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There’s a saying on Wall Street “sell in May and go,” where investors buy stocks in the winter when they usually have higher growth, and then sell them just in time for their island vacation.
But it doesn’t seem like any of the usual rules apply to the world we’re currently living in. After last week’s US employment report came in lower than expected, stocks are now predicted to keep going up, as interest rates will likely stay down.
So, investors might want to “stay to play in May” this year if they want to maximize their profits. Maybe island vacations are best left for 2022, anyway.
Whether you’re selling or not, though, if you’re looking for some new stocks to add to your portfolio, here are some companies worth investing in right now.
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Nike
As the world slowly opens back up, any money saved from spending the last year in sweatpants is likely to be soon splurged on new outfits. And with streetwear and athleisure still dominating the fashion world, it doesn’t look like Air Force 1s will be going anywhere soon.
In fact, a spring 2021 report that surveyed 7,000 US teens found Nike (NKE) as the number one fashion and footwear brand. Its popularity can be attributed to its digital growth and product innovation and analysts expect its next quarterly revenue to soar to $11.09 billion, a 75.67% increase from the year prior.
Revolve
The recent fashion survey also found that young females are spending more money on clothes than in the last eight years, allocating a massive 29% of their cash to clothing.
So which is one of the most popular online stores for young fashion-focussed shoppers? Enter high-end retailer Revolve (RVLV), the e-commerce store that’s a favourite with millennials and Gen Z.
With the company’s earnings per share (EPS) predicted to soar 38% next year to $1.01, Revolve looks positioned to profit from a mass wardrobe refresh in summer 2021 and beyond.
Southern Copper
With the economy ramping up, manufacturing output is skyrocketing, and copper is in high demand—we’re talking the highest in 10 years. Mines are hard to find and expensive to run, and combined with copper’s short supply and its large quantities required to power electric vehicles (EVs), it’s no wonder copper stocks are surging right now.
If you’re looking for a solid copper stock, Southern Copper (SCCO) might be your best bet. The company is one the biggest copper producers in the world, with mining operations and exploration in Peru and Mexico and exploration in Chile. The stock has been up 110% in the last year and it just announced it’s increased its dividend yield by 16.7%, $0.60 to $0.70 per share.
Seagate Technology
You probably know the name Seagate from its hard drives, which the company has been making for over 40 years. The company faced its fair share of skepticism from investors over the years, mainly for concerns over its business being too competitive or obsolete. But for these reasons, it’s one of the cheapest tech stocks out there right now.
In the age of cloud computing, Seagate has pivoted to compete with its peers, allocating 65% towards mass storage. So it’s no surprise that CEO Dave Mosley recently predicted the company’s revenue to grow by at least 10% in 2021, the first time it’s seen this growth in nine years.
IDEXX Laboratories, Inc.
Furry friends took a focus over the last year, with pet ownership soaring during the pandemic and stocks related to pet e-commerce and the veterinary industry soaring.
And this includes IDEXX Laboratories, Inc. (IDXX), one the top providers of animal healthcare diagnostics and veterinary equipment in the US. Last quarter, the company saw 32% increase in its animal diagnostic instruments in vet clinics. And in 2021, the company is expecting $3.16 billion in sales, surpassing analysts’ predictions for $3.1 billion.
Disclaimer: Market Buzz contributor has no position in any of the stocks mentioned.
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