Dogecoin has been one of many hottest cryptocurrenices of the yr, climbing greater than 9,000% because the begin of 2021 (the S&P 500 is up simply 11%). However the hazard with investing within the newest meme or development is that volatility is excessive, and Dogecoin is not any exception. Shopping for this cryptocurrency can put your portfolio at important danger; even a tweet from Elon Musk might ship your funding spiraling.
If you’re craving progress alternatives, then three safer investments to carry in your portfolio proper now are Fulgent Genetics (NASDAQ:FLGT), Palantir (NYSE:PLTR), and PayPal (NASDAQ:PYPL). All of those firms are rising at spectacular charges and will generate some robust (and secure) returns for you in the long term.
1. Fulgent Genetics
Fulgent Genetics has benefited strongly from a lift in COVID-19 testing over the previous yr, and administration expects to proceed to do effectively this yr at the same time as testing volumes decelerate. In the newest quarterly outcomes launched Might 6, administration projected that gross sales for 2021 would attain $830 million, for a year-over-year progress fee of 97%. In the course of the three-month interval ending March 31, the corporate posted file income of $359.4 million, which represented unbelievable progress of greater than 4,500% yr over yr.
The inventory seems to be particularly promising as a result of the corporate’s assessments are detecting the totally different mutations of the coronavirus as they emerge, that means Fulgent can play a key position in serving to to forestall the unfold of COVID-19 world wide. Earlier this yr, the Facilities for Illness Management and Prevention awarded Fulgent Genetics a contract to review the totally different variants utilizing its next-generation sequencing (NGS) capabilities. NGS is a part of Fulgent’s core enterprise, which grew at a fee of 115% in Q1, exceeding administration’s expectations.
Fulgent can be exploring merger and acquisition alternatives to additional develop its operations, so there might be much more potential progress for the inventory forward. With money and money equivalents of $151.5 million as of the top of March, the corporate is sitting on practically double the cash it had at first of the yr — $87.4 million — placing it in a a lot stronger monetary place ought to it determine to pursue funding alternatives.
The pandemic remains to be removed from over, and Fulgent is on observe for an additional robust yr in 2021. And with loads of time to seek out an acquisition or one other avenue to assist develop its enterprise, this seems to be to be a terrific growth stock to think about including to your portfolio at this time.
Knowledge and analytics firm Palantir can be coming off an important quarterly efficiency. On Might 11, the corporate launched its first-quarter results for the primary three months of 2021. Gross sales of $341.2 million represented a rise of 49% year-over-year. Palantir makes for a beautiful progress inventory as a result of it affords each progress and stability, as authorities prospects make up the majority of its income. Final quarter, gross sales from that section totaled $208.4 million, up 76% from the prior-year interval to account for 61% of whole income. A yr in the past, that space of its enterprise represented 52% of gross sales.
The corporate is projecting that gross sales progress will sluggish to 43% subsequent quarter, however what’s promising is that till 2025, administration expects the corporate’s annual income to rise at a fee of 30%.
Palantir’s knowledge options can serve many various industries, and that is why the inventory affords a lot promise. Simply in 2021, Palantir has signed (or expanded) offers with a mining firm (Rio Tinto), a worldwide producer (3M), and a enterprise concerned in automotive expertise (Faurecia).
With a variety of purposes for its companies and plenty of authorities prospects, Palantir affords buyers a wonderful mixture of security and progress.
If you’re intent on getting some publicity to cryptocurrencies, then digital fee firm PayPal could be an important choice. The corporate now permits U.S. prospects to make use of cryptocurrencies as a funding supply. And in March it additionally introduced it was buying Curv, a digital asset safety firm, to assist handle crypto holdings.
By permitting individuals to purchase and promote cryptocurrencies on its platform, PayPal can broaden its already robust person base. In its most up-to-date outcomes, launched Might 6 for the interval ending March 31, the corporate reported a 21% year-over-year enhance within the variety of energetic accounts to 392 million. And income of greater than $6 billion represented a rise of 31%. PayPal additionally elevated its steering by one share level, now projecting income for fiscal 2021 to rise by 20% to roughly $25.8 billion.
With cryptocurrencies rising in reputation this yr and COVID-19 pushing individuals away from utilizing bodily money, PayPal has a few promising progress alternatives on the horizon that would make it a sizzling funding for a few years to return.
This text represents the opinion of the author, who could disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one in every of our personal — helps us all assume critically about investing and make selections that assist us turn out to be smarter, happier, and richer.