Each of these biotech stocks has more than tripled year to date and could still have plenty of room to run.
How long does it take stocks to double? The S&P 500 index has delivered an average annual return of around 10%. That translates to roughly seven years for the index to double.
But some stocks can double in much less time. Quite a few coronavirus-focused stocks have at least doubled so far this year. These three coronavirus stocks have more than tripled year to date and might more than double again by the end of 2020.
You won’t find many stocks that have outperformed Vaxart (NASDAQ:VXRT) this year. Its shares have skyrocketed more than 2,000%, fueled by investors’ excitement about the company’s oral COVID-19 vaccine candidate.
Vaxart stock really took off in late June. That’s when its experimental COVID-19 vaccine was selected to be included in a nonhuman primate challenge study funded by Operation Warp Speed, the U.S. government program created to accelerate the development of coronavirus vaccines.
But Vaxart’s meteoric rise might be just getting started. The company announced on Monday that the Food and Drug Administration gave it a green light to initiate a phase 1 clinical study of its oral COVID-19 vaccine. Vaxart expects to begin enrollment this month. If the early stage trial goes well, don’t be surprised if its shares shoot up at least another 100% before 2021 rolls around.
Altimmune (NASDAQ:ALT) has delivered a year-to-date gain of more than 600%. The biotech stock was up by a whopping 1,400% by mid-July before it completed a $132 million public offering.
Like Vaxart, Altimmune’s appeal stemmed in large part from its unique COVID-19 vaccine candidate. In July, the company announced positive preclinical results for experimental intranasal coronavirus vaccine AdCOVID. Altimmune’s pipeline also includes another candidate targeting treatment of outpatients with early stage COVID-19, intranasal immune modulator T-COVID.
What could possibly cause Altimmune’s shares to double or more by the end of this year? In the fourth quarter, the company expects to report results from a phase 1/2 study of T-COVID that’s being funded by the U.S. Department of Defense. Altimmune also hopes to advance AdCOVID into phase 1 clinical testing in humans in Q4.
Inovio Pharmaceuticals’ (NASDAQ:INO) shares have risen close to 240% so far in 2020. By late June, the stock was up by nearly 850%. However, Inovio gave up much of its big gain after announcing interim phase 1 results for its COVID-19 vaccine candidate, INO-4800.
Those results weren’t bad. In fact, Inovio reported that 94% of the phase 1 study participants demonstrated overall immune responses after two doses of INO-4800. The investigational vaccine also appeared to be well-tolerated, with no serious adverse events. The problem was that industry observers wanted more details about immune responses than Inovio provided.
Don’t count Inovio out, though. The biotech has submitted a paper detailing its phase 1 results for peer review and expects publication in the coming weeks. Inovio awaits FDA clearance to begin phase 2/3 trials in the U.S., which it anticipates receiving in the near future. CEO Joseph Kim also recently stated that the company is “very confident” it will be able to line up external funding for its phase 2/3 studies.
All three of these stocks have already hit peaks in recent months that reflect upside of more than 100%. Positive news for their respective COVID-19 programs could enable any or all of them to regain earlier levels and at least double by the end of 2020.
While Vaxart, Altimmune, and Inovio could all be huge winners, though, the stocks are also very risky. None has an approved product yet. Their fortunes rest largely on their COVID-19 programs, although all three biotechs also have other pipeline candidates. There’s a significant possibility that any of these companies could experience major clinical setbacks.
No worries needed with these stable dividend stars.
Some people like the excitement of buying and selling frequently. They’re always looking for the next hot growth stock in the latest arena generating the most buzz. But that’s not every investor’s cup of tea.
There are a lot of investors who simply want to find stocks that pay great dividends quarter in and quarter out. They want to invest in the kinds of stocks that you can leave alone for years — decades even — while they steadily make money. If you’re this kind of investor, here are three rock-solid dividend stocks that you can buy and hold practically forever.
1. Abbott Laboratories
Abbott Laboratories (NYSE:ABT) pretty much has it all. For starters, the healthcare giant is a Dividend Aristocrat with 48 consecutive years of dividend increases. Abbott has paid a dividend every quarter since 1924. Its dividend yield currently stands at 1.4%. That’s not a spectacular level, but you can feel pretty good about the prospects of the dividend payments continuing to grow over time.
One big plus for Abbott is its diversification. The company is a market leader in branded generic medications, cardiovascular care, diabetes care, diagnostics, neuromodulation care, and nutritional products. This wide range of product offerings generated nearly $32 billion in revenue last year and profits of close to $3.7 billion.
Don’t think for a second that Abbott is a boring, low-growth kind of dividend stock, though. Wall Street analysts project the company will deliver average annual earnings growth of nearly 15% over the next five years. Abbott’s wildly successful Freestyle Libre continuous glucose monitoring system and its new COVID-19 diagnostics tests are just two of the company’s major growth drivers.
2. Brookfield Renewable
Brookfield Renewable (NYSE:BEP) (NYSE:BEPC) told its investors in 2019, “We are one of the few future-proof stocks today.” That statement was defensible then and still is now. The company owns over 5,300 renewable energy assets that should enjoy sustained and increasing demand.
You can own part of Brookfield Renewable in two ways — Brookfield Renewable Partners (a limited partnership) and Brookfield Renewable Corporation (a traditional corporate structure). Their underlying business is the same, and both entities pay the same dividend amount (referred to as a distribution because of the company’s roots as a limited partnership). However, because of share price differences, Brookfield Renewable Partners’ distribution yields 3.9% while Brookfield Renewable Corporation’s distribution yields nearly 3.5%.
The good news is that the dividends for both Brookfield Renewable stocks should continue to grow. The company targets long-term distribution growth between 5% and 9% per year. Its average distribution increase since 2000 is 6%.
3. Duke Energy
Duke Energy (NYSE:DUK) is another utility stock that’s a great pick to buy and hold. It also offers an attractive dividend yield of nearly 4.8%. Duke’s dividend program has a fantastic track record, with the company paying a dividend for 94 consecutive years.
Granted, Duke Energy won’t deliver the kind of growth that some stocks will. But CEO Lynn Good reiterated in the company’s Q2 conference call that Duke should achieve its goal of generating long-term earnings-per-share growth between 4% and 6%. That’s not too shabby for a major utility company.
More importantly, Duke Energy should provide the kind of stability that income-seeking investors like. That’s the benefit of investing in a company that enjoys monopolies in its target markets and derives 95% of its earnings from those regulated markets.
Robinhood investors like two fast-growing biotechs and one big pharma company that each have promising COVID-19 vaccine candidates.
Robinhood’s commission-free trades have attracted many investors. Millions of them are millennials jumping into investing for the first time.
With the COVID-19 pandemic raging on, you might expect that investors on Robinhood have looked at ways to profit from the coronavirus outbreak. And you’d be right.
At least nine stocks of companies with coronavirus programs rank in the top 100 most popular stocks on Robinhood’s trading platform. Here are the three most popular coronavirus stocks — and whether or not they’re smart picks to buy right now.
Moderna (NASDAQ:MRNA) ranks as the most popular coronavirus stock of all on Robinhood. That’s not surprising considering the amount of attention the biotech stock has received in recent months.
In January, Moderna announced that it was moving forward quickly to develop a messenger RNA vaccine candidate to prevent infection by the novel coronavirus. By the middle of March, the National Institutes of Health was evaluating Moderna’s COVID-19 vaccine candidate, mRNA-1273, in a phase 1 clinical study.
Today, Moderna is one of the leaders in the race to develop a coronavirus vaccine. It kicked off a late-stage study on July 27 that should enroll around 30,000 participants. Moderna hopes to be in a position to seek FDA approval or Emergency Use Authorization by the end of this year.
Inovio Pharmaceuticals (NASDAQ:INO) takes the prize as the No. 2 most popular coronavirus stock for Robinhood investors. The biotech was better known for its late-stage cervical dysplasia candidate VGX-3100 coming into 2020. But, like Moderna, Inovio moved rapidly earlier this year to launch a COVID-19 vaccine program.
No other drugmaker claimed a vaccine candidate in phase 2 testing targeting any member of the coronavirus family other than Inovio until recently. Inovio’s research on INO-4700, a vaccine candidate for immunization against the coronavirus that causes Middle East respiratory syndrome (MERS), gave the company a great launching pad for its work on a vaccine candidate targeting novel coronavirus SARS-CoV-2.
Pfizer (NYSE:PFE) is the highest-ranked big pharma with a COVID-19 vaccine candidate in development on the list of Robinhood’s 100 most popular stocks. But the big drugmaker comes in several spots behind Inovio to take third place for coronavirus stocks on the trading platform.
In March, Pfizer announced that it was teaming up with German biotech BioNTech (NASDAQ:BNTX) to develop a COVID-19 vaccine candidate. The two companies had previously partnered to develop a messenger RNA influenza vaccine candidate.
Pfizer and BioNTech announced positive results from phase 1/2 studies of the BNT162 program in the U.S. and Germany in July. The companies selected a candidate, BNT162b2, to advance into pivotal phase 2/3 testing. They also won a major agreement with the U.S. government to supply 100 million doses of the vaccine for $1.95 billion plus a deal with Japan to supply 100 million doses for an undisclosed amount.
Are they buys?
Inovio is arguably the riskiest choice among these popular Robinhood coronavirus stocks. The biotech hasn’t provided all of the details yet from its phase 1 study of INO-4800. My view is that Inovio is definitely a stock to keep on your radar but not one to buy just yet.
Moderna is also risky, especially considering great growth expectations are already baked into its share price. However, I think that the chances of winning approval are pretty good now that mRNA-1273 is on phase 3 testing. Moderna could realistically achieve $15 billion or more in annual sales if the vaccine candidate is successful.
The rest of its pipeline of experimental mRNA therapies and vaccines would also likely be seen as more valuable if mRNA-1273 wins approval. I think that Moderna is a buy — but only for aggressive investors willing to take on considerable risk.
What about Pfizer? It’s the least risky of the three most popular coronavirus stocks on Robinhood. Pfizer has plenty of growth drivers even if BNT162b2 flops, including blood thinner Eliquis and rare-disease drug Vyndaquel. However, I expect that BNT162b2 will be successful in late-stage testing and will be yet another blockbuster for the big drugmaker.
Don’t worry that Pfizer’s growth has been anemic in recent years. The company’s Upjohn unit has held it back. But with a merger of Upjohn with Mylan on the way later this year, that shouldn’t be a problem for much longer. My take is that conservative investors should consider buying Pfizer.
These could very well be get-rich-quick stocks. Spoiler alert: They’re also very risky.
You could play it safe. Put your money in assets that aren’t likely to lose their value. Maybe you might opt to buy shares of utility companies that enjoy monopolies.
But not every investor wants to take the safe path that leads to smaller returns over the long run. Even normally risk-averse investors might want to take a walk on the wild side every now and then by buying stocks that hold the potential to deliver mouth-watering gains in a short period of time.
If you’re one of those kinds of investors, consider stocks of biotechs with promising COVID-19 programs. If their pipeline candidates are successful, these companies could generate a lot of money relatively quickly. Here are three coronavirus stocks that I think could especially make you a fast fortune.
The New England Journal of Medicine published data from a phase 1 study of Moderna’s COVID-19 vaccine candidate mRNA-1273 last week. The results generated a lot of excitement. Every participant in the study who received mRNA-1273 had neutralizing antibodies (which can prevent infection by the novel coronavirus). Even more encouraging, the study participants’ levels of those neutralizing antibodies were higher than levels found in patients who recovered from COVID-19.
Moderna plans to kick off a phase 3 study of mRNA-1273 on July 27. If all goes well, the company could be on a fast path to winning FDA Emergency Use Authorization and full approval. Jefferies analyst Michael Yee thinks that Moderna’s COVID=19 vaccine could make over $5 billion per year if it wins approval.
Depending on what happens with other COVID-19 vaccine candidates in development, I suspect Yee’s estimate could be too conservative. Also, if mRNA-1273 proves to be both safe and effective, it should greatly increase investors’ appreciation of the rest of Moderna’s pipeline. Even though the biotech stock has soared so far this year, it should go a lot higher if the company’s COVID-19 vaccine candidate achieves its potential.
Novavax (NASDAQ:NVAX) isn’t as far along in clinical development with its COVID-19 vaccine candidate as Moderna is. However, it’s not too far behind: The biotech expects to report preliminary results from the phase 1 part of its phase 1/2 study of NVX-CoV2373 later this month. If all goes well, Novavax will advance the vaccine candidate to phase 2 testing.
There has already been a lot of money bet on Novavax’s success. The Coalition for Epidemic Preparedness Innovations (CEPI) awarded up to $388 million for the development and production of NVX-CoV2373. The U.S. Department of Defense gave Novavax a contract worth up to $60 million to manufacture the vaccine for the military. Operation Warp Speed, the federal government’s program to accelerate the development of COVID-19 vaccines, announced $1.6 billion in funding for NVX-CoV2373.
While Novavax’s COVID-19 vaccine program has been in the limelight, the company has another pipeline candidate that could also be a big winner in the near future. Novavax announced positive late-stage results for flu vaccine candidate NanoFlu in March. Its next step is to file for FDA approval. If approved, NanoFlu could become a blockbuster.
Now for the most speculative of the group. Vaxart (NASDAQ:VXRT) hasn’t even advanced its COVID-19 vaccine candidate to clinical testing yet. But its shares have skyrocketed close to 4,000% so far this year. I think it’s possible that this could be just the beginning of a fantastic run for Vaxart.
Most COVID-19 vaccine candidates in development rely on injections. For that matter, most vaccines of any type are injected. Vaxart, however, focuses on oral vaccines. Not only would these vaccines be easier to swallow (pun fully intended) for many people who don’t like needles, they also can be stored at room temperature. Those are two huge advantages.
It’s not surprising that Vaxart’s oral COVID-19 vaccine candidate was selected to be part of a preclinical study in non-human primates that Operation Warp Speed is funding. Vaxart hopes to advance its candidate to a phase 1 clinical study later this year. If the company achieves success with its oral COVID-19 vaccine, that should open opportunities for its other oral vaccine candidates. Vaxart just might be the biggest winner of the three over the long run.
The operative word
Moderna, Novavax, and Vaxart could absolutely make you a fast fortune over the next few years. The operative word in that statement, though, is could.
All three of these biotechs still face significant risks. That’s especially true for Vaxart, which is well behind both Moderna and Novavax in terms of pipeline progress. You could potentially incur big losses with these stocks as quickly as you could make big gains (and perhaps even more quickly).
Risk is the trade-off you have to make to have an opportunity to achieve huge returns. Only aggressive investors should entertain the possibility of buying Moderna, Novavax, or Vaxart. If you want to play it safe (or at least safer), you’ll need to look at other stocks.
Expecting a change in occupancy at the White House soon? These stocks should be right up your alley.
Former Vice President Joe Biden appears to be well ahead of President Donald Trump in the 2020 race for the White House. RealClearPolitics’ average of national polls shows Biden with a 9.6-point lead over Trump. Biden is also winning in the latest polls in several key swing states that are critical to Electoral College victory. Even GOP pollster Frank Luntz thinks the presidential race is “Joe Biden’s to lose.”
Who wins the presidency is important to investors because the candidates have different priorities. If you think Joe Biden will defeat Donald Trump in November, here are three great stocks to buy.
Joe Biden wants to put the U.S. on track to achieve “a 100% clean energy economy” by 2050 at the latest. To accomplish this, he plans to sign executive orders and push for Congress to pass legislation that establishes milestones for meeting key clean energy goals by 2025 if he’s elected as president.
Renewable energy stocks could be big winners under a Biden presidency. Brookfield Renewable Partners (NYSE:BEP) stands out as one stock positioned to perform especially well. Roughly three-quarters of the company’s funds from operations (FFO) comes from its hydroelectric facilities. However, Brookfield also owns solar and wind power generation operations. Its pending acquisition of Terraform will give it an even bigger presence in these arenas.
Brookfield Renewable’s goal is to generate total returns of between 12% and 15% annually. These returns include the company’s attractive dividend, which currently yields nearly 4.4%. I think Brookfield should be able to surpass its goal if Biden takes residency in the White House in 2021.
One of Biden’s top campaign promises is to “revitalize America’s infrastructure”. He wants to spend $1.3 trillion over a 10-year period on infrastructure projects. At the top of his list is repairing highways, roads, and bridges. Biden also wants to upgrade airports, rail infrastructure, and ports, as well as modernize schools across the country.
These infrastructure initiatives would almost certainly boost sales for Vulcan Materials (NYSE:VMC). The company ranks as the largest U.S. producer of construction aggregates such as crushed stone, sand, and gravel and is one of the top producers of construction materials including asphalt and ready-mixed concrete.
The states in which Vulcan operates are poised to generate 72% of the total U.S. population growth this decade. Nineteen of the 25 fastest-growing markets in the U.S. are served by Vulcan’s operations. It makes sense that these areas will be a primary focus of federal infrastructure initiatives.
3. Healthcare: UnitedHealth Group
Unsurprisingly, another major focus for a Biden administration would be healthcare. Biden was a champion for the Affordable Care Act (ACA) when he was vice president. If he becomes president, Biden wants to protect and build upon the ACA, including giving Americans the option to buy a public health insurance plan similar to Medicare.
Such prospects could be music to the ears of UnitedHealth Group (NYSE:UNH). The nation’s largest health insurer benefited tremendously when the ACA was first enacted. Nearly 28% of UnitedHealth’s revenue currently stems from its Medicare programs, including Medicare Advantage, Medicare supplement, and Medicare Part D prescription drug plans.
Other aspects of Joe Biden’s platform could also help UnitedHealth Group. His plans to lower prescription drug prices and promote the development of generic drugs would likely reduce the company’s expenses.
But what if President Trump is re-elected?
The U.S. presidential election is still four months away, though. That’s a long enough time that the political winds could change. It’s still quite possible that Joe Biden’s current lead could evaporate. How would these three stocks perform if President Trump is re-elected? Probably quite well.
Brookfield Renewable Partners appears to be in a good position to deliver strong total returns whichever candidate wins the presidency. Several key U.S. states along with major countries have renewable energy goals that work to the company’s benefit.
It’s a similar story for Vulcan Materials. Like Joe Biden, President Trump says that he wants a major infrastructure effort and is reportedly considering proposing spending close to $1 trillion.
UnitedHealth Group probably wouldn’t fare quite as well in a second Trump term as it would in a Biden administration. However, the health insurance stock has soared more than 80% since President Trump took office.
The bottom line is that if you think Joe Biden will defeat Donald Trump in November, Brookfield Energy Partners, Vulcan Materials, and UnitedHealth Group should be pretty good bets. And even if you’re wrong, all three stocks still have solid prospects.
When the World Health Organization (WHO) says that a given anti-coronavirus product is a leader, that’s about as official as it gets in the fast-moving world of COVID-19 therapies and vaccines.
Earlier this year, a top WHO executive stated that Gilead Sciences‘ remdesivir was the leading therapy targeting COVID-19. Remdesivir, of course, has now become the de facto standard of care for the novel coronavirus disease.
Last week, WHO chief scientist Soumya Swaminathan stated in a news conference that one experimental COVID-19 vaccine appears to be “probably the leading candidate.” Which vaccine is it?
Swaminathan thinks that the COVID-19 vaccine being developed by AstraZeneca (NYSE:AZN) and the University of Oxford should be viewed as the top contender right now. There are two main reasons why.
First, the AstraZeneca-Oxford AZD1222 vaccine is already in a phase 3 clinical study. No other COVID-19 vaccine candidates have yet advanced to late-stage testing. Swaminathan specifically noted “how advanced they are” and “the stage at which they are” in naming the vaccine being developed by AstraZeneca and Oxford as the likely leader.
Second, Swaminathan said that she thinks “AstraZeneca certainly has a more global scope at the moment in terms of where they are doing and planning their vaccine trials.” The late-stage testing of AZD1222 will be conducted in several countries, with trials already in progress in the United Kingdom, Brazil, and South Africa.
The vaccine candidate was originally developed by the University of Oxford’s Jenner Institute. AstraZeneca teamed up with Oxford in April and owns the rights to distribute the COVID-19 vaccine globally. AZD1222 was one of only a handful of novel coronavirus vaccines selected by the Trump administration to receive federal funds as part of Operation Warp Speed, an initiative to rapidly develop a safe and effective COVID-19 vaccine.
A close No. 2
Another COVID-19 vaccine is a close No. 2, according to the WHO chief scientist. Swaminathan views Moderna (NASDAQ:MRNA) as “not far behind” AstraZeneca and the University of Oxford in the race to develop a COVID-19 vaccine.
Moderna’s messenger RNA (mRNA) COVID-19 vaccine mRNA-1273 is currently in phase 2 clinical testing. The biotech plans to begin a phase 3 study of the vaccine in July. Like AZD1222, Moderna’s mRNA-1273 was included in the select group of COVID-19 vaccine candidates that are receiving federal funding in the Operation Warp Speed program.
Stephane Bancel, Moderna’s CEO, is optimistic about the chances of success. He said in a CNBC interview recently that he believes that the probability of mRNA-1273 going on to win approval from the U.S. Food and Drug Administration is between 80% and 90%.
A crowded field
Investors should be wary of banking on AstraZeneca to emerge as the winner in the COVID-19 vaccine race just because it’s the apparent leader right now. Nearly 150 COVID-19 vaccine candidates are currently being researched. Seventeen of those are in clinical trials, with more on the way.
It’s impossible to know which, if any, of these experimental vaccines will be successful. It’s not out of the question — and perhaps even likely — that multiple drugmakers will eventually win regulatory approvals for their COVID-19 vaccines.
The biggest winners from an investing perspective could very well be the small biotech stocks in the race. Novavax, for example, has a phase 1/2 clinical study underway for its COVID-19 vaccine candidate. BioNTech, like Moderna, is testing an mRNA COVID-19 vaccine with its partner, Pfizer.
AstraZeneca claims a market cap of nearly $70 billion. Success for its COVID-19 vaccine would definitely be a major catalyst for the stock. But success for a small drugmaker like Novavax or BioNTech would almost certainly be transformational for either company.
We can sometimes overcomplicate investing. But it can — and should — be pretty simple. Find a well-run company with great growth prospects. Buy the stock. And sit back while it appreciates over the long run. Investors looking for income only have to add one more step: Make sure the stock pays a solid dividend.
You don’t have to have a ton of money to invest for this approach to work wonders. If you’ve got $3,000 or so, there’s a high-yield dividend stock that you can buy right now and let the money roll in. That stock is Brookfield Renewable Partners (NYSE:BEP).
Brookfield Renewable Partners is a member of a family of limited partnerships (LPs) that are managed by Brookfield Asset Managers. Its sister companies include Brookfield Business Partners, Brookfield Infrastructure Partners, and Brookfield Property Partners.
Each of these companies focus on owning and managing assets in their respective niche markets that can generate strong recurring cash flow and distribute cash back to unitholders (the LP equivalent to shareholders). Brookfield Renewable Partners appears to be in great shape to keep up this family tradition.
The company owns hydroelectric, wind, solar and storage facilities spanning four continents. In total, Brookfield Renewable can generate over 19,000 megawatts of electric power. It also has a pipeline with 13,000 megawatts of capacity.
Around three-quarters of Brookfield Renewable’s funds from operations (FFO) come from its hydroelectric facilities. Most of the rest of its FFO stems from the company’s solar and wind facilities. A pending acquisition of TerraForm will boost these businesses.
Brookfield Renewable’s business is about as steady as they come. Its single largest non-government customer contributes only 2% of its total cash flow. Around 95% of its total cash flow is contracted over a long duration. The company’s weighted-average remaining contract length is 14 years.
This solid cash flow enables Brookfield Renewable Partners to reward investors with great distributions. Its yield currently stands at nearly 4.5%. The company has increased its distribution by 31% over the past five years.
A renewable future
Brookfield Renewable told investors last year that it’s “one of the few future-proof stocks” on the market. I don’t think that’s an exaggeration. It’s no secret that energy production in the future will increasingly rely on renewable sources. There are two main reasons why this trend is unstoppable.
First, wind and solar are already more cost-effective energy sources than natural gas. And their costs are likely to become even more attractive over the next decade.
Second, many countries across the world are eager to reduce their carbon footprints. The United Kingdom, for example, set a goal of 55% renewable energy production by 2030. China’s goal is 50% within the same period, while India seeks to generate 40% of its energy through renewable sources by the end of the decade. The U.S. hasn’t established a national goal, but several large states have, notably including California and New York.
Each of these countries and U.S. states are tracking well below their 2030 targets right now. That presents a significant growth opportunity for renewable energy stocks (and Brookfield Renewable Partners, in particular) over the next 10 years and beyond.
What you can realistically expect
How much money could you make with a $3,000 investment in Brookfield Renewable Partners? There are some variable factors that could impact your returns, of course. But you can realistically expect to rake in some serious cash.
The company’s investment objective is to deliver annualized total returns of between 12% and 15% over the long term. This goal includes yearly distribution increases of between 5% and 9%. Can Brookfield Renewable achieve these goals? I think so. It’s beaten the upper end of that range over the last five years.
If the company delivers an average annual total return of 15%, an initial investment of $3,000 today would double within the next five years. If Brookfield Renewable only meets the lower end of its projected range, it would take a little over six years to double. Either way, buying this high-yield stock now appears to be a simple and smart move to make money over the long run.
Their share prices might be lower because of the COVID-19 outbreak, but their long-term prospects still look great.
It’s not too late to buy great stocks at attractive prices. Despite the stock market’s bounce last week, there are still plenty of stocks with tremendous growth prospects that are priced at a discount.
But which stocks have the greatest chances of delivering stellar returns? I think that $5,000 invested in each of the three following stocks should make you a fortune over the next 10 years.
There’s more data being generated than ever before. And that means there’s a greater need to analyze data than ever before. The problem is that most of the tools available for data analysis fall short of meeting users’ expectations. They’re too cumbersome and too complicated. Alteryx (NYSE:AYX) provides the answer to these problems.
Alteryx’s data analytics platform doesn’t require any programming (although it’s compatible with the leading data analysis programming languages). The company’s focus on usability is paying off. Its platform won the 2019 Gartner Peer Insights Customer Choice award for data science and machine learning platforms. Over 6,000 customers now use Alteryx’s platform, including 719 of the 2,000 biggest companies in the world.
But Alteryx still has a tremendous growth opportunity ahead of it. Market researcher IDC projects that the big data and analytics software market will total $49 billion globally in 2021. Alteryx should capture an increasing share of that market as more customers standardize their data analysis using its platform.
Its shares might look ridiculously expensive with a forward earnings multiple of 123. But keep in mind that Alteryx’s valuation is based on expectations of tremendous growth over the next few years. I think that it will deliver on those expectations. And with its shares still way off their highs from earlier this year, there’s no better time to buy Alteryx than now.
You might not have realized that there’s a war going on around you — the “war on cash.” This war encompasses a major trend of consumers switching from using physical currency to electronic forms of payment. Square (NYSE:SQ) ranks as a top general in this war on cash.
Square is best known for its small card readers used by many small and medium-sized businesses. This payment processing service is the foundation of an entire ecosystem that the company offers, with other products and services including customer loyalty, marketing, payroll, and e-commerce applications. Square also provides loans and debit cards to businesses.
In addition to its focus on businesses, Square is a major player in the peer-to-peer payments arena with its Cash App. PayPal’s Venmo has been the leader in this market, but Cash App is catching up quickly. It’s generating strong revenue growth for Square and also presents a larger customer base to which the company can market new products and services.
There’s also another big trend under way that could have escaped your attention. The days of personal negotiations to place advertising spots are numbered as advertising agencies turn to programmatic advertising, which uses software applications to buy ads quickly and cost-effectively. The Trade Desk (NASDAQ:TTD) is the clear leader in buy-side programmatic advertising.
The most significant catalyst for The Trade Desk is the rise of connected TV (CTV). CTV includes all of the streaming services that have gained widespread popularity. Not all of them use ad-based models, but quite a few of them do. The Trade Desk CEO Jeff Green recently said that “we are in the middle of a once-in-a-lifetime consumer shift to connected devices and streaming content.” And that consumer shift presents a huge opportunity for his company.
Programmatic advertising still only represents a small part of the total ad market. But with programmatic ad spending growing five times as fast as overall ad spending, it won’t take too long before it makes up a big share of the market. The Trade Desk stands to benefit from this growth.
Shares of The Trade Desk plunged as much as 49% during the coronavirus-fueled market sell-off before rebounding somewhat. It’s likely that some advertisers could cut their marketing budgets to save costs during this challenging period. But the long-term prospects for The Trade Desk remain very bright. My view is that buying this stock now at a discount should set up investors for terrific returns over the next decade.
The billionaire investor is almost certainly buying stocks during the stock market crash. Here are three top candidates for his shopping list.
Warren Buffett’s net worth has dropped by a number that’s hard to fathom in just a matter of weeks. But the legendary investor isn’t worried. One of Buffett’s goals is “to be fearful when others are greedy and to be greedy only when others are fearful.” He also once stated, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”
There are certainly a lot of investors who are very fearful right now. But the Oracle of Omaha undoubtedly sees the current coronavirus-caused market meltdown as one of those rare opportunities where it’s raining gold.
We won’t know for another couple of months which stocks Buffett and his investment managers are buying for Berkshire Hathaway’s (NYSE:BRK.A) (NYSE:BRK.B) portfolio. But I suspect that there are at least three stocks Warren Buffett is probably buying during the coronavirus market crash.
Buffett simply loves Apple (NASDAQ:AAPL). He stated in a recent interview that “it’s probably the best business I know in the world.” In 2018, the billionaire even said that he’d “love to own 100%” of Apple if he could.
The problem, of course, is that even a company the size of Berkshire Hathaway couldn’t take too big of a bite out of Apple. But with Apple stock down nearly 30% off its highs, it’s a lot cheaper now. It wouldn’t be surprising at all if Buffett is taking the opportunity to scoop up more shares.
Buffett firmly believes that the coronavirus outbreak presents only a short-term risk for Apple. He remains confident about the company’s prospects over the next decade, stating, “All kinds of things are going to happen to Apple over the next 10 years.”
Remember that Buffett likes to buy wonderful companies at a fair price. He clearly thinks that Apple is a wonderful company. The big question is if he thinks the price is fair now. I suspect the answer to that question could be “yes.”
2. Bank of America
The banking industry has been one of Buffett’s favorites for a long time. Berkshire Hathaway currently owns shares of more than half a dozen bank stocks. Its biggest bank position is in Bank of America (NYSE:BAC). I think that Berkshire’s stake will grow even bigger as a result of the market crash.
Thanks to the major stock decline, Bank of America’s dividend is also the most attractive it’s been in more than a decade. Although Berkshire doesn’t pay a dividend, Buffett loves them.
My hunch is that Buffett is looking at Bank of America’s growth prospects as much as he is its valuation and dividend. The company was already generating stronger growth than most of its rivals. It has also invested heavily in technology to become more competitive. Sure, Bank of America will suffer for a while, but it will bounce back. And Buffett knows it.
3. Southwest Airlines
Berkshire owns stakes in three major airlines. Warren Buffett stated in a recent interview that he “won’t be selling airline stocks.” I think it’s much more likely that he could be buying airline stocks instead — especially Southwest Airlines (NYSE:LUV).
While all three airline stocks in Berkshire’s holdings have taken a shellacking, Southwest has held up the best of the group. Its shares are down 45%. That could be enough of a drop to tempt Buffett to pick up more shares, especially with U.S. government financial assistance potentially on the way.
Of course, Buffett once called the airline industry “a death trap” for investors. But he started buying airline stocks once he saw that they were operating with increased fiscal discipline. No airline has consistently demonstrated such discipline than Southwest.
Berkshire currently has a bigger position in Delta Airlines than it does in Southwest. Don’t be surprised if the next regulatory filing showing the company’s holdings reveals that its stake in Southwest has caught up to the position in Delta.
Bitcoin (BTC) hodlers deserve a pat on the back for making it through this last week, as BTC witnessed its largest sell-off in history, in terms of USD value, causing the leading digital asset to shed $70bn of its market cap in a single 24-hour period.
I shudder to think about the fortunes that were lost, but as we are left reeling in the aftermath of this selloff, a question remains. Could anyone have seen this coming? And has the outlook for Bitcoin now changed?
These are two questions I will attempt to address in today’s analysis.
Sorry, not sorry… I called it in January
In my analysis that was published on Jan. 12, I put forward the case that Bitcoin could fall to $3,800 by April 2020.
I came to this conclusion when I realized that the monthly volume had been in a steady decline for several years and that the moving average of the Bollinger Bands on the monthly chart has been broken every month in the last quarter of 2019.
I also saw similar patterns on the monthly and weekly Moving Average Divergence Convergence (MACD) indicator that we had seen back in July 2018, which resulted in BTC price falling from $8,500 to sub $4,000 in a matter of months.
When I mashed these things together it made something abundantly clear, there isn’t enough buying interest in Bitcoin for us to reach new all-time highs.
Oh and I called it again last Sunday
I can already hear the tapping of the angry keyboard warriors hammering down on their Macbooks that I didn’t call anything, and that even a broken clock is right twice a day.
Perhaps, I would draw the same conclusion if I was a small-minded neanderthal that honestly believes my one to three-word comment on Twitter is a valid contribution to an open Bitcoin price discussion.
A discussion that I start every Sunday when I give up valuable time with my wife and three kids in order to deliver my impartial interpretation of the charts. I didn’t mention the $4,000 scenario again because just three days after my analysis on Jan. 15, Bitcoin broke out of the 7-month downtrend channel it had been bouncing around in since the June 2019-Libra FOMO pump.
However, I did mention it again in my analysis last Sunday, since we had fallen into a steep descending channel that was about to break into the previous 7-month downward trend again. In other words, if $7,500 failed to hold there was no support all the way to $4,000
Someone else called it too
Resident gold-bug and renowned Bitcoin-hater Peter Schiff was quick to tweet out something many of us should have taken more seriously.
Just 32 minutes after the trendline on the hourly time frame was broken, the same trendline I was looking at on the 4-hour chart just a few days prior, Schiff tweeted the following:
“If any institutional money ever actually went into #Bitcoin it’s about to come out, never to return. Bitcoin has finally proven conclusively that it’s neither a store of value, a safe haven, nor a non-correlated asset. The Bitcoin chain letter has finally run out of links!”
It’s important to understand why Schiff may watch Bitcoin so closely and why he may be so intent on dissuading people from investing in it. Notably, here’s something I haven’t seen anyone mention before.
His bank, Euro Pacific Bank, has a target customer base of high-net-worth individuals looking for offshore tax structures. For a long time, Bitcoin has been seen by some as an alternative place to park your wealth as opposed to exploiting questionable tax loopholes, so it’s clearly in Schiff’s interest to see Bitcoin fail as it directly attacks his business model.
But while I doubt that institutional money is leaving Bitcoin for good, I believe that Peter Schiff’s comment makes sense and that institutions that bought the last 4-month dip where Bitcoin traded between $3,000 and $4,000 knew it was time to exit the market.
If this is the case, it could end one of the popular theories being pushed right now about stocks and Bitcoin being correlated.
Did equity margin calls spark the Bitcoin sell-off?
If it’s true that institutional investors just withdrew from Bitcoin, then this bounce from $3,850 might signify that we have not only bottomed, but we might be about to decouple from any possible correlation with the stock market.’
The math is quite simple, the S&P market cap is around $25 trillion versus Bitcoin’s pre-dump market cap of $150 billion. Simply put, institutions stood to lose more from the S&P crashing than from their Bitcoin holdings.
So in the likely event of stock market margin calls as prices began tumbling amidst the coronavirus global panic, what was the fastest liquid asset they could realize?
The answer was most likely Bitcoin. And by all exiting at the same time (because they all had the same reason to exit) you end up with exactly the same situation you get when an ICO gets their team tokens unlocked, i.e. large holders crash the price leaving smaller holders left holding their depleted bags.
Bitcoin’s epic crash gives a few reasons to be optimistic
Despite all this blood, there is some light on the horizon. The wick on the bounce from $3,850 has left the support line intact on the daily. This means that the support is currently around $4,400 and will slide to around $4,000 by April 1.
True holders are unfazed
However, the resistance to break out of this channel once and for all is currently around $7,400 and will fall to around $7,100 by April 1. So if it’s true that institutional money really has left, then this range will theoretically hold despite any further selloffs in the stock market.
Newcomers can now enter at lower prices
This, in turn, should bring confidence back to Bitcoin and create the opportunity for people, who previously thought they were too late to the party, to step in and start buying at fire-sale prices.
Future selloffs won’t be as extreme
The reason this is not only good but, in my opinion, great for Bitcoin is that by having Bitcoin held by a large number of small holders as opposed to a small number of large holders, means that it is less likely for a catastrophic sell-off to occur in the future. This will also enable the digital asset to build on its new support level.
Don’t expect these prices to last for months
The mining difficulty is still increasing whilst the price is falling and the halving is only 57 days away. This means that soon any Bitcoins entering the market will be doing so at a much higher rate than the current price as they will have a higher production cost.
It may not happen overnight but when it does, it’s likely to trigger one of the most impressive bull runs that we have ever witnessed, and whilst I don’t personally expect this to happen for at least another 6 months, I also don’t expect these prices to last for long or go much lower.
It’s still a very turbulent time for the crypto-sphere as a whole. Should the support of $4,400 ($4,200 by next weekend) fail to hold, then the charts point to $2,450 as the next level of support.
Prices this low would either spark a huge FOMO rally or a further lack of confidence. However, if people have “hodled” through the pain of this past week, I can’t see them selling should $2,450 hit either as this would be capitulating at an obvious bottom.
On the bullish side, there is still the CME gap at $9,165, but now that institutions are supposed to have exited the market, it’s unlikely we will see these fills as regularly as we used to. Moreover, it may even lead to a reduction of traders on leverage platforms and a return to spot exchanges. In other words, an early “alt season” may then become a possibility as people attempt to regain their losses by speculating on altcoins again.
The resistance levels to break now are $7,400 and then $8,000 before opening up $11,250 as the next target that would put Bitcoin on the same upward path it broke into on January 15.