March is here and you’re probably wondering which stocks you should buy or at least consider adding to your portfolio. We’ve rounded up five of the top stock picks for this month.
I’ve got a surprise for you. If you stay with me until the end and get a bonus! So, let’s begin.
If you’re running an online business or if you love to shop online, you know what PayPal is. It’s by far the largest digital platform that offers money transfer services. The company is considered as one of the fastest-growing firms and enjoys high profile stocks. It’s no wonder that it’s part of our top stock picks for the month of March.
Since 2010, the company has posted consistent sales and earnings growth. In 2019, its EPS was at $2.94 per share. It increased by 31% to $3.88 a share in 2020 and another 18% to $4.60 in 2021. Analysts expect the stock’s EPS to grow by another 1% this year and 25% in 2023.
Out of the highest rating of 99, PayPal’s EPS rating is at 83. To put it simply, EPS rating refers to the ability of a company to increase its profits every year, based on the last two quarters and its earnings growth in the past three to five years.
On February 1, PayPal reported its earnings results for the fourth quarter. The figures didn’t meet analysts’ expectations. Its payment volume also fell below estimates, which triggered a 24.6% drop in its shares last month.
PayPal and Block are currently competing in the cryptocurrency space. Both companies offer shoppers the ability to pay for their purchases in instalments, enjoy discounts, and also buy cryptocurrencies. Meanwhile, PayPal’s Venmo and Square Cash App continue to grow and gain more market share in the digital payments field.
At Close = 96.57
52 Week Range = 92.25 – 310.16
Market Cap = 112.504B
PE Ratio (TTM) = 27.43
DigitalOcean Holdings went public on March 24, 2021. The company’s main product is a cloud computing platform for small and medium businesses that are creating software that may potentially change the world.
The platform offers solutions and tools at an affordable price, which allows developers to focus on application development. It’s like the mini version of Amazon Web Services.
The stock has been trading around $47 ever since its initial public offering last year. The company has started to attract investors especially after it posted strong fourth-quarter financial results.
Its revenue was up by 37% from a year ago to $119.7 million, beating Wall Street estimates of $119.1 million. Its ARR increased by 37% to $490 million.
Analysts expect the company to hit $1 billion by 2024 and a sustaining growth of more than 30%. It may also reach a free cash flow of between 8% to 10% this year.
At Close = 48.20
52 Week Range = 35.35 – 133.40
Market Cap = 5.187B
PE Ratio (TTM) = N/A
If you’re looking for a company that features a strong and stable business model, significant safety margin, and consistent growth, then look no further than Dropbox.
Dropbox is a popular file hosting service that allows users, both individuals and teams, to share content, utilize the personal cloud, and more. More than 600,000 paid teams use Dropbox and each of them can use the platform simultaneously with ease.
In the past five years, the company’s total number of paying users has increased by more than 11% per year. Its total revenue is also up by 17%. Last year, the company generated about $708 million in free cash flow and its board of directors approved a share-repurchase program that’s worth $1.5 billion. The company’s management expects its free cash flow to reach $1 billion by 2024.
At Close = 20.35
52 Week Range = 19.90 – 33.00
Market Cap = 7.767B
PE Ratio (TTM) = 23.94
Another favourite top stock pick is Shopify. The company’s stock price dropped recently, and it’s been down by 50% in the past year. Despite that, the company’s fundamentals are improving based on its most recent earnings report.
Shopify posted revenue growth of 41% in the fourth quarter of 2021. Its full-year revenue increased by 57% and now stands at $4.61 billion. Its gross profit was up by 61% to a whopping $2.48 billion.
A lot of companies struggled during the pandemic but not Shopify. During that period, the company increased its revenue by almost threefold. Some investors are concerned as to how the company would perform now that the world is easing into a post-pandemic new normal. But many analysts believe that Shopify will continue to thrive.
At Close = 544.37
52 Week Range = 511.20 – 1,762.92
Market Cap = 68.521B
PE Ratio (TTM) = 23.77
Upstart, an artificial-intelligence powered loan company, is one of the hottest stocks last year, and for good reason. It reported excellent results for the fourth quarter and the price has decreased enough to make the stock look more attractive to investors.
Lenders use Upstart’s platform to help them evaluate their borrowers more effectively, with the help of machine learning and artificial intelligence.
The company’s fourth-quarter revenue is up by 252% to $305 million. Meanwhile, its net income rose from $1 million to almost $6 million this year. Upstart expects its revenue to increase by 147% in the first quarter of 2022.
As for its revenue, it reached $849 million in 2020 while its net income reached $135 million in 2021. Its revenue is expected to increase by 65% by 2022.
Upstart has a promising future. It now covers personal lending and auto lending. The company aims to add other huge markets such as mortgages and credit cards over the next few years.
At Close = 100.08
52 Week Range = 54.50 – 401.49
Market Cap = 8.412B
PE Ratio (TTM) = 69.99
Thank you for staying with us until the end. As promised, here are two bonus stocks for you.
The first one on the list is Tesla. The stock is almost always included in our monthly top stock pick. Since March 2019, Tesla’s share price has increased by 1,390%. Unfortunately, the stock fell by 33% because of the fear of rising interest rates and high inflation.
Despite that, the company’s market cap is at a massive $850 billion and its stock trades at 17.2 times sales, which is significantly higher than well-known businesses such as General Motors and Ford Motor company.
The company sold 6.6 million units in 2021. Analysts even expect its electrical car sales to increase by 34% every year, and by 2027, Tesla is expected to sell more than 38 million units.
At Close = 795.35
52 Week Range = 546.98 – 1,243.49
Market Cap = 822.002B
PE Ratio (TTM) = 162.28
Meta, Facebook’s parent company, is a stock that’s worth considering for the month of March. I purchased Facebook stocks back in 2018. I sold some of my shares about a month ago. I’m currently waiting for the stock price to drop a bit more before I start adding it again to my portfolio.
I’m closely watching this stock this month. I expect a bright future for Facebook. It’s a unique company that is bound to perform well in the coming years. That’s why you should also add this to your stock watch list.
At Close = $195.21
52 Week Range = 169.88 – 324.65
Market Cap = 510.66B
PE Ratio (TTM) = 13.62
That’s it for today. We hope that you found this blog helpful. Don’t forget to click the share button. Feel free to leave a comment below. You can also check out my previous blogs such as “Top Artificial Intelligence Stocks To Buy in 2022“. Do you have any other stocks that you want to add to the list? Or perhaps remove? We love to hear from you. Signup to our newsletter, too, so you’re always updated when we post new content. Thank you and till next time.
Recommended books for further reading:
- Intelligent Investor: The Definitive Book on Value Investing – A Book of Practical Counsel
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits
- Stock Market Investing For Beginners: The Investment Guide – How to benefit from the crisis, invest in stocks and generate long-term passive income incl. ETF and Stock Picking Checklist
- The Financial Times Guide to Investing:The Definitive Companion to Investment and the Financial Markets: The Definitive Companion to Investment and the Financial Markets
- Smarter Investing: Simpler Decisions for Better Results
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