The stock markets showed life last week as equities rebounded like they haven’t in years. Nevertheless, the uncertainties that plagued Wall Street linger, so this is more of a relief rally. That means that investors should remain cautious for the next two months, just in case. This leaves a lot of time for research while we wait. Today we will pick three George Soros stocks to buy for any portfolio.
Normally I would jump onto Amazon (NASDAQ:AMZN), but this time I don’t like the distraction. Of course, I am referring to the upcoming 20 to 1 stock split. There is too much hoopla around this event, and I want to avoid the crowd. So what we pick next are basically the second through fourth best choices.
This week also marks the first day of the Federal Reserve’s balance sheet quantitative tightening (QT). Wall Street has been fretting about this for a while, which is adding to the jitters. Smart money would do well to keep that in mind while deploying new risk. Although I don’t subscribe to the total gloom scenario, I respect the power of the Fed.
Diversification is important, and these three would be as mutually exclusive as possible. Meaning they won’t cause sector overlap if all three are in the same portfolio. Picking George Soros stocks to buy offers comfort to retail investors. It gives the impression of safety, as they’re leveraging a billionaire’s team due diligence. Nevertheless while this is a good start, it is not a foolproof guarantee for success, so do your own research as well.
| RIVN | Rivian | $31.15 |
| CRM | Salesforce.com | $178.90 |
| TEAM | Atlassian | $186.46 |
Rivian (RIVN)
Tesla (NASDAQ:TSLA) launched an electrical vehicle (EV) revolution. It made it so cool to own one that the whole world is switching to them. Rivian (NASDAQ:RIVN) is one of the hopeful rising stars in the space looking to supply us with EVs. They have slick-looking trucks, and functional commercial vans. There are currently too many EV companies and most will fail, but Rivian should be a winner. I would therefore bet on RIVN stock to also make it in the long run.
I’m not alone. Rivian has great teams believing in it. Amazon owns 20% of the shares. If it’s good for the best growth company ever, then Rivian stock is good for me. Add to this that RIVN is a large holding of George Soros. Him owning more of it than most of his other stocks is confirmation that it is a stock to buy.
Billionaire are that wealthy for a reason — because they recognize winning ideas. On its own, RIVN stock cannot yet prove its worth. Eventually, however, the results of its efforts will materialize in the financial statements. Although I see its vehicles on the road in my neighborhood, they have not hit the market in force yet. This pick among our George Soros stocks to buy is a case where investors will need to put forth a bit of hope, Ark Invest style.
Salesforce.com (CRM)
Salesforce.com (NYSE:CRM) soared after it reported earnings yesterday. Clearly investors liked what they saw in hindsight, and in forecasts. This earnings season, that is saying a whole lot. Investors have been shy with the rallies. Chargepoint (NYSE:CHPT) fell 7% even though it doubled its sales.
The CRM team reported roughly 25% revenue growth, but tempered the guidance a bit. Investors ignored this and ran 10% with the stock — and on a down market day, no less. The fundamentals for Salesforce.com continue to be bulletproof. This is the company that popularized the cloud and pioneered the SaaS (software as a service) concept. This selloff it suffered went too far for how good the company has historically been.
Industry giants like Microsoft (NASDAQ:MSFT) realized their brilliance and followed CRM like sheep. Now the whole tech sector is either already there, or on their way to it.
It is not in my nature to chase runaway stock rallies on headlines like this, so in this case I would not mind waiting out a few candles to calm the action down. Human emotions tend to ruin good trade ideas if we are not careful.
Atlassian (TEAM)
This year, Wall Street investors have rejected stocks that grew fast at the expense of high spending. Atlassian (NASDAQ:TEAM) stock fits that profile to a degree that earned it a steep decline in price. This is now turning into a sharp wedge that has technical upside potential. Since May 12, TEAM stock has held the $160 bottom.
The lower-high trend continues, but the bulls are making progress as long as support holds. Soon they will face off near $190 per share, and there could be a change in control. The buyers could break the descending channel to start building a positive slope. The bottoming is better if it happens as a process and not a v-shape bounce. That’s what TEAM stock is attempting to pull off here. There are resistance lines along the upside path, but if markets allow it, this stock can tackle them.
Fundamentally, management is delivering strong growth but is running a net loss. However, they generated $300 million in free cash flow. They are not burning cash to deliver the growth. The price-to-sales is not cheap at 17, but that is also not a bloat situation either. If markets stabilize, TEAM’s upside opportunity outweighs the downside now.
On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
