Top S&P 500 Stocks to Invest in 2020

The past few weeks/days have been quite terrible for the stocks market as many companies’ stocks have performed their worst recently, and the entire stock market plunged. Only a few days ago the Dow and S&P 500 entered bear territory—it has been a rollercoaster ride ever since. Notwithstanding, there are still company stocks to watch out for in this season, and below are top S&P 500 stocks that would be worth your investment in 2020.

What is the S&P 500?

The S&P 500 is a major stock market index of the 500 largest publicly-traded companies in the US, and the major benchmark for large-cap US equities. Some of the largest publicly-traded companies in the S&P 500 are Amazon (AMZN), Microsoft (MSFT), and Apple(APPL).

Best Value S&P 500 Stocks

As an investor wondering which S&P 500 stocks would be best for investment, putting into consideration current performances and future performances, here are the top three ‘best value stocks’ to consider. These stocks have the lowest 12-month trailing price-to-earnings (PE) ratio. Profits can also be returned to investors in the form of dividends and buybacks.

Fastest Growing S&P 500 Stocks

Another category of S&P 500 stocks for investors to consider in 2020 is the fastest-growing stocks. These stocks have the highest year-over-year (YOY) earnings per share (EPS) for the last quarter. This category of stock investment shows that a business is growing and has the capability of generating more money that it can reinvest or return to its investors.

Is it safe to invest in this period?

For many new or inexperienced investors, now may not seem like a good time to make investments due to the uncertainties surrounding the coronavirus pandemic. However, experienced investors have a different opinion about this.

George Muzea, author of The Vital Few vs. The Trivial Many: Invest With the Insiders, Not the Masses, is of the opinion that the best time to invest or purchase stocks is when “those in the know” are buying and “those not in the know” are selling.

He categorizes “those in the know” as corporate insiders who have daily access to sales trends and projection reports, and are able to recognize similar historical patterns. Those in this category can be commonly found buying a lot of stocks despite the stock market’s current bear market state. Insiders are most likely going to target stocks in the sectors that will be hit the most by the virus; sectors such as leisure, hospitality, restaurants, and airline.

While “those not in the know” are investors and the media who depend on live performances of stocks. His opinion of this is built on the fact that mutual funds and hedge funds are always behind in the markets. The media is included in this category because of the possibility of including negative media sentiment in the market reports.

For investors like Muzea, investments are all about the amount of detailed “insider” information on ground and high-risk tolerance. If you belong to this category, you can risk it all by investing in stocks of companies that have been severely hit by the pandemic or you could stay with top-performing stocks.

Due to the Coronavirus selloff, some more stocks are about to enter the list of stocks to buy for the year 2020 and these stocks should be good for multiple years to come. First, these stocks' performance will depend on how fast Coronavirus can be defeated. Second, if the companies are not in extreme bad position post Coronavirus then, they'll be positioned to take off and reward investors who could wait it out.

Update list of stocks to invest for the year 2020 and forward

These stocks may bot all be under the S&P 500 but they are worth the look.

• MSFT
• UBER
• LYFT
• JPM
• Goldman Sachs
• Ally Bank
• JNJ
• WEN
• Shake Shack