Hello everyone, and welcome back to investing with Antoaneta. Today, I’m bringing you my monthly update with the stocks that I’m most excited about going into March 2021.
Before we dive right in, I just want to take a moment and remind you to give the blog a thumbs up and share it with your friends if you enjoy my content.
As all of you know, the Stock Market had a very volatile week, and this caused a lot of confusion, especially for the newer investors. Like I mentioned before, the market right now is absolutely flooded with newbies because of all the stuff that happened last year, so I just wanted to bring this up at the very start of the blog. If you are new, don’t let the small sudden changes scare you. These will always happen, even if they aren’t usually so drastic. That’s just how the market works. But we’re here to look at the long-term and at the bigger picture, right? Check out my other blogs such as, “ Why I Am Focusing On Tech Stocks (Tech Season Is Open) “.
So, instead of worrying about the short-term, let’s talk about the top five most promising stocks for March!
For me, these are:
- PayPal (PYPL)
- Idexx Laboratories (IDXX)
- Tattooed Chef (TTCF)
- Nvidia (NVDA)
- Nintendo (NTDOY)
- Activision Blizzard (ATVI)
And, if you stick around until the end, I’ve got a special bonus for you!
Long-Term Stocks Investment for March 2021
Ever since splitting off from eBay in 2015, PayPal has gone up 609.82% compared to the market’s 96.37%. The company has more than doubled its active user base, going from 181 million active accounts all the way to 377 million. The average number of user transactions went up by over 70% (from an annual average of 28 to over 40). PayPal is looking at a 50-billion-dollar revenue opportunity, with plans to expand operating margin and earnings per share.
I believe that PayPal still has a lot of room to grow, and I’m keeping a close eye on how things develop.
Idexx Laboratories (IDXX)
Despite the few red flags that have surfaced recently, things are also looking up for Idexx Laboratories. The company demonstrates exceptional revenue growth, both on the domestic and international front, with international revenue dramatically surpassing domestic year after year. Currently, we’re looking at revenue growth of 10% plus, along with an annual EPS growth of almost 20% for the next five years.
People are spending more and more money on their pets’ health and well-being, and Idexx is in a perfect position to capitalize on that. The increased spending trend is expected to continue for at least five more years, with some experts speculating that it could very well become a mainstay, at least for the US. For Idexx laboratories, this means a solid source of recurring revenue and increased up-front equipment sales.
However, despite all of my beliefs in Idexx, they are not without faults. They’re faced with substantial competition, they’re struggling to establish a robust foothold outside of the US (despite the significant growth percentages), and their products are vulnerable to potential shifts in the standard vet practice patterns (at this point, the situation can either swing in favor of Idexx or against them).
Tattooed Chef (TTCF)
Tattooed Chef is a company that somehow always manages to find its way into my top ten stocks, and with good reason. As I already pointed out in the February blog, they’re not only looking at a mostly untapped market, but they’ve got virtually no competitors who do exactly what they do. As a big supporter of sustainability and eco-friendliness, I’m very pleased with their development.
Oh, and the lasted Tattooed Chef quarterly earnings report is scheduled to come out less than a week from now, so definitely keep an eye out for the blog.
For Q4, NVidia’s impressive numbers managed to beat the analyst estimates and the expectations of most investors as well. Their report shows
- Earnings of 3.10 dollars per share (against an estimate of 2.81)
- Revenue of 5 billion dollars (against the estimated 4.82 billion)
- Sales up by 61% year-over-year
Going forward, management expects even better numbers, boasting an internal forecast of 5.3 billion dollars for the current quarter.
Recently, they also announced new graphics cards designed for crypto enthusiasts. And, if we look at the bigger picture and how crypto is quickly rising in popularity, this might turn out to be a brilliant move in the long run. However, that’s just my own note here, as CEO Jensen Huang does not expect these new cards to make up a significant part of their business for the time being.
For 2020, Nintendo saw a 37% increased revenue and a 98% increase in operating profit, owed mainly to their Switch console’s success. The Japanese game developer and consumer electronics giant expects the Switch to continue bringing in substantial numbers for at least a couple of years down the line, as is the case with most of their consoles. The same was observed with their previous major products, like the Wii and the Game Boy consoles. However, it’s important to note that the revenue numbers will slow down by a bit until their next big release once the Switch runs its course.
I am a big believer in Nintendo’s long-term future, as they have an excellent track record and a very resilient business model (thanks to their intellectual property portfolio).
Activision Blizzard (ATVI)
We talked about Activision Blizzard (ticker symbol ATVI) a couple of times since last year, and they continue to be one of my top picks when it comes to entertainment-related stocks. Activision Blizzard demonstrated excellent results during the lockdowns, with over 400 million active users for Q3 of 2020. In their Q4 earnings report, management said they’re aiming to increase their active user base by 150% to one billion.
For 2020, the company did exceptionally well on the financial side of things, managing to beat even their own expectations. For Q4 2020, ATVI’s revenue was 2.41 billion dollars against the expected 2 billion, while net bookings hit 3.05 billion when the forecast was merely 2.73 billion. On top of that, they’ve also got two major titles coming soon — Overwatch 2 and Diablo IV, which could potentially bump their numbers even higher.
So, given how three of their franchises generated over 1 billion in net bookings, I’m definitely on board with management’s expectations for the upcoming years.
Five Bonus Stocks
And now, it’s time for that bonus I promised — five more stocks!
Bonus Stock #1 — Tesla (TSLA)
Well, what can I say — it just wouldn’t be an Antoaneta blog without mentioning Tesla at least once. I’m very excited to see what Tesla will show us this year, and I’m always on the lookout for good opportunities to add more of their stock to my portfolio.
Originally published at https://lifestyletipsbyantoaneta.com on April 13, 2021.