Buying stocks requires lots of careful consideration, or the entire activity wouldn’t be much different from gambling. Although the market may be volatile, with companies’ earnings getting affected by issues beyond their control (like the coronavirus pandemic and its aftermath), there are patterns in human behaviours and company operations that can guide you to make informed decisions on which stocks are worth investing in. We have studied these patterns and kept our ears to the ground to catch the latest news to back up our claims.
From our perspective, these are the four companies you should be on the lookout for when it comes to growing your investment portfolio. Twilio Inc., a cloud communications platform, is one of them.
First things first: there is no perfect stock. Stocks can rise sharply or fall depending on circumstances. Yet, as random as stock movements may seem, buying stocks is not equivalent to gambling. You buy stocks; you don’t stake. Both beginners and old-timers at the stock market go for different things when they seek stocks to buy, but there are some common things to look out for.
Most investors buy stocks that have consistently done well in recent months because they believe stocks maintain their trajectories for many months. Studies have proven this to be true. When a stock rises, more people buy it and keep it sailing high. This loop is consistent with positive feedback.
Some investors, however, would stick to buying stocks from traditional companies. Some of them, of course, may still offer high returns, but the pandemic has reshaped the market. Beyond the heightened volatility of the market, the pandemic has pushed new companies to the forefront. The virtualisation of the workplace has allowed workplace apps to rank amongst the top performers in the stock market.
Having said that, here are some stocks we think you should look out for and buy right now:
1. The Walt Disney Company (NYSE: DIS)
The Walt Disney Company is one of the best stocks to buy. Disney needs no introduction. They have enjoyed consistent growth over the years — 486% upward in the last decade — and are constantly looking for new channels to exploit. Their latest stride is the Disney+. Disney+ is a streaming service currently poised at third place on the streaming service rankings — so it’s not Netflix yet, but the projections are positive.
Disney+ didn’t enjoy as much growth as predicted, and its share price dropped 4.1% in Q3. But that is encouraging — low buy point and a promising future are two ingredients of a good stock. There is a growing trend that’s seeing a departure from cable TV, and with its excellent content, Disney+ can only get better. That, and the fact that relaxed pandemic restrictions on air travel and crowding will see Disneyland throw open its gate to the public.
2. Ford Motor Company (NYSE: F)
Ford is another traditional company like Disney. Despite its longevity, Ford stocks have never been the most attractive. But that has changed in 2021. Ford sold over half a million vehicles in North America in Q3. Their regional shipments have risen 67% from Q2.
They are also about to get very innovative as they now plan to join Tesla in the EV automobile field with the F-150 Lighting vehicle. Nearly every global conference focuses on climate change and the need to reduce dependence on fossil fuels. Going into the future, automobile industries that are fuel-driven may suffer a hit with unfavourable legislation. If all things go well — as they are so predicted, with both institutional and governmental support — Ford stocks will rise. Here is a tip: although Ford is not a full-fledged renewable energy company, investing in renewable energy stocks can bolster one’s investment portfolio. There’s no better time to buy Ford stocks than now.
3. Pinterest (NYSE: PINS)
Pinterest is the social media that used to be more media than social. Less feisty, more colourful. But that has changed. More people are trooping into the platform every month, and this will cement its status as the new advertiser’s paradise. Right now, the market cap of Pinterest is set at $28 billion, but with the improved ad revenue projected (as they look to maximise online trends), that could rise astronomically.
What’s more: Pinterest share prices are low presently, thanks to rumours of its acquisition by PayPal. Its share price had initially soared when the rumour broke, but PayPal’s debunking of the speculation has seen it fall 93.1% from its highest point in 2021. This ‘calamitous’ fall provides an opportunity for investors to swoop in.
4. Twilio Inc. (NYSE: TWLO)
Many companies have moved online since the beginning of the pandemic. This is where Twilio comes in. Since the start of the pandemic, Twilio’s shares have grown 228%.
Twilio is a communications platform that allows software developers to correspond over a collaboration. Using Twilio’s web service APIs, developers can call or exchange texts as they work on a project.
Despite the impressive strides, Twilio’s shares dipped 17.6% after their Q3 report. But there is no reason to panic. Many analysts believe that the sharp increase in Twilio’s shares was due to the pandemic. Twilio is predicted to pull in moderate returns in the subsequent months. Given continued dependency on virtual workplaces, there is little to suggest that its trajectory will change. With the drop in share price, now is the best time to buy Twilio.
What do you want from the stocks? One does not buy stocks in the same way they would buy, say, a new brand of milk in a grocery store. Knowing what you want from the stock is essential. Some stocks offer low returns in the short term but probably have more attractive long-term prospects. If you want to buy stocks now, you should place the stocks mentioned above on the priority list.