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The Most Promising Stocks For June 2021


Dora Wi

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Thanks to the rising inflation risks, investors were rotating their portfolios for the last few months, which means it is getting extremely difficult to choose the right stocks. To help you safeguard your investments, we will try to show you the best stocks to buy in June, 2021.

As a quick recap of May, The Dow Jones Industrial Average gained 1.9% while the Standard & Poor’s (S&P) 500 Index picked up 0.6%. The Nasdaq Composite closed a red month and fell by -1.5%. The recovery we have seen in April slowed down a little, but that is completely normal. About the economic growth, GDP is looking much better, unemployment rate is under 6%, consumer spending surged, industrial production rose, and the housing market is getting stronger. All in all, we are on the right track and it could affect the stock market as well, so let’s see which are the most promising stocks for June, 2021.

Check out the details of the 5+1 most promising stocks in the Walletinvestor.com Magazine

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1. Twitter, Inc. [TWTR]

Sector: Communication Services
Industry: Internet Content & Information

Current price: $58.01 | 1 year: +17.24% | 5 years: +91.22%

Twitter, Inc. provides online social networking and microblogging service. The Company offers users the ability to follow other user’s activity, read, and post tweets. Twitter serves customers worldwide.

The company has a market cap of $46.29 billion with an enterprise value of $43.65 billion. It is trading at $58.01 with a 52-week high of $80.75 and a 52-week low of $28.23. Their price to book ratio is 5.97 and their price to sales ratio is 11.73. is Their PEG ratio is 2.13, which indicates a correct valuation of the company. When comparing the current price to the book value of the company, we can say that again that it is valued correctly. About profitability and management effectiveness, Twitter had an operating margin of 5.99% and a return on assets (ROA) of 1.04%. Measured over the past 5 years, TWTR shows a quite strong growth in revenue, which was $3.94 billion. It has been growing by 10.87% on average per year. The company’s current ratio is 4.84, which is much better than the industry average of 1.91. The company has a better rating than 84% of its industry peers.

Twitter is the most popular platform of its kind, which indicates that the company could perform even better throughout the next few months.

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2. Alibaba Group Holding Limited [BABA]

Sector: Consumer Cyclical
Industry: Internet Retail

Current price: $213.90 | 1 year: +22.53% | 5 years: +112.7%

Alibaba Group Holding Limited operates as a holding company. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

The company has a breathtaking market cap of $579.91 billion with an enterprise value of $414.32 billion. Their price to sales ratio is 0.81 and their price to book ratio is 0.62. It is trading at $213.90 with a 52-week high of $319.32 and a 52-week low of $203.94. BABA’s low PEG ratio (41.03), which compensates the price/earnings for growth, indicates a rather cheap valuation of the company. About profitability, the company’s return on assets (ROA) of 9.38% is amongst the best returns of the industry. Alibaba outperforms 82% of its industry peers. The industry average return on assets is 0.47%. The company has a profit margin of 25.03%, which also among the best returns in the industry. Again, the industry average is 0.95%, which means BABA outperforms 89% of its industry peers. About the income statement, measured from 2016, BABA shows a very strong growth in revenue, which has been growing by 47.49% on average per year.

Alibaba is a very strong company and it is outperforming most of its competitors. This is the main factor why Alibaba could surge even more in the future.

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3. Tesla, Inc. [TSLA]

Sector: Consumer Cyclical
Industry: Auto Manufacturers

Current price: $625.22 | 1 year: +41.44% | 5 years: +221.43%

Tesla Inc. designs, manufactures, and sells high-performance electric vehicles and electric vehicle powertrain components. The Company owns its sales and service network and sells electric powertrain components to other automobile manufacturers. Tesla serves customers worldwide.

Tesla has a market cap of $602.29 billion with an enterprise value of $599.11 billion. Its price to sales ratio is 16.76 and its price to book ratio is 26.16. It is trading at $625.22 with a 52-week high of $900.40 and a 52-week low of $170.82. About profitability, the company’s return of assets (ROA) was 2.10%, which is one of the best in the industry. The industry average was 0.03%. Tesla’s profit margin is 3.09%, which is also an outstanding result, as the industry average is only 0.17%. The company has a good Piotroski-F score of 7.00. This indicates a good health and good profitability for TSLA. About the income statement, Tesla had a revenue of $35.94 billion, which is another strong side of the company. Over the last 5 years, the revenue has been growing by 50.78% on average per year.

Tesla is a strong innovative company. They are very popular, showing good numbers, investors trust them, and this is why the prices could go up in the future.

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4. ContextLogic Inc. [WISH]

Sector: Consumer Cyclical
Industry: Internet Retail

Current price: $7.94 | 1 year: +31.61% | 5 years: +163.09%

ContextLogic Inc., doing business as Wish.com, provides e-commerce services. The Company helps merchants to reach customers, as well as enable users to personalize shopping and find the products. Wish serves customers worldwide.

The company has a market cap of $4.91 billion with an enterprise value of $3.19 billion. Their price to sales ratio is 1.71 and their price to book ratio is 5.28. It is trading at $7.94 with a 52-week high of $32.85 and a 52-week low of $7.64. Compared to an average industry price to book ratio of 6.58, WISH is valued rather cheaply. The company’s price/earnings ratio is negative as they were hit by the pandemic pretty well. About the income statement, WISH had a revenue of $2.87 billion, meaning it has grown by 33.67%. The company is better placed than average in its industry to meet its short-term obligations. Its current ratio – which is 1.86 – is much better than the industry average of 1.57. According to their balance sheet, they are sitting on total cash of $1.77 billion.

Wish is part of the e-commerce industry, which was extremely strong during the coronavirus pandemic. Their business model is making it possible for them to jump back from the recent correction in the future.

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5. Netflix, Inc. [NFLX]

Sector: Communication Services
Industry: Entertainment

Current price: $502.58 | 1 year: +16.40% | 5 years: +82.92%

Netflix Inc. is an Internet subscription service for watching television shows and movies. Subscribers can instantly watch unlimited television shows and movies streamed over the Internet to their televisions, computers, and mobile devices.

Netflix has a market cap of $222.95 billion with an enterprise value of $232.27 billion. Their price to sales ratio is 8.45 and their price to book ratio is 17.30. It is trading at $502.81 with a 52-week high of $593.29 and a 52-week low of $404.25. The shares are valued correctly, as the PEG ratio is quite low (1.09). About the profitability, the company’s return on assets was 9.29%, which is among the best ones in the industry. Netflix is basically outperforming 100% of its industry peers, as the ROA industry average is -11.41%. Their profit margin is 14.24%, which also one of the best in the industry. NFLX even has a good Piotroski-F score of 7.00. This means the company is safe and is in good health. About the income statement, Netflix had a revenue of $26.39 billion. Over the last 5 years, the revenue has been growing by 29.82% every year, and the EPS has been growing 81.35% in the same period.

Netflix is well-known and the investors seem to trust the company, for a reason. Netflix has the potential to grow significantly in the future.

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+1 Salesforce.com, Inc. [CRM]

Sector: Technology
Industry: Software / Application

Current price: $238.10 | 1 year: +11.76% | 5 years: +72.76%

Salesforce.com designs and develops enterprise software. The company supplies a customer relationship management service to businesses providing a technology platform for customers and developers to build and run business applications, as well as manage their customer, sales, and operational data. The company serves customers worldwide.

Our +1 looks really strong. It has a market cap of $219.58 billion with an enterprise value of $210.4 billion. Their price to sales ratio is 9.82 and their price to book ratio is 5.15. It is trading at $238.10 with a 52-week high of $284.50 and a 52-week low of $167.00. Its PEG ratio is 6.21, which indicates that the stock is valued correctly. About profitability, the company’s return on assets was 6.14%, which is better than the industry average. Salesforce with its profit margin of 19.16% outperforms 86% of its industry peers. CRM’s Piotroski-F score is 7.00, which means the company profitable and is in good health. About the income statement, they had a revenue of $22.35 billion. Looking back at the last 5 years, it has been growing by 26.09% on average per year. According to their balance sheet, they are sitting on total cash of $15.02 billion.

Salesforce business model is really looking into the future, which is why the company has the potential to gain in the future.

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  • 11 months later...

There are also plenty of promising companies in 2022 whose stock prices could soon become incredibly high! Most of them are stocks of biotech companies, such as Targovax ASA https://biotickr.com/biotech-stocks/norway/0ris-ln-targovax-asa
This company develops immune activators that make it easier for the human body to fight hard-to-treat tumors. I sincerely believe that in a few decades, thanks to such companies, humanity will stop being afraid of cancer, because there will be a reliable cure that can cure anyone!

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4 hours ago, bikol said:

There are also plenty of promising companies in 2022 whose stock prices could soon become incredibly high! Most of them are stocks of biotech companies, such as Targovax ASA https://biotickr.com/biotech-stocks/norway/0ris-ln-targovax-asa
This company develops immune activators that make it easier for the human body to fight hard-to-treat tumors. I sincerely believe that in a few decades, thanks to such companies, humanity will stop being afraid of cancer, because there will be a reliable cure that can cure anyone!

Thanks for the addition! I'm not so sure about Targovax, but in general, biotechnology is a very promising field indeed.

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