Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Nasdaq jumped 180 points, or 1.9%, on September 28, with recovery peeking over the horizon. Despite September being a historically weak month, the best Nasdaq stocks show good potential. The following companies have seen excellent growth in 2020 and look to continue on the same path.
3 Top Nasdaq Stocks Right Now
While it isn’t clear which direction the stock market is going, analysts have been cautiously optimistic about certain industries and their stocks. With the election just over a month away, investors and traders are preparing for what could be a very volatile Q4. Throw in the pandemic, which still shows no signs of abating, and we have a situation where caution is a priority.
Having said that, analysts are becoming increasingly confident about the performance of certain sectors and stocks, supported by evidence of business growth. A good number of businesses have the worst effects of the pandemic behind them. These numbers show that business is picking up, even if recovery is slow.
But there will not be another time in the near future where good stocks will be available at the prices they are at today. This will be our focus here — these are some of the best stocks to buy now, for the medium-term future.
Peloton Interactive (PTON) is a company that manufactures exercising equipment — its most famous product being the exercise bike. Peloton raised $1.6 billion in an IPO held in 2019, and its value has increased considerably since then. Price growth has been on a strong upward trend, and with home exercising growing more popular, the future looks strong.
Roughly one year after the Peloton IPO, it shows goods signs of growth, having become one of the year’s best stocks. Revenue is up 172% in the fiscal fourth quarter, with $607 million raked in. Yearly revenue has also doubled, with 2020 revenue being $1.83 billion compared to 2019’s 915 million.
Zoom Video Communications (ZM) needs little introduction, as it has become the go-to platform for the current work-from-home culture. It has experienced an exponential growth since the start of global lockdowns, and finds a user base in several countries. Even big-name tech companies have not managed to eat an appreciable amount of its market share.
Zoom has about 40% of the video communications market share, and has experienced tremendous growth like Peloton. At the start of 2020, Zoom held a price of roughly $70 — it is now nearly $500. Q2 2020 revenue was 663.52 million, almost double that of Q1 2020. While analysts are uncertain about a price target, video communication is no doubt here to stay for the near future.
Roku (ROKU) is a company that designs digital media players or hardware streaming boxes, the first of which was designed in collaboration with Netflix. The theme in these Nasdaq stock recommendations is clear — the companies here are benefitting from more people staying at home.
Video streaming has unsurprisingly shot up in 2020, with 47% of US citizens saying that their streaming consumption has increased during the COVID-19 pandemic. The company recently signed a deal with Comcast, which will bring the latter’s streaming platform to Roku. Good business growth and deals like this have seen the share rise from $89 to $186 in the past six months.
Picking the right stocks in a turbulent time can be extremely profitable if one does their due diligence. While this is an uncertain time, it also offers the opportunity to find good value as prices are down. A poorly informed investor will lose money, a well-informed investor may seize the opportunity.
What do you think of the stocks listed here? Do you have any suggestions of your own? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.