While a FTSE 100 tracker fund is likely to suit some investors, I’m of the view that picking your own stocks could help you generate higher returns on your money. With that in mind, here’s a look at how some of my top 2019 stock tips have performed so far this year.
In the large-cap space, one of my best tips for the year has been sportswear specialist JD Sports Fashion. When I covered the stock on 10 January, I said that its forward P/E ratio of 14.2 was a “steal.” Since then, JD shares have risen from 387p to 800p (and climbed into the FTSE 100 in the process), which represents a gain of 107%.
I’ll point out that in the same article, I also said that I’d buy Rightmove shares. Since then, its share price has climbed from 464p to 622p, a gain of 34%. To put these gains in perspective, the FTSE 100 is up just 4% since that article.
Legal & General was another good tip this year. On 26 August, I said that recent share price weakness had created a “fantastic buying opportunity.” Since that article, the shares have risen from around 220p to 284p, a gain of nearly 30%. Not a bad return for a large-cap stock in just over four months.
In the mid-cap space, one of my best tips for the year has been online clothes retailer ASOS. I looked at it on 19 July, after its share price had just crashed due to a profit warning. I noticed that directors were buying shares and I said that a “small position could pay off over the long term.” Since that article, the stock has rebounded from 2,180 to 3,000p, a gain of 38%.
I also tipped rival Boohoo as my top stock for July. Since then, its share price has surged from 212p to 270p (it was as high as 317p last month), a gain of 27%.
Gains in the small-cap space have been just as amazing.
On 14 January, I listed technology company Gamma Communications as one of my “top small-cap stock tips for 2019”. Since that article, the stock has risen from 774p to 1,220p, generating a gain of 58%.
Then, on 19 February, I highlighted FX broker Alpha FX as a stock that could “double your money.” Its share price has risen from 660p to 1,090p since, a gain of 65%, so doubling your money is looking like a real possibility.
And on 18 March, I said that support services specialist Restore could “smash the FTSE 100” over the next three years. So far, it’s doing a good job of that. Its share price has risen from 295p to 466p, a gain of 58%, versus a fall of 2% for the Footsie.
Of course, I’ll point out that not every stock tip performed so well. I had some losses too. No one ever gets 100% of their stock tips right. However, overall, there were some great tips this year that could have helped you beat the low returns from the FTSE 100. Tune in next year for more great stock tips like these.
Edward Sheldon owns shares in JD Sports Fashion, Rightmove, Legal & General Group, Alpha FX, ASOS, and Boohoo Group. The Motley Fool UK owns shares of and has recommended ASOS. The Motley Fool UK has recommended Alpha FX, boohoo group, and Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.