While it’s normal to think you may have missed the boat on the popular FANMAG stocks, I can assure you that it’s still relatively early to invest in these 3 momentum stocks…
Sure, there’s still some value to be found in this market. But I prefer to ride the gains of momentum stocks higher because the return potential is much larger.
And, as you will see below, you can achieve these returns in much less time than traditional value stocks – or owning the S&P 500.
So today, I’m going to break down three of my favorite momentum stocks to buy now.
Not only are they crushing it today, each company has long-term prospects that should bring huge gains to investors for years to come.
Possibly even 1,000% or more…
Momentum Stock to Buy No. 3: DocuSign Inc.
Since its inception in 2003, DocuSign Inc. (NASDAQ: DOCU) has been on a mission to speed up business and simplify life for companies and people around the world.
[finviz ticker=DOCU]In case you’re unaware, this firm developed some of the first electronic signature technology that helps organizations connect and automate how they prepare, sign, act on, and manage agreements.
Simply put, this company saves other businesses precious time and money. All you need is an Internet connection and an email address…
Instead of mailing a paper document back and forth (which would take days or weeks), DocuSign subscribers can send it to their customers via email to sign electronically in a matter of minutes. And customers don’t have to worry about storing the paperwork somewhere safe when they can save the electronic document to the encrypted DocuSign cloud.
Companies that have been reluctant to switch from the “old-fashioned” way were forced to use DocuSign during the lockdown to get business done.
And now investors are betting that the new companies who signed up over the past couple months won’t be switching back after realizing all the time and money they’re saving using DocuSign.
After dropping a relatively modest 23% from $90 to $69 per share during the depths of the pandemic, shares of DOCU rebounded and then doubled previous all-time highs.
In June the company has reported year-over-year Q2 revenue increases of 39% and stock has rocketed higher on the news.
Since March 12, DOCU has outperformed the S&P 500 by 158%. And I expect this will continue after its next earnings report scheduled for Sept. 3…
Look for DOCU to continue its positive momentum and breach $300 per share in the next six months. This represents an additional 46% return from current levels.
Momentum Stock to Buy No. 2: Square Inc.
Since its inception in 2009, CEO Jack Dorsey and his team at Square Inc. (NYSE: SQ) have been on a mission to help all 7.8 billion people on Earth participate and thrive in the economy.
[finviz ticker=SQ]The company makes commerce easy with their in-store credit card readers. And it makes the economy more inclusive for everyone with its in-house payments and investing platform, the Cash App – introduced in 2015.
Cash App is the fastest growing digital wallet in the U.S. In just two years, from 2017 to 2019, monthly active users more than tripled from 7 million to 24 million.
Not only does the Cash App conveniently allow people to virtually send money to each other through their connected bank accounts for free, it also acts a commission free brokerage platform for trading full or fractional shares of stocks and Bitcoin.
If you can’t afford to buy one share of Amazon.com Inc. (NASDAQ: AMZN) for approximately $3,350 or one Bitcoin for $11,300, then you can use the Cash App to buy as little as $1 worth at a time – completely for free.
Cash App makes money by charging businesses to use their application and individual users transaction fees to access additional services. And in fiscal 2019, Cash App revenues jumped 157% year-over-year to $1.1 billion.
After falling 55% with the market during the recent coronavirus correction, Square stock has significantly outperformed.
Its run from $38 in mid-March to $155 today represents a massive gain of 308%. Like DOCU, that also brings SQ stock twice as high as its previous record highs.
The fundamentals with Square are strong as analysts are expecting Cash App users to top 40 million by the end of the 2020.
Combine that with the recent technical momentum, and it’s reasonable to assign a $250 price target to the stock. That represents potential gains of 61%.
Momentum Stock to Buy No. 1: Shopify Inc.
If you’re ordering something online and it’s not coming from Amazon, odds are it’s coming from Shopify Inc. (NYSE: SHOP) – and you don’t even know it.
[finviz ticker=SHOP]That’s because, even though you won’t see its name on the packaging, Shopify has 31% market share in the U.S. for websites using ecommerce technologies.
You see, Shopify fulfills online orders for over 1.2 million live websites around the globe. And it’s rapidly expanding in France, Germany, Spain, Italy, Brazil, and Japan.
One of the best ways to think of Shopify is as a cheaper, smaller version of Amazon. With a market cap of only $124.5 billion (compared to Amazon’s $1.7 trillion), Shopify clearly has a lot of room to grow.
Even if Shopify just grew to half the size of Amazon, that’d represent a 582% return.
With SHOP stock already rising 225% from its coronavirus bottom of $320 in mid-March to $1,040 today, I expect technical buying momentum will continue fueling this company for the remainder of the year.
My price target for SHOP is $2,000 per share – representing a 92% gain from its current price.
BONUS: Legendary Stock-Picker Predicts Next 1,000% Stock
34-yr-old Matt McCall made history when he predicted five 1,000% winners on national TV.
Now he’s doing it all over again.
Over the past decade, he’s found 18 recommendations that soared 1,000% or more.
And he just went public with what he predicts will be his next 1,000% winner.
If you’ve ever wondered how legendary investors find stocks that shoot up 10X – and how you can do it too – click here.
