Moore's Law says that the number of transistors on a silicon chip will double every two years. That premise of ever-expanding computing power has been the driving force behind the modern digital revolution. It has also meant that semiconductor stocks have been a force to be reckoned with. * The InvestorPlace Q&A: ProShares Pet Care ETF Is a Treat for Investors But not every company that has built its business around silicon is worth investing in. The road is littered with failures like 3dfx Interactive. To stay safe and reap big gains, these seven picks should be at the top of your list if you want a piece of the semiconductor action: * Advanced Micro Devices (NASDAQ:AMD) * Intel (NASDAQ:INTC) * Maxim Integrated Products (NASDAQ:MXIM) * Qorvo (NASDAQ:QRVO) * Skyworks Solutions (NASDAQ:SWKS) * Analog Devices (NASDAQ:ADI) * Broadcom (NASDAQ:AVGO)Some have been in business since the PC era began, while several of these companies are relative newcomers. What they all share in common is a focus on silicon chips, and stocks that are going to continue to be strong performers.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Best Semiconductor Stocks: Advanced Micro Devices (AMD)Source: Sundry Photography / Shutterstock.com First up is a stellar performer among semiconductor stocks. Advanced Micro Devices was the best-performing stock in the S&P 500 in 2019, posting 148% growth. AMD stock is up 9% so far in 2020, despite the novel coronavirus pandemic.AMD has been all but written off twice. First, after the 2000 dot-com crash, and again in 2008, when PC shipments began to stall, and AMD's processors and graphics cards just weren't competitive. All of that has changed in recent years. Under the direction of CEO Lisa Su, AMD has been relentless in its development of new chip architecture. Its Ryzen processors have been taking market share from Intel in the PC space, including an aggressive push into laptops for 2020. The company's EPYC processors are winning marketshare in the lucrative data center market. Its Radeon graphics cards are giving market leader Nvidia (NASDAQ:NVDA) fits. And both the Xbox Series X and PlayStation 5 video game consoles will be powered by custom AMD chips when they launch later this year. Above all, as I wrote earlier this year, AMD maintains an ambitious vision for the future. Look for that vision to continue powering the company's success. Intel (INTC)Source: Kate Krav-Rude / Shutterstock.com Intel is the senior statesman among these semiconductor stocks. It has been focused on silicon chips since 1968. In fact Gordon Moore of Moore's Law fame is Intel's cofounder.One of Intel's key strengths is its resilience. Intel has faced challenges over the past five years that would hobble many other companies. Even as Intel's core PC market continues to shrink, AMD has been winning over consumers and manufacturers with its Ryzen processors. Intel has faced crippling chip shortages plus fallout from the Meltdown and Spectre chip vulnerabilities. It abandoned the smartphone processor market, and last year dropped its smartphone modem business, selling it to Apple (NASDAQ:AAPL). Adding to the gloomy news, it has been reported that Apple is on the verge of ditching Intel processors in its Mac PCs.So why the nod to Intel? Despite the many challenges, Intel remains a dominant force. Its new 10nm chips are beginning to hit the market, and production delays are expected to be resolved. Intel Xeon processors remain the chip of choice in the data center market, and that market is growing. Last year, Intel showed off its own Xe graphics cards, which will position it to take on AMD and Nvidia in that market. Intel is also dominant in the growing Internet of Things (IoT) sector — a key component of smart home and self-driving car technologies.Perhaps the strongest argument is that despite the many challenges, INTC stock continues to perform. Over the past five years, it's up 105%. * 7 Oil Stocks That Are Struggling to Survive In addition, Intel is generous with its dividends. Its latest quarterly dividend was 33 cents per share, paid on June 1. Maxim Integrated Products (MXIM)Source: Casimiro PT / Shutterstock.com Maxim Integrated is another of those semiconductor stocks with a long history. This company dates back to the 1980s and specializes in integrated circuits (ICs). These are the embedded chips used in a huge variety of products, ranging from cars to heath trackers to automated factory equipment.Maxim Integrated is positioned to benefit from some of the most promising areas of technology growth, including wearables, 5G wireless, automotive IoT, solar cells, military, aerospace and smart building automation.MXIM stock has posted growth of 79% over the past five years. Although it's still under water for 2020, it has been recovering from the March market selloff. At its current price, MXIM stock is up nearly 40% from its March 16 close. Qorvo (QRVO)Source: Piotr Swat / Shutterstock.com Qorvo is a relative newcomer among the semiconductor stocks scene. Founded in 2015, Qorvo describes itself as providing: "the industry's broadest portfolio of critical enabling technologies with expertise in mobile devices, complex infrastructure and global aerospace and defense applications."The RF business encompasses 5G and Wi-Fi 6, the latest tech in a red-hot communication sector. In 2019, Qorvo announced it had shipped 100 million RF devices for use in 5G infrastructure. On the foundry side, Qorvo specializes in custom solutions for the U.S. Department of Defense. That's a market that is always growing, no matter what the economic situation. Power management includes battery management components and power loss protection. Qorvo is growing through acquisition as well. Its latest purchase took place earlier this year, when it completed the purchase of Decawave — a company specializing in ultra-wideband (UWB) technology.QRVO stock was up an impressive 91% in 2019. It has been hit hard in 2020, but since bottoming out in March has re-gained nearly 66%. * The 9 Best Cryptocurrencies to Watch for the Rest of 2020 Expect that recovery to continue, based on the company's latest guidance: "While our June quarter guidance reflects the ongoing demand and supply effects of COVID-19, we are encouraged by continued growth in 5G handsets and infrastructure, and we remain confident in the long-term growth drivers of our business." Skyworks Solutions (SWKS)Source: madamF / Shutterstock.com Skyworks Solutions' primary product is radio frequency semiconductors used by smartphones to communicate with wireless networks. From 2002 through 2008, SWKS stock bounced around below the $10 level, but since 2009 it has been on a growth path. That's no surprise, given that Apple is Skyworks' largest customer, and the iPhone was the hottest-selling smartphone on the planet. That relationship can have its downside — 2018 saw SWKS stock slide, a reaction blamed on lower iPhone demand.However, 5G adoption is expected to spur iPhone demand this fall. That prospect helped to once again light a fuse under SWKS, starting in October. Before the coronavirus pandemic spooked the markets and spoiled the party, Skyworks' stock had gained 70% since the start of October. Even after a March plummet, the prospect of 5G iPhones boosting revenue for the at least the next few years has helped SWKS to recover and more. Now at the $132 level, it's up nearly 9% so far in 2020. Analog Devices (ADI)Source: Shutterstock This Massachusetts-based semiconductor company specializes in analog, mixed-signal and digital signal (DSP) integrated circuits.Its ICs can be found in products that are on the leading edge of technology, sectors that are all expected to see massive growth in coming years. This includes electric cars, self-driving vehicles, 5G infrastructure, industrial automation and smart sensors (Industry 4.0) and digital health solutions. Analog Devices claims over 100,000 customers, worldwide. The widespread use of its products, combined with a big presence in new technology sectors has served the company and its investors well. In addition, ADI has been rewarding investors with dividends and share buybacks — to the tune of $340 million last quarter. * 7 Great Biotech Stocks to Buy and Hold Now ADI stock is up 85% over the past five years, and has even managed to stay afloat in 2020. Broadcom (AVGO)Source: Sasima / Shutterstock.com Finally, another instantly recognizable semiconductor giant: Broadcom. The Singapore-based company is known for its presence in the data center and network infrastructure sectors. While other tech companies have taken a hit from the coronavirus pandemic, the move to working from home has boosted Broadcom's balance sheet. In its most recent quarter, earnings of $5.74 billion were up 4% year-over-year.Broadcom is not content to sit on its own semiconductor IP. Acquisitions are a key part of its strategy. It even took a shot at purchasing Qualcomm (NASAQ:QCOM) at the height of that company's fight with Apple. The proposed $117 billion deal would have been the biggest ever tech merger. However, in 2018, President Trump blocked it, citing security concerns.The company moved on quickly. In 2019, Broadcom snapped up enterprise security provider Symantec, for $10.7 billion. The move bolstered Broadcom's cloud offerings and helped to diversify from its reliance on hardware.AVGO stock is still down slightly for 2020, but it's well on the path of recovery. With 126% growth over the past five years and a proven track record of thinking big, Broadcom is a winner among semiconductor stocks.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post The 7 Best Semiconductor Stocks on the Market Now appeared first on InvestorPlace.

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The airline industry has been on fire, surging higher as American Airlines (NASDAQ:AAL) stock led the rally. United Airlines (NASDAQ:UAL) didn't miss out either, with UAL stock ripping 169% from the May lows.Source: NextNewMedia / Shutterstock.com While the stock is pulling back, shares are still up about 120% from those lows, as investor optimism climbed considerably in a short period of time. Helping to fuel that optimism has been part of the "reopening America" trade.I have been noting this trade for a few weeks now, as everything from cruise operators to restaurant stocks have come roaring back to life. But that's what this is — a trade — not an investment. There is still a lot of negativity and uncertainty surrounding these stocks.InvestorPlace – Stock Market News, Stock Advice & Trading TipsUnfortunately, UAL stock isn't excluded from that observation. Let's take a closer look at the business. Sizing Up AirlinesWhen Warren Buffett sold his airline positions, many investors wondered why the Oracle had taken so long to exit. I'm pretty neutral toward Buffett. I don't hang on his every word and move, but I have a ton of respect for one of the market's greatest investors. * 7 Great Biotech Stocks to Buy and Hold Now He exited his four airline positions — United Airlines, American Airlines, Southwest Airlines (NYSE:LUV) and Delta Air Lines (NYSE:DAL) — as he explained during Berkshire Hathaway's (NYSE:BRK.A, NYSE:BRK.B) annual meeting. But Buffett wasn't looking at the next two to three weeks or even the next couple of months. He was looking years down the road.Some have predicted that airlines won't recover 25% of their prior traffic by September. However, American Air said it plans for 50% of July 2019's schedule to fly in July 2020. America is reopening and the public is not hesitating to book trips, pack into restaurants, and put the novel coronavirus behind them. That's even as we're seeing cases on the rise again. Valuing United AirlinesEven with the recent rise in enthusiasm, the recovery to pre-coronavirus levels will take a while. And even then, remember that airlines stocks did not command a premium valuation. Do you think they will now, given the rather dire circumstances we're seeing?Remember, this isn't Apple (NASDAQ:AAPL), where the companies have robust balance sheets and delayed revenue from a dip in iPhone sales. U.S. airport traffic decreased by about 90% at the peak and is still more than 80% off year-over-year levels.DAL and LUV are the balance-sheet leaders, putting UAL stock in a tough spot. The company will weather the storm, but it's burning $40 million to $45 million in cash per day. United's balance sheet will also feel the pressure, as it borrows to stay afloat.Analysts expect United to see a 56% decline in revenue this year, with sales falling from $43.26 billion in 2019 to just $19 billion this year. In 2021, estimates call for a 65% rebound, but to just $31.73 billion. Like I said, this isn't likely to be fast recovery.After earning $12.05 per share last year, United is forecast to lose an incredible $19.49 per share in fiscal 2020. While that figure is sure to change, it shows the astronomical impact to the business. 2021 forecasts call for essentially break-even operations, with profit just $1.68 per share. That's still down 86% from 2019. Trading UAL Stock Click to EnlargeSource: Chart courtesy of StockCharts.com While the return to normalcy will benefit airlines stocks in obvious ways, it's hard to argue that the decline was an overreaction. Revenue was crushed, as expenses dragged on and the companies burned through cash. With the prospect of a slow return to flying, who is left to buy the stocks when they have rallied so much?UAL stock climbed almost 170% from the May low. The reopening of the country was more robust than expected, so a rally is deserved. However, this seems like too much, too fast.Should uptrend support fail to buoy United, look to see if the 23.6% retracement near $33 can support the stock. This level had been resistance for several months before United broke out above this mark. If it fails as support, see how UAL stock does with the 50-day moving average, currently near $28.On the upside, see if UAL can reclaim the 38.2% retracement and 100-day moving average. If it can, it puts $50 and the 50% retracement in play.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Avoid United Airlines Stock After 120% Rally From the Lows appeared first on InvestorPlace.

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Earlier this year, Luckin Coffee (NASDAQ:LK) stock was one of the hottest names out there. The coffee chain, touted as China's answer to Starbucks (NASDAQ:SBUX), looked like a solid long-term growth story. But in April, shares tumbled. With an investigation over accounting fraud, investors bailed, sending shares down nearly 76% in one day. Soon after that, Nasdaq halted trading of the company's stock.Source: Keitma / Shutterstock.com Shares resumed trading last month, initially taking another 35% dip. Then, it fell to prices as low as $1.33 per share. Yet, so far this month, investors have ignored the big red flag (accounting fraud), and have dived back into the stock. Since June 1, shares have rallied from around $2 per share to just under $4 per share. And that's after reaching prices above $6 per share on June 5.Simply put, this recent run-up is not indicative of a "turnaround" for this tarnished company. As InvestorPlace's Mark Hake wrote June 9, the recent rally is largely due to short-sellers covering their positions. Once this short-squeeze ends, expect shares to fall back to prior lows.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIn short, don't get fear of missing out and buy into this company. With its growth story derailed, and reputation tarnished, expect shares to trek lower over the next few months. Why LK Stock Could Go Lower From HereShares may have fallen more than 90% below their all-time highs. But that doesn't mean bad times are over just yet for LK stock. Why? With the company's 2019 revenue numbers found to be fraudulent, who's to believe any financial results from this company going forward? * 7 Great Biotech Stocks to Buy and Hold Now Sure, the company has "cleaned house," and Luckin's former chairman is now facing criminal charges. But this is all too little, too late. Without any trust in the company's financial statements, there's no reasonable way to determine its underlying value. Forget about "overvalued" or "undervalued." For now, the company's value is a big question mark.In short, investors buying shares now are essentially buying a lottery ticket. If the company manages to ride out this scandal, shares could bounce higher, albeit far below where they were before the scandal broke.But, more likely, the stock is headed towards penny stock status. Why? It's likely to be delisted from the Nasdaq permanently. Once that happens, shares could, in theory, trade on the over-the-counter (OTC) market. Yet, with institutional and retail investors typically avoiding OTC stocks, demand for shares is going to take a big hit.Granted, the Nasdaq delisting is still pending. Luckin has requested a hearing before an exchange panel. This panel has 30 to 45 days after the request to convene. With the company pursuing this "Hail Mary" in mid-May, that means in just a few weeks we'll know whether shares continue to trade on a major exchange.This may also explain why shares haven't cratered just yet. But, with the odds firmly against LK stock, buying now on the hopes its Nasdaq listing continues looking like a gamble not worth taking. Don't Bet on a Surprise from Luckin CoffeeChances are LK stock falls to even lower prices than where it is today. Yet, there is still a slight chance the company rides out this scandal, and retains some value. As our own Ian Bezek wrote June 10, with the company's secondary offering earlier this year, they may still have plenty of liquidity. While prior sales figures were inflated, they still have a substantial presence, and generate hundreds of millions in sales.Now, don't take that to mean Luckin still has a shot at unseating Starbucks as China's most popular coffee chain. What I'm saying is, there's still a chance the company can pick up the pieces, and turn what's left into a profitable business.But, this still isn't enough to go out and buy this stock today. The risk/return proposition remains out of your favor. Until we see revised financials, we remain in the dark. For now, it's still uncertain whether shares today price in a turnaround, or if they trade far below their potential value if a full recovery happens. Forget About Buy, Sell, or Hold, LK Stock Is an 'Avoid'Speculators may have made easy money trading this stock as of late. But, don't take that to mean this is a screaming buy. At any price. With the big red flag of fraud tarnishing their reputation, there's no good reason to buy Luckin Coffee's stock right now.Firstly, due to the risk of delisting. If shares no longer trade on the Nasdaq, expect them to fall to much lower prices. Secondly, even if the company manages to bounce back from this scandal and become a profitable business, we don't know whether today's stock price reflects this upside potential or not.In short, there's still a lot to lose, and little to gain, with LK stock. Forget about "buy," "sell" or "hold." This stock is an "avoid," pure and simple.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Avoid Tarnished Luckin Coffee With Shares Bound to Head Lower appeared first on InvestorPlace.

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Investors have been looking for companies that are getting through the novel coronavirus without taking a major hit. And sure, there's value in a good high-quality defensive stock. But don't sell yourself short — there are great opportunities to go on the offense in this market as well. For example, look at Micron (NASDAQ:MU) stock.Source: Casimiro PT / Shutterstock.com The semiconductor memory developer is shaping up to be a big beneficiary of the economic ripples that the new vius has caused. Many investors are sleeping on Micron as a social-distancing play. Micron doesn't have the flashiest products when it comes to work-from-home trends. But its offerings are essential to powering several of the current technological megatrends that are transforming American life.Micron is also under the radar because it last published earnings results on March 25 for a quarter that finished in February. Thus, it hasn't put out any quarterly results since the Covid-19 crisis started to wreak havoc on the global economy. Further to that point, Micron is not scheduled to deliver its next earnings report until June 29. Fortunately, Micron gave an early indication of what next quarter's results are going to look like.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Micron Is a Stay-At-Home WinnerBack in March, I urged subscribers to get long Micron. At the time, while the market was still panicking, I pointed out the silver lining for Micron, writing that: "The coronavirus could help boost semiconductor demand. Almost every commercial or recreational activity that eliminates or reduces human interaction relies on semiconductors." * 7 Great Biotech Stocks to Buy and Hold Now And in fact, this is precisely what has played out. Spaces like video games and online video conferencing have been among the market's biggest gainers. As the market has woken up to the economic effects of the virus, stocks like Zoom Video (NASDAQ:ZM) have soared. But don't forget that in order to power all that increased computing, you need more chips and more memory. That's where Micron comes into the picture. A Huge Guidance IncreaseLate last month, Micron confirmed my hunch: Demand is way up. The company filed a regulatory document that provided investors with updated guidance. And the numbers were sizzling.Micron raised its expected revenue for the quarter from a range of $4.6 billion-$5.2 billion to a new range of $5.2 billion-$5.4 billion. In other words, the old top-end estimate became the new bottom-end estimate. And if we were to use the midpoints of these two forecasts, the company boosted its guidance by $400 million, up from $4.9 billion to $5.3 billion.Even more impressively, the company revealed that it expects to drop more than half of this revenue boost down to the bottom line and increase non-GAAP earnings by about $250 million more than it had forecast previously.How will this translate to earnings per share? The company's prior guidance called for the current quarter's EPS to come in around 55 cents. The updated guidance anticipates a jump to at least 75 cents. If Micron sees this sort of demand continue through the full year, a 20-cent-per-share quarterly boost would cause a massive lift in forward earnings expectations. Analysts Give the Thumbs-UpIn the wake of that guidance increase, numerous Wall Street analysts rushed to boost their outlooks for guidance. For example, Bank of America's Simon Woo. He raised his price target for MU stock to $70, noting "stronger chip demand for the remote-work economy."Evercore ISI's C.J. Muse raised his price target to $75 and stated, "The update is a clear positive for Micron, with memory trends holding up amidst COVID-19 pressure and exceeding investor expectation on growing concerns over falling spot memory prices." Additionally, Raymond James analyst Chris Caso reiterated a "Strong Buy" on Micron stock and a $60 price target.Caso's price target is easily achievable. I see Micron's guidance news as being the sort of thing that could help power MU stock to $60 and beyond. In fact, Micron shares rose from $45 to $55 in the days following the guidance boost, though they've slipped back a bit with the recent market volatility. MU Stock VerdictObviously, in this uncertain and volatile virus-constrained economy, investors must be cautious about extrapolating one moment's success too far into the future. We've seen how suddenly conditions can swing from good to bad. That said, this news from Micron was not just good, but very good. This is exactly the type of catalyst that should power Micron up to those $60-$75 price targets.The company is likely to report blowout numbers this quarter. With the economy starting to reopen, a lot of industrial demand is starting to come back online as well. As such, I'm expecting the company to continue building on this momentum.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls — in good markets AND bad. He's found 40-plus 1,000% or higher stock market winners/"10-baggers". He beat 650 of the world's most famous investors (including Bill Ackman and David Einhorn) in a contest. And today Eric is revealing his next potential 1,000% winner/"10 bagger" for free, right here. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Why You Should Buy Micron Stock Ahead of Earnings appeared first on InvestorPlace.

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Under Armour joins the emerging coronavirus mask market.

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With ultra-expansionary monetary policies coupled with re-opening of economies globally, stock markets have surged. The indexes in the United States have almost erased all losses incurred due to the novel coronavirus-driven economic slowdown.As bullish sentiments sustain, it makes sense to remain invested or consider fresh equity exposure. However, investors need to abstain from stocks that are trading at rich valuations. At any point of time, there are value stocks up for grabs.Let's discuss three value stocks in this column that trade at attractive valuations. These names can deliver strong returns with a medium to long-term investment horizon.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 7 Great Biotech Stocks to Buy and Hold Now * Alibaba Group (NYSE:BABA) * Chevron Corporation (NYSE:CVX) * Qualcomm Incorporated (NASDAQ:QCOM) Value Stocks to Buy for Smart Investors: Alibaba Group (BABA)Source: BigTunaOnline / Shutterstock.com Before I talk about the growth potential for Alibaba, investors will question the company's categorization as a value stock. BABA stock currently trades at a price-to-earnings-ratio of 26.68. This might look expensive.However, I would focus on the company's potential earnings growth. Analyst estimates suggest that earnings growth is likely at 18% annually for the next five years. Therefore, factoring the potential growth, Alibaba Group is a value investment.I also believe that the company's earnings growth can accelerate in the coming years. The first reason is e-commerce expansion in Southeast Asia besides strong growth in China. Another reason is the company's strong growth in the cloud business, which holds immense potential. For FY2020, the company's cloud business growth was 62% with total revenue touching $5.7 billion.It's also worth noting that Alibaba reported free cash flow of $18.5 billion for the last financial year. The company has high financial flexibility and has pursued inorganic growth in the past. Acquisitions can also trigger higher earnings growth in the coming years.Overall, BABA stock is attractively valued considering the growth potential. I believe that the stock belongs to the core portfolio. With Asia's e-commerce boom, Alibaba Group is well positioned to make it big. Chevron Corporation (CVX)Source: JL IMAGES / Shutterstock.com In the recent market meltdown, energy stocks were battered. Several stocks have trended higher with renewed economic optimism and relatively higher oil prices. Among value stocks, Chevron Corporation deserves a mention.One of the reasons to like Chevron Corporation is the company's quality balance sheet. The company expects its net-debt ratio to remain below 30% even if Brent remains at $30 per barrel through the year and in FY2021.Brent is already trading at $40 and Chevron Corporation is a long-term cash flow machine. To put things into perspective, Chevron expects free cash flow of $4 to $5 billion annually just from the Permian.With strong fundamentals, the company's diverse asset base will translate into sustained production and cash flow growth. Another reason to like CVX stock is the fact that the company pays an annual dividend of $5.16. With ample liquidity buffer and improving oil price, dividends are sustainable. Furthermore, dividends will increase once the current headwind is navigated. * The 9 Best Cryptocurrencies to Watch for the Rest of 2020 At a current EV/EBITDA of 5.9, CVX stock is worth considering. As a matter of fact, another fundamentally strong name, Exxon Mobil (NYSE:XOM), trades at an EV/EBITDA of 8.3. Therefore, on a relative basis, the stock is attractive. Qualcomm Incorporated (QCOM)Source: photobyphm / Shutterstock.com QCOM stock also finds a place in my basket of value stocks. Again, the stock is trading at a P/E of 24.6, but earnings growth is likely at 18% on an annual basis over the next five years. While QCOM stock trades at a price-earnings-to-growth ratio of 1.34, the industry PEG is 2.68. Clearly, the stock is attractively valued in the industry with strong growth potential.It's no secret that Qualcomm is "the" company to consider in the 5G space. On the potential for the coming years, it's estimated that 5G will enable $13.2 trillion of global economic output by FY2035. The application and impact will be across sectors like healthcare, manufacturing and automobile, among others.It's worth noting that Qualcomm has provided guidance for 5G handset shipments at 175 to 225 million for the current year. As economies re-open and consumption spending on non-essentials increases, the company stands to benefit.From a balance sheet perspective, Qualcomm reported $10 billion in cash and equivalents as of March 2020. With a strong cash buffer, there is ample flexibility to invest in research-driven growth. I would consider QCOM for the core portfolio with 5G growth acceleration likely for the coming decade.Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post 3 Value Stocks to Buy for Smart Investors appeared first on InvestorPlace.

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[Editor's note: "10 Stocks With Little or No Debt to Own for the Next 50 Years" was previously published in March 2020. It has since been updated to include the most relevant information available.]Surf the net and you'll find lots of stories about the best stocks to own. Some will be for the next year, five years, or even 10 years. Very few, however, will offer up ideas for the next half-century. In part, that's because investing today has become a "What have you done for me lately?" kind of business. Also, because so many companies have disappeared over the years, it's futile to guess who's going to stick around.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThe average S&P 500 company had a tenure of 33 years in 1965. In 1990, that dropped to 20 years. By 2026, it's forecast to fall to 14 years. * 7 Great Biotech Stocks to Buy and Hold Now In other words, the odds of you winning the lottery is almost as good as owning a stock that remains publicly traded for 50 consecutive years. Nonetheless, I've decided to give myself this challenge. The 10 stocks to own on my list have very little debt, a market cap greater than $10 billion, and sector-wise provide a reasonably diversified portfolio. Linde (LIN)Source: Shutterstock Linde (NYSE:LIN), the UK-based supplier of industrial gases, gave back all of its 2019 gains and then some during the coronavirus slump, but looks solid otherwise. In fact, it's retesting its pre-pandemic levels already.In October 2018, Linde and U.S.-based Praxair completed their $90 billion merger of equals that created one the world's largest supplier of industrial gases with annual revenues of $28 billion and 80,000 employees around the world. The deal vaulted it ahead of Air Liquide (OTCMKTS:AIQUY), the French provider of industrial gases. In the fourth quarter ending in December 2019, Linde had an operating profit of $.6 billion on revenue of $6.9 billion. Despite the $90 billion mergers, the company was able to sidestep the debt issue by doing an all-stock deal with Praxair. I would expect Linde to deliver double-digit annual returns for years to come. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com Lululemon (NASDAQ:LULU), the popular apparel brand that got its start making comfortable yoga pants for customers, has a bright future ahead.This isn't the first time I've included LULU stock in a list of long-term holds. In August 2016, I argued that LULU would be one of the 50 best-performing S&P 500 stocks over the next decade. Three years in, it's living up to the promise.As Forbes contributor Sergei Klebnikov recently pointed out, Lululemon has benefited from selling directly to its customers through its own network of stores rather than selling its products wholesale to department stores and other third-party retailers. * The 9 Best Cryptocurrencies to Watch for the Rest of 2020 Between its healthy women's business, a growing men's business, an eCommerce segment that's also rapidly growing, and its Asian stores selling its product like hotcakes, it's easy to understand why it's putting the rest of retail to shame. Hormel (HRL)Source: calimedia / Shutterstock.com Hormel (NYSE:HRL) is a food company focused on protein-based products, including the Hormel, Spam, Dinty Moore and Skippy Brands. While its 2019 return wasn't Lululemon-like, it has delivered consistent returns for its shareholders. Over the past decade, it has generated an annualized total return of 18%. In its most recent earnings report, Hormel racked up $2.4 billion in revenues and re-affirmed its 2020 guidance.Hormel also paid an 11% dividend increase to 93 cents a share. That's the 54th consecutive year HRL has increased its dividend and the 11th consecutive year it has increased its dividend by 10% or more. It might not be the most exciting stock to own, but it surely is one of the most consistent. CoStar Group (CSGP)Source: Casimiro PT / Shutterstock.com If you're familiar with CoStar Group (NASDAQ:CSGP), you know there's money to be made with information. Specifically, CoStar makes money by providing the most comprehensive database of real estate information in the country. By being the best information provider around, CoStar shareholders did very well in 2019 with a total return of almost 75%. Over the past 15 years, CSGP has generated an annualized total return of 18.8%, double the total U.S. market. Last year, CoStar acquired STR Global, a data analytics company that specializes in hotel information, for $450 million. With only $64 million in annual revenue, CoStar expects to grow STR by 20% annually by helping bring products to the market faster. * 7 Pharmaceutical Stocks to Buy for Post-Pandemic Gains As AI, machine learning, and data analytics become a regular part of business, expect CoStar to continue to grow at a considerable rate. Intuitive Surgical (ISRG)Source: michelmond / Shutterstock.com Intuitive Surgical (NASDAQ:ISRG) manufactures the da Vinci robotic surgical system that allows doctors to carry out minimally invasive surgeries for patients around the world. It's installed almost 5,000 systems worldwide, with a majority sold to U.S. hospitals. However, the company's international sales are multiplying. The systems aren't cheap. That has allowed it to grow its revenues by 75% in the past four years. This has done wonders for ISRG stock, which has a nearly 22% total return year-to-date and 29.4% over the past 15 years. If there were a tech/healthcare stock that Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) should have bought but didn't, ISRG would be it. The company has a reasonably wide moat but continues to invest in research and development so that it stays ahead of its competition. In 2016, it spent 8.9% of its revenue on R&D. In 2020 it's projected to spend 11.6%, a 30% increase over four years. Owning ISRG over the long haul is a slam dunk. Alexion Pharmaceuticals (ALXN)Source: Shutterstock Biotech stocks, especially those developing clinical-stage drugs, scare the heck out of me. They don't make any money, but they spend several years and many millions or even billions getting the product approved.That's a lot of power riding in the hands of a small panel of experts. As a shareholder, you have very little control over the process. That's why it makes sense to invest in large biotech firms such as Alexion Pharmaceuticals (NASDAQ:ALXN), whose Soliris drug is used to prevent the breakdown of red blood cells in adults suffering from paroxysmal nocturnal hemoglobinuria and other related diseases. In the fourth quarter, Soliris increased worldwide sales by 11% more than the same period a year earlier. * 7 Utility Stocks to Buy Keeping Lights On And Dividends Flowing Its successor drug, Ultomiris, is also doing well. As a result of this success, Alexion expects to make at least $10.25 per share in 2019 on a non-GAAP basis, significantly higher than its outlook at the beginning of the fiscal year. Up 15.7% year to date, expect bigger things from ALXN stock in 2020. Cummins (CMI)Source: Lissandra Melo / Shutterstock.com I picked Cummins (NYSE:CMI) because it has one of the healthiest balance sheets of any large-cap company in the industrial goods sector. Currently, the company's total debt of $2.7 billion is just 40% of its book value. By comparison, Caterpillar's (NYSE:CAT) is 254% of its book value. In October, I recommended CMI stock as one of "10 Stocks to Buy Regardless of Q3 Earnings." Although the maker of gas-powered generators doesn't expect much sales growth in 2019, its EBITDA margin is likely to be 16.5% or more. As a result, you can be sure that it will have plenty of cash in the future to pay its generous dividend. Southwest Airlines (LUV)Source: Felipe_Sanchez / Shutterstock.com Southwest Airlines (NYSE:LUV), which sells tickets at reasonable prices and tends to rely on Boeing (NYSE:BA) aircraft for its fleet, beat its peers over the past year by 795 basis points and 376 basis points over the past five years. There's no question things are really dicey in the airline industry right now but Southwest is in the kind of financial position to ride it out.In April 2018, I recommended Southwest stock over Delta Airlines (NYSE:DAL) because it's a better operator in tough economic times. While a recession in 2020 doesn't look likely, I don't see how any of the airline stocks hold a candle to Southwest. * 4 Electric Car Stocks to Charge Your Portfolio It ought to be Warren Buffett's largest airline holding, but it's not. For Berkshire fans, that's a shame. Alibaba Group (BABA)Source: Colin Hui / Shutterstock.com Jack Ma co-founded Alibaba Group (NYSE:BABA) in 1999. It wasn't easy getting China's largest e-commerce company up and running. Somehow, the former teacher managed to push through. Today, Ma is the wealthiest person in China, worth an estimated $44 billion. He's been so successful — Alibaba's 2019 revenues were $56.2 billion with $12 billion in net income and $15.6 billion in free cash flow — that he has stepped away from the business to focus all his efforts on his charitable foundation. Only 55, Ma has lots of causes to keep himself busy these days.Meanwhile, the company continues to expand into various businesses outside its e-commerce core. These include financial services and the cloud. And by no means are these businesses dalliances. "Alibaba first started its move into fintech in 2004 with the launch of AliPay. What started out as a simple way to secure online payments for Alibaba platform users has now expanded to become part of Ant Financial, the financial branch of Alibaba and the key to the company's fintech ecosystem," InvestorPlace contributor Chris Markoch wrote last month. Alphabet (GOOG, GOOGL)Source: rvlsoft / Shutterstock.com Google co-founders Larry Page and Sergei Brin announced Dec. 3 that they were stepping down from their executive positions at Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the holding company for its search engine business as well as all the other bets it's made over the past few years. Waymo, Google Fiber, Verily, Sidewalk Labs, and Calico are but a few. Now that Google CEO Sundar Pichai is taking over as Alphabet CEO, some see the changing of the guard as an opportunity for Alphabet to get out of some of the expensive so-called "moonshots" it has been working on the past few years. Money-losing experiments, to boot. Google stock rose 2% on the news Page and Brin were passing the baton. * 8 Battery Stocks That Will Seriously Power Your Portfolio "The question is, will they continue to spend money on these other bets? Under the new leadership, are they going to take a harder look at all of these businesses and start to try to focus more on ones that provide growth," said Daniel Morgan, a portfolio manager at Synovus Trust Company, which owns Alphabet shares worth over $100-million. "That would add extra excitement about the stock."Whether Pichai decides to unload some of the moonshots or not, Google still generates all of its $28 billion in annual free cash flow from its advertising revenues. That's not going to change. As long as it remains a leader in digital advertising, its stock remains worth owning for the next half-decade. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post 10 Stocks With Little or No Debt to Own for the Next 50 Years appeared first on InvestorPlace.

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