Are you looking for options for your portfolio in January? Well, whether you’re a growth, income, or value investor, one of the shares listed below could be worth considering.
Here’s what you need to know about them:
If you’re a growth investor, then Appen could be worth a look. Through its team of over one million skilled contractors, Appen provides or prepares the training data for artificial intelligence (AI) models. It counts the likes of Amazon, Facebook, Google, and Microsoft as customers. While COVID-19 is stifling its growth this year, management expects demand to bounce back strongly in 2021 when the pandemic passes. Analysts at UBS appear confident that this will be the case. They recently retained their buy rating and $44.00 price target on its shares.
Value investors might want to check out People Infrastructure. It is a leading workforce management company that provides innovative solutions to workforce challenges. In FY 2020, the company reported a 49.2% increase in normalised EBITDA to $26.4 million. While the new financial year is going to be harder because of the pandemic, analysts at Morgans remain positive on the company. They expect People Infrastructure to deliver earnings per share of 22 cents in FY 2021. This means its shares are changing hands for just ~16x forward earnings right now. They also offer a decent fully franked ~3.2% dividend yield based on the broker’s forecasts.
If you’re an income investor, you might want to take a look at Telstra. Thanks to a combination of cost cutting, rational competition, and a positive growth outlook in the mobile business, Telstra has been tipped to return to growth in the not so distant future. Which, after years of dividend cuts, should mean Telstra will soon be in a position to start increasing its payouts once again. For now, though, analysts at UBS are expecting the company to keep paying its 16 cents per share dividend in FY 2021 and FY 2022. The broker has a buy rating and $3.85 price target on its shares.
Where to invest $1,000 right now
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and People Infrastructure Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.