When volatility hits the markets, it’s best to buy stocks that give investors the confidence to stand and endure short-term pitfalls. Today, let’s take a look at three of these stocks that fall into this category, and why you should invest $ 1,000 in one of them.
In the short term, the United States Food and Drug Administration (FDA) will soon decide whether or not to approve Biogenicof (NASDAQ: BIIB) aducanumab, a potential first-line therapy for reducing cognitive decline in patients with Alzheimer’s disease. By the end of 2021, the company will also see the results of seven Phase 2/3 clinical trials for various drugs in the treatment of dementia, ALS, lupus, retinal disorders and stroke.
Even beyond short-term catalysts, Biogen’s core drug portfolio is also performing well. In the second quarter of 2020, the company increased revenue by 2% year-over-year to $ 3.68 billion, on the strength of its multiple sclerosis and neuromuscular treatments. Meanwhile, Biogen’s profits grew 12% per year, to $ 10.26 per share.
The company’s market capitalization stands at $ 42.7 billion, although management expects revenue of $ 14 billion this year and earnings per share of $ 35. In other words, the company is trading for as little as 3 times the price of sales and 8 times the price of profit in the future. This cheap biotech stock is one that value investors won’t want to miss. Shares are up about 15% from last September’s price.
2. Sea Limited
Sea Limited (NYSE: SE) quickly became one of the world’s leading holding companies. The company specializes in gaming services, e-commerce and digital finance. There are currently over 500 million players using Sea Limited’s Garena gaming platform, up 61% from last year.
That’s not all; The company’s online shopping business, Shopee, is rapidly gaining ground in countries such as Taiwan, Malaysia and the Philippines. During the full Q2 2020, Shopee recorded $ 615.9 million in gross orders on its platform, a 150% increase from Q2 2019.
Finally, Sea Limited’s payment processing solution SeaMoney was also in tears this year, with $ 1.6 billion in payments processed in the quarter ended June 30. This represents a 60% increase over payment volume in the first quarter of 2020 alone.
Overall, Sea Limited’s revenue grew 93% year-over-year in the second quarter of 2020 to reach $ 1.3 billion. Even though the company is posting a net loss for growth reasons, it still has a massive $ 3.2 billion cash and investment balance to support its business. Since last September, shares of Sea Limited have risen almost 350%.
3. Semiconductor manufacturing in Taiwan
Perhaps unbeknownst to much of the world, TSMC (NYSE: TSM) plays a vital role in supplying the global technology sector. The company is currently responsible for supplying 5 nanometer and 7 nanometer processors for all new versions of Appleof (NASDAQ: AAPL) iPhone. In addition, all NVIDIA (NASDAQ: NVDA) and AMDof (NASDAQ: AMD) Next-generation processors and GPUs are made from the company’s semiconductors.
Without a doubt, the COVID-19 pandemic has acted as a catalyst to digitize economies across the world, increasing demand for Taiwan Semiconductor commodities. In the second quarter of 2020, the company’s revenue grew more than 34% year-over-year, to $ 10.4 billion. At the same time, its net margin increased by 11.2 percentage points to 38.9%.
The stock is currently trading at around 23.4 times the selling price, which is well worth the incredible growth performance the company can deliver. Keep in mind that Taiwan Semiconductor’s business is also generating an impressive 28.5% return on equity. The company’s shares have gained more than 78% in the past year.