Whether you’re an entrepreneur or just a person looking to make some extra cash, here are the best things to invest in right now. We’ll touch on the latest technologies, and we’ll discuss the best stocks to buy for your next big move. Among these stocks are Adobe, Shopify, PayPal, and Nvidia. All are ripe for growth. Investing in them now will reap big rewards.
Nvidia
You can’t miss Nvidia, which is trading at a price below its projected earnings growth. The company’s technology is enabling dozens of high-growth industries, including robotics, AI, and self-driving cars. Many of these industries are expected to enter the mainstream within the next decade. Nvidia’s shares are cheap compared to the Nasdaq-100 average, and analysts expect the stock to continue to rise.
Although Nvidia’s main focus is on semiconductors, the company’s growing business includes driverless cars, AI, and machine learning. Its chips are powering driverless cars, and Nvidia has more people working on the technology than Alphabet’s Waymo. As this technology advances, more companies are racing to develop driverless cars, and Nvidia’s DRIVE Orin chip, a “supercomputer on a chip”, is a promising option.
Adobe
For investors who want to benefit from one of the most profitable growth stocks in history, Adobe is a good choice. During the past three decades, Adobe shares have more than doubled in value, returning 32X more than the S&P 500 index. Moreover, Adobe’s ROC, or return on capital employed, has increased significantly, from just over two to three cents annually, since its switch to a subscription model in 2013. Further, the company’s $71 billion of retained cash flow could be used to buy back nearly 30% of its shares, and could pay down its debt 20X over the next 30 years.
In fact, Adobe has a near-perfect EPS Rating of 98, and an excellent SMR Rating of A. This rating is based on a number of key metrics, including sales growth, profit margins, and return on equity. Adobe recently topped fourth-quarter estimates and guided higher for the current quarter and fiscal 2021. In addition, it is the second-best stock in the computer software-desktop industry group, which has a poor ranking of 197.
Shopify
Shopify is a cloud-based e-commerce platform with 1.7 million users and $200 billion in annual sales. It’s been touted as one of the best things to invest in right now, and its growth can be attributed to the pandemic that’s caused eCommerce sites to skyrocket in recent years. Even Molson Coors, the largest public company in Canada, is using Shopify. In addition to Apple, Spotify, and other major companies, Shopify is also partnering with brands, including YouTube and Apple, to sell merchandise.
The company generates most of its revenue from recurring monthly fees and a small percentage from transaction fees, which are based on the value of merchandise sold. As of April, Shopify hasn’t released its annual revenue projections for 2011, but analysts believe it will double revenue in 2012. If that happens, Shopify stock will have more than $6.3mm of cash on hand. However, there are a few risks that investors should be aware of.
PayPal
Most of us have dreamed about buying shares in a company that goes through a meteoric rise in value, and PayPal is one of the companies that is doing just that. However, investing in stocks is far more complex than wishing that a bird would fly into our mouth. For starters, you can buy stocks online, rather than waiting for a bird to land on your head. And even if you do choose to purchase stock in a company that has experienced a steep rise, you will still be able to profit.
While the stock’s valuation may seem high, it remains cheap compared to the Nasdaq 100 Index. PayPal shares trade for just $27, which is considerably lower than its largest competitor, Visa Inc. Even more impressively, investors don’t have to worry about falling sales due to slowing spending. Even so, PayPal recently flagged a slowdown in spending in its earnings and cut its revenue guidance to below analyst expectations. In light of this, brokerages have cut their estimates for the company’s sales growth to a range of 15% to 17%.
Atlassian
Why Atlassian is one of the best things to own right now? In 2002, this company could have followed the normal path of any other SaaS company. But instead of building a sales team, investor relationships, or millions of dollars in funding, Atlassian took a slightly unconventional approach and built an extremely profitable company that could go public. As a result, Atlassian is now one of the best things to own right now.
The company has a remarkably efficient sales funnel. Most customers start off on the free tier and eventually upgrade to a paid plan as their user base grows, and as they adopt more products and the company’s application store, they become paying customers. Interestingly, Atlassian invests the least in sales and most in R&D, delivering free cash flow margins of over 30%. Furthermore, Atlassian expects to reduce its operating expenses to feed this sales machine. For finding more investing ideas you should visit here.
