When I look ahead at the second half of 2017, I’m overwhelmed by the potential opportunities that continue to grow out of our NexGen mega-trends. Every day when I run my scans, I find more exciting stocks to buy and ideas that currently are (or are destined to become) the new faces of Wall Street.
With so many of my favorite mega-trends ready to fuel the rest of 2017, it’s no surprised that my watch list has ballooned recently. There are plenty of potential money-making ideas in companies that are innovating, shaking up the status quo and leading the next wave of market growth.
Three stocks in particular stand out to me right now as names worth keeping an eye on. Let’s talk a bit about each and what I’m looking for to signal a buying opportunity.
NexGen Stocks to Buy: Veeva Systems (VEEV)
Click to Enlarge Veeva Systems Inc (NASDAQ:VEEV) is a NexGen healthcare play that offers cloud-based software to the sector. It currently has more than 500 customers, including some of the largest pharmaceutical and biotech firms in the world, and its products help customer relationship management (CRM) with doctors and other medical professionals.
By moving to a more mobile approach to pharmaceuticals sales, large drug companies can limit costs and improve sales figures.
Looking at the chart, you can see that VEEV has been consolidating since hitting a high earlier this summer. This is common of a stock that recently broke out to record territory and is usually a sign that it’s gaining momentum for its next big breakout.
NexGen Stocks to Buy: Impinj (PI)
The big opportunity here stems from Amazon.com, Inc.’s (NASDAQ:AMZN) recent purchase of Whole Foods Market, Inc. (NASDAQ:WFM). Impinj already has ties to the e-commerce giant, and its shares rallied nearly 20% on the day it was announced that AMZN would be moving into the grocery market. PI has been drifting sideways ever since and is now looking like an attractive buying opportunity.
The company’s earnings are expected to grow very little this year, but they’re expected to increase from 23 cents a share to $1.60 a share by 2021.
That represents huge upside potential, and add in the benefits from a big Amazon deal or a possible takeover and you’re looking at a strong NexGen idea.
NexGen Stocks to Buy: JD.com (JD)
Click to Enlarge JD.Com Inc(ADR) (NASDAQ:JD) is one of the largest e-commerce and retail companies in one of the biggest and fastest-growing economies in the world: China. This is a pure growth play, with the company’s first-quarter revenue having increased 41.2% year-over-year.
When it comes to NexGen investing, I like to look for stocks that have growth potential and are in sectors with several catalysts to help drive that growth. JD is the perfect example of this as it has several potential catalysts including the China story, its expansion into fast-growing Southeast Asia, online retail and the fact that it’s a potential takeover target.
While the stock has been consolidating over the last couple of months, there are two indicators I’m looking for that would signal a buying opportunity. The first would be a breakout above $44, and the second would be a pullback to support around $39 (the black line). If either occurs, I’d look to jump on board.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.