If a company is generating revenue, that’s always a good thing. Especially as we come out of the worst of the pandemic economy, strong sales make for hot stocks.
Sometimes it’s easy to find these companies because they’re consumer-facing and we’ve all seen and heard about them. But other stocks are succeeding selling to businesses that use them to deliver products to consumers that we never see. Some are a little of both, helping businesses and consumers make life a little more productive.
Rising revenue is a good sign that companies can grow themselves into value over time and are worth paying a premium for, since they’re demonstrating their value to their customers. There’s no hold and hope here. Plus, management of good, growing companies have proven they can manage that revenue well and keep the business growing.
The seven hot stocks with soaring sales below are great examples of this. Oh, and each has an ‘A’ grade in my Portfolio Grader.
- CrowdStrike Holdings (NASDAQ:CRWD)
- DR Horton (NYSE:DHI)
- Etsy (NASDAQ:ETSY)
- NIO (NYSE:NIO)
- Southern Copper (NYSE:SCCO)
- Taiwan Semiconductor (NYSE:TSM)
- Zoom (NASDAQ:ZM)
Hot Stocks to Buy: CrowdStrike Holdings (CRWD)
When global lockdowns become a way of life, that means most people turn to their computers, phones and television for their access to the outside world.
And that is great news for hackers. Cybersecurity has been a significant issue during the pandemic as people relied on their digital devices more than ever for access to the outside world. That made them extremely vulnerable to attacks from hackers.
Also remember it’s not just individuals that are targets. Sophisticated hackers are more interested in corporate attacks to plant ransomware, steal company data or access customer accounts.
CRWD is one of the leading cybersecurity companies in the market today, offering a number of security solutions for its customers, from corporations to cloud platforms, to server farms.
With a decade in the business and a $47 billion market cap, CRWD will be a big winner in coming quarters. It’s one of the hot stocks in this sector and it’s a bargain now as it consolidates from a big run in the past 12 months.
DR Horton (DHI)
It might not be a name you’re familiar with, but DHI is the largest homebuilder in the U.S. by volume, and has been for nearly a decade. That makes it one of the market’s hot stocks.
It offers four brands that encompass the broader sections of the market — starter homes, mid-priced homes, high-end homes and retirement homes.
With low interest expected to last years rather than months, U.S. home buying should continue for some time. Also in DHI’s favor is the fact that there remains more demand for homes than supply in many markets.
The stock is up 45% year to date but its current price-to-earnings ratio remains below 13x.
Hot Stocks to Buy: Etsy (ETSY)
Online shopping is the only thing that has been hotter than the housing market in the past year. And that has been great news for ETSY.
What’s more, with the dislocation that came with the pandemic, many people decided to open their own shops on ETSY for extra cash or to follow their passion and see if they could turn their hobby into a real, sustaining business.
For ETSY, that all has meant more customers and more participants, which has helped take the company to the next level. And as the pandemic economy fades, ETSY has built a great foundation of buyers and sellers that will continue to drive sales as the economy picks back up.
Up 24% year to date, it has been on a wild ride but management knows how to manage the company’s growth moving forward. That makes it one of the more solid hot stocks to watch today.
This is the flagship Chinese electric vehicle (EV) maker. After a bumpy start, it’s growing sales and recently announced that it’s moving sales beyond its borders and into Europe, the biggest EV market right now.
As the U.S. turns up the rhetoric about China being a threat to U.S. economic, political and military interests, the more it pushes a wedge between U.S. business interests in China and vice versa. But the fact is, China has a significantly larger population with a faster growing middle class and more car buyers.
What’s more, in only a few years, China will have a bigger economy than the U.S. And if NIO is a local brand, with incentives and government pressure and inducements, it will have a huge market locked down.
In the past 12 months NIO had a stellar run and is now consolidating. It’s off 23% year to date, so it’s a good time for some risk capital.
Hot Stocks to Buy: Southern Copper (SCCO)
Because copper is used in nearly every major industry, it has the nickname, “the metal with a PhD in Economics.” Copper prices are a forward-looking indicator of economic growth.
When business see that economic expansion is coming, they start to buy copper. Right now, copper prices are near 10-year highs. Granted some of this may also be the value of the U.S. dollar, since copper is priced in dollars and the stronger the dollar, the more expensive it is for non-U.S. countries to buy the metal.
But the fact is, prices are rising and that means economic growth is sure to follow. As a leading copper miner and producer, SCCO is one of the sector’s hot stocks and remain a big beneficiary of the trend.
Up just 6.5% year to date, this is a good play on an expanding global economic recovery.
Taiwan Semiconductor (TSM)
As one of the largest semiconductor foundries in the world, TSM holds a unique space in the growing demand for computer chips.
In the past, chip product was on a two- or three-year cycle when corporations would upgrade their equipment and a new generation of chips were timed to improve performance, demand would rise for chipmakers. But now, everything has a chip or ten in it. Cars have sensors and autonomous vehicles have scores of chips to process information.
Chips are in continual demand in all industries now, so chip foundries are constantly running at full capacity. Just a week ago, TSM reported that profits were up 19% because of chip demand. This is a big, long-term trend, especially as more chip companies contract out chipmaking to foundries like TSM.
TSM stock is up 6% year to date.
Hot Stocks to Buy: Zoom (ZM)
One of the hot stocks in the past year was a relative nobody pre-pandemic. ZM was just another video teleconferencing company that was up against some of the biggest players in the tech markets.
But the thing was, the big firms weren’t really on top of what the market needs were as innovation got bogged down in corporate layers and status quo thinking. People used the video services of the big players because they had to, and it seems most of these big companies knew that.
But when the pandemic hit, smaller companies that didn’t have massive contracts with big software and networking providers needed to find video conferencing that was simple to use, cheap and reliable. ZM had been focused on the education segment and became the top choice. As a result, it was also one of the story stocks of 2020.
Now, it has become a major player in this sector and while the pandemic is ending, ZM is supplanting the competition in video conferencing contracts. ZM stock is consolidating now, down 6% year to date as investors move on to new shiny objects. But this one is still shiny and it’s still one of the hot stocks you should be paying attention to.
On the date of publication, Louis Navellier has positions in CRWD, ETSY, NIO, SCCO, TSM and ZM in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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