projects at the Naraha Lithium Hydroxide Plant and Stage 2 Expansion of Olaroz, with Olaroz operations remaining on track to deliver improved production for FY20.

The Company has also signed two contracts for the supply of lithium carbonate (battery-grade) to top level cathode manufacturers of China recently, with the shipments expected to commence in the March quarter 2020.

The Company is on track to deliver better quality and higher value product in 2020.

Jatenergy Limited (ASX:JAT): Benefiting Amidst Coronavirus Fears Spread

At the time when the coronavirus outbreak is weighing down on the travel, entertainment, insurance and education stocks, an Australia-based health and wellness products supplier, Jatenergy Limited (ASX: JAT) is flowing against the tide.

The Company has developed numerous lactoferrin dairy products, that helps in regulating the immune system, both in the gastrointestinal tract and systemically.

Since the emergence of the coronavirus in December 2019, the demand for the Company’s Neurio ranges of dairy products which contain lactoferrin has grown remarkably in China. The sales of its Neurio lactoferrin brands amounted to $3.44 million in January 2020, considerably higher than the sales of $407,000 in January 2019.

With coronavirus being declared a global health emergency, this stock could be in the list of the top stocks to watch in 2020.

Goodman Group (ASX:GMG): Growing Strong with Robust Development Pipeline Amidst Property Market Revivial

Australia’s integrated industrial and commercial property group, Goodman Group (ASX:GMG) has continued to grow strong, backed by its robust development pipeline and solid land acquisition strategy.

The Company has recently announced a dividend amounting to $0.15 for fully paid ordinary/units stapled securities for the six months ending 31st December 2019.

With increasing consumers’ demands, the Company’s customers are responding by consistently seeking to create more efficient logistics networks. The Company has observed a continuous growth in online sales, with its online share of the market almost doubling over the last five years.

The Company expects its online share of the market to grow to 22 per cent by 2023. On the back of favourable growth prospects, the Company reaffirmed its FY20 operating earnings per security to 56.3 cents in November last year, up 9 per cent on FY19.

Though these stocks hold considerable potential to deliver favourable returns in 2020, it is worth pointing out that there are many other business and economic fundamentals at work that may affect their outlook.

Let’s take a look at the stock performance of these stocks in the below table:

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There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

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