76% of retail accounts lose money when trading CFDs with this provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Admiral Markets Group consists of the following firms:

Admiral Markets Pty Ltd

Regulated by the Australian Securities and Investments Commission (ASIC)
CONTINUE

Admiral Markets Cyprus Ltd

Regulated by the Cyprus Securities and Exchange Commission (CySEC)
CONTINUE

Admiral Markets UK Ltd

Regulated by the Financial Conduct Authority (FCA)
CONTINUE
Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.
Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.
Regulator asic CySEC fca

Best Shares to Buy in 2020

Reading time: 28 minutes

2019 was an historic year for financial markets. The fear and escalation of a US-China trade war, aggressive interest rate cuts from worried central banks, the divisiveness caused by Brexit and a UK general election all took centre stage.

Nonetheless, US stock markets surged to record high price levels with European stock markets not far behind. The resilience of global stock markets is setting up 2020 to be another very exciting year for investors who buy shares.

However, there are some unique challenges that lie ahead and identifying the best shares to buy will require research, preparation and access to the right products.

Buy shares

In this article, we will discuss - what could be - some of the best shares to invest in across European, UK and US stock markets, how to actually start buying shares online with one of the best share trading platforms in the marketplace and how to access a share trading account with some of the lowest commissions around!

Why buy shares in 2020?

One of the biggest driving forces behind global stock markets trading at, or close to, record high price levels, is the action of central banks around the world who have been worried about slipping back into a recession.

The US Federal Reserve, the Reserve Bank of Australia and the European Central Bank - among others - have all cut interest rates in the hope that lower financing costs will encourage businesses and consumers to borrow more and spend it in the economy, in order to drive economic growth.

In fact, at the end of 2019, billionaire investor and hedge-fund legend Paul Tudor Jones stated in a CNBC interview that the economy has an "explosive combination of monetary and fiscal policy right now,'' ultimately helping to propel the market further into record territory.

However, investors cannot afford to be complacent as there are some challenges that lie ahead in 2020, such as the United States 2020 presidential election. Having the right criteria in identifying the best shares to trade across international stock markets will be essential in 2020.

How to find the best shares to invest in

Buying shares online is actually quite a simple process as our step-by-step walkthrough in a later section will show. However, identifying what shares to buy does require some skill, research and preparation. Even then, there is still no guarantee of success which is why risk management is important.

Buying shares: Risk management 101

Beginner investors often put their eggs all in one basket expecting their decisions to always work in their favour. For example, an investor might have £10,000 to invest and may choose to invest it all into just one stock. This means there is no capital left if another - perhaps better - opportunity comes along. Also, a sharp - yet temporary - fall may cause the investor to make an emotional decision and exit early, thinking about short term fluctuations in price rather than the company's long-term fundamentals.

One risk management technique used by many investors is to spread investments across different types of companies that operate in different sectors. When one sector is not performing well, another sector could be. This helps to build a more diversified and balanced portfolio that can help to balance out the effect of changing market conditions.

For example, an investor who has £10,000 to invest, may choose to invest £2,000 in five different companies throughout the year. Of course, the risk tolerance of each individual is different so it is worthwhile spending a bit of time building a plan on how you want to invest throughout the year.

Buying shares: Technical vs Fundamental vs Sector analysis

In the next section, we detail - what could be - some of the best shares to buy in 2020. The criteria for selection involves the following types of analysis:

  1. Fundamental analysis. This type of analysis involves analysing a company at a financial level. This includes metrics such as sales performance, earnings trends, debt levels, new product announcements, the economic environment and so on.
  1. Technical analysis. This type of analysis involves analysing a company's historical trading price via a price chart. Trading patterns and technical trading indicators can often leave clues on who is the most dominant force in the market (buyers or sellers), as well as pinpoint potential turning points in a company's share price.
  1. Sector analysis. As discussed in the previous risk management section, having options across different sectors can help in building a diversified and balanced stock portfolio. Investors criteria aims to identify companies from a range of different sectors such as banks, utilities, financials, energy, retail and so on.

Did you know you can view expert traders perform live technical and fundamental analysis in our Trading Spotlight webinars? Three times a week our professional traders cover a range of topics including how to perform technical analysis and how to identify trading opportunities on different asset classes. To reserve your spot in these complimentary webinars, simply click on the banner below:

Free Trading Webinars

Now you know more about the criteria behind identifying - what could be - some of the best shares to invest in for 2020, let's take a look at the list.

Best shares to buy in European and UK stock markets

In 2018, investors pulled out more than $43 billion due to political and economic concerns, mainly surrounding Brexit and European elections. As the saga continued companies became much better prepared to deal with these concerns and that helped investors roar back into European stock markets with most trading at, or very close to, all-time high price levels in 2019.

However, the UK stock market struggled as the Brexit drama turned into a domestic, political mess which deadlocked Parliament, forcing a general election late in the year. UK assets remain relatively cheap on a historical basis and many investors are simply biding their time to start investing in the UK once again.

Our two stock picks for European and UK stock markets in 2020 cover a broad range of themes such as an undervalued UK stock market, a major pharmaceutical shakeup and the impact climate change has had on the demand for electric vehicles. Let's dive in!

#1 Volkswagen: Are the shares ready to motor higher?

It was only in 2015 when Volkswagen's 'dieselgate' shocked the market. The German carmaker confessed to fitting devices to its diesel cars allowing them to cheat on emissions tests. Lawsuits, fines and a halt in sales consumed the carmaker and it has since been trying to escape the shadow of the scandal and recover its share price which crumbled nearly 70% lower from its March 2015 all-time high price level of €260.

Volkswagen top share to buy

Source: Admiral Markets MT5 Supreme Edition, VW3, Monthly - Data range: from 1 March 2004 to 20 November 2019, accessed on 20 November 2019 at 19:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.


As of November 2019, Volkswagen's share price is still down 50% from its all-time high. This presents a very interesting opportunity for investors if the carmaker can get its business firing on all cylinders once again. Let's take a look at the situation in more detail.

The Fundamental Picture

While VW continues to face lawsuits from countries all over the world, the majority have been settled. This includes a deal to buy back 500,000 cars in the US, amounting to more than $25 billion. The company also announced they will pay AU$127 million to owners in Australia.

VW has also stated that enough funds have been set aside to cover any remaining claims. For investors, this is a good sign as the company now has the ability to allocate capital towards research and innovation. In fact, the carmaker has already invested £27 billion into electric cars which is already paying off.

Porsche, which is owned by VW, has already built a luxury all-electric vehicle - the Porsche Taycan - that aims to challenge Tesla. It also has electric models suited to the more mainstream market. With governments around the world changing policies in response to climate change, carmakers have already started to cut back on petrol and diesel cars. VW is well suited for the long-term transition.

In fact, VW's plan for 2020 to 2024 - called Planning Round 68 - has already been drawn up. The group plans to spend nearly €60 billion on the "future areas of hybridization, electric mobility and digitalization [with] around €33 billion of this figure in electric mobility alone."

The Technical Picture

Volkswagen buying shares price

Source: Admiral Markets MT5 Supreme Edition, VW3, Monthly - Data range: from 1 March 2004 to 20 November 2019, accessed on 20 November 2019 at 19:55 pm GMT. Please note: Past performance is not a reliable indicator of future results.


In the long-term price chart of Volkswagen's share price shown above, it is clear to see the stock price has been supported by a long-term ascending trend line (the black diagonal line). A trend line is a type of support and resistance level where a share's price can often turn and change direction.

In the chart above, when the price has traded back towards the trend line buyers have stepped in and pushed the market higher. If this trend can continue throughout 2020, there may be a chance of VW's share price reaching its previous all-time high price level.

Summary

When thinking about what shares to buy for 2020, a company in the automotive sector is probably not on many investors' list. After all, the sector is facing huge headwinds from government policies trying to reduce emissions.

However, companies with a headstart in electric and hybrid vehicles could represent good long-term value for patient investors. Fortunately, Volkswagen will reward patient investors with a dividend of €4.86 per eligible preferred share.

You can learn more about dividends in The Best Dividend Stocks for Income article.

If you are feeling confident and ready to start buying and selling shares, you may consider the Admiral.Invest account where you can enjoy benefits such as:

  • The ability to invest in thousands of stocks and ETFs from 15 of the largest stock exchanges in the world.
  • Open an account with just €1 minimum deposit and invest from just $0.01 per share with minimum transaction fees of just $1 on US stocks.
  • Receive free real-time market data, with no delays, at no extra cost.
  • Create a stream of passive income by collecting dividend payouts.
  • Use the world-renowned MetaTrader 5 multi-asset class trading platform.

You can get started right now by clicking the banner below and enjoying all of the features above and more!

Invest in Stocks & ETFs


#2 GlaxoSmithKline: A new CEO and a major shake-up!

On the surface, GlaxoSmithKline (GSK) wouldn't make it to the top of the best shares to buy now list. That's because as of November 2019, the share price is trading around the same price level as it was in 1998. Under old management, the company made the wrong decisions by trying to position itself in a world without any blockbuster drugs.

Research and development are absolutely crucial to get right in any pharmaceutical company. That's why investors have embraced new Chief Executive Emma Walmsley. She has already shaken things up by sacking 40% of its top management and is preparing to split the company up, helping to have lifted GSK's share price in 2019.

GlaxoSmithKline Top shares to buy

Source: Admiral Markets MT5 Supreme Edition, GSK, Monthly - Data range: from 1 October 1991 to 20 November 2019, accessed on 20 November 2019 at 20:45 pm GMT. Please note: Past performance is not a reliable indicator of future results.

Let's take a look at what's happening with GSK in more detail.

The Fundamental Picture

GlaxoSmithKline, the company which produces consumer brands such as Panadol and Sensodyne, as well as prescription medicine, vaccines and specialist treatments for cancer and HIV, is in the midst of a major shakeup. The new management team believe they can deliver more growth and increase shareholder returns by splitting up the business. The focus is to separate the consumer healthcare business to unlock the value of its pharmaceutical and vaccine business.

In fact, early in 2019, the company announced its plan to rebuild its pharmaceutical unit by paying a significant premium for Zejula, an ovarian cancer drug. It did this through its $5.1 billion acquisition of Tesaro Inc, the creator of the drug, but the sky-high premium it paid has concerned many analysts and investors.

What does the technical price chart tell us?

The Technical Picture

GlaxoSmithKline buying shares price

Source: Admiral Markets MT5 Supreme Edition, GSK, Monthly - Data range: from 1 October 1991 to 20 November 2019, accessed on 20 November 2019 at 20:55 pm GMT. Please note: Past performance is not a reliable indicator of future results.


From 2011 to 2019, the share price of GlaxoSmithKline has been held between two horizontal support and resistance lines. This type of chart pattern is known as a consolidation pattern. While price can continue to trade in between these two price levels, many investors will be waiting for the price to break above the top of the consolidation to continue its trend higher.

For this to happen, the market needs to turn bullish on the long-term fundamentals of the company. With significant changes already being made by its management team, 2020 could be the year the company's share price finally breaks out and continues towards its all-time high price level of £23.25 made in January 1999. That represents nearly 30% upside from the top of the price consolidation pattern.

Summary

The pharmaceutical sector can be a volatile sector to invest in due to the sensitive nature of providing medicines and vaccines. In the case of GSK, the company's share price has been depressed due to bad management decisions.

With a new team in place and a shakeup underway, it could be a stock for long-term, patient investors. Fortunately, GlaxoSmithKline, at the time of writing (November 2019) offers an impressive dividend yield of 4.72%. Does the company make it onto your 2020 watchlist?

Best shares to buy in the US stock market

Since Donald Trump won the presidential election in 2016, US stock markets have been surging higher, making record highs in 2019. Despite the trade tariff dispute between the US and China, investors have been enjoying the Trump administration's tax cuts. More money for corporate America has translated into jobs, economic expansion, and healthy corporate earnings.

Growth, overall, is strong and it could be here to stay. As Jim Caron, a fund manager at Morgan Stanley Investment Management, says: "We're seeing higher productivity and more business investments, which implies that this isn't just a sugar high from the fiscal boost".

So what companies are shaping up to be the best shares to invest in 2020 for US markets? Let's find out!

#1 Amazon: Will the spending spree pay off?

Amazon entered 2019 crowned the second company in the United States to reach a $1 trillion valuation. That metric alone makes the stock a worthy contender for an investors' 2020 portfolio.

However, after the company took a hit on its third-quarter earnings results - due to a huge spending spree in one-day delivery logistics - a wave of selling followed. With Amazon's share price still below its all-time high price level of $2,050 made in September 2018, there could be an opportunity to follow investing legend Warren Buffett's advice of 'buy low, sell high.'

Amazon top shares to buy

Source: Admiral Markets MT5 Supreme Edition, AMZN, Weekly - Data range: from 12 August 2012 to 21 November 2019, accessed on 21 November 2019 at 2:15 pm GMT. Please note: Past performance is not a reliable indicator of future results.


Let's take a look at the company's prospects in more detail.

The Fundamental Picture

In third-quarter of 2019, Amazon reported sales of $70 billion for the previous quarter. While sales blew past analyst expectations the company's $2.1 billion profit came in far under. A huge round of selling hit the company's share price. However, there's a reason why profit came in well below expectations and why it is actually a good thing.

Amazon spent nearly 50% more on shipping and fulfilment services to shift from Prime's two-day shipping to one-day shipping timeline, as well as expand its air, land and sea logistics business. The company has proven that the quicker a customer can get an item, the more likely they'll use your service again!

While the company continues to build its online retail and logistics business, the star of the show is the Amazon Web Services, its cloud computing division that brought in $9 billion in sales in just one quarter, with nearly 40% of that being pure profit.

The Technical Picture

Amazon stock has been on a meteoric rise higher in recent years. In fact, if you had bought $1,000 worth of Amazon shares when they first went public in 1997, then, as of 4 September 2018, the investment would have grown to $1,362,000.

However, in 2018 and 2019 the company's share price experienced some much larger sell-offs and the price has since been trading in between key support and resistance lines which have formed an ascending triangle chart pattern, as shown below:

Amazon buying shares prices

Source: Admiral Markets MT5 Supreme Edition, AMZN, Weekly - Data range: from 12 August 2012 to 21 November 2019, accessed on 21 November 2019 at 2:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.


Investors will be keeping a close eye on the ascending trend line as buyers have historically entered the market at this level before. If the price does not reach this level and continues to move higher, then a break of the recent all-time high is likely to attract more investors into the phenomenal growth story that is Amazon.

Summary

Some investors are concerned that Amazon is spending too much money into growing their businesses even further. For a while, this may affect the profitability of the company. However, the investment now is likely to pay off in the long-term.

Fortunately, Amazon has a multitude of businesses in different sectors catering to retail consumers and businesses. This makes the company's income stream more diversified so if things do get rocky in the run-up to the 2020 US presidential election, the company has a better chance of weathering the storm.

Don't forget that with the Admiral.Invest account you can invest in US stocks and shares from just $0.01 per share with minimum transactions fees of just $1, as well as receive a whole host of other benefits as shown below:

Admiral Markets

You can learn more and open an account by visiting the Admiral.Invest webpage, or clicking the banner below:

Invest in Stocks & ETFs


#2 Bank of America: A thumbs up from Warren Buffett?

Did you know that Bank of America is the second-largest holding of Berkshire Hathaway, Warren Buffett's investment company? In its latest 13F holdings statement with the SEC, Buffett added another $1.1 billion position in Bank of America to his portfolio. Investors take note.

So what is special about Bank of America and why is it on our list of - what could be - some of the best shares to buy in 2020? Let's take a look!

The Fundamental Picture

Bank of America services more than 66 million consumers and businesses in the United States alone. With over 4,350 retail centres and a fast-growing online and mobile banking operation, the bank is a leader in its sector. It wasn't always the case though. After the issues with subprime mortgage lending, the bank lost $134 billion on bad loans and $64 billion on litigation.

Over the past few years, however, Bank of America CEO Brian Moynihan has been quietly turning the business around by embarking on an aggressive cost-cutting campaign. Moynihan took the company's 320,000 headcount in 2009 to just 100,000 in 2019 and has focused on getting the bank back to traditional services such as loans, current accounts, credit cards and so on.

The bank's 2019 third-quarter earnings report suggests its working. Net income rose 4% to $7.5 billion and the company beat expectations on profit and revenue. Warren Buffett surely does know his stuff!

The Technical Picture

Bank of America top shares to buy

Source: Admiral Markets MT5 Supreme Edition, BAC, Monthly - Data range: from 1 February 2004 to 21 November 2019, accessed on 21 November 2019 at 2:55 pm GMT. Please note: Past performance is not a reliable indicator of future results.


In the long-term price chart of Bank of America's share price shown above, it's clear to see the huge drop during the 2007 and 2008 financial crisis. Since then, it's been a slow road to recovery with the share price still well below its all-time high price level of $55 made in November 2006.

However, it is the weekly price chart which is showing the most interesting technical information. In the weekly chart below, the price has broken through a key resistance line that kept Bank of America's share price depressed for much of 2017 to early 2019. Now that the price has finally broken above this level, there could be more upside yet to come.

Bank of America buying shares price

Source: Admiral Markets MT5 Supreme Edition, BAC, Monthly - Data range: from 19 August 2012 to 21 November 2019, accessed on 21 November 2019 at 3:05 pm GMT. Please note: Past performance is not a reliable indicator of future results.


Summary

Banking stocks have had a slow path to recovery since the 2008 financial recession. However, there are some positive signs in the industry as the bank's clean up their act and start focusing on offering traditional banking services rather than trying to profit from risky investment products like subprime mortgage lending.

Bank of America seems well suited for a longer-term recovery back to its all-time high price level. Warren Buffett certainly seems to believe in the company, do you?

But now you have formed part of your 2020 best shares to buy watchlist how do you actually start buying and selling shares? Follow our walkthrough in the next section!

How to buy shares online

Buying and selling shares online can be done in just three simple steps:

  1. Open a share trading account.
  2. Download your share trading platform.
  3. Open a trading ticket and take your first trade!

How to open your Admiral.Invest share trading account

If you haven't done so already you can follow these steps to open a share trading account. If you have done so already, feel free to jump to the next section on how to download your share trading platform.

To open a share trading account simply visit the Admiral Markets homepage and click on the green button labelled Create Account:

Open a trading account

To sign up for a live or demo trading account simply fill in the details required such as your name, email and password:

Create an account to trade

Once this is done you will have instant access to the Trader's Room! From here, you can open live or demo accounts:

Traders room access to trade top shares

After clicking the green button labelled Open Live Account, you can select the account you wish to open. For stocks and shares investing select Admiral.Invest:

Open live account to trade top shares

From here you can open your Admiral.Invest share trading account after filling out an application, uploading required documents and going through a verification process. Once this has been done, and your application has been approved, you are ready to download your MetaTrader 5 share trading platform.

How to download your MetaTrader 5 share trading platform

From the Trader's Room homepage, navigate to the bottom and select the MetaTrader 5 for PC or MetaTrader 5 for Mac download links:

Use MetaTrader 5 to trade top shares

Simply follow your computer's prompts to complete the download of your MetaTrader 5 share trading platform.

Trading platform to trade best shares

An example of the Admiral Markets MetaTrader 5 trading platform showing the price chart of Apple shares, the MACD and Stochastic trading indicators, a list of symbols showing the different stock market regions available and an open order ticket.

Disclaimer: Charts for financial instruments in this article are for illustrative purposes and do not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.


How to place a trade in the MetaTrader 5 share trading platform

Open up your share trading platform and follow these steps to place a trade:

  1. Open the Market Watch window by selecting View from the menu at the top of the platform or by pressing Ctrl+M on your keyboard. This will open up a list of tradable symbols on the left side of your chart.
  2. Right-click on the Market Watch window and select Symbols or press Ctrl+U on your keyboard.
  3. This will then open the window shown below which details all the markets available for you to trade on. From here you can add a wide variety of shares to your Market Watch window by selecting the relevant share or country and clicking Show Symbol.

MetaTrader 5 trading platform: Trade top shares

An example of the Admiral Markets MetaTrader 5 trading platform showing the Symbols window.

Disclaimer: Charts for financial instruments in this article are for illustrative purposes and do not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.


After clicking the OK button in the Symbols window you can now view the different instruments in the Market Watch window. To view a price chart of a company's share price, simply left-click on one of the stock symbols in the Market Watch window and drag it onto the chart area. From here you can now open up a trading ticket:

  1. Right-click on the chart.
  2. Select Trading.
  3. Select New Order, or press F9 on your keyboard.
  4. A trading ticket will open for you to input your entry price, stop loss and take profit levels and your share trading size (volume).

MetaTrader 5: trade best performing shares

An example of the Admiral Markets MetaTrader 5 trading platform showing a trading ticket.

Disclaimer: Charts for financial instruments in this article are for illustrative purposes and do not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.


To learn more about the MetaTrader 5 trading platform, feel free to watch the video below:


Why buy stocks and shares with Admiral Markets?

Here are just a few reasons why you should consider buying and selling shares with Admiral Markets:

  • Trade with a well-established, highly regulated company which includes regulation from the UK's Financial Conduct Authority.
  • Access the fastest and most popular online share market trading software called MetaTrader which you can use on PC, Mac, Web, Android and iOS operating systems.
  • Open an Admiral.Invest account with just €1 minimum deposit and invest from just $0.01 per share with minimum transaction fees of just $1 on US stocks.

Did you know that you can also access free real-time market data at no extra cost? You can also build a portfolio of dividend-paying stocks to create a stream of passive income. To get started simply click on the banner below!

Invest in Stocks & ETFs

About Admiral Markets

Admiral Markets is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

2. Any investment decision is made by each client alone whereas Admiral Markets AS (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.

3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.

4. The Analysis is prepared by an independent analyst (Jitan Solanki, Market Analyst, hereinafter "Author") based on the personal estimations.

5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.

6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.