5 Top Stocks That Aren't FAANG

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Let’s be honest, most investors probably own at least one, if not all, of the FAANG stocks (Facebook, Amazon, Apple, Netflix and Alphabet).

For the last few years, they’ve been “sure things.” Outside of a few minor pullbacks, they seemed to only go up. Just two months ago, some of them were hitting new all-time highs.

But now, they’ve seen a big sell-off which has pushed most of them down over 20%, which is what is considered a bearish signal. The pain, for investors, has been considerable.

Now’s Your Chance to Diversify

Investors can’t change the investment allocation they had going into this sell-off, but they can take charge of their own investing destiny moving forward.

Diversity is important. When big cap technology ruled the roost for several years, it didn’t seem to matter, but now it does.

That means most investors should own ETFs and stocks that are outside of technology and social media.

5 Top Stocks That Aren’t FAANG

1.      CF Industries (CF - Free Report) makes fertilizers. This industry has been in a cyclical downturn the last few years but now, both fertilizer prices and demand are rising, which has pushed up earnings estimates. Earnings are expected to jump 64% next year. Shares are down 10% over the last month, but that just means the shares are cheaper.

2.      Mosaic (MOS - Free Report) is another big fertilizer manufacturer. The whole industry is seeing a big boost to earnings forecasts. Earnings are expected to rise 25% next year. Shares are up 5.9% over the last month even as the S&P 500 is down 2.4% during that time.

3.      Etsy (ETSY - Free Report) operates a creative online marketplace. New management has turned around earnings. After making $0.38 in 2017, it is expected to make $0.60 in 2018, a gain of 57%. 2019 is also looking good, with earnings forecast to jump 39%. Shares soared after its recent earnings report but are down nearly 11% in the last 5 sessions. You’re not avoiding all of the volatility by buying this growth company.

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Disclosure: I own Facebook, Amazon and Alphabet.

Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

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