The stock market has been sky-rocketing in 2021, with the S&P 500 delivering 21.5% and the Nasdaq giving up 19.3%. It seems like every part of the market has had great results, which might be great for investors but can also lead to unease about the possibility of things being overvalued.
If you are looking for some stocks to watch for wonderful investment opportunities and for a hint about the overall market direction in general, I believe Zillow Group and Square are two to add to your list to watch. Let’s dive in and find out what makes these two stocks so good for September.
Zillow is in a number of sectors within the real estate market. The company is a top advertising platform for agents, who use it to find clients seeking homes. It is also now a homebuyer using its Zillow Offers business.
From a macro level, the company’s research gives key indicators on the housing market. For example, current data from the month of July reveals a “typical” property in the U.S. is worth $298,933, which is up 16.7% compared to a year ago and normal rent is up 9.2% to $1,843 a month. This data is changed regularly and depends on data going through Zillow’s system. If its data reveals that the market is still going up, it might be bullish for property values and connected stocks, but if these numbers stagnate, it might be a sign that the real estate market is overheating.
From a stock viewpoint, Zillow did struggle this year. Share prices are lower by 25%, even with the market’s rise, as investors decide about whether or not the company will make a profitable move to buying and selling properties. I believe the business is going in the right direction and can allow investors both good data about the property market and a view about whether or not investors believe it can disrupt the normal real estate industry.
Talking about disruption, Square wants to change everything from financing to investing and cryptocurrency. The Square app is a huge digital payments option used by retail shops, food delivery services and many other businesses. Over time, it has also included services such as scheduling, payroll, and even loans. This is the business-sector part of the company, and it continues to win market share as more companies look to accept digital payments.
The Cash App is the firm’s consumer-facing service that gives money transfers to other users of the app, Bitcoin buying and selling, and even stock trading. The app reported 40 million monthly users in June and is adding more services such as direct deposit of paychecks. This might be the way that people bank in the digital world, rather than a normal traditional bank.
Square is changing how financial institutions work. The company might be a huge force in investing and banking, giving services to users that bigger banks simply cannot compete with because they are too slow to adapt or cannot move fast to create new products. And with tens of millions of customers, this is a disruptive company that is definitely one you want to own.
Author: Steven Sinclaire