What stocks can make you a billionaire
5 stocks that can turn shareholders into millionaires in the bull market
The technology-heavy one Nasdaq Composite has been very volatile in recent weeks. Nonetheless, the conditions are good for a large bull market to develop under the new US administration.
US President Biden is still struggling with the economy having to deal with the pandemic. However, both the Federal Reserve and the Biden government have shown that they will do whatever it takes to support businesses, workers and the financial markets. Another round of payments and the easing measures should boost the stock market.
In the event of a biden bull market, the following five stocks all have the potential to turn investors into millionaires.
Historically, a stronger economy is a good sign for the real estate market. That would be the aspiring newbie Redfin (WKN: A2DU22) to make it a promising share in the real estate sector.
The technology-driven operating model and unique services set Redfin apart from the crowd. The fees for real estate offers at Redfin are between 1% and 1.5%, which is up to 2 percentage points lower than with traditional real estate agencies. As property prices rise in the wake of historically low mortgage rates, the commission fees that Redfin can save potential sellers will increase.
Redfin is also trying to revolutionize the buying and selling process. The RedfinNOW service, which is only available in select cities for the time being, enables people to sell their homes directly to Redfin. The company also offers the ability to do house inspections, titles, and paperwork for customers.
Redfin is just getting started and could become one of the fastest growing real estate companies of this decade.
Marijuana stocks should thrive under the Biden administration. Nevertheless, a US-wide legalization is probably not in sight. However, there is a likelihood that we will see banking reform. That would be great news for small-cap pot stock Jushi Holdings (NYSE: A2PMFM).
What makes Jushi such a special cannabis company is its focus on US states with limited licenses. This year, three U.S. states - Pennsylvania, Illinois, and Virginia - are projected to account for 80% (or more) of sales of $ 205 to 255 million. Pennsylvania and Illinois limit the number of retail licenses they issue, while Virginia issues dispensary licenses by jurisdiction or territory. Jushi chooses to operate in states where competition is minimal or nonexistent. This gives the company the opportunity to build its brands and build a loyal following.
Jushi has also made acquisitions to expand its presence. Since the beginning of the year, the company has expanded its retail presence in Pennsylvania and California. California is known to be the largest cannabis market in the world.
This year Jushi should be profitable. So now is a good time to get started.
Another innovative small-cap stock that could turn investors into millionaires in a biden bull market is the furniture designer and retailer Lovesac (NYSE: A2JP7B). Sounds strange, but there are good reasons for it.
Furniture companies are generally not considered innovative, but Lovesac is. This millennial-focused company designs modular furniture that can be rearranged in dozens of ways. This is to ensure that they fit into all living areas. The company's armchairs - the best-selling item, accounting for more than 80% of sales - come with over 250 machine-washable covers. They are all made from yarn made entirely from recycled plastic water bottles. That is functionality, choice and sustainability in one.
Arguably even more impressive was Lovesac's ability to act as it did in the pandemic. While most furniture retailers have seen a huge decline, Lovesac has been able to move from a showroom model to online retailing. Lovesac's low overhead costs were already a key competitive advantage, and this focus on e-commerce only increased margins.
Lovesac may be just a furniture company, but with Biden in the White House, it could easily double annual sales.
Northern Star Acquisition
Northern Star Acquisition (NASDAQOTH: A2QLXT) has all the tools necessary to turn its shareholders into millionaires. Northern Star is a specialty acquisition company (SPAC) that is currently merging with dog-focused product and service company BarkBox.
Perhaps the safest growth trend across the country is spending on pets in the United States. At no point in the past quarter century have we seen an annual decline in pet spending in the United States. More households than ever have dogs and cats, who are often viewed as family members. In other words: Pet owners spend a lot of money to ensure the happiness and well-being of their four-legged family members.
BarkBox ended its most recent quarter with 1.1 million subscribers, up from 663,000 just nine months earlier. BarkBox also operates at a retention rate of almost 95%, the highest since the company was founded. According to its own estimates, BarkBox sales could almost double to more than $ 700 million by 2023. That would make BarkBox's multiplier relative to sales one of the lowest in the industry.
In addition, the data-driven company is betting on new offerings to encourage repeat business and higher sales. In particular, the introduction of Bark Home (essential accessories such as collars and dog beds) and Bark Eats (personalized, high-quality dry dog food) should increase the number of subscribers. The gross margin should remain above 60%. Northern Star, soon to be BarkBox, could turn investors into millionaires.
After all, that could be the social media company Pinterest (WKN: A2PGMG) bring in a lot of money for investors under Biden.
Pinterest was one of the few growth stocks that undeniably benefited from the pandemic. Last year, the company had 124 million monthly active users, an increase of 37% over the same period last year. But keep in mind that pre-pandemic average annual net user growth was 30% between 2017 and 2019. Pinterest has always been a source of user growth.
In particular, Pinterest has seen a huge surge in new users from international markets. US users deliver a significantly higher average revenue per user (ARPU). But Pinterest's international user growth is still encouraging, as the market is many times larger.
Investors should also watch out that Pinterest continues to grow its e-commerce platform. Since users share things, services and places that interest them, Pinterest only needs to connect users with companies. In a way, you could say that Pinterest is the ultimate platform for targeted advertising.
The post 5 stocks that can make shareholders millionaires in the bull market appeared first on The Motley Fool Germany.
The Motley owns shares of and recommends Jushi Holdings, Pinterest, and Redfin.Sean Williams owns shares in Northern Star Acquisition, Pinterest, and Lovesac. this article was published on March 28, 2021 on Fool.com and has been translated for our German readers.
Motley Fool Germany 2021
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