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10 of the Best Stocks to Buy for 2020

The 2010s were kind to the average Wall Street investor; the era ended as the first uninterrupted full-decade bull market in history.

Going into 2020, the U.S. economy was still on solid footing, with the largest looming concern being the U.S.-China trade war. This dynamic informed the annual list of best stocks to buy that U.S. News puts together, and, like the broader market, some of the highlighted stocks were caught flat-footed.

That said, with interest rates near zero, the stock market remains an essential long-term wealth-building tool for all financially able Americans. Here's a look at U.S. News' picks for 10 of the best stocks to buy for 2020, how they've performed in crisis and whether they're still worth buying:

1. Medifast (ticker: MED). A 2.4% dividend and a forward price-earnings ratio of 15 make MED still look attractive after its run-up this year, especially with analysts expecting 20% compound earnings growth over the next five years.

2. Alibaba Group Holding (BABA). Asia's largest diversified e-commerce company continued to put up robust growth numbers in the second quarter, posting 59% year-over-year revenue growth in cloud computing, a 34% increase in overall revenue from the prior year, and mobile monthly active users of 874 million – up 16% year over year.

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7 Best High-Dividend Mutual Funds
High-dividend mutual funds not only generate income, but can also lower risk in an investor's portfolio. Dividend strategies are more important in today's investing environment since interest rates are near zero and generating income from bonds is a challenge. For income investors, here are seven high-dividend mutual funds to consider for your portfolio.

Big income potential in a beaten-down sector. The energy sector has been one of the worst-performing parts of the stock market in 2020. In fact, you'd be hard-pressed to name even a dozen stocks in the industry that aren't flat or down on the year. However, long-term income investors know that energy investments are not just a tool for capital gains. Some companies offer steady revenue regardless of the ups and downs of the economy. Check out these nine stocks.

Volatility reigns. Stocks continued on a volatile path Thursday, with all three major U.S. indices finishing firmly in the red. The markets had begun the day with modest gains but sold off heavily throughout the trading session.

One potential factor contributing to the ramp-up in pessimism was a failed stimulus vote on Capitol Hill. A $300 billion relief package failed in the U.S. Senate, on a largely partisan 52-47 vote, not meeting the 60 needed to break the Democratic filibuster. Democrats claimed the bill had no chance of passing the House and was an insufficient remedy for everyday Americans hit by the pandemic.

The expectation for another round of relief has been one of the central narratives behind the stock market's run-up since March. The Dow Jones Industrial Average lost 405 points, or 1.45%, to finish at 27,534 on Thursday.

Restoration Hardware jumps. RH (RH), formerly known as Restoration Hardware, saw shares soar 20% on the day after an earnings report revealed stronger-than-expected demand for its luxury home goods.

Earnings per share jumped 30% from the same quarter a year ago, as the company reaps the rewards of a strong housing market and a trend to move from urban to suburban areas.

Peloton surges on first profit. Home workout equipment maker Peloton (PTON) saw its stock move higher in after-hours trading on Thursday, as demand for its stationary bike and treadmill soared amid the pandemic.

Revenue jumped 172% and the company swung to a $89.1 million profit – its first quarterly profit and a far cry from the $47.4 million loss in the same quarter a year ago.

Unlike more traditional fitness machines, Peloton models are high-tech, outfitted with a screen where users can subscribe to remote workout classes. This provides the opportunity for recurring subscription revenue and higher margins. Connected fitness subscribers, who pay for workout classes to stream through their equipment rather than a separate device, rocketed 113% to 1.09 million.

The company has often been mentioned as a buyout target for Apple (AAPL); Peloton could stimulate its growth prospects, improve subscription revenue and help the tech giant become more firmly ingrained in consumer homes.

Today's earnings reports. Companies expected to report today include Kroger Co. (KR).

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