In this edition of our monthly stock market analysis, we are going to look at the best shares to buy in December 2020 – with our analysis covering November 30th – December 6th.
It goes without saying that the big news over the past few days is that of the Pfizer vaccination that was approved in the UK. In turn, this has had a huge impact on market sentiment – with light finally at the end of the tunnel. Moderna is also worth keeping an eye on, with its own COVID vaccine awaiting approval in the US and Europe.
This week, we have once again added Cineworld to our portfolio of best shares to buy now. This is in line with the aforementioned vaccination approval, insofar that its UK cinema chain will soon be able to reopen its doors.
- 1 Top 5 Shares to Buy Right Now
- 2 Best Shares November 30th – December 6th Update
- 3 Shares to Watch – November 30th – December 6th
- 4 Comprehensive List of the Best Shares
- 5 How to Buy the Best Shares Now
- 6 How to Analyse Which Shares to Buy
- 7 Best Shares to Buy Today – The Verdict?
- 8 eToro – Buy the Best Shares With No Commission
Before we take a closer look at November’s best shares, here are our top 5 picks:
You can buy all of these top shares, as well as many others, at eToro and pay 0% fees!
1. Pfizer – Likely the Winner of the COVID-19 Vaccine Race (HOLD)
November 30th – December 6th: Pfizer received approval from the UK regulator this week for its COVID-19 vaccine – so huge news. In turn, the shares are up 11% in the past 5 days alone. However, this could be a drop in the ocean if Pfizer gets approval in the US and EU, too. The former is expected to make an announcement on December 10th – while the latter will be closer to the end of the month.
Pfizer shares climbed at the start of November on news that its COVID-19 vaccine was over 90% effective. Now, the pharmaceutical company has finished its late-stage trial and confirmed that its vaccine is 95% effective. While Pfizer fell slightly on news that Moderna’s competing mRNA vaccine could be stored in a refrigerator while Pfizer’s requires dry ice, Pfizer has a huge advantage since it will be the first to distribute a working COVID-19 vaccine in much of the world.
Better yet, Pfizer already has commitments from various governments for over 450 million doses. By the end of 2021, the company says it could produce as many as 1.3 billion doses globally. With the pandemic still raging across much of the world, demand for Pfizer’s vaccine will be high no matter what other pharmaceutical companies release in the coming months.
If the vaccine isn’t reason enough for you to like Pfizer shares, the company offers a very attractive 4.20% dividend yield.
2. Amazon – Unbeatable Returns in 2020 (HOLD)
November 30th – December 6th: Not much to report on this week with Amazon -= as much of the focus has been on the Pfizer vaccine news. Over the past 5 days, the shares have remained flat – down just 0.77%.
It will come as no surprise to learn that the vast majority of global stocks are down in 2020. However, this isn’t the case with Amazon – which continues to thrive. Crucially, not even a worldwide pandemic can stop the momentum with these shares.
Back at the start of the year, you would have paid just under $1,900 per Amazon stock. At the time of writing in October 2020, these very same shares are priced at just under $3,200. Put simply, had you made an investment at the start of the year and held on to the stocks throughout the pandemic, you would now be looking at gains of 68%.
It is somewhat difficult to envisage Amazon’s good fortunes ending any time soon. Not only is its core online retail business growing year-on-year, but it is involved in heaps of other innovative products and services. This includes its ever-growing Amazon Prime subscription model, as well as cutting-edge technologies like cloud computing and artificial intelligence.
3. Moderna – mRNA Vaccine Pioneer (HOLD)
November 30th – December 6th: While Pfizer stockholders have enjoyed an 11% upswing over the past 5 days, Moderna shares are looking significantly more attractive. In fact, the shares are up 36% over the past week. Now, although it hasn’t had its COVID vaccine approved yet, applications in the US and EU remain pending. If it does get the green light, expect the shares to skyrocket even further. In fact, it is believed that the Moderna vaccine is preferred over that of Pfizer, not least because it doesn’t need to be stored in -70 degree conditions.
Moderna is right behind Pfizer in getting its COVID-19 vaccine out into the world. It announced that its vaccine is 94.5% effective and that it can be stored in a standard freezer for up to 30 days.
Like Pfizer, Moderna is also using mRNA technology that could fundamentally change the way the world approaches vaccination in the future. What’s especially exciting about Moderna is that the company has set its sights beyond the coronavirus pandemic. Moderna is already developing five vaccine candidates, five immuno-oncology candidates, four rare disease therapies, and two autoimmune disease inhibitors. While none of these treatments are proven, the fact that Moderna’s COVID-19 mRNA vaccine is effective bodes extremely well.
To be sure, the company is expensive. But it’s never going to be cheaper than it is now once mRNA technology gains widespread traction.
4. Paypoint- Super-Undervalued Stock Ready to Bounce-Back After Lockdown (HOLD)
November 30th – December 6th: Paypoint was added to our portfolio of the best shares to buy last week. Since then, the stocks haven’t really moved – with a slight increase this week of just 0.5%.
Paypoint is the latest stock to make its way into our list of the best shares to buy right now. For those unaware, the technology company is behind the in-store payment services found in tens of thousands of UK locations.
This includes everything from retail and convenience stores, supermarkets, and petrol stations. The shares are listed on the London Stock Exchange with a current market capitalization of just £414 million. Make no mistake about it, Paypoint shares have been hammered this year as a result of the wider COV19 lockdowns.
This makes sense when you consider that the vast majority of its retail locations have been closed for months on end. In fact, with the stocks valued at over 1000p at the start of the year, Paypoint shares are now 40% at 600p. But, this exciting technology company was looking good before the virus came to fruition.
As such, there is no reason to believe that it will not get back to pre-COV19 levels when the lockdown restrictions are just a distant memory. If the shares do breach the 1000p-level, this would require an increase of over 65% based on current prices.
5. Apple – Superb Earnings Report for Q3 Fiscal Year (HOLD)
November 30th – December 6th: In last week’s edition we noted that Apple shares took a slight hit – with a 5% decline in the prior 5 days. This week has also resulted in a 5% swing, albeit, this time northwards. As such, last week would have been a great opportunity to buy the dip – as we noted!
Apple was a new addition to our portfolio of stock picks in September 2020 – and it remains a hold. Much like the rest of the US tech scene, the firm has enjoyed a fruitful 2020. Lockdown or no lockdown – there appears to be no stopping this NASDAQ giant. This because evident in the firm’s recent earnings report – where it smashed through market expectations by some distance.
For example, year-on-year revenues were up 11% to just under $60 billion. 60% of this figure came from international sales. Even more impressively, earnings per share increased to $2.58, representing growth of 18%. In turn, Apple announced a dividend of $0.82 per share. The biggest news of the quarter is that Apple executed a 4-for-1 stock split.
This means that shareholders are now in possession of four times the number of shares they had prior to the split. In terms of its stock price performance, Apple started the year at $75 per share (taking into account the split). On September 1st 2020, the shares were priced at just over $134. This represents a year-to-date increase of 78%. As per its recent earnings report, there is no reason to believe that the upward swing will end any time soon.
6. Tesla – Catch This Growing Company While you Still can (HOLD)
November 30th – December 6th: Tesla shares were somewhat flat until the 24 hours prior to writing this article – with shares up almost 5% since yesterday.
This company is one for the long run. Tesla – the US-based manufacturer of electric cars, is arguably just at the start of its corporate journey. Had you bought Tesla shares five years prior to this article, you would have paid just $262 per share.
Fast forward to June 2020 and the same stocks were priced at $935. This translates to a market capitalization of just $173 billion. I say ‘just’ because many would argue that this is just a fraction of what Tesla could be worth in years to come.
This bullish sentiment is further amplified when you consider the other ventures that Tesla is behind – all of which centre of renewable, sustainable, and cutting-edge technologies. At the forefront of this is solar renewable solutions – which is likely to dominate the consumer energy industry in the very near future.
The firm did facilitate a 5-for-1 stock split earlier in September, meaning that the above share price action has been diluted by a factor of 5. As such, Tesla’s current stock price of $425 is effectively $2,125 when readjusting for the split.
7. ZOOM – Up 700% in 18 Months of Trading (HOLD)
November 30th – December 6th: Zoom shares are down over 8% over the past 5 days. Now, we will be keeping an eye on this – as there is every chance that the decline is related to the recently approved Pfizer vaccine. The reason we say this is that Zoom has benefited tremendously from the lockdown measures of 2020 – with friends, family, and employees using the platform to communicate virtually. As such, if and when the Pfizer vaccine gets approval in other regions – especially the US and EU, we need to assess whether this is going to have a negative impact on Zoom’s stock price. For now, this remains a hold.
Much like in the case of Tesla, ZOOM is another up and coming stock that could be worth keeping an eye on. In fact, the firm only went public in April 2019, so you still have the chance to get in early. Those that were shrewd enough to buy ZOOM shares when they first hit the market would have paid around the $60-mark.
And today? Those very same shares are worth $480 – representing an 18-month increase of 700%.
If you hadn’t heard of ZOOM at the turn of the year, it’s all-but-certain that you would have come across its name during the coronavirus pandemic. This is because the company offers peer-to-peer software that allows people to video conference with one another.
As such, this was a hugely useful way for people to stay in touch during the lockdown – both in a professional and personal capacity. Crucially, if you are a firm believer that the future of employment is heading towards the ‘Gig Economy’ – ZOOM is likely to play a major role in this space.
8. Cineworld – Vaccine Approval is Huge New for This Cheap Stock (NEW BUY)
If you’ve been keeping track of our weekly stock market analysis for some time now, then you’ll know that Cineworld Group is in and out of our portfolio like a yo-yo.
Crucially, this is because of the UK’s lockdown strategy that has changed consistently over the past 6 months. With that said, the Pfizer vaccine approval means that Cineworld cinemas will once again reopen its doors. When remains to be seen – but it is no longer a case of ‘if’.
Now, it is no secret that Cineworld was heavily impacted by the pandemic shutdown, and thus – its shares have completely capitulated in 2020.
Starting the year at 220p each, Cineworld shares have since hit lows of just 15p. This translates into a stock price decline of 93% – meaning a £1,000 investment would have left you with just £70. Crucially, the vaccine approval now means that the shares are back on the up – and quickly.
In fact, over the past 24 hours alone Cineworld shares have increased by almost 15% to 77p. At this price level, you can still get yourself a huge bargain – especially considering the 220p valuation the shares held just 11 months ago. If Cineworld is able to get back to pre-pandemic levels, this would require growth of 185%.
9. British American Tobacco – Best UK Dividend Stock to Buy (HOLD)
November 30th – December 6th: In last week’s edition we noted that BAT shares were 4.5% down for the week. A slight recovery has since come to fruition, with the shares up 2.25 over the past 5 days.
British American Tobacco (BAT) is a major player in the global tobacco industry – with brands such as Pall Mall, Dunhill, and Lucky Strike leading the way. Although the UK powerhouse has enjoyed a fruitful time on the London Stock Exchange – subsequently rewarding shareholders for many, many decades, its fortunes reversed in 2017.
With an all-time high of 5,383p being hit in June of the same year, the stocks tumbled to 2,541p in 2019. However, not only have the stocks since stabilized – but the company is paying one of the largest dividends in the UK shares space. In its most recent distribution, this worked out at a yield of 7.2%. In fact, BAT has increased its dividend payment for 20 years in a row – even during the somewhat bearish years of 2017-2019.
With that in mind, BAT could be a good addition to your stock portfolio for two reasons. Firstly, you have the chance to buy the shares on the cheap at current prices of sub-3,000p. Secondly, you will be buying shares in a company that has a long-standing track record of paying generous dividend yields.
10. Facebook – No Dividends, but Huge Upside Potential (HOLD)
November 30th – December 6th: Another flat week for Facebook stocks, albeit, the shares are up 1.44% over the past 5 days.
Although you have missed the boat on Facebook – at least in terms of its initial stock market price, it’s still not too late to obtain its shares at an attractive price.
The company has grown to exponential heights since its public launch in 2013 – and while the social media giant has had its fair share of privacy-related scandals, the future looks bright. Crucially, Facebook now boasts an impressive 2.6 billion monthly active users – which is up 11% from the prior 12 months.
With this in mind, its current market capitalization of $651 billion is potentially still just a fraction of what it could be worth in years to come. On the flip side, Facebook is yet to pay any dividends to shareholders, but this could something the company looks at in the near future.
All in all, the main focus now is on which impending vaccine applications get the green light, and when. We have had the Pfizer vaccine approved in the UK, which has seen the pharmaceutical stock increase by 11% in the past 5 days.
With Moderna looking more and more likely to also get the nod in the coming weeks, its shares are up over 36% during the same period. In turn, this has had a trickle-down effect on other stocks that have suffered from the pandemic. In particular, this includes Cineworld – which is now going through a parabolic upswing.
With that being said, UK stocks still sit in a wave of uncertainty, with markets still unsure how the Brexit saga will eventually unfold. With less than one month for the UK and EU to sign a deal, it remains to be seen where the FTSE will be in January 2021. Put simply, if the UK walks away without a deal, expect high levels of volatility.
Nevertheless, let’s recap as to how to markets have performed over the past 24 hours.
- FTSE 100: +0.48%
- FTSE AIM All-Share Index: +1.03%
- S&P 500: -0.06%
- NASDAQ 100: +0.23%
- Dow Jones: +0.29%
The following shares didn’t quite make the cut this week – but are most definitely worth keeping an eye on over the next 7 days.
- Intel Corp: Shares down over 10% last week due to worse-than-expected earnings. Is this a major overaction from the markets are justified?
- American Express: Another major US stock that failed to meet market expectations in its most recent earnings report. With the shares dropping 3.6% last week, does this represent a good time to buy?
- SVB Financial Group: SVB Financial Group is a commercial bank that specializes in tech-related financing. With another great quarterly performance as per its Q3 earnings report, the shares are up 3.9% over the past week. We’re not too sure yet whether or not this upward swing will be short-lived or if it’s a sign for greater things to come. As such, this is one to keep an eye on. While there are many different types of shares out there, there are also thousands of different company shares from around the world that you can invest in. Different shares of companies come in all shapes and sizes, so it’s important to do your research and ensure you invest in the companies that best match your portfolio. Let’s take a look at some of the most popular companies to invest in in the UK.
We’ve already covered the top 10 shares to invest in right now, but there are many more worth considering. Check out our comprehensive list of the best shares below
- American Airlines
- Aston Martin
- Beyond Meat
- British Airways
- Dart Group
- Eaton Vance
- General Electric
- Legal and General
- Metro Bank
- Micron Technology
- National Grid
- Rocket Companies
- Rolls Royce
- Royal Mail
- Standard Life Aberdeen
- Taylor Wimpey
- Travis Perkins
- Virgin Galactic
- You can buy shares without paying a single penny in commissions
- You can buy shares from just $50 (about £40) per trade
- You can easily deposit funds with a debit/credit card, UK bank account, or e-wallet
- The platform is tailored to those with little to no experience of buying shares online
- The platform is regulated by the FCA
Here what you need to do to buy shares from eToro:
Step 1: Open an Account
First and foremost, head over to the eToro website and elect to open an account. You will now be asked to enter some personal information – such as your full name, home address, date of birth, and contact details, You’ll also need to choose a username and a strong password.
Step 2: Upload ID
On top of the Financial Conduct Authority (FCA), eToro is also regulated by ASIC (Australia) and CySEC (Cyprus). As such, it is required to identify each and every user that opens an account. All you need to do is upload a copy of your UK passport or driver’s license, followed by a utility bill or bank account statement.
Step 3: Deposit Funds
You will now be asked to deposit some funds. eToro accepts a variety of UK payment methods, including:
- Debit Card
- Credit Card
- UK Bank Transfer
You will need to meet a minimum deposit amount of $200 (about £160). Your GBP deposit will be converted to USD (0.5% conversion fee), as this allows you to access both UK and international markets at the click of a button.
Step 4: Buy Shares
Once your account has been funded, you can then buy your chosen shares. If you know which of the above companies you wish to buy shares in, simply enter it into the search box at the top of the screen, and then click on the ‘TRADE’ button. In our example, we are looking to buy BP shares.
You will then see an order box that asks you to enter the amount that you wish to buy. This is in US dollars and not the number of individual shares. As we noted earlier, you can buy from just $50 (£40) worth of shares at eToro, so there is no requirement to buy a whole stock.
Finally, click on the ‘OPEN TRADE’ button to complete the share investment process!
If you are just starting out in the world of stocks and shares, it’s super-important that you learn the ins and outs of how to perform your own research – as opposed to choosing companies on the back of somebody else’s advice. In doing so, you stand the best chance possible of ascertaining whether or not the shares represent a viable long-term investment.
You can read more on How to Pick Stocks and Shares here.
As you’ll see from our list of the best shares to buy in December 2020 – most of our portfolio consists of US stocks. This is for good reason – with the likes of Pfizer, Moderna, Tesla, Apple, and Amazon smashing through the uncertainties of the coronavirus pandemic.
Over in the UK, very few FTSE 100 shares are worth more than pre-pandemic levels. In fact, the FTSE 100 Index itself is still down for the year. Nevertheless, we are still super-keen on British American Tobacco for its strong and stable characteristics. As of this week’s edition, we are also keen on Cineworld – as per the Pfizer vaccine approval announced in the UK.
If you want to invest in the best shares to buy today, there’s no better place to do so than eToro. Simply click the link below to sign up today!
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