Some say this is the best time to invest. Others believe that it is the worst time. Some traders have even taken the extreme measure and shut their terminals off.
The COVID-19 pandemic has pushed investors to the brink of despair. The market crash in February and March sent companies and investors reeling, and many have not yet recovered fully. Major market indices have plummeted down, and the economy is in a dishevelled state.
With the economy veering off to an uncertain state, many investors believe that another market crash is inevitable. What is interesting, though, is that S&P 500 has recovered around 80% of its losses. Hence with proper planning and research, this sharp drop in stocks can be used to one’s advantage.
According to Buyshares.co.nz , there are five profitable companies you can buy stocks from at a lower price.
Palo Alto Networks
The fact that cybersecurity is always needed, irrespective of whether the stock market is in its prime or poor, is indisputable. The COVID-19 pandemic has forced a significant chunk of the working population to work from home, thus increasing the need for a safe and secure work environment.
Therefore cybersecurity companies are somewhat unscathed by the ongoing recession. Hence, this makes Palo Alto Networks an excellent company to invest in.
Recently, it has started to transfer its products to subscription-based services that have significantly high profit margins. The company is aiming to provide enterprise cloud security and protection services, and with more and more companies moving towards cloud-based services, this company has a vast potential to grow.
Netflix’s stock is growing at a rapid rate, much more than the average earnings of other rival companies. With a fantastic growth extrapolation, Netflix can be a lucrative stock to invest in.
In fact, many investors noted the extreme resilience of the Netflix stocks, surviving even the COVID-19 market crash in February. However, the shares are not cheap.
The premium price is justified, though. The streaming giant’s revenue grew by around 26% annually and has an ever-expanding margin. This shows the company’s ability to scale its business model and grow exponentially.
Kirkland Lake Gold
The world has plunged into chaos, and central banks all over the world are adding huge amounts of money into their systems. Moreover, global yields have been reduced to an infamous low. In these crazy times, gold in its physical form is seen by many as an attractive and safe investment.
To this end, Kirkland Lake Gold, a gold-mining company, does not disappoint. With no debts and more than 500 million dollars in cash, this company has one of the most amazing balance sheets out there.
In the first quarter, the company recorded 776 dollars per ounce of gold, a record high. Kirkland Lake Gold also has a handsome margin, generating around a thousand dollars for every ounce of gold.
Tata Consultancy Services (TCS)
Tech companies are all the rage these days according to buyshares.nz. With the Indian Rupee depreciating, investing in TCS’s shares can bring some solid returns, as this Asia’s largest tech company.
What is more, TCS has a significant cash reserve. Though the company might face hurdles soon as more developed countries have a higher chance of lifting lockdowns earlier, TCS will fall back to normal in a short period of time. Reserve Bank of India’s colossal rate cut might likely cause the rupee to depreciate, and this can be used advantageously.
Amazon is considered the king in the e-commerce space and continues to grow and expand rapidly. But this is not the only reason why investing in Amazon is so lucrative. Amazon is proactively growing in the cloud enterprise and infrastructure space through its Amazon Web Services (AWS).
AWS has consistently provided significantly higher margins compared to its retail sector. Moreover, AWS is growing at twice the rate of its e-commerce segment. This makes it an attractive company to invest in.
Due to an uncertain economy and unprecedented times, stock markets are likely to crash again. Even if it does not, markets plunge all the time and are inevitable. The panic-selling and fear that ensues can be used to one’s advantage to grab stocks at a massive discount.