The economy is still in disarray, the world is faced with a potential energy crisis, and the possibility of a recession is still breathing down our necks.
All of those things sound scary, don’t they?
Well, here, on this platform, we like to quote a certain investor who happens to be an expert on these types of situations:
“Be fearful when others are greedy, and greedy when others are fearful.”
Of course, as with most famous principles, Buffet’s quote should not be taken literally for obvious reasons.
You want to be greedy about specific stocks at specific times. Namely, when they’re undervalued or when you have good reason to believe that they’ll grow in value significantly. And, as usual, our list is built with this in mind.
Apple (AAPL)
We’re kicking things off with everyone’s favourite – Apple (ticker symbol AAPL).
- Current Price: $162.51 ((today change: +5.16(+3.28%))
- Market Cap: 2.64T
- PE Ratio: 26.42
- EPS: 6.15
Between a market cap of over 2.6 trillion, excellent brand presence and solid diversification across markets, Apple represents a staple long-term position – one of those we’d absolutely love holding forever. Moreover, this is a tried-and-tested winner company with a successful track record and is nearly immune to uncertainty. In other words – the ideal choice for the volatile times ahead.
For the 2021 fiscal year, iPhone sales were responsible for over 50% of Apple’s total revenue, with services (ads, cloud computing and App Store sales) coming in with 19%.
In the long-term, Apple demonstrates excellent growth, with revenue, gross and operating margins going up over the past three years. In addition, Apple has an incredible brand presence and a one-of-a-kind exclusivity approach with their products, allowing them to charge a premium over the competition. And their recent involvement in the ad space is just the icing on the cake. So there’s incredible growth potential here, especially if management can expand the services division while maintaining a solid grip on the hardware sector.
Adobe (ADBE)
- Current Price: $410.12 ((today change: +6.62(+1.64%))
- Market Cap: 191.936B
- PE Ratio: 38.98
- EPS: 10.52
Our second suggestion for this month is Adobe (ticker symbol ADBE). Adobe, best known for their creative suite that’s the go-to for most content creators (including our own team), are one of the few “risk-free” software companies that manage to consistently pull off market-beating growth rates. With incredible brand presence, great staying power and prominence across multiple sectors, Adobe has it all.
It’s important to note that Adobe’s stock is down more than 43% since its last-year peak. But if you take a moment to consider their primary customer base (digital art, design and creativity) and the lockdown-induced surge of digital activity, it all becomes quite clear. Adobe’s business model allowed them to leverage the whole remote work situation, and, with people being stuck at home, content creators also had an excellent time. Of course, the demand decreased significantly once things started returning to normal. However, between Photoshop, Illustrator, Premiere Pro, and Acrobat, Adobe is still the undisputed leader in its field.
Adobe Facts:
- Adobe products are considered “essential” in most creative digital fields (including marketing)
- Since May 2013, Adobe’s stock has gone up by over 760%.
- Last quarter, Adobe hit a revenue record of $4.4 billion (up by 15% year-over-year)
- Share price is down by nearly 44% since last year’s high
We see great long-term potential with very little risk here. Definitely worth the second spot on this list.
The Trade Desk (TTD)
The Trade Desk, ticker symbol TTD
- Current Price: $45 ((today change: -2.13(-4.52%))
- Market Cap: 21.885B
- PE Ratio: 225
- EPS: 0.20
Moving on to our third suggestion for today, we’ve got Trade Desk (ticker symbol TTD). Since we usually discuss tech and innovation stocks on this channel, we haven’t talked about Trade Desk much, but they’re a solid long-term pick if you don’t mind a tiny bit of risk. Now, as long-term investors, we’re pretty risk-averse here, but we see a ton of promise in this company… And it’s not like our favourite stocks are 100% risk-free either (looking at you, Tesla).
So, what is Trade Desk, and what do they do? Well, TTD is all about the advertisements. They run a platform that connects ad buyers and ad sellers. They primarily work with ad agencies and marketers and aim to provide advertisers with a secure and trusted marketplace to bid on and purchase suitable ads.
Trade Desk Facts
- Years in business (Profitable since 2013)
- Steady Growth (from $114mil in 2015 to 1.196 billion in 2021)
- Solid business model (they use “master service agreements” to ensure predictability)
- Massive addressable market (and significant growth opportunities)
- Innovation (they’re working on a “cookie replacement” that might change the face of digital advertisements as we know it. This is really interesting and important stuff, especially if you’re an advertiser, entrepreneur or business owner. We might make a video on that in the near future, so keep an eye out!)
We’re very optimistic about Trade Desk’s prospects for the future, and we’re on the lookout for cheap shares.
Zoom Video Communications (ZM)
Zoom, ticker symbol ZM
- Current Price: $103.86 ((today change: -2.36 (+2.93%))
- Market Cap: 30.899B
- PE Ratio: 23.77
- EPS: 4.37
Zoom Video Communications (ticker symbol ZM) is another one of those companies that benefited massively from the remote work policies during the lockdowns. Now, we’ve talked about Zoom on many occasions here on our channel, so let’s talk specifics.
Why we like Zoom:
- Popularity and Brand Presence- Zoom is now one of the go-to platforms for digital communication. Video chats, conference calls, meetings and seminars are usually done over Zoom now.
- Business Diversification – Zoom is working to diversify its services with Zoom Meetings, Zoom events, Zoom Webinars and Zoom Phone. This allows them to tap into an even bigger market and meet the rising demand.
- Portfolio Benefits – With the popularity of remote work, owning some communication stocks is an excellent idea for every long-term investor.
Bonus Suggestions
Shopify (SHOP)
- Current Price: $34.82
- Market Cap: 43.341B
- PE Ratio: 248.71
- EPS: 0.14
Our first bonus suggestion for today is Shopify. Despite its record-breaking numbers doing the lockdowns, the world’s most popular e-commerce platform is not doing so well right now, which is why we’re only listing it in the bonus section. Now, don’t get us wrong here – they’ve still got a great business model, and we still believe that they hold a lot of promise in the long-term, but their latest earnings report leaves a lot to be desired.
So, all in all, we’d stay away from Shopify unless we were looking for a long-term position to hold for at least 5 years.
Paycom Software (PAYC)
- Current Price: $330.66
- Market Cap: 19.92B
- PE Ratio: 79.86
- EPS: 4.14
Our second bonus suggestion and final stock for today is Paycom, ticker symbol PAYC. Paycom specialises in cloud-based software and software accessories for big businesses. They work with companies at the enterprise level to provide suites that streamline human resources, hiring procedures and payroll processing. Between the 25% drop in stock price and massive future potential, this is another “hold 5-years-or-more” idea.
In closing, we’d like to go back to our opening quote and remind you that an intelligent investor always follows common sense. Just because we (or anyone else, really) find specific stocks good, that doesn’t automatically make them good for you. Likewise, just because people are fearful about a specific position doesn’t mean you should immediately buy into it.
Always do your research. Always look for companies that you understand and believe in. And always aim for a well-balanced and diversified portfolio. If you stick to these simple core principles, you can compile your own list of incredible stocks – a list that will serve you far better than anything else.
If you’d like to learn more about how we build our stock lists, you should drop by our Private Investing Group. There, we exchange ideas, discuss stocks and share winning strategies that you can use to take your investing career to the next level. Follow the link in the description for more information.
Oh, and if you’ve enjoyed this blog, please don’t forget to let us know by giving us a thumbs up and sharing it with your friends. You can check out also these related posts on Top Stocks to Consider in June 2022 [Short-term vs Long-term].
Thank you all for being with us, and until next time!
Ebooks:
https://lifestyletipsbyantoaneta.com/ebooks/
Seminar:
https://lifestyletipsbyantoaneta.com/business-online-masterclasses/
Recommended books for further reading:
- The Warren Buffett Way
- Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage
- A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Investing Demystified: How to create the best investment portfolio whatever your risk level
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