Investment research expert picks promising companies from five “emerging investment themes” that investors might consider adding to their portfolios
One of the most profitable situations in investment is when one gets in on the ground floor and rides a stock that skyrockets. With that in mind, a Financial Post article by 5i Research CEO Peter Hodson identifies five growing sectors that investors might be interested in.
First, he foresees that virtual reality technology will grow over time, not from video games but from applications such as virtual tours, travel planning, and shopping. Investors should think about buying Google and Facebook, which are premium players in the VR space. Spectra7 Microsystems, which supplies chips for the Oculus Rift headset, and Nvidia, which specializes in high-speed graphics processing technology, are also stocks to consider.
Artificial intelligence is another area in which Hodson predicts growth, although he says it will take a lot of time to develop and may go through a period of hype. Go-to names for this industry include Apple, Google, IBM, and Microsoft, though he says “they are far from a pure-play”. NEC and Marketo are also suggested stock picks.
Autonomous driving is likely to see “the most ‘real’ short-term development and profit for companies”. Google is active in the area, while Tesla and Apple are companies to watch, as well as Nvidia. Also recommended is Mobileye, the manufacturer of optical sensors needed by self-driving cars.
Water is seen as a continuing investment theme, as the recent takeover of Ovivo reaffirms the value of the resource. The Canada-based iShares Global Water Index ETF is reported to be rising continually. Hodson recommends Xylem Inc, a water equipment maker and service provider, as well as Paris-based water system manufacturer Veolia Inc.
Finally, he sees the connected data market to undergo continued growth, pointing to the success of Pokémon Go as proof. “Take your pick of companies here: Twitter, Facebook, Apple, Google, LinkedIn and more are all trying to be connected to consumers 24/7,” he says, observing that some investors are seeing mobile phones as a staple investment.
While Hodson sees promise in the stocks he named, he advises cautious optimism. “Before you invest in any theme, though, ask yourself where it is on the ‘hype’ cycle and what stock valuations are assuming in terms of growth. Many investors have successfully predicted a theme, yet still went on to lose money simply by paying too much for stocks within that theme play.”
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First, he foresees that virtual reality technology will grow over time, not from video games but from applications such as virtual tours, travel planning, and shopping. Investors should think about buying Google and Facebook, which are premium players in the VR space. Spectra7 Microsystems, which supplies chips for the Oculus Rift headset, and Nvidia, which specializes in high-speed graphics processing technology, are also stocks to consider.
Artificial intelligence is another area in which Hodson predicts growth, although he says it will take a lot of time to develop and may go through a period of hype. Go-to names for this industry include Apple, Google, IBM, and Microsoft, though he says “they are far from a pure-play”. NEC and Marketo are also suggested stock picks.
Autonomous driving is likely to see “the most ‘real’ short-term development and profit for companies”. Google is active in the area, while Tesla and Apple are companies to watch, as well as Nvidia. Also recommended is Mobileye, the manufacturer of optical sensors needed by self-driving cars.
Water is seen as a continuing investment theme, as the recent takeover of Ovivo reaffirms the value of the resource. The Canada-based iShares Global Water Index ETF is reported to be rising continually. Hodson recommends Xylem Inc, a water equipment maker and service provider, as well as Paris-based water system manufacturer Veolia Inc.
Finally, he sees the connected data market to undergo continued growth, pointing to the success of Pokémon Go as proof. “Take your pick of companies here: Twitter, Facebook, Apple, Google, LinkedIn and more are all trying to be connected to consumers 24/7,” he says, observing that some investors are seeing mobile phones as a staple investment.
While Hodson sees promise in the stocks he named, he advises cautious optimism. “Before you invest in any theme, though, ask yourself where it is on the ‘hype’ cycle and what stock valuations are assuming in terms of growth. Many investors have successfully predicted a theme, yet still went on to lose money simply by paying too much for stocks within that theme play.”
Related stories:
Airline stocks a dud, says portfolio manager
Cyborg advisor to launch in Canada
