In the dawning era of electric vehicles, I’m guessing we’re a generation away from people even using the phrase, “firing on all cylinders.”
We’ve had a very strong year of losses for many stocks, and a nearly unbelievable level of bull runs for other stocks. However, there are still some stocks — not many mind you — running off continued momentum, strong fundamentals and A-ratings in every category I rate.
Some are familiar and for some it may be the first time you’ve heard of them. But the qualities they have in common are getting more difficult to find as this rally continues.
These stocks also cover a broad range of industries. That means they’re not a hot sector play but leading stocks in the sectors they represent. It also means it’s likely one or two of these stocks will fit nicely in a diversified portfolio in need of a certain something.
The seven triple-A-rated stocks to buy right now here are proven long-haul growth stocks that are still good deals with strong potential.
- Etsy (NASDAQ:ETSY)
- Futu Holdings (NASDAQ:FUTU)
- Plantronics (NYSE:PLT)
- B Riley Financial (NASDAQ:RILY)
- Ternium (NYSE:TX)
- Vista Outdoor (NYSE:VSTO)
- United Microelectronics (NYSE:UMC)
Stocks to Buy: Etsy (ETSY)
The online marketplace for craftspeople and hobbyists has taken off during the pandemic due in large part to the fact that local merchants with brick and mortar shops were no longer able to sell from their storefronts and some weren’t able to ramp up an online presence once everything shut down.
That left Etsy in an even more attractive position. Plus, for those sole proprietorships or collectives that did ramp up their online business, it was likely more attractive to build on Etsy than it was to be a lone boat in the Internet Sea.
And Etsy gives artisans and craftspeople a national and international audience from the start, which is a huge opportunity for merchants who live in the middle of nowhere and usually sell at local farmers’ markets.
What’s more, Etsy has built up its tools to help merchants build out their sites, which adds even more value to the site.
While the stock is up 430% in the past 12 months, it’s currently trading at a trailing price-to-earnings (P/E) ratio of 82.2. That’s pricey, but given the stock performance and its ability to grow operations in the future, it’s not as crazy as it seems. Plus, the fundamentals remain strong and management is sharp.
Futu Holdings (FUTU)
Since launching its IPO in 2019 in Hong Kong, this digital brokerage service has taken off. It’s licensed to do business in Mainland China and Hong Kong as well as the U.S. and can trade in major global markets around the world.
The stock has soared over 1,300% in the past 12 months, and it’s up more than 250% year-to-date alone. Part of the attraction is what began to happen last year, when many Chinese stocks were threatened with delisting in the U.S. That meant investors – institutional and individuals – needed to find a way to invest in Chinese firms off Chinese markets without the threat of the stock getting delisted.
Ironically, FUTU trades in the U.S. as an American Depositary Receipt (ADR), a stock constructed from Chinese shares specifically built for the U.S. market. It has great growth potential, and with a market cap of $22 billion, it would be a very attractive takeover target for a global financial player looking for inroads into China’s market.
Plantronics (PLT)
It’s likely that in some point over the past decades, you’ve owned or used a PLT product. Launched in Santa Cruz, California in 1961, PLT has been making headset, voice and video solutions for the enterprise and consumer markets.
In 2018, PLT bought rival Polycom for $2 billion and in 2019 changed its name and branding to Poly.
Given the enormous work from home and remote work transition that took place during the pandemic, the demand for PLT equipment has soared, especially from its higher margin enterprise-level equipment since call centers, and other phone and video intensive work had to be transitioned to remote venues as well. And this trend isn’t over. As digital and remote work strategies adapt to the “next normal” PLT will likely remain a top stock to buy now.
Even after a 570% move in PLT in the past 12 months, the stock only has a $1.8 billion market cap. That gives it plenty of headroom and also makes it an attractive acquisition candidate for diversified electronics company.
B Riley Financial (RILY)
With just a $1.6 billion market cap, this multi-faceted financial firm likely isn’t on your radar.
While it has a traditional brokerage, investment banking, wealth management arm, it’s the other divisions that make this financial firm unique and one of the stocks to buy now.
It has an auction company that manages real estate from companies that have gone under. It also offers appraisal services and financing for both the sellers and the new acquirers.
This is a key strategic business because in good times, businesses want to expand cautiously, so buying used equipment and bargain properties is a smart choice. In bad times, there’s more inventory for RILY to manage. And through it all, RILY is also helping failing businesses finance their transitions as well as working out financing for acquiring businesses.
This quiet company’s stock is up 240% in the past 12 months, 65% in the past three months, yet sports a trailing P/E of 7.8 and delivers a 2.4% dividend.
Ternium (TX)
While the company is headquartered in Luxembourg, it’s actually the largest Latin American steel company, operating long steel production as well as mines out of Argentina, Brazil, Colombia, Guatemala, Mexico and the U.S. Founded in 1961, its materials are used to manufacture automobiles, buildings, pipes and other finished products
One of the first signs of an economic recovery is the rise in industrial commodity prices because that’s where fundamental economic growth begins. There’s more government, industrial, corporate, and consumer spending and all that demand means supply increases, along with prices.
As the pandemic fades and many nations leverage economic growth to help get people back to work and start moving back to normal, there’s more demand for industrial goods like steel.
TX is up 222% in the past 12 months, yet its current trailing P/E is under 10. And the future is looking brighter for this sector.
Vista Outdoors (VSTO)
One place people have been going to maintain some semblance of normalcy is outdoors. There has been a big uptrend in people hitting the road in recreational vehicles or getting out on the water in boats.
And there has also been a big trend in hiking, biking, hunting and sport shooting. And that’s where VSTO comes in. It owns brands like Camelbak, Bell, Federated, Remington, Bushnell, Redfield and others.
Consumers are creatures of habit, and once they have adopted a new pastime or focused their time and resources on a specific pastime, it’s likely they will continue to expand their time in that activity. This works to VSTO’s advantage and explains why it has become one of the best stocks to buy now.
The stock is up more than 450% in the past 12 months and 33% year-to-date. This inflow of cash will help it build its current brands and also expand into other strategic markets.
United Microelectronics (UMC)
Spun off in 1980 from Taiwan’s Industrial Technology Research Institute, it was the first Taiwan semiconductor stock to list on a US exchange in 2000. All this is to say, UMC has been around since the very beginning of the computer age.
It’s best known for its semiconductor foundry business, building integrated circuit wafers for fabless semiconductor businesses. Fabless semiconductor firms are a growing segment of the chip business where the chips are designed and then sent to a manufacturer to build them. Fabless firms maintain their value with innovation and licensing agreements. Manufacturers get more business and can stick to what they do best.
UMC is one of a handful of Taiwanese companies that build semiconductors, and it’s one of the most respected. That’s very good news now, because the demand for semiconductors is rising because chips are now in everything. It’s not just computers and smartphones. This promises expanding business opportunities for UMC, making it a fantastic stock for growth.
UMC is up 291% in the past 12 months, but it’s down 18% in the past month, so it’s a good time to grab it on sale. And it’s only trading at a current trailing P/E of 30.6, even after that big move.
— Louis Navellier and the InvestorPlace Research Staff
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Source: Investor Place