With another unpredictable year ahead of us, the folly of short-term forecasting can keep investors from placing their bets on a few unstoppable stocks.
The stock market correction currently underway can serve as a temptation to sell stocks as prices go lower. However, the bear market that we’re in right now is also a great opportunity to get in on some of the bigger names.
It’s worth noting that in the long-term, stocks mostly go up. This means that investors who are willing to hold on to their investments for an extended period of time are likely to benefit from some juicy gains. While there certainly are circumstances that could lead to price fluctuations, the historical trend for most stocks is usually an upward trajectory.
Following a year of intense volatility in the markets, there are a few industry disruptors that will remain in the spotlight, despite any short-term misgivings. These companies have several tailwinds that point to robust long-term growth. Here are three stocks worth adding to your portfolio no matter what this year brings.
Unstoppable Stocks: Shopify (SHOP)
The e-commerce boom of 2020 has put Shopify stock in the spotlight. The company played a key role in helping small businesses create an online presence at the onset of the pandemic.
From online storefronts to shipping solutions, the platform provided businesses with the tools they required to compete in a digital landscape. Needless to say, this demand helped Shopify stock thrive during the pandemic as its shares rose by 160% last year. As one of the biggest names in the e-commerce sector right now, SHOP stock has a huge runway for growth.
Shopify followed its spectacular 2020 performance with another impressive earnings report in Q4. Revenue for the quarter increased by 94% while subscription revenue increased by 53%.
The results beat analyst estimates on all counts. However, the stock saw a major dip following earnings as management stated that growth levels are expected to slow down in the coming year.
Looking at the bigger picture, a decline in growth rates is no cause for concern. Shopify is still set to generate some hefty returns but on a longer timeline. With share prices on the decline, there’s no better time to invest in one of the top unstoppable stocks in the market.
Another stock that disrupting the e-commerce space is Etsy. In an undeniably crowded industry, the company’s unique business model makes the stock a great buy.
Like Shopify, Etsy’s platform caters to small businesses that value creativity. From handmade jewelry to art prints and customized masks during the pandemic, Etsy caters to a niche but loyal market.
The platform has a network effect where buyers and sellers create value for each other. This has helped it stand out in a sea of e-commerce behemoths.
Looking ahead, the company has numerous tailwinds for continued success. Recently, Etsy introduced a video feature for sellers which will enable them to be more intuitive with their listings on the platform.
The algorithm for the ads has also been reworked to give the sellers more data on its performance. Etsy also made the shift to the Google Cloud which helped re-allocate its workforce from maintenance tasks to customer service.
As e-commerce continues to dominate the retail space and consumers’ pandemic shopping habits remain sticky, Etsy is well-poised for long-term returns.
Fiverr International Ltd (FVRR)
In the era of the gig economy, Fiverr has helped revolutionize the freelance space. With more time on their hands as a result of the lockdowns, freelancing became a way for many people to earn some extra cash in their spare time.
While freelancing is no novelty and has been around for quite some time the pandemic made it more of a mainstream idea, much like remote work. This gives Fiverr, one of the biggest players in this sector, a long runway for growth. The company’s addressable freelance market is worth over $100 billion and it has barely scratched the surface.
With its stock up 700% in the last 12 months, Fiverr’s growth potential was reflected in its most recent earnings. Revenue for the quarter was up 89% to $55.9 million and the number of active buyers on the platform rose by 45% to 3.4 million.
The company is also in major expansion mode, forecasting revenue of $63 million in the first quarter of 2021.
The dominance of the gig economy has definitely attracted some competitors like Microsoft (NASDAQ:MSFT) which plans to launch its own freelance service soon.
However, with a market that’s worth over $1.5 trillion, new players in the space still leave Fiverr with lots of room for growth. If you are looking for a great digital-economy play, Fiverr is one of the best unstoppable stocks this year.
On the date of publication, Divya Premkumar held a long position in SHOP.
Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial writer and analyst who has written stories on various financial topics from investing to personal finance. Divya has been writing for InvestorPlace since 2020.