Stock picks for the week: March 15, 2021

Mar 15 2021, 6:05 am

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The “stimmy” has officially arrived in the US, 27% of adults have now had their first vaccine shot, and Bitcoin just ripped to an all-time high of $60k. Oh, and someone just bought a nifty for $69 million (NBD).

Time can only tell what will be next for the stock market in these crazy times—but one can still speculate. If this week is anything like the past few, bonds are likely to remain volatile and force yields higher, putting pressure on growth stocks as well as everyone’s favourite tech stocks.

Nike and FedEx are also scheduled to report their earnings this week and Volkswagen is hosting Battery Day, revealing its electric vehicle (EV) ambitions.

With that said, here are five stocks to keep in mind if you’re looking to add to your portfolio.

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Pioneer Natural Resources

Thinking of getting into oil stocks? Now couldn’t be a better time. Shares of Texas-based oil driller Pioneer Natural Resources (PDX) jumped 0.64% to $165.63 on Friday, the stock’s third consecutive day of gains. Oil prices have risen to more than $60 a barrel, and with the company’s recent acquisition of Parsley Energy, its production is set to only rise.

Additionally, the company’s strong market share, combined with its plan to give over $2 billion of free cash flow in 2021 to repay dividends and debt, makes it a solid investment choice right now.

Chewy

E-commerce was one of 2020’s most successful industries, accounting for $3.9 trillion in sales in 2020. And it’s expected to continue to catapult to $7 trillion by 2024 and $10 trillion by 2027. Online US pet supply retailer Chewy (CHWY) was one of the online retailers to capitalize on this growth.

Pivoting from the pandemic, Chewy is expanding its range of products to include telehealth and direct-to-vet pharma. And while Amazon presents tough competition, Chewy has a strong customer-base through Autoship and over 2,000 brands and 60,000 products. It’s seen its customer base grow 40% in 2020 and is likely to see revenue grow by $2 billion annually through FY23.

Volkswagen

In an effort to gain market share with EV legend Tesla, Volkswagen (VWAGY) has announced it will be investing approximately $19 billion over the next 4 years in electrification and digital services.

Shares of VW soared to their highest peak in 12 years recently after the announcement of its Battery Day happening March 15. The company has also announced that its new program can recover up to 95% of raw material from used EV batteries (beating the current standard of 60%).

Peloton

With the closure of gyms around the world in 2020, it’s easy to see why Peloton (PTON) has been performing well. But did you know that the technology-enabled fitness platform just announced its plan to launch in Australia in the second half of 2021?

With this exciting news, the long-term prospects for Peloton seem strong, particularly if it can sort out its production supply issues.

Costco

Everyone already loved Costco (COST) pre-pandemic, but with the rise in at-home cooking, last year 2020 was an especially good year for the company. But is now a good time to invest in the supermarket chain that has cultivated a cult following?

A recent pullback in shares could mean now is a great time to buy, especially with its recent rise in membership growth. Membership rates soared to an all-time high of 90.7% and sales rose to $44.77 billion for the quarter ending in February.


Market Buzz contributor has no position in any of the stocks mentioned.

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