[ad_1]
From a distance, 2020 looks like a fairly normal business year. the S&P 500 is trading nearly 15% higher this year as the weekend approaches, an above average return – but not a spectacular run. With the pandemic and a recession on the plate, it’s probably a refreshing surprise to see the market roll, but some stocks are doing much better.
There are nearly 200 stocks listed in the United States with a market cap of over $ 1 billion that have more than doubled in 2020. Only a few of them will repeat the feat next year, but I think Freshpet (NASDAQ: FRPT), Sea Limited (NYSE: SE), and Magnite (NASDAQ: MGNI) have the right ingredients in place to double again in 2021.
Image source: Getty Images.
Freshpet
It’s no surprise to see Freshpet shares rise 128% in 2020 through Friday’s close. Freshpet has the cornered supermarket in the refrigerated dog and cat food space with 22,371 branded refrigerators in its growing network. The COVID-19 crisis has resulted in an understandable increase in pet adoptions, and we are pampering our dogs and cats more than ever.
Freshpet is at the intersection of all of these favorable headwinds. The humanization of pets that causes us to want to feed our furry friends more than dry kibble is a dinner bell for Freshpet refrigerators in grocery stores, warehouse clubs and big box stores. Net sales increased 29% in its most recent quarter.
The demand for Freshpet products is so strong that she has had to reduce her advertising budget to ensure that her existing production can meet the demand of existing customers. It’s building a new facility that will more than double its production by the middle of 2022. There are a lot of ‘in the home’ inventory that will lose popularity once we get out more often, but Freshpet won ”Be one of them. We’re not going to stop spoiling our pets when the hunger pots strike.
Limited sea
One of this year’s most popular stocks is still not a household name for most American investors. Sea Limited is a fast growing online platform provider in South East Asia. It started as a games company a little over a decade ago, but now also operates the region’s main e-commerce hub, Shopee. Its Sea Money digital payment and wallet platform is yet to move the needle, but it is the fastest growing business for Sea Limited.
Things could get interesting on the fintech front in 2021. Sea Limited was granted a digital banking license in its home country of Singapore on Friday. Turnover almost doubled in its last quarter and Sea Limited operates on all cylinders. Its flagship online gaming platform was relatively lagging behind, and even there it saw a 73% year-over-year increase in revenue. There are now 572.4 million players on the platform. The stock almost quintupled in 2020, but until it becomes a household name outside of its territory, the cap remains high.
Magnite
Advertising is an industry that usually doesn’t thrive in a recession, but Magnite – the combination of Telaria and Project Rubicon earlier this year – plays it well. The merged company capitalizes on two growing trends, Telaria’s connected TV prowess working alongside Rubicon’s large-scale programmatic exchange.
Reported revenue rose 62% in its most recent quarter, but ignore this intoxicating revenue explosion since the two companies weren’t together a year earlier. The most accurate measurement stick here is the 12% combined revenue growth for the period, an amount that may not be a lot, but the synergies here should click in the quarters to come. The stock is up 158% this year, more than doubling in November alone after posting better-than-expected financial results.
Freshpet, Sea Limited and Magnite are gaining growth stocks. The climate is right for them to continue winning in 2021.
[ad_2]
Source link