With the novel coronavirus bearing down heavily on the market over the past few months, identifying the best stocks to invest in right now can be a difficult task. But to make this process more simple, I’m going to identify the best stocks to pick based on growth potential.
Along with the companies’ financials, having a solid business model in a high-need or high-demand sector will be critical. As for the share price, in some cases it may show powerful upward momentum. In other cases, it could represent a deep discount.
After doing my due diligence, I concluded that these are the best stocks to invest in right now:
- Walmart (NYSE:WMT)
- Nio (NYSE:NIO)
- Dominion Energy (NYSE:D)
- DocuSign (NASDAQ:DOCU)
- Square (NYSE:SQ)
- General Motors (NYSE:GM)
- Urban One (NASDAQ:UONEK)
Keep an eye out for these gems, as they could make serious moves and you definitely don’t want to miss out.
Best Stocks to Invest in Right Now: Walmart (WMT)
What better place to start building your financial house than good old Walmart? Don’t overlook this investing mainstay as people will undoubtedly continue to shop for essential items during the novel coronavirus pandemic.
With a trailing 12-month price-to-earnings ratio of 22.61, WMT stock offers a solid value. And the shares have leveled off since mid-April, so you can jump in at a more favorable price now.
Plus, Walmart just partnered with Tribeca to convert 160 stores into drive-in move theaters. It’s yet another way for Walmart to keep its customers happy during this challenging time.
If you’re into analogies, then you can think of electric-vehicle maker Nio as the “little engine that could.” This company’s turnaround story in recent months has been nothing short of incredible.
During the peak of the coronavirus-induced market crash, Nio’s very existence was called into question. But just recently, Nio announced that its June vehicle sales surged by 179% on a year-over-year basis.
Moreover, Nio’s second-quarter vehicle sales showed a 191% improvement compared to the same quarter in 2019. Thus, Nio is “back from the dead” and it’s on a tear, and you’re invited to join the party with a position in Nio stock.
Dominion Energy (D)
Dominion Energy is known for its extensive holdings in natural-gas pipelines. Berkshire Hathaway will now control over 7,700 miles’ worth of natural-gas transmission lines because of Buffett’s deal with Dominion.
Berkshire will shell out $9.7 billion for these assets, so it’s unquestionably a high-conviction deal. So if you believe in the future of “natty gas” like Buffett evidently does, consider a position in D stock, which is trading at a post-announcement discount.
Just sign right here on the dotted line, folks, as the e-signature market is red-hot and DocuSign is a prominent player in this niche. Social distancing could persist for a while, so prepare for this market to continue its expansion.
The company’s first-quarter earnings results were absolutely sparking, to say the least. Quarterly subscription revenues showed a 39% year-over-year increase. Plus, DocuSign’s quarterly billings spiked 59% on a year-over-year basis.
On top of all that, DocuSign has a sterling balance sheet as the company’s quarterly free cash flow came to approximately $33 million. Therefore, you’ll be investing in a cash-rich firm on an upward growth slope if you buy DOCU stock. All of that makes the stock one of best stocks to invest in right now.
Point-of-sale payments processor Square has been among the summer’s hottest companies. And SQ stock has been a high flyer, but the valuation could easily be justified by the data.
MoffettNathanson analyst Lisa Ellis estimates that Square’s Cash App has an enterprise value of $27 billion to $30 billion. That alone should convince anyone sitting on the fence to come on over to the long side of the SQ stock trade.
Ellis further estimates that the Cash App will achieve a mind-blowing “60 million users within five to seven years.” This, in turn, could help Square generate $85 to $90 in revenues per user on an annual basis. If you’re starting to get the picture that Square’s Cash App alone makes SQ stock worth owning, you’re 100% right about that.
General Motors (GM)
Keep in mind that not every great investment has to be a high flyer. General Motors is a perfect example of this principle as the automotive giant’s shares are trading at an attractive price now.
GM stock currently sports a very reasonable trailing 12-month price-to-earnings ratio of 7.83. Hence, if you find the valuations on other automotive stocks (and especially electric-vehicle stocks) to be a bit lofty, consider GM shares for a buy-low-sell-high long-term opportunity.
Also consider the exciting news that General Motors just inked a deal worth $222.9 million with the U.S. Army to build the infantry squad-vehicles. A deal with the government is usually a good sign for any company, and it’s an encouraging development for General Motors. While it might not appeal to everyone, when you break it down, GM stock is still among the best stocks to invest in now.
Urban One (UONEK)
Brace yourself for a serious mover with UONEK stock. This one was trading at less than a dollar in mid-June, but UONEK is at the $2 level now and it has been much higher than that recently.
Urban One is an urban-media company with radio programming that became very prominent in the past two months. Protests across the United States sparked robust debate, and Urban One’s radio stations provided a platform for important conversations.
The potential exists for UONEK stock to reclaim its short-term peak of $5. Urban One, now thrust into the spotlight, could expand rapidly as the urban-communications niche itself gains traction in America and elsewhere.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, David Moadel did not hold a position in any of the aforementioned securities.