After a devastating pullback, some of the top blockchain stocks to buy are starting to show significant signs of life again.
Many have become screaming buys, with the industry on course to be a definite financial game-changer for millions. According to Markets and Markets, the blockchain market could grow more than 66% to $94 billion by 2027. Far better, by 2030, analysts at Grand View Research say the global blockchain market could be worth about $1.4 trillion. They note, “The growing demand for blockchain across the government sector due to benefits, such as protection of sensitive data, reduced cost, and improved efficiency, is driving the market growth.”
Investors may want to consider these three blockchain stocks with some of the best potential growth in this sector.
|BKCH||Global X Blockchain ETF||$21.85|
Global X Blockchain ETF (BKCH)
One of my favorite ways to trade any hot sector is with an ETF. That’s because these vehicles offer solid diversification at a relatively low cost.
With an expense ratio of 0.50%, the Global X Blockchain ETF (NASDAQ:BKCH) invests in companies that are likely to benefit from the increased adoption of blockchain technology. These include those in digital asset mining, blockchain and digital asset transactions, applications, hardware, and integration.
Thus, for those bullish on this space, the BKCH ETF is among the best ways to play this broader trend. Investing in this bucket of stocks allows for broad-based exposure, with fewer headaches.
Block Inc. (SQ)
For those looking to buy individual blockchain stocks for the future of finance, there’s always Block (NYSE:SQ).
Granted, the stock has seen better days. In fact, from its stellar high of about $280, the stock plummeted to less than $60 before recovering to $77 per share, at the time of writing. Fortunately, SQ stock is showing signs of life, and I think this stock could eventually return to the $100 level.
There are many reasons for this view. However, among the key factors I’m assessing is what analysts think of this stock. Mizuho just upgraded the stock to a buy rating, pricing in significant upside with SQ stock tied to cost savings and associated margin growth. These analysts raised their price target to $93 from $80. Accordingly, it’s clear that this is a company that Wall Street remains bullish on, despite the macro backdrop.
Some of this bullishness may be a result of Block’s recent earnings, which have been impressive. The company brought in revenue of $4.65 billion this past year, blowing past analyst expectations by $60 million. Revenues were also up 14% year-over-year. And if we exclude Bitcoin (BTC-USD) revenue, the company’s overall revenue would be to $2.82 billion, or a 33% year-over-year increase. Not bad.
There’s also Mastercard (NYSE:MA). While the company is putting the brakes on forming new relationships with cryptocurrency firms, it’s not all doom and gloom for this mega-cap payments company. Reuters reported that the company is still focusing its efforts on the underlying blockchain technology, looking for ways to apply this tech to address existing pain points and build more efficient systems.
Indeed, as far as payments companies are concerned, Mastercard has really taken a stab at generating growth in this sector. The company has invested heavily in assessing the potential use cases of blockchain technology. With nearly 90 blockchain patents, Mastercard is looking to use the technology to make the payments process far more secure, seamless, and difficult for scammers to access.
Even better, Mastercard just posted better-than-expected earnings. In its fourth quarter, the company posted an EPS of $2.65, ahead of estimates of $2.57. Net revenue was up to $5.8 billion. “While macroeconomic and geopolitical uncertainty persists, consumer spending has been remarkably resilient,” said Michael Miebach, Mastercard CEO, as quoted by Barron’s. “We are well prepared to adjust our investment profile quickly if needed.”
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.