Even though the stock market is reaching all-time highs, extraordinary returns can still be found.
The coronavirus pandemic has turned out to be a roller coaster ride for financial markets around the world. Meanwhile, the S&P 500 has fallen 30% faster than at any time in history. On the flip side, we also witnessed the biggest rebound after markets hit bottom. Since a low on March 23, 2020, the S&P 500 has risen an incredible 88%.
On Monday, the first trading day of the month, the S&P 500 index rose 0.3%, while the Dow Jones Industrial Average rose 0.7%. NASDAQ at the cutting edge of technology
Although public markets remain volatile due to the Covid-19 pandemic, investors can still benefit from making wise investment decisions. All three stocks mentioned below have the potential to outperform the market in May.
Zillow (NASDAQ: ZG), headquartered in Seattle, Washington, provides digital solutions for real estate. It makes it easy to finance mortgages, house buying and selling, and listing rentals. The company operates three main segments: home, digital segment and mortgage. The houses segment, which caters to direct selling and buying houses, accounts for 50% of the company’s turnover. The digital and mortgage segments generate profits in part through advertising and marketing activities.
Analysts estimate real estate to be a $ 93 billion market, and Zillow appears to have the potential to disrupt the industry by providing modern solutions to conventional problems facing consumers. And Zillow’s personalized services set it apart from the competition: the company’s platform eliminates the need for haggling and streamlines processes that would otherwise take centuries.
The friendly policies implemented by the US government also make it a good time to invest in real estate. Stimulus packages, low mortgage rates and an active Federal Reserve are boosting demand for real estate in America.
Investors are drawn to Zillow because of its distinct value proposition. The company gives its customers the flexibility to choose closing dates that suit them and takes responsibility for home repairs which are normally handled and paid for by the sellers themselves. Also, mortgage payments for sellers end on the closing date, unlike the norm, where consumers continue to pay until the property is actually sold. These factors have allowed incomes to more than double over the past three years.
Overall, the technologically savvy Zillow is one of a kind in the real estate industry, making it a solid choice for investors eager to invest in the financial markets now.
Select a quote
SelectQuote (NASDAQ: SLQT), headquartered in Overland Park, Kan., Is also a digital platform that helps consumers select products related to life, health, home and auto insurance. The business generates revenue by marketing insurance products and charging commissions.
Due to its simplicity, many consumers prefer the SelectQuote model. Its platform allows consumers to quickly compare prices from various suppliers and thus make quick decisions about which products are right for them. The company has grown rapidly over the past three years, with a compound annual growth rate of 63%. As the business attracts real consumers, with around 20% of users ultimately purchasing a policy, insurance companies are forced to use the platform.
The company’s growth drivers include the introduction of new products, increased lifetime value of existing customers, growth in agent productivity, cross-selling opportunities and an increase in potential partnerships with other companies. insurance that SelectQuote does not currently cover. These efforts will result in increased profits and value for investors.
The lack of digital advertising for insurance products creates an ideal environment for the company to constantly multiply its revenues and for investors to benefit from the potential high returns it can achieve in the future.
Canopy Growth Corporation
Canopy Growth Corporation (NASDAQ: CGC), headquartered in Smiths Falls, Canada, consists of several brands such as Tweed and Spectrum, which sell drugs, hemp and recreational cannabis. As the stock is currently trading at a low of $ 25.57, now is the time to invest.
The prospect of cannabis legalization in the United States has sparked interest in cannabis stocks. With Joe Biden’s election victory and the Democrats taking power back, the chances of legalization have never been better. On the flip side, even if legalization doesn’t happen, companies like Canopy will benefit as long as the federal government doesn’t interfere with state-level decisions.
The company intends to grow by leveraging its existing partnerships with cannabis companies Acreate and TerrAscend. In addition, the company is stepping up its marketing efforts to build awareness of its brand to potential US customers. Canopy currently has production and distribution licenses in more than ten countries, allowing it to grow exponentially.
In 2022, the Canadian cannabis market is expected to grow by 40% and around 30% between 2022 and 2024 (according to Canopy report), so Canopy will be able to generate more revenue in the years to come through this anticipation. request. In addition, advancements in distribution and innovation will also drive growth.
It’s important to remember that the stock markets offer plenty of opportunities to invest in companies that are undervalued and likely to improve. Investing in these businesses can help you reach your financial goals sooner than you think.