It’s a frothy market, so why not have a bit of fun while the good times roll?
While September hasn’t been kind to equities, the markets have pushed through the conjoined crises of the novel coronavirus pandemic and an economic recession with remarkable aplomb.
Much of it has to do with the White House, the Federal Reserve and Congress acting swiftly to create the necessary backstops for businesses, the financial system and individuals. That didn’t happen in 2008.
Plus, over the past 12 years, most of the world’s markets have remained under central bank support with tons of cash at the ready and ultra-low interest rates. The first time around businesses and the financial world had to adjust their organizations to succeed in a new world. The shift from the former to the latter wasn’t as much of an adjustment this time around.
That being said, the lockdown has also led to a huge influx of day traders who are stuck at home with cash to play in the markets. Their behavior can be unpredictable, leading to volatile swings in stock prices for those companies they decide to trade.
Here are 7 risky stocks to buy for exciting returns:
- eXp World Holdings (NASDAQ:EXPI)
- Digital Turbine (NASDAQ:APPS)
- Bloom Energy (NYSE:BE)
- Inovio Pharmaceuticals (NASDAQ:INO)
- Overstock.com (NASDAQ:OSTK)
- Vivint Solar (NASDAQ:VSLR)
- Karuna Therapeutics (NASDAQ:KRTX)
These risky stocks to buy for a bit of excitement are top-rated small stocks that have investors’ interest. This has helped boost investments in smaller firms with less liquidity, where market interest can spur big gains.
eXp World Holdings (EXPI)
We all know that the biotech and pharmaceutical space has been blazing hot as companies race to find treatments and a vaccine for COVID-19.
But another sector is on fire, and won’t slow down for a long time to come: real estate. With low mortgage rates and elastic pricing, both existing and new home sales for August were at multi-year highs.
Granted, August is a prime moving month for families, since school usually starts in September and kids have to be registered in their school district, even if it’s remote. But this is a longer-term trend than the race for a vaccine.
And EXPI is right in the middle of this trend, especially its shift towards digital transactions. Already called “the Amazon of real estate,” the company offers virtual offices for its realtors and cloud-based databases of real estate offerings. That means you get a realtor, but the relationship is entirely digital.
That’s naturally appealing during our ongoing pandemic, but it’s also very helpful in the early stages of home shopping. After all, who wants to go into an office when they can achieve the same result from the kitchen counter?
For the realtors’ part, they not only get a cut of the gross commission but also get a piece of the commission for any new associates they bring into the company.
EXPI stock is up nearly 370% in the past year, and this market is just getting started.
Digital Turbine (APPS)
Digital Turbine might not be the catchiest name. But its ticker really gives away the driving force of the business.
In this app-based mobile world we now live in, APPS doesn’t actually make apps: it makes apps perform better. Digital Turbine’s platform allows for frictionless app and content discovery. That makes a better user experience that benefits both app providers and the advertisers on those apps.
It’s a niche business, but as mobile use grows, especially as we move to faster 5G systems, this is a growing need.
The stock is up almost 385% in the past year and still going strong.
Bloom Energy (BE)
Fuel cells have caught investors’ attention of late, as new vehicle maker Nikola (NASDAQ:NKLA) unveiled a tractor trailer truck that could be powered by hydrogen or electricity. The former is a form of fuel cell technology, transforming hydrogen into electricity.
But BE was making headlines with its fuel cell technology nearly two decades. And it has only grown its influence and market share since.
One thing BE has going for it isn’t just the utility-scale power backup systems it builds, but the fact that there’s a rise in off-grid power back-up going on around the nation, especially on the West Coast, where fires have cut off access to the power grids.
BE generators run off natural gas and biogas and are becoming increasingly popular as the world becomes more digitized. Last month, former GE (NYSE:GE) CEO Jeff Immelt bought $1 million in BE share. That’s a vote of confidence.
The stock is up 322% in the past year, but it’s well-funded and ready for its next leg up.
Inovio Pharmaceuticals (INO)
This biotech company has been around since 1983, but only really made its name when the Great Race for a COVID-19 Vaccine began.
INO has been in the vaccine business for all this time, doing some impressive work on vaccines for all sorts of maladies, including cancer and the common flu. What has set it apart and limited its adoption is its proprietary CELLECTRA delivery method.
CELLECTRA is an electroporation device that uses a small electrical charge to open small pores in the cell to allow plasmids to enter. It’s used in place of a syringe for drug delivery. It’s a more effective delivery method, but it means that the device has to be purchased as well as the vaccines.
The pandemic has changed many healthcare providerscost-benefit paradigms in the face of lockdowns. And INO is having its day in the sun.
The stock is up nearly 630% in the past year and if its CELLECTRA devices gain wider acceptance, there are other vaccines ready to roll out.
Launching an e-commerce company just three years after Amazon (NASDAQ:AMZN) was founded, OSTK intimately understands the growth potential and power of the internet when it comes to retail.
The company has been through its share of ups and downs over the decades, but it’s now running strong. Just this year, the stock was trading around $6 in January. It hit around $122 in August. After the September market correction, it’s presently trading around $75.
Needless to say, its e-commerce business has grown significantly due to online shopping replacing trips to the store. And it also has other lines that are doing well, including a cryptocurrency and a securities firm.
At this point the stock is up nearly 1000% year to date, but there’s still headroom here.
Vivint Solar (VSLR)
Green energy solutions are hot right now and that trend is likely to continue as major financial firms increasingly embrace ESG (environmental, social and governance) investing principles.
That means green investing isn’t just a bunch of bored Gen X day traders betting on a solar company, but major institutions investing in the industry for the long term.
VSLR designs and installs solar systems for residential and commercial properties in 23 states. And at this point, the company is moving into the broader green home technology sector, with energy storage partnerships with the likes of Mercedes-Benz Energy.
It’s currently the fastest growing solar energy company in the U.S.
The stock is up 430% in the past year. More money means faster expansion and faster growth.
Karuna Therapeutics (KRTX)
Amazingly enough, this biotech doesn’t have a potential vaccine for COVID-19.
KRTX focuses on developing drug therapies for neuropsychological disorders, specifically, schizophrenia and dementia-related psychosis. Its leading candidate is KarXT, which is in four drug trials currently, with one nearing phase 3.
Progress has been positive and Wall Street is very supportive, especially because an aging population means rising cases of dementia-related psychosis.
The stock is up 367% in the past year, but much of that was due to the FDA approval of a schizophrenia drug in December 2019. Development is going as planned the odds are in KRTX’s favor for its drug to pass as well.
Source: Investor Place: 7 Risky Stocks to Buy Now for Growth and Exciting Returns