by Tom Gentile
Now that we’re starting to turn the corner on the pandemic, there’s one type of company that’s tailor-made for profitable trading right now.
Not only did they have really strong pandemic performance, but they’re still going strong with the recovery.
Tom’s picked out two of these “sweet spot” stocks to trade for big profits before Memorial Day… .
It has been quite a year for the stock market, which makes finding the best cheap growth stocks increasingly difficult as the S&P 500 (up 15% YTD) and NASDAQ 100 (up 47% YTD) climb.
The rally off the March lows has been breathtaking, with the S&P rising over 70% since the darkest days of March.
The rally has been fueled by the big growth stocks like Tesla Inc.
(NASDAQ: TSLA), Zoom Video Communications Inc.
(NASDAQ: ZM), and other big-name companies that have dominated the headlines this year.
If you listen to the talking heads right now, you would get the impression that all growth stocks are trading at ridiculous valuation multiples and are just too expensive to buy at these levels.
Believing that could be the most expensive mistake you ever make.
There are dozens of companies that are growing their free cash flow by double-digit percentages every year that trade at reasonable valuations.
They are not attracting the headline some of the hyper-growth stocks have received this year.
Still, history tells us that companies with this type of steady growth ultimately reward shareholders very generously… .
Here are my latest three best cheap growth stocks to buy today for the new year...
2021 is shaping up to be a breakout year for stocks.
Some stocks, at least.
A lot more stocks will struggle.
We're here to make sure they don't wind up weighing down your portfolio.
The pandemic has accelerated changes in how we live and do business.
That's been great for some companies, like Zoom Communications (NASDAQ: ZM).
It's going to get a lot worse for some other stocks.
These will be stocks to avoid in 2021.
And we'll show you not only how to find these stocks on your own, but we'll show you five stocks to steer clear of too.
Pandemic or not, remote work is here to stay.
And there are several factors pointing to why more and more businesses will be adopting the trend.
Plus, this shift to a remote work environment is more significant than you think.
It could impact your portfolio in a big way, when you use this easy play to cash in….
If you look at Zoom (NASDAQ: ZM) and Shopify (NYSE: SHOP), you might think we’re in a bubble.
These “stay-at-home stocks make it look like 1999 all over again.
ZM is up 494% year to date.
SHOP is up 179%.
And the S&P keeps chugging along with a 65% return since the COVID-19 crash in March.
.
Let’s see if there’s anything to this stock market bubble thing…
The common wisdom among most professional investors right now is that growth stocks are overvalued.
If you look at the top-tier big-name growth stocks, there is some truth to that.
The coronavirus stocks like Zoom Video Communications Inc.
(NASDAQ: ZM), DocuSign Inc.
(NASDAQ: DOCU), Amazon.com Inc.
(NASDAQ: AMZN), PayPal Inc.
(NASDAQ: PYPL), and others are indeed at nosebleed valuation levels.
These stocks have seen a massive upswing as we all stayed home more and looked for ways to avoid the virus.
While they are all wonderful businesses, many of them currently trade for multiples of sales and cash flows that would make the internet bubble stocks of the late 1990s blush with envy.
As big a story and as exciting as the coronavirus stocks have been, they are not the whole American business story.
There are still plenty of companies that are growing cash flows and earnings at a robust pace..
It seems like every day we get good news about progress on a vaccine for coronavirus.
Unfortunately, a vaccine could mean headwinds for some of this year's favorite tech stocks.
Even though these companies are great, their stock prices have gotten a little overheated, which means it's best for investors to avoid buying them right now.
by Tom Gentile
It's safe to assume that recovery from the pandemic will impact stocks one way or another.
And as "unique" as this year's been, we can still use Tom Gentile's Money Calendar to draw some conclusions and make predictions about what they're likely to do in the year ahead to help you make some money…
Given the central, critical role tech's will play in enduring and recovering from the pandemic, and moving on during Biden's tenure, the next four years could be even better than the last 12.
They could be some of the most profitable years ever for tech investors, and here's how Michael recommends we get started..
Thanks to this week’s Vaccine Jump, nearly every segment of the market was in the green except one: the big “Pandemic Stocks” like Zoom, Clorox, Peloton, and the like.
While these “Pandemic Stocks” will naturally be marginalized once normality returns, it’s not happening anytime soon.
So don’t run with the crowd on this because these emotionally-driven selloffs are handing us a rare profit opportunity….
