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Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Sheraz Mian, Zacks Director of Research, to talk about how to pick stocks in 2020.

Experts are saying that stock picking is dead. It’s easier, after all, to simply buy an index fund and that’s it.

But Sheraz, who is the editor of the Zacks Top 10 Stocks portfolio, which launches with new stocks every January, believes that individual stock pickers can still be successful.

How to Find Top Stocks

Sheraz starts his search every year by using the Zacks Ranks of #1 (Strong Buy), #2 (Buy) and #3 (Hold) to narrow down the universe of stocks.

Then he takes a deep dive into the fundamentals, especially how the companies fit into his larger theme of that year whether it is AI, biotech innovations, data analytics, payment and financial innovation, transportation inventions etc.

Usually, 25 to 30 companies make the cut. In 2018, Shopify (SHOP - Free Report) made it to that stage of the process but didn’t make it onto the final list. Why not?

Here are 4 others that did finally make it onto the 2019 list.

Stocks That Made the Cut in 2019

1.       Generac (GNRC - Free Report) is the best performer in the 2019 portfolio. The shares are up 97% year-to-date as consumers have been buying back up generators as climate change has played havoc with electricity reliability in several states. This year, the company has been posting record quarterly results.

2.       Ubiquiti Inc. (UI - Free Report) has had a volatile year but has still managed to gain 93% year-to-date. Shares saw a big spike after the last earnings report. It trades with a forward P/E of 33.

3.       Aptar Group (ATR - Free Report) was added to the Top 10 portfolio in October 2019. The company makes containers for the beauty, drug and food and beverage industries. Shares are up 24% year-to-date. It trades with a forward P/E of 28.6.

4.       Omega Healthcare (OHI - Free Report) falls into one of the long-term investing themes of the aging Baby Boomers. Omega is a REIT that specializes in senior care. It pays a dividend, currently yielding 6.4%.

What else should you know about how to pick stocks for 2020?

Listen to this week’s podcast to find out.