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.
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 Inc. (NASDAQ: COCP) 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.
Since its inception in 2009, Square Inc. (#4 stock) (NYSE: SQ) 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.
[finviz ticker=SQ]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.
Penn National Gaming (#3 stock) (NASDAQ: PENN) is an American casino and racetrack operator based in Pennsylvania.
[finviz ticker=PENN]While PENN initially struggled at the start of the pandemic, it came roaring back and is now one of the best performing stocks over the last year.
CEO Jay Snowden recently told CNBC that the company is beginning to see an uptick in visitors to its casinos now that the pace of vaccinations has begun to accelerate. The CEO also said the company’s March volumes and revenues surged to their highest levels in years.
Snowden said that even though visitor foot traffic was still lower compared to 2019, people are spending more per visit and that visitations were quickly trending closer to pre-pandemic levels.
But these aren’t the only tailwinds for the company…
States across the U.S. are legalizing sports gambling at a rapid pace.
This resulted in a flood of people using online apps from casino operators to bet on their favorite sports teams. In an effort to weather the pandemic, as well as take advantage of this trend, PENN launched its own digital gambling services.
But in January 2020, PENN made a major announcement on this front. The company partnered with Dave Portnoy’s Barstool Sports (buying 36% of the business for $163 million) to tie in the Barstool Sportsbook app into its own services in Pennsylvania and Michigan.
PENN has launched the app in both of these states already, with plans to expand throughout the the entire country.
The next states on the list include Colorado, Illinois, Indiana, New Jersey, Virginia, and West Virginia. And it’s only a matter of time before it’s open in the remaining 42 states…
So, with an expanding digital footprint and growing consumer traffic, the company should continue seeing solid growth throughout 2021 and beyond.
Anything under $100 per share should be seen as a strong buy.
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 (#2 stock) (NYSE: ABB) has been an industry leader in the robotics field.
[finviz ticker=ABB]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.
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.
QuantumScape (our #1 stock that’s an EV company) (NYSE: QS) is a next-gen American lithium battery manufacturer for the EV market…
The battery maker went public back in November 2020, with a share price value of $23.50. And as with all IPOs, the company’s stock climbed substantially in the months that followed. By mid-December, QuantumScape shares had rocketed by as much as 460%.
[finviz ticker= QS]
Since then, profits have been taken and shares have pulled back. But this isn’t a reflection of the company’s quality. Rather, it could be seen as a buying opportunity at $44.39 per share.
Currently, the firm’s valuation is about $16.3 billion, with $113.2 million in cash and cash equivalents. These factors alone already put it among some of the most valuable auto suppliers around.
However, with great product tests, an experienced management team, a strong balance sheet, and a large total addressable market (TAM), Baird analyst Ben Kallo said the company could soon rise to a valuation of $23 billion.
Kallo also highlighted that the TAM for EV batteries, in general, could likely surge over 4,248% from 2020’s $23 billion to $1 trillion by 2040. According to Barron’s, that’s an average annual growth rate of 21%, suggesting EVs will essentially replace gas- and diesel-powered vehicles altogether.
And QuantumScape is in a strong position to benefit…
The firm is effectively a pioneer in developing solid-state, lithium anode batteries. These batteries are expected to not only cost significantly less than other lithium batteries but also charge faster (under 15 minutes) and provide greater range.
The company has already reported positive data on this front. And this is anticipated to continue as QuantumScape increases its manufacturing capabilities for the development of next-gen EV batteries.
BONUS! 5G Stock
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.
The Most Promising Stock in the 5G Market
Sponsored
It’s a single play that will let you earn money from every single company in the 5G sector.
But get this, I’m guessing that only one in 36,000 people even know this company exists.
This is your chance. This company is poised to go vertical. They’ve already inked contracts with some of the biggest, most successful media companies.
Huge corporations — T-Mobile, Cox, Sprint, and dozens more — are all ready to cough up billions of dollars for just a piece of the tech this small company has to offer.
But here’s the kicker:
This company is still trading for less than $10 a share.
If you’ve got a ten in your pocket (or, better yet, $20!) you can get your foot in the door with this unbelievable profit opportunity.
I’ve compiled all of my research on this firm, data, statistics, the ticker symbol, and even my target buy and sell prices.
Click here to get the full report.
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…
