Stocks often close out strong years with a rally into the holidays. After the stock market recovered from the initial effects of the pandemic, stock picking is alive and well again. Here are some stocks that you should consider for your investment portfolio.
In China, Alibaba is like Google and Amazon all rolled into one. However, the stock does not trade at nearly the multiple that these internet giants do in the United States. For investors, this presents an opportunity.
According to the experts at Money Morning, “Alibaba has expanded into cloud computing, digital media, entertainment, and even healthcare platforms. Because of this growth, Alibaba is often referred to as the “Amazon of China.” Alibaba is a stock that you should be looking at right now and is one of the best stocks to invest in across the entire world. Its expansion into cloud computing, digital media and entertainment will increase the company’s profits. Money Morning believes that Alibaba is just getting started making money for its investors. The company’s share price has steadily risen since the start of August, but this is nothing compared to its long-term growth potential.
The company should be poised to profit this holiday season as commerce is largely moved online. Even before the pandemic, the company saw massive online spending back in 2019. On Single’s Day last year, over $38 billion was spent on Alibaba in a 24-hour period. This year, count on seeing that number increase dramatically. The company is seeing earnings growth that you do not generally see from a large-cap technology company. Moreover, the price-to-earnings ratio is starkly lower than you see from Amazon. For a stock called the “Amazon of China,” this is an uncommon opportunity for an investor.
Adobe is another stock that investors should be looking at right now for profits in the technology sector. The company has risen to the top of the software sector during the pandemic as work has moved to the remote realm. Companies are increasingly turning to creating customized digital content for their customers, and Adobe is at the forefront of this market.
The Software-as-a-Service (SAAS) market is hot again, and companies like Microsoft and Salesforce are on fire again after treading water for a while. Adobe is well-positioned in this market, and is actually the third largest company in this space. The SAAS market is poised to double by 2026, and Adobe is one of the companies in this sector that has room to grow with respect to their market share.
The Digital Experience business segment is where Adobe will make its mark in the coming years. Companies are using more personalized marketing for their customers, and this is where they need Adobe’s product offerings. Adobe is the market leader here, and its revenues will expand.
The clean energy company has seen its stock almost triple since the start of 2020. Investors are considering the effect that a change in presidential administrations may have on this sector. As a result, you are seeing shares of solar and other renewable energy companies on fire this year.
Plug Power is a play on the possibility that hydrogen power will be increasingly used in the future. The company’s stock has literally come back from the dead. However, investors need to look at its paltry market cap of just over $6 billion and realize that there is room for growth in the future. The flip side is that Plug Power has never turned a profit, but buying this company is all about future prospects.
The company has already built over 35,000 hydrogen refueling stations. It has bought several hydrogen companies and has made its move into that market. The future of alternative energy will be played out in the next few years if there is a change in presidential administrations. While electric certainly has the market lead, consumers are realizing that hydrogen can be even cheaper and cleaner.
With states such as California taking steps to ban gasoline engines as soon as 2035, car companies will need to adapt to changing laws and rules. The example of Tesla has shown investors what happens when a car company has the right product at the right time. While carmakers have struggled to figure out the hydrogen car, they are making strides and will eventually get it. When that happens, Plug Power is positioned at the forefront of the industry. Investors will long for the day that they could have purchased shares for $17.
This year, your holiday shopping list when it comes to stocks should be diverse and forward-looking. You should be looking to 2025 even during 2020 because that is where the profits are.