Top 5 Investment Picks in Stocks for 2017

Allocating funds into stocks is a strategic way to secure wealth for the future. Some of the leading stock investments to watch in 2017 include:

General Motors (GM)
Despite notions that the auto industry's cycle has peaked, this doesn't mean decline is inevitable. The company’s earnings could remain stable, especially with innovations in electric and autonomous vehicle technology. GM has the potential to outperform Tesla in electric and hybrid markets, supported by its technological edge and market presence. Currently trading at a P/E ratio of 4.3, analysts anticipate this could rise close to ten, potentially doubling the stock’s value from $38 to around $80 within a few years.

ONE Gas (OGS)
As natural gas becomes a bright spot amid depleting energy reserves, advancements in hydraulic fracturing and horizontal drilling have boosted supply and consumption. Companies like ONE Gas, located in rapidly growing areas, stand to benefit. Its favorable rate structures for infrastructure upgrades and potential mergers make it a promising investment for 2017. Growing population and strategic capital investments may drive higher earnings and dividend growth, enhancing its stock value over time.

USG Corporation (USG)
USG leads in eco-friendly construction products and sustainable building practices. With strong fundamentals and consistent growth, it ranks among top companies in green building materials. The demand for eco-efficient construction is projected to expand annually at 9.5%, reaching $69 billion by 2019. USG’s commitment to environmentally responsible building solutions underscores its position as a top investment, with green building practices offering cost savings, environmental benefits, and increased occupant productivity.

Independence Realty Trust (IRT)
Rising interest rates have impacted the real estate sector, particularly apartment REITs. IRT’s attractive dividend yield of 8% and affordable valuation make it a notable candidate for investors seeking income. Although rising interest rates pose risks, forecasts suggest rate hikes may slow down later in the year. If IRT continues to expand its equity and capitalizes on current undervaluation, it could deliver strong returns with minimal risk in 2017.

Forterra (FRTA)
Specializing in water infrastructure, Forterra generates over $1 billion annually and plans upcoming acquisitions. Its high barriers to entry provide a competitive edge, with limited rivals and stable pricing. Despite carrying $1.1 billion in debt, improved cash flows are expected to reduce debt levels, positively influencing its P/E ratio. Successful integration of new acquisitions could see Forterra’s stock reach $30 in the coming year, highlighting its growth potential.