The stock market has come roaring back from the crash that occurred when the novel coronavirus first hit. Stocks are fluctuating wildly because of the economic slowdown induced by Covid-19. The volatility makes it incredibly difficult to answer the question, “Is this a good time to buy?” The answer changes on a moment to moment basis. Here we note a few stocks to purchase now, during the most volatile time.
Recent commodity and financial market swings have left some investors running for the door. Abdu, who advises private clients and financial institutions, says there’s money to be made, even in times of volatile trade. “There’s a new category called a ‘stay-at-home stocks’,” he says. “Things like Zoom, for example, has gone up by 106% since the beginning of the year. Microsoft, Amazon just hit a record high and Alibaba is the same thing.”
It’s all about diversification
Index funds, as the name implies, are passively managed, and what they do is aim to track the performance of existing indexes. For example, an S&P 500 index fund’s value will correlate to how the S&P 500 is faring.
Index funds are a popular choice for investors for a number of reasons. First, they take much of the guesswork out of investing. Vetting individual stocks takes time. You need to understand their business model, assess their cash flow, and evaluate their earnings potential. Index funds don’t require the same amount of legwork, because again, you’re simply following existing market indexes that have already been established.
Amazon.com, Inc. [NASDAQ: AMZN] is an American multinational technology considered to be one of the Big Four tech companies, along with Google, Apple, and Facebook. The company, known for its technical innovation and revolutionizing online retail, operates in the field of e-commerce, cloud computing, digital streaming, and artificial intelligence.
Measured by revenue and market capitalization, Amazon is the world’s largest online marketplace, AI assistant provider, and cloud computing platform.
The online advertising revenue of Amazon’s advertising business clocked a highly impressive growth of more than 45% year over year in the third quarter, with experts predicting that its share of the total U.S. digital ad market could climb to 14% in 2023 from its present 9%.
The massive dominance of the company, virtually synonymous with online retail, has built-in the e-commerce market will continue to fuel its growth and expansion in the years to come. With global retail e-commerce sales expected to hit $6.5 trillion by 2022, Amazon is going to be the biggest beneficiary. This is why Amazon is at the top of the list of stocks to purchase now.
NVIDIA [NASDAQ:NVDA] has remained unaffected by the novel coronavirus pandemic, and two of its biggest businesses have even turned out to be beneficiaries of lockdowns and shelter-in-place orders enforced across the globe to contain the spread.
The graphics specialist’s data center business has come into its own amid the COVID-19 outbreak as data center operators had to upgrade their capabilities to support the increase in remote work. And this is just one of several ways that people staying at home have given NVIDIA a shot in the arm.
Nvidia is a standout company in almost every respect. Few companies in the technology space are better positioned for consistent, long-term growth. Nvidia’s technology is widely used in today’s advanced computing, with many people speculating that Nvidia’s technology is becoming indispensable. This fact bodes well for the company and should ensure big investment gains for many years to come.
While it is true that there is a lot of competition in the GPU segment, Nvidia is well-positioned to fend off its competitors and thrive.
Investors who are looking for a dependable technology company with big upside potential should grab NVDA shares before they become more expensive.
PayPal Holdings [NASDAQ: PYPL] Since the COVID-19 pandemic hit, investors have been enthusiastic about the growth prospects of just about any company that does business online. That’s why shares of PayPal have shot out of a cannon and one of the best stocks to purchase now, due to surging 74% in the last three months.
The stock’s valuation has spiked in conjunction with that rise, and now sports a forward P/E of 54. Analysts expect PayPal to deliver 7.7% growth on the bottom line this year, but earnings growth is expected to improve to 23.7% in 2021.
In the first quarter, PayPal reported a non-GAAP EPS of $0.66, which was in-line with the first quarter of 2019. The earnings missed analysts’ consensus estimate of $0.75 per share. PayPal generated sales of $4.62 billion—a growth of 11.9% from the first quarter of 2019. The company missed analysts’ consensus sales estimate of $4.74 billion. The online payments giant exited the first quarter of 2020 with 325 million active customers. In the first quarter, PayPal processed $190.6 billion in payment volume compared to $161.5 billion in the same period last year. Wall Street analysts expected $195.2 billion in payment volume for the first quarter.
Wall Street analysts expect PayPal to post sales of $4.9 billion in the second quarter. The figure would mark a rise of 14.5% YoY (year-over-year) compared to $4.3 billion in the second quarter of 2019. Also, analysts expect the company to report a non-GAAP EPS of $0.86 in the second quarter. Currently, analysts expect 13.4% and 17.1% growth in the company’s 2020 and 2021 revenues, respectively. Meanwhile, they expect a non-GAAP EPS of $3.33 and $4.11 in 2020 and 2021, respectively.
In Conclusion: Stocks to Purchase Now
The 2020 stock market that has shown signs of acting irrationally – and for good reason. The COVID-19 pandemic is far from resolved and the unemployment and jobs picture is unclear at best. Doing more research and keeping an eye on these stocks and more are key. Make your move when you’re ready, but don’t wait too long, stocks to purchase now may not hold the same value say 2 weeks from now.