Bitcoin crashed 14% to $16,227 on Nov 26, 2020, after it reached within $7 of its all-time record high of $19,511, set in December 2017, per Bloomberg data. Apart from profit taking, Thursday’s crash reflected growing concern over increasing regulations, globally. However, bitcoin prices have recovered slightly today.
Markedly, bitcoin and other cryptocurrencies like ethereum, litecoin and ripple are having a remarkable 2020, thanks to coronavirus-led push toward cashless and digital payments. After adjusting for the crash, bitcoin is still up nearly 140% year to date.
In fact, the pandemic has raised the need for an alternative currency. Bitcoin and other cryptocurrencies have been benefiting from solid adoption by millennials and Gen X, who are looking to hedge against coronavirus-induced weakness in traditional currencies, including U.S. dollar, as well as inflation.
Moreover, cryptocurrency trading service launches by the likes of PayPal PYPL and Square SQ and increasing interest shown by institutions like J.P. Morgan (CEO Jamie Dimon had called bitcoin a “fraud” in 2017) have helped in driving the popularity of cryptocurrencies.
Stocks Are Better & Safer
Nevertheless, Thursday’s crash reflected the notorious volatility of Bitcoin, which investors had experienced in 2017. Notably, by the end of 2018, bitcoin prices fell 80% from the high’s it reached in late 2017.
Undoubtedly, cryptocurrencies are high-risk investments and not everybody’s forte. Instead, fundamentally strong stocks are much better and safer investments for building a healthy basket.
Here we pick five stocks that apart from boasting strong fundamentals have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per the Zacks proprietary methodology, stocks with such a perfect mix of elements offer solid investment opportunities.
Notably, each of these stocks has outperformed the S&P 500 composite on a year-to-date basis and is up more than 200% with ample room to grow.
Year-to-Date Performance
Owens & Minor OMI – This Zacks Rank #1 company is benefiting from robust demand for its personal protective equipment (“PPE”), given the unrelenting spread of coronavirus. Moreover, rebound in elective procedures to pre-coronavirus outbreak level and growing demand for home healthcare solutions are key catalysts.
Endeavors to expand manufacturing output and improving operating efficiency are expected to boost earnings, which Owens & Minor expects will grow at a double-digit rate in 2021.
Owens & Minor has a Growth Score of A. The Zacks Consensus Estimate for its 2020 earnings has risen 3.3% to $1.89 per share in the past 30 days. Over the same time frame, the consensus mark for 2021 earnings has climbed 4.3% to $2.16 per share.
Nautilus NLS – The company sports a Zacks Rank #1 and a Growth Score of B.
This fitness solutions provider is benefiting from solid demand for its at-home fitness solutions. Strong adoption of online shopping and increased use of curb-side pickup services induced by the coronavirus outbreak are expected to continue drive the top line.
The Zacks Consensus Estimate for Nautilus’ 2020 earnings stands at $2.34 per share, having moved 87.2% north over the past 30 days. For 2021, the consensus mark for earnings has moved up 60.7% to $1.80 per share over the same time frame.
The Trade Desk TTD – The company is benefiting from the momentum in programmatic ad buying. Further, the emergence of digital content boosted the usage of the company’s inventory across all forms of ConnectedTV (“CTV”). Moreover, recovering ad demand and spending scenario is expected to drive the top line.
This Zacks Rank #1 company has a Growth Score B. The Zacks Consensus Estimate for its 2020 earnings is pegged at $4.70 per share, having been revised 48.3% upward in the past 30 days. For 2021, the consensus mark for earnings has moved up 20.1% to $5.01 per share over the same time frame.
Overstock.com OSTK – This Rank #2 company is benefiting from solid demand for its e-commerce services amid coronavirus-led lockdowns and shelter-in-place guidelines. Its refreshed focus on home-furnishing vertical has been the major growth driver in the near term. Markedly, online penetration of home furnishings jumped significantly during lockdowns.
Moreover, Overstock.com, through its Medici Ventures and tZERO businesses, has strengthened its footprint in the lucrative blockchain-technology space.
Overstock has a Growth Score of B. The consensus mark for its 2020 earnings is pegged at $1.09 per share, having moved 263.3% north in the past 30 days. For 2021, the consensus mark for earnings has surged 76.2% to $1.11 per share over the same time frame.
Fiverr International FVRR – The company is benefiting from the launch of four industry stores — Gaming, E-commerce, Architecture and Politics. This is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, its accelerated AI efforts through personalization and customer support are likely to drive sales in the near term. This Zacks Rank #2 company has a Growth Score of B.
The consensus estimate for its 2020 earnings is pegged at 27 cents per share, up 28.6% in the past 30 days. For 2021, the Zacks Consensus Estimate for earnings has risen 8.7% to 75 cents per share over the same time frame.
Looking for Stocks with Skyrocketing Upside?
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Owens & Minor, Inc. (OMI): Free Stock Analysis Report
Nautilus Group, Inc. The (NLS): Free Stock Analysis Report
Overstock.com, Inc. (OSTK): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
The Trade Desk Inc. (TTD): Free Stock Analysis Report
Fiverr International Lt. (FVRR): Free Stock Analysis Report
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