May 10, 2021 6 min read

This story originally appeared on StockNews
Three of the biggest tech companies in the world recently posted stellar earnings. While the majority of companies in the S&P 500 beat analyst estimates this past quarter, Facebook (FB), Apple (AAPL), and Alphabet (GOOGL) have multiple growth catalysts that should continue to drive their prices higher.

Q2 2021 earnings season is almost over, with 88% of the companies in the S&P 500 reporting results. So far, the data has been great. 86% have beaten expectations for earnings and 76% beating on revenue. The earnings surprise figure is the largest since FactSet started tracking in 2008. These figures support the strength in the market this year as the S&P 500 is up over 11% year to date.

While some of this growth can be attributed to last year’s first quarter being hampered by the initial stages of the pandemic, much of it was driven by swift monetary and fiscal stimulus measures. But these measures won’t be here forever, which means that not all companies will continue to generate this kind of growth.

That’s why investors should focus on larger companies with multiple growth catalysts over the long term. When it comes to technology, I believe Facebook (FB), Apple (AAPL), and Alphabet (GOOGL) certainly fit the bill, which is why I am highlighting them below.

Facebook Inc. (FB) 

FB reported strong first-quarter earnings, blowing past expectations. The company grew revenue 48% year over year, with advertising revenue making up most of the sales growth. FB also generated 146% growth via virtual reality and its e-commerce initiatives. The company also grew its global monthly active user count 10% to 2.85 billion, with another 600 million visiting Instagram and WhatsApp monthly.

The company has plenty of catalysts that should continue to drive growth. FB continues to see traction in both online and mobile advertising spending. Instagram has also emerged as a cash cow for the company after debuting its ad platform. Both Messenger and WhatsApp present even more revenue opportunities once they are monetized. Plus, the company’s efforts in the augmented reality/virtual reality space bode well for future growth.

FB has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The company has a Sentiment Grade of A, which means the “Smart Crowd” likes the stock. Forty-five analysts rate the stock as a Strong Buy or Buy. FB also has a Quality Grade of A, indicating a solid balance sheet. The company generates significant cash flow, with a cash level of $64 billion as of the end of the quarter.

We also grade FB based on Growth, Value, Momentum, and Stability. You can find those grades here. FB is ranked #4 in the Internet industry. You can find other top stocks in the industry by clicking here.  

Apple Inc. (AAPL) 

AAPL recently reported earnings that crushed analyst estimates. The company’s product revenue soared 62% year over year, driven by robust demand for the iPhone, iPad, and Mac product lines. Mac computers even set an all-time revenue record. This was likely due to AAPL’s custom-built M1 chip that replaced Intel processors in the Mac Mini and MacBook.

The company’s services segment also delivered record results in the quarter. While its business mainly runs through its flagship iPhone, its service offerings, such as cloud services, App Store, Apple Music, AppleCare, and Apple Pay, are the new cash cow. AAPL currently has more than 660 million paid subscribers across its total services portfolio. Its subscription-based video streaming, news, and gaming services should benefit from this strong base of customers.

AAPL has an overall grade of B, which is a Buy rating in our POWR Ratings system. The company has a Sentiment Grade of A, as several analysts are high on the stock. For instance, the average analyst price target for AAPL is 152.06, which indicates a potential 15.7% upside for the stock. AAPL also has a Quality Grade of B due to a strong balance sheet.

Cash increased from $195.6 billion at the end of 2020 to $204.4 billion as of the end of March. The company even returned $23 billion to shareholders in the most quarter through dividend payouts and share repurchases. For the rest of AAPL’s grades (Growth, Value, Momentum, and Stability), click here. AAPL is ranked #20 in the Technology – Hardware industry. For other top-ranked stocks in this industry, click here.  

Alphabet Inc. (GOOGL)

GOOGL reported its latest financial results last month, with earnings beating analyst estimates by a considerable margin. EPS came in at $26.29, compared with the consensus estimate of $15.82. Revenue was up 34% year over year to $55.3 billion, with operating income more than doubling. YouTube grew revenue 50% year over year, while sales from Google Maps and Gmail were up 30% year.

The company is increasing its presence in the Home Assistant space. The company’s Google Home product runs on GOOGL’s new voice assistant. With voice considered the next big thing in computers, this offering bodes well for future growth. GOOGL’s monopoly in online search isn’t going anywhere, as the company is seeing an increase in search queries.

The company is also gaining market share in cloud computing due to the strength of the Google Cloud Platform and G Suite offerings. GOOGL has an overall grade of A, translating into a Strong Buy rating in our POWR Ratings system. The company has a Sentiment Grade of A, which isn’t surprising as forty-one Wall Street analysts rate the stock the Strong Buy or Buy.

GOOGL also has a Quality Grade of B, driven by strong profitability and efficiency figures. The company has a net profit margin of 26.1% and a return on equity of 22.3%. To see how GOOLG fares in Growth, Value, Momentum, and Stability, click here. GOOGL is ranked #1 in the Internet industry.

FB shares fell $0.47 (-0.15%) in after-hours trading Monday. Year-to-date, FB has gained 12.01%, versus a 12.15% rise in the benchmark S&P 500 index during the same period.

About the Author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent eleven years as a Consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.

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The post 3 High Profile Tech Stocks Poised for More Growth appeared first on StockNews.com https://www.entrepreneur.com/article/371568

May 10, 2021 6 min read

This story originally appeared on StockMarket

Are These Retail Stocks Worth Investing In Now?

While tech stocks may be off to a rough start in the stock market this week, investors may want to consider turning their attention to retail stocks. Why? Well, for starters, we will be getting a closer look at retail sales figures for April this week. Some would argue that solid results on this end could further support the current movement into reopening stocks. For one thing, investors appear to believe so. Namely, CNBC’s Jim Cramer had this to say, “I’d argue retail’s the real comeback story right now.” Seeing as this part of the stock market is made up of a wide variety of companies, investors would have plenty of options to choose from now.

On one hand, you have conventional retail players who remain on the uptrend as pandemic restrictions lessen. Take Funko (NASDAQ: FNKO) and L Brands (NYSE: LB) for example. Both companies would stand to benefit from more consumers visiting their brick-and-mortar stores now. As it stands both FNKO stock and LB stock are currently looking at gains of over 400% in the past year. On the other hand, there are e-commerce giants such as Etsy (NASDAQ: ETSY) and Pinduoduo (NASDAQ: PDD) as well. Sure, both companies’ shares have taken a breather from their pandemic highs. But, e-commerce will remain the more convenient method for consumers to shop, nonetheless. This would be the case seeing as countless consumers have and continue to rely on e-commerce services throughout the pandemic.

Overall, you could say that retail remains a viable industry across the board right now. As a result, I could see investors looking for the best retail stocks to buy this week. On that note, here are four top retail stocks worth taking note of in the stock market today.

Best Retail Stocks To Buy [Or Sell] Right Now

Nike Inc.

Nike is a retail giant that develops and sells athletic apparel and equipment. In essence, it is the world’s largest supplier of athletic shoes and apparel. It is a major manufacturer of sports equipment and is considered one of the most valuable brands among sports businesses. Nike markets its products under its own brand, as well as Nike Golf, Air Jordan, Air Force 1, Air Max, and Nike CR7 among others. NKE stock currently trades at $136.81 as of 3:49 p.m. ET.

In March, the company reported its third-quarter financials for fiscal 2021. Firstly, Nike reported a revenue of $10.4 billion for the quarter, a 3% increase compared to the prior year. Its Nike Direct sales were $4 billion, up by 20% on a reported basis. Its digital sales increased by 59% given the circumstances of the coronavirus pandemic. Secondly, net income for the quarter was $1.4 billion, a 71% increase or a diluted earnings per share of $0.90. This could imply that Nike’s brand momentum is as strong as ever and it continues to drive focused growth in its largest opportunities. With that being said, will you consider adding NKE stock to your portfolio?

[Read More] Best Stocks To Invest In Right Now? 4 Cybersecurity Stocks To Consider

JD is a leading technology-driven e-commerce company that is transforming to become a leading supply chain-based technology and service provider. To start things off, the company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever they want it. Part of its Retail-as-a-Service offering includes opening its technology and infrastructure to partners and brands. It is also one of the largest retailers in China. JD stock currently trades at $71.48 as of 3:50 p.m. ET.

The company reported its fourth-quarter and full-year 2020 financial results in March. Impressively, it reported a net revenue of $34.4 billion for the quarter, a 31.4% increase from a year ago. Net income attributable to ordinary shareholders for the quarter was $3.7 billion. Its annual active customer accounts increased by 30.3% to 471.9 million year-over-year. With a strong momentum going into 2021, the company says it will continue to invest in innovative, high potential businesses to drive long-term sustainable growth. Given this piece of news, is JD stock a top retail stock to consider buying?

Read More

Peloton Interactive Inc.

Peloton is an exercise equipment and media company that is based in New York City. The company has a leading interactive fitness platform that boasts over 5.4 million members. It has essentially reinvented the fitness industry. Peloton does this by developing a first-of-its-kind subscription platform that seamlessly combines its exercising equipment, proprietary networked software, and world-class streaming digital fitness content. PTON currently trades at $87.78 as of 3:49 p.m. ET.

Last week, the company reported its third-quarter financials, much to investors’ delight. Total revenue for the quarter was $1.26 billion, an increase of 141% year-over-year. This was driven by strong demand for its Connected Fitness Products and an acceleration of deliveries as a result of expedited shipping investments. Its Connected Fitness Subscription grew by 135% to over 2.08 million and paid Digital Subscriptions grew by a whopping 404%. With such impressive financials, will you consider buying PTON stock?

[Read More] Hot Stocks To Buy? 4 Growth Stocks To Watch

Alibaba Group Holding Ltd

Among the e-commerce players in China, few can compare to the likes of Alibaba Group. If anything, most would consider Alibaba the Chinese counterpart to Amazon (NASDAQ: AMZN). Understandably, both are multinational tech companies that have expanded beyond their core e-commerce divisions.

In terms of scale, Alibaba reported a whopping total revenue of $34.45 billion in its recent quarter fiscal. On top of that, the company also saw its earnings per share surge by over 47% year-over-year as well. With Alibaba set to report its full fiscal year 2021 figures on Wednesday, investors could be watching BABA stock right now.

On the operational front, the company continues to make impressive strides forward. Late last month, Alibaba’s Taobao platform announced plans to “supercharge” its e-commerce ecosystem. In short, Taobao is planning to support 2,000 live stream channels and help 200 platform partners boost their annual sales significantly. By and large, this would serve to improve Alibaba’s relations with existing merchants. The company seems confident about its current strategy and appears to be doubling down on it. Time will tell if this will pay off for Alibaba in the long run. In the meantime, would you consider BABA stock a buy?

https://www.entrepreneur.com/article/371562

May 7, 2021 6 min read

This story originally appeared on StockMarket

Should Investors Be Watching These Top Semiconductor Stocks In May 2021?

Semiconductor stocks are an interesting play in the stock market today, to say the least. Why? For the most part, it is because of how crucial semiconductor chips are in our world today. Safe to say, semiconductors are the brains behind most of the tech around us right now. From our smart devices and home appliances, and even the cars we drive, semiconductors are present. Now, seasoned and new investors alike would likely be familiar with the current chip shortages throughout the globe. Without going into too much detail, this shortage stems from surges in chip demand across various consumer-focused industries. Nonetheless, while the shortage persists, demands remain at an all-time high. Could this be a buying opportunity for investors now?

Well, Citigroup (NYSE: C) analyst Christopher Danely appears to believe so. Earlier this week, Danely argued that there could be “more upside” in semiconductor stocks for now. Moreover, the analyst also reiterated his buy rating on semiconductor manufacturer Texas Instruments (NASDAQ: TXN). Positive analyst notes aside, some of the largest names in the industry continue to make massive plays as well. As of last month, the Taiwan Semiconductor Manufacturing Company (NYSE: TSM) revealed plans to significantly boost its manufacturing capabilities. This plan would involve investments of $100 billion over three years. Evidently, the semiconductor industry is not resting on its laurels. Overall, I can understand if investors are eager to jump on the top semiconductor stocks on the stock market now. In light of that, here are four names worth taking note of.

Semiconductor Stocks To Watch Right Now

QuickLogic Corporation

QuickLogic is the leading provider of open configurable computing solutions based on 100% open-source software and hardware. In essence, it is a fabless semiconductor company that develops low power, multi-core MCU, FPGAs, and embedded FPGA intellectual property (IP), voice, and sensor processing. QUIK stock currently trades at $6.22 as of Friday’s closing bell.

In February, the company reported its fourth-quarter financials. QuickLogic reports that it has accelerated progress in transforming its business from primarily a product company to a platform company. It also passed the Amazon (NASDAQ: AMZN) AVS Certification for hearable reference design so that OEMs can evaluable smart hearable products quickly and easily.

Total revenue for the quarter was $2.5 million, a 40% increase compared to the last quarter. A chunk of this revenue came from its mature product revenue, at $1.7 million, which is up by 46% compared to its previous quarter. Given all of this, will you consider adding QUIK stock to your watchlist?

[Read More] Cheap Stocks To Buy? 4 Cloud Computing Stocks To Know

Nvidia Corporation

Nvidia is a multinational tech company that is based in Santa Clara, California. The company essentially focuses on personal computer graphics, graphics processing units (GPU), and also on artificial intelligence (AI). Its GPU product brands are aimed at specialized markets. Specifically, GeForce for gamers and Quadro for designers. NVDA stock currently trades at $592.49 as of 4:oo p.m. ET Friday. Recently, Baird analyst Tristan Gerra covered the company.

In particular, he placed an outperform rating and an $800 price forecast on the company’s stock. That would represent a 38% increase from the stock’s current price. According to Gerra, Nvidia’s leadership in AI positions the tech titan for continued success. AI computing is set to be one of the most transformational technologies of our era after all according to him.

Lastly, he also praised Nvidia’s competitive edge that has barriers to entry that are among the highest within the semiconductor industry. This could insulate Nvidia’s sales and profits from the competition. For these reasons, will you consider watching NVDA stock?

Read More

Advanced Micro Devices Inc.

AMD is a multinational semiconductor company that is based in Santa Clara, California. It develops computer processors and related technologies for both the business and consumer markets. For more than 50 years, the company has driven innovation in high-performance computing, graphics, and visualization technologies. AMD stock currently trades at $78.81 as of Friday’s close. Last week, the company reported its first-quarter financials for 2021.

In detail, it reported a revenue of $3.45 billion for the quarter, a 93% increase year-over-year. AMD also posted a gross profit of $1.58 billion, an increase of 94% year-over-year. Also, net income for the quarter was $555 million, up by 243% year-over-year or an earnings per share of $0.45.

Given these impressive financials, the company continues to accelerate its business with the best product portfolio in its history. It also continues to enjoy strong execution and robust market demand for its products. Notably, its data center revenue more than doubled and it has increased its full-year guidance. Given all of this, will you consider adding AMD stock to your portfolio?

[Read More] Best Stocks To Buy Now? 4 Consumer Discretionary Stocks In Focus

ON Semiconductor Corporation

Another top semiconductor company to know now would be ON Semiconductor (ON). Primarily, the company supplies semiconductors that serve as power, analog, sensor, and connectivity solutions. Its core end markets include the automotive, industrial, cloud, and Internet of Things sectors.

Notably, ON can do all of this through its global network of manufacturing facilities and engineering centers. For investors, ON stock would be among the more affordable bets in the current pool of semiconductor stocks. As it stands, the company’s shares are looking at gains of over 130% in the past year. However, seeing as it has taken a breather from its all-time high seen last month, would it be wise to buy on the dip here?

Well, in its recent quarter fiscal posted earlier this week, ON reported stellar figures. To begin with, the company saw massive year-over-year surges of 742% in net income and 766% in earnings per share. Furthermore, ON also ended the quarter with over $1 billion in cash on hand. CEO Hassane El-Khoury cited good execution from his team and strong demand from ON’s key end-markets as key factors of this performance. Given ON’s role in the current electric vehicle market, would you consider adding ON stock to your May watchlist?

https://www.entrepreneur.com/article/371430

May 7, 2021 8 min read

This story originally appeared on StockNews
The e-commerce industry, which saw accelerated growth amid the pandemic, should keep growing even in a post-pandemic world given the convenience it offers and the permanent shift to online platforms. However, not all players in this industry are well positioned to capitalize on the industry tailwinds. Growing international footprint and diversified offerings make the prospects bright for Vipshop Holdings (VIPS) and Amazon (AMZN). But on the other hand, Sea Limited (SE) and Jumia Technologies (JMIA) are struggling to stay afloat.

The e-commerce industry was growing even before the pandemic, but it received a significant boost last year thanks to increased dependence of people relying on e-commerce to meet their daily living needs. In order to stay afloat, many traditional retailers moved to online platforms as well. Consequently, the industry has experienced favorable investor sentiment, as evident from Global X E-commerce ETF’s (EBIZ) 68.3% return over the past year, compared to SPDR S&P 500 ETF Trust’s (SPY) 47.4% gain over this period.

While the fast-paced reopening of the economy is leading to a shift in investors focus away from the pandemic winners, with the assumption that they may not be able to maintain their growth in the post-pandemic scenario, the demand for e-commerce is not expected to reduce anytime soon, given the convenience it offers. Moreover, many retailers have invested significantly on setting up their online platforms, and they should continue building these platforms even after the pandemic. The global e-commerce market size is expected to grow at a CAGR of 14.7% over the next six years.

As virtual shopping and contactless transactions are here to stay, Vipshop Holdings Limited (VIPS) and Amazon.com, Inc. (AMZN) should deliver solid returns based on their expanding global footprint and strategic investments. But what about Sea Limited (SE) and Jumia Technologies AG (JMIA)? Should they be avoided in the near-term owing to weak financials and cloudy growth prospects? I will answer that below

Stocks to Buy:                 

Vipshop Holdings Limited (VIPS)

Based in China, VIPS deals in high quality and popular branded products and operates through Vip.com, Shan Shan Outlets, and Others segments. The company offers its branded products through its vip.com and vipshop.com online platforms, as well as through its internet website and cellular phone application. Additionally, it offers warehousing, logistics, product procurement, research and development, technology development, and consulting services.

In March, VIPS’ board of directors authorized a share repurchase program under which the company may repurchase up to US $500 million of its Class A ordinary shares over the 24-month period upon the establishment of the share repurchase program. The company expects the funding of the repurchase to be done out of their existing cash balance.

The company’s non-GAAP income from operations increased 30% year-over-year to RMB 2.82 billion for the fourth quarter that ended December 31, 2020, while its non-GAAP net income grew 35.8% year-over-year to RMB 2.58 billion over the same period. The company’s total revenue increased 22% from the prior-year quarter to RMB 35.8 billion. Its EPS came in at RMB 18.51, compared to RMB 14.20 in the fourth quarter of 2020.

VIPS is expected to witness revenue growth of 61.4% year-over-year to $4.33 billion in the most recent quarter that ended on March 31, 2021. Its EPS is estimated to increase 71.4% from the year-ago value to $0.36 in the current quarter. VIPS’ stock has gained 100.6% over the past year.

VIPS’ strong fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, which equates to Buy rating in our POWR Ratings system. VIPS has an A grade for Growth, and a B grade for Value. Among the 78 stocks in the China industry, it is ranked #7.

Click here to see the additional POWR Ratings for VIPS. (Momentum, Stability, Sentiment and Quality).

Amazon.com, Inc. (AMZN)

Founded in 1994, this e-commerce behemoth needs no introduction. AMZN dominates global online sales and has achieved stellar financial performance over the years. As shop and work from home habits continue, the company’s online shopping and streaming platforms have witnessed a significant uptick in demand.

This month, Amazon Web Services, Inc. (AWS) unveiled the general availability of Amazon DevOps Guru which is a fully managed operations service that uses machine learning to improve application availability by automatically detecting operational issues and recommending specific actions for remediation. This development should enhance the company’s cloud platform and allow it to cater to increasing business needs.

In April, The Walt Disney Company (DIS) leveraged AWS for the global rollout of Disney+ to improve performance and reliability of its streaming service. This should reinforce AMZN’s AWS as the leading cloud provider.

AMZN’s net sales have increased 44% year-over-year to $108.5 billion in the first quarter that ended March 31, 2021. Its net income increased 219.3% from the year-ago value to $8.11 billion. The company’s operating income rose 122.3% year-over-year to $8.89 billion. Its EPS came in at $15.79, representing a 215.2% increase from the year-ago value.

The consensus EPS estimate of $55.7 for 2021 indicates a 33.2% improvement year-over-year. The consensus revenue estimate of $115.17 billion for the current quarter ending June 2021 indicates a 29.5% increase year-over-year. AMZN’’s stock has gained 40.6% over the past year.

AMZN’s strong fundamentals are reflected in its POWR Ratings. The stock has a grade of A for Sentiment and B for Quality. In the Internet industry, it is ranked #12 out of 71 stocks.

In total, we grade AMZN based on eight different components. Beyond what we stated above, we have also given AMZN grades for Growth, Value, Momentum and Stability. You can get those grades here.

Stocks to Sell:

Sea Limited (SE)

Formerly known as Garena Interactive Holding Limited, SE engages in the digital entertainment, e-commerce, and digital financial service businesses. It provides Garena digital entertainment platform along with SeaMoney digital financial services, including mobile wallet and payment services to individuals and businesses.

In January, Shopee, an integral part of SE, unveiled a series of new initiatives and features for Shopee Mall at the inaugural of Shopee Brands Summit 2021. This should help them meet the ever changing needs of consumers and allow them to deliver a seamless and fun shopping experience.

However, SE’s operating expenses have increased 80.0% year-over-year to $891.04 million for the fiscal fourth quarter that ended December 31, 2020, while its operating loss came in at a negative $357.33 million indicating a 55.3% decrease year-over-year. The company generated a net loss of $524.57 million, representing an 86.1% decline from its year-ago value. Moreover, SE reported an adjusted EBITDA of negative $171.26 million for its digital financial services.

Analysts expect SE’s EPS to come in at a negative $0.63 in the most recent quarter that ended in March 2021, indicating a 21.2% decline year-over-year. In fact, the stock could not beat the consensus EPS estimates in any of the trailing four quarters. The company’s stock has declined 7.2% over the past 3 months.

SE’s POWR Ratings are consistent with this bleak outlook. It has an overall grade of F, which equates to Strong Sell in our POWR Ratings system. SE has a grade of D for Growth, Value, and Quality. Of the 71 stocks in the Internet industry, it is ranked #70.

To see the additional grades for SE based on Momentum, Sentiment and Stability, click here .

Jumia Technologies AG (JMIA)

Formerly known as Africa Internet Holding GmbH, JMIA operates an e-commerce platform in Africa, Portugal, Germany, and the United Arab Emirates. The company’s platform consists of a marketplace that connects sellers with consumers, a logistics service that enables the shipment and delivery of packages from sellers to consumers, and a payment service which facilitates transactions to participants active on the company’s platform in selected markets.

In April 2021, JMIA launched a new initiative under the theme of “Support Them … Buy Their Products” to support locally manufactured products and encourage Egyptians to buy them. This move by JMIA should widen their customer base along with enhancing the role of local production to boost the country’s economy.

However, in the fourth quarter that ended on December 31, 2020, JMIA reported an adjusted EBITDA loss of €28.3 million. Moreover, its operating loss came in at €40 million over the same period, while its net loss for the period came in at €46.93 million.

The consensus loss per share of $1.85 for the current year represents a 54.2% decline year-over-year. JMIA’s stock has declined 57.9% over the past 3 months.

JMIA’s weak prospects are apparent in its POWR Ratings as well. The stock has an overall grade of F, equating to a Strong Sell in our proprietary ratings system. JMIA also has a grade of F for Value Grade and Sentiment Grade, and a grade of D for Stability and Quality. In the same industry, the stock is ranked #68.

In addition to the grades I’ve just highlighted, you can see the JMIA’s grades for Growth and Momentum by clicking here.

AMZN shares were trading at $3,297.07 per share on Friday afternoon, down $9.30 (-0.28%). Year-to-date, AMZN has gained 1.23%, versus a 13.23% rise in the benchmark S&P 500 index during the same period.

About the Author: Samiksha Agarwal

Samiksha Agarwal has always had a keen interest in financial markets. This has led her to a career as a financial journalist. Through her extensive knowledge of fundamental analysis, her goal is to help investors identify untapped investment opportunities in the stock market.

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The post 2 E-Commerce Stocks to Buy in May, 2 to Avoid appeared first on StockNews.com https://www.entrepreneur.com/article/371420

May 6, 2021 4 min read

This story originally appeared on StockNews
The electric vehicle industry is growing at a rapid pace and as such is attracting the entrance of established manufacturers, such as the China-based Geely (GELYY). But are these new entrants in general, and Geely specifically, be able to threaten Tesla’s (TSLA) leadership position?.

One of the hottest industries in which to invest currently is electric vehicles (EVs). As the globe inches towards clean energy production and consumption, companies within the EV space are  poised to grow at an accelerating pace. 

While 2020 was a breakthrough year for EV stocks, several EV companies have underperformed the market this year, allowing investors to buy growth stocks at more attractive valuations.

Here we compare two popular EV stocks. One is a market leader, Tesla (TSLA), and the other is Geely (GELYY), a company that is domiciled in the country with the world’s largest  EV market—China.

Click here to checkout our Electric Vehicle Industry Report for 2021

Let’s see which stock is a better EV buy right now:

Tesla continues to surprise Wall Street

In the first quarter, Tesla sales were up 74% year over year, driven primarily by a  109% increase  in vehicle deliveries. Its net income also surged to record highs on the back of regulatory credits.

In Q1, Tesla increased deliveries of its low-cost Model 3 and Y by an impressive 140% year over year to 182,338 units. However, deliveries of its  higher-priced Model S and X vehicles were down 83%, at 2,030 units,  in Q1 because Tesla put the production of these vehicles on hold and aims to launch newer versions of the models in coming months.

Tesla reported $438 million in  net income, or $0.93 per share, in the first quarter. This  included a $101 million gain associated with its  sale of Bitcoin. It also reported $518 million in sales of regulatory credits. Tesla bought $1.5 billion worth of digital assets in the quarter. Absent the  above-referenced sales, Tesla would have reported a $181 million loss in  Q1.

Tesla has pumped in $1.35 billion in capital expenditures and began construction in two new factories in Berlin and Texas. Once these projects are complete the company should benefit from positive free cash flows over time.

Even though  Tesla continues to use   unconventional methods to boost  its bottom-line, it remains one of the best stocks in the EV sector. It is on track to increase its vehicle deliveries by more than  50% year over year in 2021. The company’s management also confirmed it has sufficient liquidity to fund its expansion plans without having to raise additional capital.

Geely stock is down 42% from 52-week highs

An investment holding company, Geely operates as an automobile manufacturer in China. It develops , produces, markets, and sells automobiles and  automobile parts and related components. Geely manufacturers sedans, wagons, and sport utility cars.

Geely is an established  automobile manufacturer that  is now eyeing the  lucrative EV space. Earlier this year, China’s tech giant Baidu disclosed that it will partner with Geely Automobiles to manufacture smart EVs. Baidu will provide intelligent driving capabilities while Geely will leverage its design and manufacturing expertise.

But while Tesla is growing its top line at an enviable pace, Geely has seen its sales decline to RMB 92 billion in 2020 from RMB 106.59 billion in 2018. Its EBITDA has also fallen, to RMB 11.83 billion in this period from RMB 17.24 billion.  And Geely’s EBITDA margin has fallen to 12.8% in 2020  from 16.2% in 2018.Geely has attributed the sales decline to China’s weak passenger vehicle market. While its sales volume was down 10% year over year in 2019, it fell by another 6% in 2020. This is in-part why its stock is trading 42% below its 52-week high.

The final takeaway

While Tesla is the largest EV manufacturer in the world, Geely is still trying to gain a foothold in this nascent industry. In terms of valuation, Tesla is trading at a far higher multiple than  Geely. For example, Tesla’s trailing price to sales multiple stands at 20.5x, while Geely is valued at less than two times trailing sales.

But Tesla’s robust revenue forecast and expanding profit margins can support this lofty valuation, making it a better investment bet right now.

TSLA shares . Year-to-date, TSLA has declined -5.97%, versus a 12.45% rise in the benchmark S&P 500 index during the same period.

About the Author: Aditya Raghunath

Aditya Raghunath is a financial journalist who writes about business, public equities, and personal finance. His work has been published on several digital platforms in the U.S. and Canada, including The Motley Fool, Finscreener, and Market Realist.

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The post Tesla vs. Geely: Which Electric Vehicle Manufacturer is a Better Buy? appeared first on StockNews.com https://www.entrepreneur.com/article/371330

May 6, 2021 6 min read

This story originally appeared on StockMarket

Top Tech Stocks To Watch In The Stock Market Today 

Investing in tech stocks in the stock market has not been as smooth sailing as it was last year. The sector comprises businesses that sell goods and services in industries such as information technology, software, computers, and many more. It is hard to imagine not having some form of technological influence in businesses today. Due to this fact itself, it is not a surprise that the sector includes companies with the largest market capitalizations such as Microsoft Corporation (NASDAQ: MSFT) and Amazon.com (NASDAQ: AMZN).  

Today, even fast-food giants McDonald’s (NYSE: MCD) is utilizing technology to improve customer experience and boost revenues. The company uses predictive analytics & machine learning to display food options onto outdoor digital drive-thru menus based on the weather, time of day, trending menu items, and current restaurant traffic. This allows McDonald’s to create a more personal experience for their customers. In fact, this is only made possible after the acquisition of digital customer experience technology company Dynamic Yield.

All in all, technological news continues to grab headlines this year. Do you agree that tech will continue to be an integral part of our lives? If so, could these top tech stocks be worth your attention in the stock market today?

Top Tech Stocks To Buy [Or Sell] Today 

Apple Inc 

To start off the list, we have the tech giant that needs no introduction, Apple. As most of us would know, the company designs and markets mobile devices, personal computers, and digital music players. The company announced its fiscal Q2 earnings last week. Apple posted a quarter record revenue of $89.6 billion, up 54% year-over-year. Out of which, 67% is from international revenues. Similar to many tech stocks, AAPL stock has seen significant gains over the past year. It has risen by an impressive 70% during the period. 

On Wednesday, Apple awarded an additional $410 million from its Advanced Manufacturing Fund to II-VI (NASDAQ: IIVI), a leading manufacturer of optical technology. II-VI manufactures vertical-cavity surface-emitting lasers (VCSELs) that help power Face ID, Memoji, Animoji, and Portrait mode selfies. This extended collaboration will undoubtedly create additional capacity and accelerate the delivery of future components for the iPhone.

Furthermore, Apple also announced last week that it will accelerate its U.S. investments. It plans to make new contributions of more than $430 billion over the next five years. This includes tens of billions of dollars for next-generation silicon development and 5G innovations. As a result, this will create more job opportunities as well as investment in next-generation innovative businesses. With that in mind, is this the right time to buy AAPL stock?

[Read More] Best Stocks To Buy Now? 4 Consumer Discretionary Stocks In Focus

Snowflake Inc 

Snowflake is a cloud data platform provider. The company’s platform enables customers to consolidate data into a single source. In essence, this would help provide crucial business insights and build data-driven applications. Snowflake is often credited with reviving the data warehouse industry by building and perfecting a cloud-based data platform. 

In March, the company reported its fourth-quarter and full-year financials for fiscal 2021. Impressively, revenue for the quarter was $190.5 million, an increase of 117% year-over-year. Snowflake also said its net revenue retention rate was 168%, a respectable achievement. The company said that it now has 4,139 total customers, a 73% year-over-year growth.

Back In February, Snowflake and BlackRock (NYSE: BLK) announced a strategic partnership. In detail, BlackRock would launch Aladdin Data Cloud, a solution for investment managers to expand the utility of data, powered by Snowflake’s platform. The partnership aims to make data more accessible and actionable for the investment management community.  Separately, with the company reporting earnings on May 26, will you consider adding SNOW stock to your watchlist?

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Arista Networks Inc 

Arista Networks is a supplier of cloud networking solutions. In detail, it uses software innovations to address the needs of Internet companies, cloud service providers, and data centers for enterprise support. At the core of Arista’s platform is the Extensible Operating System (EOS™). It is a ground-breaking network operating system with single-image consistency across hardware platforms, and a modern open core architecture enabling in-service upgrades and application extensibility. Arista is another company that announced its Q1 results this week. The company posted revenue of $667.6 million, an increase of 27.6% from the first quarter of 2020. In addition, the company reported a healthy operating profit of $198.8 million for the quarter.  

This goes to show that customers are responding to the company’s focus on cognitive cloud networking suites. It is also noteworthy that the company has performed well throughout the pandemic, and this recent earnings report is the sixth consecutive quarter that the company has beaten analysts’ expectations.

Furthermore, in early April, Arista announced CloudVision 2021. CloudVision is a multi-domain management plane that enables operations consistency across data centers, campus wired and wireless, and public cloud use cases. This uniform approach would simplify network operations for Arista’s customers and partners. With that in mind, would you consider investing in ANET stock? 

[Read More] Top Video Game Stocks To Watch After Activision Blizzard Beat Estimates

Twitter Inc 

Last but not least, we have Twitter. Basically, it is a microblogging and social networking company. Its software service allows people to connect and communicate via messages known as ‘tweets’.

In late April, the company announced its first-quarter financial results. Revenue for the quarter was up by 28% year-over-year, coming in at $1.04 billion. Net income was $68 million, representing a net margin of 7%. This compares to a net loss of $8 million for the same period last year. Safe to say, if you had invested in TWTR stock a year ago, it would’ve been a sound investment. The stock has almost doubled in price over the past year. 

With that being said, the company is not taking anything for granted and still strives to improve its software. Twitter’s acquisition spree continued on Tuesday, where it acquired a news tech company, Scroll. This is a subscription service that offers its users a better way to read through long-form content on the web by removing ads. The service will become a part of Twitter’s larger plans to invest in subscriptions. Given the prospect for growth of the company, would you consider adding TWTR stock to your portfolio?

https://www.entrepreneur.com/article/371309

May 5, 2021 6 min read

This story originally appeared on StockMarket

Activision’s Strong Earnings Are Putting These Video Game Stocks On Investors’ Radar

Video game stocks may be under pressure along with the stock market pullback this week. But one thing’s for sure. That is their fundamentals remain intact, at least in the near term as the coronavirus pandemic acts as a short-term tailwind. For instance, Activision Blizzard (NASDAQ: ATVI) has topped analysts’ expectations for the first quarter, thanks to its popular “Call of Duty” and “Candy Crush” franchises.

During its first quarter, revenue came in at $2.07 billion, beating estimates of $1.78 billion. Activision Blizzard reported earnings of $0.84 per share, topping analysts’ estimates of $0.70 per share. Following the earnings announcement yesterday, the company’s stock is up by about 5% at market open. There’s no question that stay-at-home measures have left millions of people staying at home with not many activities to do. And this sent video game sales through the roof.

Of course, top video game stocks are feeling the pressure across the board with the stock market today still reeling from the recent tech rout. This would prompt some investors to offload these profitable names. However, many analysts see gaming as a high-growth industry that will only expand with time. Be it from a short-term trading or long-term investing perspective, the gaming industry is one attractive sector to keep an eye out for. That said, will budding investors be putting down their controllers and put up a list of some of the best video game stocks to buy right now?

Video Game Stocks To Buy [Or Sell] In May

Electronic Arts Inc. 

The first company on this list of top video game stocks to watch this earnings season is Electronic Arts. Electronic Arts is currently one of the world’s largest video game publishers. It has grown to now be the largest video game related company in the United States by revenue and market cap. Some of the games that it produces include Need For Speed, EA Sports, Battlefield, Star Wars, and much more. So let’s look at what this large video game corporation has been up to in recent times.

The company recently announced that it has sealed the deal to acquire Glu Mobile (NASDAQ: GLUU). With this acquisition, it should help supercharge Electronic Arts’ efforts in the mobile gaming space. Electronic Arts quoted its CEO, Andrew Wilson, as saying that, with Glu Mobile in its portfolio, “We are forming a powerful growth engine that will expand our current games and deliver more amazing new experiences across sports, lifestyle, mid-core, and casual for players everywhere.“

Electronic Arts is expected to deliver its upcoming quarterly results after the market closes on Tuesday, May 11. The gaming company has beat expectations for the last four quarters. According to data by Refinitiv, revenues will increase 16.6% and 24.5% in fiscal 2021 and 2022 respectively. With all that in mind, would you put EA stock on your watchlist ahead of its financial results next week?

[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know

Nintendo Co. Ltd.

The next video game stock to include on your watch list is Nintendo. The company is famous for creating consoles such as the Wii, Game Boy, Super Nintendo, and most recently the Nintendo Switch. One can simply assume that the Nintendo Switch gaming system is the face of the company right now. The success of this hybrid console has sent Nintendo stock over the roof in recent years. The company is slated to report its quarterly earnings before the opening bell on Thursday, May 6.

Undoubtedly, the majority of Nintendo’s business right now comes from Switch consoles and their game sales. Thus far, things are going extremely well for the company as it sold 24.1 million hardware units for the nine months ended December 2020. This represents a sales growth of 35.8% year-over-year.

The strong market presence from Nintendo is not unwarranted. First, the Switch can be used as either a handheld device or a console docked to the TV. From this flexibility, it creates more opportunities for engagement with families and friends with exclusive titles like Mario Kart 8, Just Dance, and Animal Crossing, just to name a few. The growth rate for Nintendo looks fantastic. And NTDOY stock has risen more than 300% in the past 5 years. If you believe that the Switch could bring more growth to the company, what would happen when the company launches the rumored ‘Switch Pro’? Only time will tell.

Read More

Sony Corporation

Sony is a gaming company that has developed the PlayStation series, arguably one of the most popular gaming consoles in the world. It also develops and sells a wide array of electronic equipment, instruments, and devices for consumer and industrial markets. The company recently reported its fourth-quarter earnings and managed to beat estimates.

In detail, the company reported a net income that surged by over 700% to $983 million. That translates to an earnings per share of $0.79. Sony also reported that total sales for the quarter were a whopping $20.4 billion, up by over 26% year-over-year. This huge increase in sales likely came from its new generation console released late last year. The PlayStation 5 had been in limited supply immediately upon launch and that continues to be the case. 

Given how it has been 7 years since the company’s previous-generation PlayStation was released, many consumers were eagerly waiting to upgrade their gaming systems. With SONY stock trading sideways for most of this year, would you consider adding it to your portfolio?

[Read More] Good Stocks To Invest In Right Now? 4 IPO Stocks To Watch

Microsoft Corporation

Tech giant Microsoft has also diversified into the video game industry for some time. The company released a strong quarter last week, with revenue and earnings beating analysts’ estimates. While the company is more of a software company than a video game company, its own Xbox gaming console is one of the best sellers in the gaming market. 

That said, Microsoft also began to look at game development verticals, bagging Bethesda game publisher in a $7.5 billion deal with Zenimax. Such a smart acquisition means that Microsoft can lock some of Bethesda’s current and future games as exclusives. And that could increase profits for its gaming division. In fact, from its recent quarter, gaming is one of Microsoft’s fastest-growing business segments. The post-pandemic recovery should see a rebound in the company’s non-gaming products, driving its growth in 2021 and 2022.

Microsoft has long been known as one of the “Big 3” video game companies besides Sony and Nintendo. But with its strong position in the cloud gaming market with Azure, I won’t be surprised if the company is laying further plans to expand its cloud gaming market share. With Microsoft looking to thrive in the gaming industry in the near future, will this be enough for you to consider MSFT stock?

https://www.entrepreneur.com/article/371217

May 4, 2021 6 min read

This story originally appeared on StockMarket

Best Health Care Stocks To Buy Right Now? 4 In Focus

Health care stocks have been on a tear in the stock market. No matter what’s happening elsewhere in the economy, the health care industry will likely continue to work towards improving our quality of life. With this being the case, it would make sense then that investors are turning to top health care stocks to buy now. For the most part, the health care industry, in particular, has been put under the spotlight over the past year. Thanks to the sudden need for a coronavirus vaccine, countless people now know more about drug regulatory processes. 

On top of that, the broader market has not been all that kind to tech investors lately. With all the recent volatility amongst tech stocks, investors would likely be looking towards more defensive plays. This is when top health care stocks, which are mostly resilient to the happenings in the world, come into play.

For instance, clinical-stage biotech company Brooklyn Immunotherapeutics Inc.  (NYSE: BTX) is looking at gains of nearly 2,000% over the past month. This would be thanks to the right to an exclusive license the company intends to use for the development of mRNA gene-editing compounds and cell therapies. At the same time, vaccine companies such as Moderna (NASDAQ: MRNA) and Johnson & Johnson (NYSE: JNJ) are still holding up. If anything, the ongoing fight against the coronavirus is still one that investors appear to be betting on. If all this has you keen to add some top health care stocks to your portfolio, here are four to consider in the stock market today.

Top Healthcare Stocks To Watch Right Now

Precipio Inc. 

First, up the list, Precipio is red hot in the stock market now. The company is launching its rapid COVID-19 antibody test for sale on the world’s biggest e-commerce Amazon (NASDAQ: AMZN). More impressively, this was the first U.S.-based test to receive emergency use authorization by the U.S. Food and Drug Administration (FDA) for point-of-care. The development sparked a strong move in PRPO stock as it saw gains of over 170% on Monday’s intraday trading. And it continued to soar 27% on today’s opening bell.

“We are very excited to be working with our partner Nirmidas to get this important rapid test on the largest retail platform in the world. We look forward to working with other retail outlets, as well as with Nirmidas to advance this product into at-home use, following the receipt of appropriate FDA authorization.”- Ilan Danieli, CEO of Precipio.

Apart from the COVID-19 antibody test kits, the company’s main point of interest is actually on its diagnostic platform. In particular, Precipio created HemeScreen technology to help prevent misdiagnosis in certain cancers. In fact, earlier this year, the company signed an agreement with two of the largest oncology practices in the U.S. With so many exciting developments surrounding the company, would you be chasing PRPO stock in the stock market today?

[Read More] Best Tech Stocks To Buy Right Now? 4 To Watch

Ocugen Inc.

Coming up next, we have clinical-stage biopharmaceutical specialist Ocugen. The company was focusing on developing cures for blindness diseases but the onset of the coronavirus pandemic has shifted the company’s focus. OCGN stock investors now own a stake in a business that’s competing with other COVID-19 vaccine makers. And if you had placed your bets on OCGN stock at the beginning of December, you would have reaped at least 4,500% gains during this period. The company’s shares received another catalyst after the company released promising data of its vaccine candidate.

The company has been working endlessly to advance the development of COVID-19 vaccine candidate Covaxin with partner Bharat Biotech. Researchers at the Indian Council of Medical Research (ICMR) believe its vaccine candidate could protect against multiple coronavirus strains. 

“Covaxin continues to show strong results in all the studies conducted to date,” Ocugen co-founder and CEO Dr. Shankar Musunuri said in a press release. “We continue to believe this vaccine is a critical tool to include in our national arsenal to fight this pandemic.” Should the company be successful in receiving regulatory approval, I won’t be surprised if there’s another round of breakout in OCGN stock.

Read More

Intuitive Surgical

When you are putting up a list of health care stocks to buy, it’s hard to not include Intuitive Surgical on the list. The company is a leader in robotic-assisted surgery. To date, the company has helped tens of thousands of surgeons perform 7 million procedures worldwide. By using precise and efficient robots, the company excels in minimally invasive care. Its da Vinci surgical system will help enhance surgeon capabilities. It provides precision, less bleeding, and faster recovery times.

From the company’s first-quarter earnings, revenue came in 18% higher to $1.29 billion compared to the prior-year period. Intuitive Surgical’s bottom-line improvement on a non-GAAP basis was also worth the mention. The company reported a non-GAAP net income of $427 million compared to $323 million in the prior-year period. Simply put, the company appears to be firing on all cylinders.

Investors should also keep their eyes on how Intuitive Surgical expands in Asia and other key markets. The potential for robotic-assisted surgical devices remains huge, and Intuitive Surgical is on the leading edge of that innovative wave. With that in mind, would you be investing in ISRG stock?

[Read More] Best Stocks To Invest In 2021? 4 E-Commerce Stocks To Know

Novavax

Last but not least, coronavirus vaccine candidate Novavax is one health care stock worth watching. That’s because the company will soon file for emergency use authorization for its COVID-19 vaccine candidate. The company’s two-dose vaccine posted 96% efficacy against the novel coronavirus. It also appears to have the ability to handle today’s COVID-19 variants to a certain degree. Furthermore, Novavax reported that the vaccine is 100% effective in preventing severe side effects which may require hospitalization.

Not sure if you can remember, Operation Warp Speed agreed to pay Novavax $1.6 billion in order to preorder 100 million doses. Without going too much into financial details, at $16 a dose, the Novavax contracts could be worth over $6 billion. Should the company’s vaccine receive FDA authorization, this would be a huge, multibillion-dollar product for the company.

Another exciting development is that the company is also looking into combining both its COVID-19 vaccine and flu vaccine into a single shot. This certainly sounds more attractive compared to other COVID-19 vaccines. Clinical trials are expected to be launched in the middle of 2021. Even if these developments don’t come to fruition, the company has yet another potential revenue generator in its flu vaccine under development which may be market-ready in a few years. With all these going on, will you consider investing in NVAX stock?

https://www.entrepreneur.com/article/371093

May 3, 2021 6 min read

This story originally appeared on StockMarket

Top E-Commerce Stocks To Watch This Month

As trading begins this month, some would argue that e-commerce stocks remain hot stocks to buy in the stock market today. Why? Well, for starters, many consumers continue to rely on e-commerce out of necessity amidst the current pandemic. Sure, as pandemic restrictions loosen, the fear is that e-commerce figures would take a breather. Does this make e-commerce stocks a less viable play moving forward? Not necessarily. Thanks to technology, consumers can browse catalogs across several stores for all their retail needs through their smartphones. Between driving out to numerous locations and shopping from the comfort of home, many would choose the latter. Wouldn’t you?

Moreover, e-commerce giants such as Amazon (NASDAQ: AMZN) and Shopify (NYSE: SHOP) continue to wow investors amidst this earnings season. On one hand, Amazon posted an earnings per share of $15.79 on revenue of $108.5 billion for the quarter. With the company expecting to post revenue between $110 billion and $116 billion in Q2, Amazon appears confident about maintaining its current momentum. On the other hand, e-commerce enabler Shopify saw its revenue more than doubled year-over-year in its recent quarter fiscal. The company also posted an earnings per share of $2.01, more than triple Wall Street’s estimates. Like it or not, e-commerce remains a crucial industry in our world today. Having read all of this, you might be looking to invest in some of the best e-commerce stocks yourself. If you are, here are four making headlines in the stock market now.

Top E-Commerce Stocks To Buy [Or Sell]

Jumia Technologies AG

Jumia is a leading pan-African e-commerce platform. Also, its platform essentially consists of its marketplace, which connects sellers with consumers. Its logistic service enables shipment and delivery to consumers across the continent. Furthermore, the company also has a payment service, JumiaPay, which facilitates transactions among participants active on its platform. Jumia is active across 11 countries in Africa that spans a population of over 600 million people. JMIA stock currently trades at $32.02 as of 3:18 p.m. ET.

In February, the company reported its fourth-quarter and full-year 2020 financial results. Gross Merchandise Value for the quarter was an impressive $278 million, which increased sequentially by 23%. The company posted a gross profit of $33 million, a 12% increase compared to a year over. Jumia also provided a business update on Jumia Advertising. In 2020, its advertising segment ran over 1,000 campaigns with various high-profile partners like Unilever (NYSE: UL) and L’Oreal (OTCMKTS: LRLCY). To support long-term growth for the company, it continues to establish strong relationships with brands and advertising agencies. Given all this, will you consider buying JMIA stock?

[Read More] Top Stocks To Watch Today? 4 Tech Stocks To Consider

Home Depot Inc

Home Depot is the largest home improvement retailer in the U.S. that supplies tools, construction products, and services. Basically, it operates many big-box format stores across the U.S. and in all 10 provinces of Canada. The company employs approximately 500,000 associates and has a total of 2,298 retail stores. It also boasts an impressive e-commerce channel that saw an 83% digital sales growth year-over-year. HD stock currently trades at $331.12 as of 3:19 p.m. ET and has been up by over 20% since the start of March.

In its fourth-quarter financials that were posted in February, Home Depot reported sales of $32.3 billion, a 25.1% increase year-over-year. Comparable sales increased by 24.5%. The company also posted a diluted earnings per share of $2.65 for the quarter. During the quarter, the company enjoyed a record level of sell-through for decorative holidays and saw double-digit growth from both its pro and DIY customers. Also, the company announced that it increased its quarterly dividend by 10% to $1.65 per share. With so many exciting things happening to the company, will you consider adding HD stock to your portfolio?

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Alibaba Group Holding Ltd

Alibaba is a company that provides the technology infrastructure and marketing reach to help merchants and businesses to engage customers. It is one of the world’s largest retailers and e-commerce companies. The company is also one of the biggest venture capital firms with one of the biggest investment corporations in the world. BABA stock currently trades at $231.54 as of 3:19 p.m. ET.

In February, the company announced its quarter that ended in December 2020. Firstly, the company reported a revenue of $33.8 billion, a 37% increase year-over-year. Its annual active consumers in its China retail marketplace reached a staggering 779 million. Net income for the quarter was $11.9 billion.

CEO Daniel Zhang had this to say, “Our cloud computing business continues to expand market leadership and show strong growth, reflecting the massive potential of China’s nascent cloud computing market as well as our years of investment in technology. Looking ahead, we are confident that we will continue to create value for our customers, lead with innovation and make our contributions to society.” With that in mind, is BABA stock a top e-commerce stock to buy ahead of its earnings on May 13?

[Read More] Top Stocks To Buy Now? 4 Cruise Line Stocks Making Headlines

Pinduoduo Inc.

Another top player to watch in the e-commerce industry now would be Pinduoduo. Similar to our previous entry, Pinduoduo operates in China. In brief, the company boasts the largest agriculture-focused tech platform in the region. Essentially, Pinduoduo directly connects farmers and distributors with consumers through its platform. Although the premise appears simple, many investors would consider PDD stock a go-to play on China’s booming e-commerce industry now. In fact, the company’s shares are currently looking at gains of over 190% in the past year. Could PDD stock have more room to grow moving forward?

If anything, the company’s latest operational update could give us a clearer understanding of this. According to Pinduoduo, it has connected more than 12 million farmers directly to its users over the past six years. From its recent quarter fiscal posted last month, it was also revealed that Pinduoduo now has over 788 million users. The likes of which boosted the company’s gross merchandise value to a grand total of $255.6 billion for the quarter. Notably, this marks a 66% year-over-year surge. Not to mention, Pinduoduo’s vital role in the Chinese agricultural industry would also add to its long-term growth potential. Could you see PDD stock continue to flourish because of this?

https://www.entrepreneur.com/article/370977

May 3, 2021 7 min read

This story originally appeared on PennyStocks

Do You Know These Strategies for Buying Penny Stocks?

Buying penny stocks is not easy. But, it can be if you have the right tools at your disposal. When starting to trade penny stocks, some investors quickly find themselves in the red. And without a commitment to education and dedication to learning, this will remain the case.

But, consider this. You wouldn’t perform an open heart surgery after reading a few articles on how to do it. While this may sound extreme, buying and selling penny stocks or any stocks for that matter is the same thing. 

So, when making a watchlist or even just glancing at some penny stocks to watch, it’s important to know what your strategy is. This goes beyond just researching how to trade penny stocks. Rather, there are some nuances that all investors should consider. 

[Read More] Reddit Penny Stocks & The Risks Of Social Media Trading In 2021

For one, penny stocks are highly volatile. Whether due to large speculation or simply the fact that they are stocks under $5, price fluctuations are very much commonplace. While this may seem scary at first, knowing how to capitalize on it is what makes certain traders profitable, and others not so much. 

In addition, traders need to understand their unique goals. Are you saving for a new house? Trying to make a living? Or are you working to bring in some extra income on the side? These questions can help to define whether short or long-term investments are better for you.

After taking an inward look, it could be time to start educating yourself on exactly how to trade. So, to help with this process, here are a few penny stock trading strategies that you need to know about. 

3 Penny Stock Trading Strategies to Utilize Daily 

1. Making a Penny Stock Watchlist 
2. Picking the Right Penny Stocks to Buy 
3. How to Take Profit With Penny Stocks 

Making a Penny Stock Watchlist 

Last week, we covered how to make a penny stock watchlist in an in-depth piece. However, to refresh those just now coming onto the scene, let’s give a brief overview. Building a proper watchlist involves three things. First, traders need to build an under $5 scanner. This can be done on a variety of platforms, but most tend to use ThinkorSwim. 

This is an all-in-one application made by TD Ameritrade. It allows for trading yes, but also the ability to build complex and concrete scanners. In the simplest of terms, traders should scan for stocks under $5 with a volume of over 1 million. This will give a list of a few hundred penny stocks. While the $5 part is self-explanatory, having a volume of over 1 million will help to ensure that there is enough liquidity to enter and exit a position. 

Those under the 500,000 range, for example, many not allow for swift buying and selling, therefore it could be more difficult to swing trade penny stocks. In addition, low volume will mean that a stock could jump and fall in price with little to no indicators. This could result in sizable losses incurred on a very quick timeframe. While making a scanner is a great idea, it is only one step in your trading journey. 

Picking the Right Penny Stocks to Buy 

Picking the right penny stocks to buy can be challenging. But, there are a few aspects that can make it easier. After compiling your list of penny stocks via a scanner, the next step is research. With the internet, anyone with a computer can find out everything there is to know about a given company.

First, what are the speculative factors impacting the company right now and in the near future? This could be a new product, an FDA approval, or the announcement of a quarterly earnings report. Now, there are more to consider, but these should help to indicate how speculation can impact a company’s share price. 

[Read More] Best Penny Stocks To Buy As Cryptocurrencies Boom? 3 To Watch In 2021

The second aspect to consider is, what do a company’s fundamentals look like? While fundamentals can lead to speculation, the two are quite different from one another. Fundamentals are all of the baseline factors that impact a company. This includes revenue, EPS, profitability, fundraising, and anything similar to these.

Both speculation and fundamentals should be looked at with every penny stock you intend to buy. After doing so, you should be able to know exactly what a company looks like from an overall perspective. 

Lastly, is this stock right for you? Throughout this piece, we’ve covered how investing is an individual task. Because every stock is different, you need to make sure that a company aligns with your investing goals. For this reason, looking at how volatile it is (how often and how large prices fluctuate) can help to determine whether you should invest in the short or long term.

This can be calculated more thoroughly through a beta measurement. This is the overall measurement of a stock’s returns versus a control (usually the S&P 500). Over 1.00 usually means it is more volatile, while under 1.00 means the opposite. And, we also have to take into account the speculation that could impact the beta in the short term. With all of this in mind, picking the right penny stocks to watch can be simple. 

How to Take Profit With Penny Stocks 

Taking profit with penny stocks is a simple step, yet it is something that some investors forget to consider. Often, investors will enter into positions due to FOMO (fear of missing out). This usually occurs after a security has hit a major high, such as a 50% gain in a single gain for example. However, after large gains, a natural correction usually ensues, thus resulting in losses. 

So, in short, FOMO is a bad strategy, and something to stay away from. This mostly aligns with the psychological needs of making a profit with penny stocks. However, in fiscal terms, there are a few strategies to consider. 

[Read More] 3 Penny Stocks To Watch Under $3 Right Now

The most popular is usually a gradual profit-taking strategy. Let’s give an example. First, an investor would set a price target. Let’s say a stock is at $1 and an investor thinks it will go up to $4. $4 would therefore be the target price. On the way to the $4 mark, investors would take profit in increments. 

First, the stock could hit $3, and an investor would sell 25% of their position. Second, the stock could move to $3.50, where an investor would sell 50% of their position. And lastly, the stock could hit $4, where one would then sell the remaining 25%.

This is a common strategy used to ensure that every trade could be a winning trade. In addition, it also helps to ensure that losses could remain nominal. While there are other strategies to taking profit, this is usually a simple and straightforward way to feel confident in all of your trades. 

3 Penny Stocks to Watch

1. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)
2. Galiano Gold Inc. (NYSEAMERICAN: GAU)
3. Peabody Energy Corp. (NYSE: BTU)

Are Penny Stocks Right For You?

At the end of the day, investors need to pick the best stocks to buy for their portfolio. If you’re not comfortable with large ups and downs, penny stocks may not be right for you. However, if you are, there are plenty of opportunities to be had.

While this is not a complete list of how to buy and sell penny stocks, it should help to point you in the right direction. Considering this, are penny stocks right for you?

https://www.entrepreneur.com/article/370974