Even as the market trades near all-time highs, there are attractive long-term investment opportunities. With global economic growth accelerating, it’s likely that equities will continue to perform well. The market also continues to present short-term trading opportunities. I see several stocks to buy that can provide investors with quick 10% to 20% returns.
In my view, it makes sense to have a core long-term portfolio. Additionally, investors could consider having a trading portfolio to benefit from swing trade opportunities.
Nio (NYSE:NIO) is a good example of a swing trade. With Chinese stocks facing regulatory headwinds, Nio stock declined to $39.36 on July 27. Within a week, the stock is trading higher by 14% at levels around $45.
These seven stocks to buy look good for a shot at some quick cash, as they can trade higher by 10% to 20% over the next few weeks:
- Xpeng (NYSE:XPEV)
- Marathon Digital (NASDAQ:MARA)
- Pfizer (NYSE:PFE)
- Chevron (NYSE:CVX)
- JetBlue Airways (NASDAQ:JBLU)
- Alibaba Group (NYSE:BABA)
- Cricut (NASDAQ:CRCT)
Stocks to Buy: Xpeng (XPEV)
XPEV stock has fallen 6% year-to-date (YTD). However, it seems a breakout is imminent with the company’s continued positive business developments.
Recently, Xpeng announced it had delivered 8,040 vehicles in July 2021. On a year-over-year (YOY) basis, deliveries increased by 228%. It’s also worth noting that the company’s third production model, the P5, is slated for launch in the third quarter of 2021. Deliveries will begin in Q4 2021, which is likely to ensure strong vehicle delivery growth sustains well into 2022.
From a financial perspective, Xpeng reported revenue of $450.4 million for Q1 2021. On a YOY basis, revenue was higher by 616.1%. With strong vehicle deliveries for Q2 2021, results are likely to be stellar. There is also a possibility of further improvement in vehicle margins.
Xpeng is also constructing a new smart manufacturing base in Wuhan with an annual production capacity of 100,000 vehicles. This will help the company cater to growing demand and production needs for international markets.
Overall, XPEV stock looks poised for a breakout with a renewed rally in electric vehicle stocks. The company is innovative and business developments support the stock’s upside potential.
Marathon Digital (MARA)
From a technical perspective, Bitcoin (CCC:BTC-USD) miner MARA stock seems to have found strong support around levels of $25 to $30. Considering the company’s growth visibility for the next few quarters, a strong rally seems likely.
To put things into perspective, the company reported 19,395 miners as of July 2021. The number of active miners is expected to increase to 103,120 by Q1 2022. This would represent 6.4% of the global Bitcoin hash rate. Considering that Bitcoin mining is banned in China, the share of the Bitcoin hash rate for Marathon can be even higher.
Further, at a Bitcoin price of $55,000, Marathon Digital expects monthly revenue of $94.4 million. This would imply an annualized revenue in excess of $1 billion.
Bitcoin has declined in the recent past. However, data from Coinbase (NASDAQ:COIN) indicates that institutional investors have been increasingly buying Bitcoin. Over the medium- to long-term, the outlook is positive.
It’s also worth noting that as of July 2021, Marathon reported cash and equivalents of $170.6 million. Further, considering Bitcoin assets, the company’s total liquidity buffer was $372.2 million. This provides ample financial flexibility for organic growth.
Stocks to Buy: Pfizer (PFE)
PFE stock is already trading near the highest levels seen in the last twelve months. The stock is undervalued at a forward price-to-earnings (P/E) ratio of 11.7. Additionally, PFE stock offers an attractive dividend yield of 3.45%. I would not be surprised if the stock trends higher by 10% to 15% in the current breakout.
One thing pushing the stock higher is recent news that Pfizer and Moderna (NASDAQ:MRNA) have raised their E.U. vaccine prices. Additionally, Pfizer has been awarded a $3.5 billion contract to make 500 million vaccine doses for the U.S. Army.
Furthermore, Pfizer delivered strong results in Q2 2021. The company’s operational revenue growth was higher by 86% on a YOY basis. Pfizer has also increased 2021 revenue guidance in the range of $78 to $80 billion.
Another important thing to note is that, excluding the impact of its Covid-19 vaccine, Pfizer’s revenue increased by 10%. Therefore, the company’s core portfolio has been delivering strong numbers.
There are concerns about its drugs losing exclusivity in the coming years. However, Pfizer has a strong pipeline of candidates in phase two and three. The company has reaffirmed revenue growth of 6% through 2025.
Pfizer expects revenue of $33 billion from its Covid-19 vaccine in 2021. This is based on an estimate of 2.1 billion doses manufactured. The company expects to ramp up manufacturing to three billion doses in 2022. The possibility of booster doses becoming necessary coupled with vaccinations for adolescents will continue to boost the company’s growth.
With Brent Crude trading above $70 per barrel, it’s a good time to be invested in oil and gas stocks. CVX stock looks attractive after strong consolidation around $100 levels. With CVX stock trading at an attractive forward P/E of 16.69, a breakout on the upside seems imminent.
For the current year, Chevron has a capital expenditure budget of $14 billion. Reserve replacement is likely to remain robust along with steady production.
With the company having low break-even assets, there is also the opportunity for healthy cash flows. For Q1 2021, the company reported operating cash flow of $4.2 billion. Further, cash and cash equivalents for Q2 2021 swelled to $7 billion with an increase in oil price.
Chevron currently has an annualized dividend payout of $5.36 per share. Considering the company’s cash flow outlook, this is likely to continue. Robust cash flows could also imply the company’s investments are funded through internal cash flows. Chevron currently has a net debt ratio of 22.5% and the balance sheet is likely to remain strong in the coming years.
Overall, CVX stock seems attractive from a valuation and fundamental perspective. A breakout on the upside seems very likely after the current consolidation.
Stocks to Buy: JetBlue Airways (JBLU)
I believe JBLU stock is one of the best picks in the airline sector. Earlier this year, the stock touched a high of $21.96. It has trended lower to levels around $15, but another big rally seems to be in the cards as the sector witnesses gradual recovery.
The biggest reason to like JetBlue is the company’s balance sheet. As of Q2 2021, the company reported $3.7 billion in liquidity and a low adjusted-debt-to-capitalization ratio of 55%.
Another reason to be positive on JetBlue is significant improvement at the operating level. For Q2 2021, the company reported adjusted EBITDA loss of $86 million, beating a forecasted loss of $115 million to $165 million. It expects EBITDA in the range of $75 million to $175 million for Q3 2021.
It’s very likely its EBITDA margin will continue to expand in the next few quarters as capacity utilization improves. JetBlue is also investing in next-generation aircraft that can help its EBITDA margin keep increasing. This will have a positive impact in the next few years.
Overall, the company is likely to emerge from the pandemic with a healthy balance sheet. This will allow JetBlue to pursue fleet expansion, which will boost long-term growth. The selling in JBLU stock seems overdone. Some quick gains are likely in the foreseeable future.
Alibaba Group (BABA)
BABA stock has been an under-performer, as it has been weighed down by regulatory headwinds. However, it seems BABA stock is oversold and could see a strong reversal.
Recently, the company announced mixed quarterly results with revenue increasing by 34% on a YOY basis to $31.9 billion. For the same period, the company’s diluted earnings per share was 32 cents. It’s worth noting that Alibaba reported free cash flow of $3.2 billion for the quarter.
With strong free cash flow, Alibaba also announced an aggressive share buyback program. The program has been increased from $10 billion to $15 billion.
In terms of segment performance, the company’s cloud business registered 29% YOY revenue growth. Furthermore, the company reported positive EBITDA from the segment. It’s likely Alibaba’s cloud business growth will remain robust and its EBITDA margin will expand in the next few quarters.
At the same time, the company’s core commerce business remains a cash cow. With growth in China and Southeast Asia, the core commerce business is likely to remain a performer.
The company continues to deliver robust numbers even as the stock remains depressed. A relief rally for BABA stock from its oversold levels seems entirely likely.
Stocks to Buy: Cricut (CRCT)
CRCT stock listed in March 2021 at $20 per share. After a strong quarterly performance, the stock has nearly doubled to $35.80. However, there has been some consolidation around current levels and further upside seems likely before Q2 2021 results.
As an overview, Cricut is a creativity platform. It allows users to make professional-looking handmade goods. The business has gained traction during the pandemic as people look for at-home leisure and entertainment activities.
For Q1 2021, Cricut reported revenue of $324 million, which was higher by 125% on a YOY basis. For the same period, the company’s EBITDA surged by more than 230% to $69 million. The company also witnessed strong growth in total users and paid users. If this momentum sustains, Cricut is positioned for strong cash flows in the coming years.
Another important growth factor is the company’s international expansion. Currently, users are concentrated in the U.S. and Canada. Globally, there is a big addressable market. As Cricut makes entry into new geographies, active user growth is likely to remain strong. To put things into perspective, the company’s international revenue surged by 253% for Q1 2021.
Overall, CRCT stock is one of the top growth stocks to buy. I see potential for further upside after the company declares its Q2 2021 results in the second week of August.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.