How do you spot stocks that are most likely to explode in value? Many experts will tell you to focus on earnings growth. If their earnings are growing now and have been growing for a while, the chances are that the company will continue to grow moving forward.
But that is only one part of the equation. Focusing on earnings growth will give you a measure of a good company, but it won’t spot industries that are set to explode. Now, investing in any company in a booming industry won’t get you very far. You have to make sure you invest in the right company when looking for the next big thing…
With that in mind, we’ve discovered five stocks that are ready to take over five crucial technology industries.
1.) Cocrystal Pharma Inc. (NASDAQ: COCP)
Steve Cohen, the legendary billionaire stock picker known for delivering huge returns for his clients at SAC Capital – one of the most successful hedge funds ever – is at it again.
But this time, he’s doing it with his new company Point72 Asset Management – which manages $17.2 billion for high-net-worth individuals.
Even if us normal folks can’t invest in the Point72 fund itself, we can still copy Cohen’s trades…
You see, Point72 is required to disclose all its holding publicly every quarter.
And last quarter, Cohen’s firm revealed a new position in one penny stock that caught my eye.
Cocrystal Pharma is a clinical stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication machinery of influenza viruses, hepatitis C viruses, and noroviruses.
[finviz ticker=COCP]The company employs structure-based technologies and Nobel Prize-winning expertise to create first-and best-in-class antiviral drugs.
COCP is currently developing an oral broad-spectrum replication inhibitor called a non-nucleoside inhibitor – which is currently being evaluated in a Phase 2a study for the treatment of hepatitis C as part of an ultra-short therapy of four to six weeks.
Now if you don’t know what any of that means, it doesn’t matter. All you need to know is that it’s huge for the treatment of some of the world’s most-killer diseases… and potentially for investors too.
The stock shot up from $0.87 to $2.16 after Cohen announced his stake in the company late last year.
But now that’s it’s down to only $1.40 per share, that makes Cocrystal Pharma one of the more interesting penny stocks to watch for potentially huge gains in 2021.
If those Phase 2 trials turn out successful and the company moves on to Phase 3, the stock should get a boost. And if Phase 3 is successful, the stock could soar.
2.) “Genesis Technology” (AKA Blockchain) Stock: Square Inc. (NYSE: SQ)
[finviz ticker=”SQ”]Since its inception in 2009, Square has made 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. And 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 $2,600 or one Bitcoin for $9,700, then you can use the Cash App to buy as little as $1 worth at a time – completely for free.
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, SQ stock has significantly outperformed.
The fundamentals with Square are strong as analysts are expecting Cash App users to top 40 million within the next few months.
Sponsored: “Genesis” technology—32X bigger than 5G
3.) Transportation as a Service (“TaaS”) Stock: Workhorse Group Inc
[finviz ticker=”WKHS”]Workhorse Group Inc. (NASDAQ: WKHS) is an American technology company based in Cincinnati, Ohio.
The company designs, develops, manufactures and sells high-performance pickup trucks and vans with power-train components under the Workhorse chassis brand.
Its powertrain products include E-GEN and E-100.
E-GEN is an electric drive, transmission-free system, which has a gasoline/propane or compressed natural gas (CNG) engine that functions as an auxiliary generator.
E-100, an all-electric, medium-duty truck, is an electric power train. The company generates most of its revenue from sales of any of its E-GEN or E-100 platforms.
BONUS) COVID Vaccine Stock: Novavax, Inc. (NASDAQ: NVAX)
[finviz ticker=NVAX]NVAX is the hottest stock on Wall Street right now…
But that doesn’t mean we still can’t continue to profit from the stock if it’s able to develop a working coronavirus solution…
Novavax announced its potential vaccine to prevent COVID-19 (called NVX-CoV2373) generated promising immune responses in an early stage clinical trial.
The phase one trial included 131 healthy participants between the ages 18 and 59 at two sites in Australia.
Novavax said 106 participants received one of four dose levels of the potential vaccine. The remaining 25 patients received a placebo.
Participants received two doses of the potential vaccine via intramuscular injection approximately 21 days apart.
The vaccine produced neutralizing antibodies, which researchers believe are necessary to build immunity to the virus and “killer T-cells.”
Additionally, the neutralizing antibodies that were produced were higher than those seen in people who have recovered from COVID-19.
Novavax said the vaccine was well tolerated with no serious adverse effects reported. Most patients reported tenderness and pain at the injection after the first dose. Some also reported headaches, fatigue or muscle aches.
Only one participant in the trial experienced a mild fever after a second dose, the company said.
Earlier media reports and analysts cited eight possible hospitalizations related to the study. But Novavax clarified those false reports, explaining no patients were in fact hospitalized.
The stock initially fell on these incorrect safety concerns. But then it rocketed as much as 20%.
4.) The Quantum Glass Battery Stock: Panasonic (PCRFY)
Via InvestorPlace:
“Quantum glass batteries, often referred to simply as “glass batteries,” represent the next frontier in electric vehicles. Called the “forever battery” and the “holy grail,” glass batteries are expected to solve the two most pressing problems that have kept electric vehicles from being widely adopted by the public – limited battery life and slow charging times. For investors, there are quantum glass battery stocks to watch.
Panasonic’s share price has been beat up in recent years, falling from its 2018 price around $16 to below $10 today. The company, which has been around since 1918, may seem like an old name when it comes to batteries. But Panasonic is taking steps to be at the forefront of the current revolution with batteries and electric vehicles.
The goal is to raise the battery capacity 50 times higher than what is currently available in Toyota gas/electric hybrid vehicles. Mazda, Subaru and Honda also have agreements in place to use Panasonic batteries in their upcoming electric vehicles. There are currently three “buy” ratings, 11 “hold” ratings and one “sell” rating on Panasonic stock.”
Sponsored: Video: The electric car battery demo breaking the Internet
5.) Robotics Stock: ABB Ltd (NYSE: ABB)
[finviz ticker=ABB]Robotics stocks offer an attractive source of opportunities for growth investors. The long-term potential of the industry is obvious, and adoption should only accelerate amid the novel coronavirus.
Since its inception in 1987, ABB Ltd (NYSE: ABB) has been an industry leader in the robotics field.
ABB is committed to helping the industry grow through the usage of its automated robotics line.
In fact, it’s the number-two automated robotic arm supplier in the world.
In automation, ABB offers a full suite of products that help its clients build everything from ventilators to cars on an assembly line with robots.
Even in the earliest days of ABB, the technology it created generated enormous rewards for visionaries who were quick to switch from costly and unpredictable manual labor automation to more predictable and cost-effective robotic assembly line automation.
The company’s line of automatic spot-welding robots designed and installed in various US car manufacturing factories in the early 90’s helped the industry boom here in the states and allowed early investors to quickly generate a strong return on investment.
Back then, it would take a day or two to assemble an entire car with human manual labor. But it would only take hours with the help of ABB’s robotic arms.
Fast forward to today, with major advances in the company’s technology over the last three decades, and ABB is working on a project to assemble an entire car in 46 seconds with its proprietary automated robotic arms.
ABB has expanded its business rapidly over the years. Today, its products are in over 50 countries with more than 400,000 robots installed globally.
Sponsored: Google just poured $4 billion into THIS…
And there’s good reason to believe it’s only going to continue growing as more companies see the benefit of using robots over humans to create their products…
You see, ABB plans for major expansions in the near future, especially in the Asian market – which is widely expected to be the No. 1 robotics market over the next decade.
ABB understands that the “factory of the future” is actually possibly with today’s technology. And I think it will dominate the robotics industry for years to come.
Most importantly, the stock is currently priced for you to reap the benefits from a long-term investment starting today.
BONUS! 5G Stock: SBA Communications Corp. (NASDAQ: SBAC)
Investing in 5G companies now is like investing in Internet companies in the early 90’s.
But while most investors are researching the fancy new 5G chip companies, I’m focused on the most significant piece of the 5G puzzle…
The web of networking cables crisscrossing the country that will bring information from all over the world right to your fingertips.
You see, the infrastructure for 5G hasn’t even been fully built out yet. And the parts that have been built aren’t even fully being utilized yet…
In order to generate the insane processing speeds, thousands of new cell phone towers still need to be constructed.
Unlike 4G, 5G will require towers within several hundred yards of the connected device to ensure signal strength and speed because the radio frequency waves are shorter.
And every major telecommunications provider, like Verizon, AT&T, T-Mobile, Comcast, and even the Department of Defense will all have to pay the firms that build and manage these cell towers rent every month.
That’s my favorite way to profit in the 5G space today. And most of Wall Street is completely missing it.
Investing in a 5G tower stock is like owning tollbooth that major corporations have to pay a fee to use every time one of their customers connect to one of the cell towers you own…
And since they’re normally structured as REITs (real estate investment trusts), they’re legally required to pay out at least 90% of their taxable income as dividends to shareholders.
SBA Communications Corp. (NASDAQ: SBAC) is a cellular infrastructure REIT with about 30,000 cell towers in North, Central, and South America.
The company leases space on its towers to cellular service providers under long-term contracts.
And it’s biggest clients include AT&T, Verizon, Sprint and T-Mobile.
SBA Communications also has a huge presence in Brazil. But it generates about three quarters of revenue in the US.
The company’s revenues of just over $2 billion last year represent steady growth since 2003 – that’s the last time revenues were down year-over-year.
[finviz ticker=SBAC]SBAC’s key differentiator is its size, which is both a blessing and a curse. Here’s why I think it’s more of an advantage for investors now…
Smaller companies can grow faster and SBA Communications (with its $35 billion market cap) has past returns that are even better than those of American Tower Corp. (NYSE: AMT) and its $107 billion market cap.
Don’t get me wrong, American Tower is a great company doing many of the same things as SBA.
But at over three times the total valuation, there’s much less room for it to grow.
For example, American Tower is forecasting 20% earnings growth over the next five years.
But SBA Communications is projected to grow at a better than 80% annual clip.
SBAC is really a growth stock disguised as a real estate investment trust. It’s up 29% this year, compared to just 5% for AMT.
SBAC in the right place at the right time, making it one of my top 5G tower stocks to own now.
And if you thought that was good, wait until you check out Whitney Tilson’s #1 pick (totally free).
Whitney Tilson: Here’s my #1 pick for free
Sponsored
Hi, Whitney Tilson here.
I made my mark on Wall Street over the past 20 years by starting my first hedge fund with just $1 million… which I ultimately grew into a series of funds worth more than 200 times that amount.
Along the way I met Presidents Clinton and Obama… have been asked to speak at the most prestigious business schools (like Harvard, Columbia, and Wharton)… and was fortunate to identify some of the best investments in the world, in the very early stages, including…
- Netflix when it was $7.78 a share (today it’s worth 4,800% more)
- Apple at $1.42 (it’s up 18,000% since then)
- Amazon at $48 (it’s up 4,000% since then)
I’m writing today because my team and I have found what we believe will be the next big tech trend that will make investors rich.
It’s called TaaS—and if you haven’t yet heard of this technological breakthrough, you soon will.
Over the next few years, TaaS will change the way you eat, shop, work, and travel. It will change the value of our homes and where we live. It will radically alter prices for airline and train tickets, gas, and even household goods. It could even help slow the spread of the coronavirus… and help get the American economy moving again.
Along the way, it could make you a small fortune.
Look, this is going to be the biggest trend affecting you and your money over the next few years—yet most Americans don’t have a clue.
And that’s why I’m going public today with the full story. Prior to the coronavirus, I traveled around America and the world for months (more than a dozen trips in the past six months), talking to every expert I could find.
I’ve put everything you need to know in a simple presentation, where you’ll even learn the name and stock symbol of my favorite TaaS investment in the world today.
No subscription, e-mail address, or credit card required.
You can watch or read my presentation for free right now. We’ve posted it on my research firm’s website, right here…
