Another month over and the market’s volatility shows no signs of calming. With these top stock picks, performance under pressure is key.
We are over halfway through this year of madness. Time is moving both excruciatingly slowly and far too fast. For the majority of us, holiday plans are canceled and a ‘stay-cation’ seems to be the only option for a bit of relaxation. On a more positive note, the money saved from not going on that sunny, beach vacation could be invested instead, ensuring that maybe, in a few years’ time, you can go on a bigger and better holiday from its earnings.
As we go into Q3, here are 3 stable companies that are certain to perform well and will continue to perform well in the future.
Just look at our returns versus that of the S&P 500! Click here to find out how we continue to beat the market and view the list of stocks we think will turn out to be the next Amazon, Tesla, or Netflix!
Apple (NASDAQ: AAPL) might seem like an obvious choice for any time of the year, but if you haven’t yet invested in Apple, now might be the time to do so. In Q1 2020 the general smartphone market declined 20%. The likes of Huawei and Samsung did not fare much better with -27% and -23% growth respectively year-over-year. Apple’s growth, on the other hand, only declined by 8%. Throughout the second quarter, Apple balanced out its decline in iPhone sales with a 16% rise in subscription services such as Apple Music and Apple TV+. This shows that Apple is more than capable of handling unpredictable circumstances.
Additionally, investors in this popular company have a lot to look forward to. The figures behind the new ‘affordable’ SE iPhone are not yet available, but it is considered a success — combined with the upcoming iOS 14 software release, which is even enticing staunch Android users like myself over to the company. With a 5G rollout in its new iPhone models, customers will be able to buy them later this year or early 2021. This goes along with rumors that the new models will come without an adaptor for headphones and thus encouraging consumers to buy AirPods at a later date – a sneaky way to increase revenue.
In other news Apple announced that it will stop using Intel (NASDAQ: INTC) as its microprocessor chip supplier, preferring instead to make its own. Despite the dissolution of a 15-year partnership, this decision will be a money saver for Apple in the long run as it becomes a self-sufficient tech company.
I am a big fan of Nvidia (NASDAQ: NVDA) as a business. Diversified and essential; 2 main attributes that can ensure a company’s success. With 200 million users of Nvidia’s GeForce platform, gaming is Nvidia’s highest revenue stream. However, this revenue does grow rather slowly with a compound annual growth rate of 11% for the past 3 years.
The fastest-growing sector for Nvidia is actually its data center, which allows companies that use cloud technology to utilize AI efficiently. Whilst competitor Advanced Micro Devices (NASDAQ: AMD) is playing catch up, Nvidia already possesses 69% market share for GPU chips. It is the clear leader in high-performance computing with its systems present in half of the 10 fastest supercomputers.
As of July 7, the stock is currently up 64% since the beginning of this year. It looks like the company’s growth will continue on an upward trend as it involves itself with new technologies such as AI and AV (Autonomous Vehicles). This company is firing in all cylinders as it steams full force ahead into a new digitized era.
3. The Trade Desk
A leading digital marketing firm they have strong fundamentals and encouraging technicals.
So far this year The Trade Desk has outperformed the S&P 500’s (NYSEARCA: VOO) 2.4% decline with growth of 62.5%. The Trade Desk (NASDAQ: TTD) has had a 41% three-year earnings growth rate showing potential for investors who are interested in long term growth.
In June alone, share prices of The Trade Desk grew 31%. For an advertising company during the coronavirus pandemic, The Trade Desk has weathered it well, entering Q2 this year with $446 million in cash and equivalents.
Looking forward, although Facebook (NASDAQ: FB) controls much of the social media advertising market, this sector could present an opportunity for The Trade Desk as people are moving away from traditional media such as newspapers, TV, and magazines.
The Trade Desk has shown that it can make deals and partnerships with bigger names such as Fox and The Discovery Channel owned by Discovery Inc. (NASDAQ: DISCA). Going forward, it shouldn’t have too much of an issue finding partnerships with companies such as AT&T (NYSE: T), Pinterest (NYSE: PINS), or even the likes of Alphabet (NASDAQ: GOOG) owned Youtube. For investors, The Trade Desk could present a long term and profitable investment if it continues on this path of profitability.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.