There is no doubt that it is a Thanksgiving day like few before it. As 2019 coronavirus disease (COVID-19) cases hit record highs in the United States, many of us have forsaken our traditional holiday gathering and opted to fall asleep in a turkey-induced turkey coma. tryptophan on our sofas while watching football.
But even in the midst of this chaos, we can be thankful that there is light at the end of the tunnel. Recent interim analyzes in late stage studies Pfizer/BioNTech and Modern showed a respective vaccine efficacy of 95% and 94.5%. While COVID-19 won’t go away overnight, there appears to be a real solution on the horizon.
Even when the going is at their darkest, there is always something to thank – and that goes for investors too.
As we celebrate and honor Thanksgiving Day, I come up with five absolutely perfect stocks that investors can gulp down right now.
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), the company behind internet search giant Google and streaming content platform YouTube, did something this year that investors had never seen before: It reported a drop in revenue (in Q2 ) compared to the period of the previous year. As an advertising-driven business model, the stiffness of the COVID-19 fix has stalled Alphabet’s growth engine.
But what’s amazing about this company is how quickly it turned the ship around. After a single quarter of sluggish sales, Alphabet returned to 14% year-over-year sales growth in the quarter ended September. This is a company that, according to data from GlobalStats, consistently holds 92% to 93% of the world’s internet search share. This makes it a logical solution for advertisers in multi-year bull markets and gives Alphabet exceptional ad pricing power.
I also encourage investors not to overlook its burgeoning ancillary segments beyond Google. YouTube has become one of the top three most-visited social platforms, and the Google Cloud cloud infrastructure service has grown like a weed. As more businesses move their data to the cloud, the proverbial building blocks Google Cloud provides to small and medium businesses are in high demand. Look for Google Cloud to play an important role in growing Alphabet’s operating cash flow.
As the US economy tries to emerge from the recession and the Federal Reserve has committed to keeping interest rates at or near historically low levels for years, bank stocks are unlikely to rank high on the market. the lists of many investors. But don’t swallow up the monetary center bank Wells fargo (NYSE: WFC) when it’s historically inexpensive would be a mistake.
Although working as part of a fairly large public relations flub, Wells Fargo has a long history of outperforming assets among the major banks, and has been exceptionally successful in attracting affluent clients. Wealthier bank customers are less likely to change their spending habits during small economic problems and should take advantage of the multiple financial tools that Wells Fargo offers, such as mortgage servicing and asset management. These affluent customers are Wells Fargo’s ticket to a return to glory.
We also see Wells Fargo entering the 21st century by investing heavily in digital initiatives. An increase in the use of digital and mobile applications should allow it to consolidate some of its branches and reduce its non-interest expenses somewhat.
With a few exceptions, Wells Fargo hasn’t been this cheap in decades.
Cannabis enthusiasts can certainly be thankful for the November 3 election, which saw marijuana measures spread to five states. With nearly three-quarters of the country now legalized to some extent, it’s time for investors to get aggressive and swallow shares of the multi-state operator. Cresco Laboratories (OTC: CRLBF).
Even without federal legalization, Cresco’s two-part operating model is designed to thrive. First, it has a small but growing retail segment. The company holds 29 retail licenses, with about half of its 19 operational dispensaries located in Illinois. The Land of Lincoln opened for adult weed sales on January 1, 2020, and it is a limited license state, which means Cresco Labs has a real chance of grabbing a significant market share. . By 2024, Illinois is expected to generate north of $ 1 billion in full-year pot sales.
Cresco Labs also has a thriving wholesale model. It completed the acquisition of Origin House in January 2020, which means it inherited the highly lucrative cannabis distribution license from Origin House in California. This license allowed Cresco to bring its products to more than 575 dispensaries in the world’s largest marijuana market.
With recurring profitability just around the corner, Cresco seems like a perfect stock to own in the cannabis industry.
Drugstore chains should be concerned Amazon enter their domain. But the point is, some pharmacy giants are better positioned to deal with it than others. This is why investors should consider carving out a position CVS Health (NYSE: CVS).
What sets CVS Health apart is its acquisition in 2018 of healthcare provider Aetna. When it was announced, a lot of people scratched their heads. But it’s a deal that offers a number of benefits, including significant cost synergies, a higher long-term organic growth rate, and the incentive for tens of millions of Aetna members to stay on. within the CVS Health product and service network. In other words, this deal seems like the perfect way to fend off a competitor like Amazon.
CVS is also building some 1,500 HealthHUB health clinics across the country that will primarily target people with chronic illnesses. If CVS can build relationships locally with these people and act as an intermediary between patients and specialist care, it should have no problem growing its higher margin pharmacy segment.
Finally, I encourage investors to consider acquiring one of the fastest growing large cap stocks on the planet, and perhaps the perfect stock to own in the ecommerce space, Sea Limited (NYSE: SE).
The Singapore-based sea is actually made up of three operating segments, all of which are growing exceptionally fast. Currently, its gaming arena division generates the majority of its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). In particular, the number of paid users in the third quarter more than doubled compared to the period of the previous year.
However, it is Sea’s opportunity in e-commerce that stands out as a shining beacon. Southeast Asia has a thriving middle class, many of whom are just starting to take advantage of the opportunity to shop for products online. In the third quarter, Sea fulfilled nearly 742 million orders (up 131% from a year ago period), as gross cargo volume jumped nearly 103% to $ 9.3 billion . In the long run, e-commerce is expected to be Sea’s main profit driver.
Third, Sea offers mobile wallet services, which had over 17.8 million paying customers in the third quarter of 2020.
Investors can be grateful for the opportunity to buy into high growth and value companies like these, which can enrich them over time.