Finding the perfect Father’s Day gift can be difficult. After all, what’s the right thing to give to a model who has contributed so much? There is no perfect Father’s Day gift, but there is something to be said about gifts that can increase in value and give Dad the opportunity to have more financial freedom and flexibility.
With that in mind, we asked a panel of Motley Fool contributors to identify a stock that is trading at bargain prices this Father’s Day. They came with Zuora (NYSE: ZUO), Amazon.com(NYSE: ZUO), and Bitcoin(NYSE: ZUO) Read on to see why they think these investment opportunities could offer great returns.
Keith Noonan: Take a moment to add up the number of subscription services you are currently signed up to. Now compare your current number to the number of subscriptions you had 10 or 20 years ago.
The subscription economy has already seen incredible growth, and it looks like business models built around recurring revenue streams will continue to be adopted more and more. If you’re looking for a stock that’s ready to take advantage of influential trends on this front, Zuora (NYSE: ZUO) does the trick.
Zuora provides a software platform that allows businesses to easily implement and extend subscription-based business models, and the company appears uniquely positioned to facilitate and benefit from the growth of the global subscription economy. . The action also seems well valued.
Zuora is trading down around 55% from the lifetime high it reached in 2018, and it looks like the subscription software specialist’s valuation could rebound and reach new highs. The COVID-19 pandemic has meant that many companies have postponed new subscription business initiatives, but the long-term outlook for the space remains very bright.
Despite the headwinds, Zuora managed to increase its revenue by 9% year-on-year in the first quarter. The Company’s non-GAAP (adjusted) operating loss also declined to $ 2.8 million in the quarter, from $ 7.5 million in the prior year period. The bottom line is that Zuora managed to continue to grow sales under tough operating conditions and also managed to cut expenses significantly during the period.
Zuora’s expansion and expansion business model positions it to continue attracting new customers to its platform, and the overall subscription services market appears poised for growth. With the company valued at around $ 2 billion and trading at around six times the expected sales this year, the stock still has huge room for growth. Zuora is somewhat risky, but he’s the kind of investment candidate who looks attractively valued this Father’s Day, and he could generate huge payoffs in the long run.
Joe tenebruso: Dads deserve the best. When I search for the best investments, I look for companies with the strongest competitive advantages and the greatest opportunities for growth. And of all the companies I cover, none have a better combination of these wealth building attributes than Amazon.com (NASDAQ: AMZN).
Amazon dominates e-commerce in the United States and many other countries. Incredibly, more than $ 0.40 on every dollar in online retail sales earned by US-based companies is pouring into Amazon coffers, according to eMarketer. Unparalleled product selection, low prices, excellent customer service, and lightning-fast shipping times should help the e-commerce juggernaut maintain their lead in this massive and growing market for many years to come.
Amazon also controls a leading position in the booming cloud computing infrastructure market. Amazon Web Services (AWS) has 32% of the global $ 130 billion cloud market, according to Statista. That’s more than its next two competitors – Microsoft‘s (NASDAQ: MSFT) azure and Alphabet‘s (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Cloud – handset.
Yet despite its dominant competitive position, Amazon stocks are currently trading at a discount to its rivals. Amazon’s price / earnings / growth (PEG) ratio is currently 1.4 versus 1.5 for Alphabet and 2.6 for Microsoft. The PEG ratio takes into account the expected growth of a company’s profits. This is where Amazon shines. Analysts predict that Amazon will increase its earnings per share (EPS) by 38% per year over the next five years, compared to 21% for Alphabet and 17% for Microsoft.
Buying stocks of elite companies at bargain prices is a proven way to build lasting wealth in the stock market. This Father’s Day, consider taking the opportunity to do so with Amazon.com.
Jamal Carnette: I know it’s not technically a stock, but consider offering Bitcoin (CRYPTO: BTC). This is understandable if you look at the recent crypto sell-off with a sense of trepidation, but remember to consider volatility in relation to your entire portfolio.
Bitcoin has a low correlation with the S&P 500, which means that a position in the asset can reduce the overall volatility of the portfolio although it is itself volatile. Keep in mind that most startup investments are very volatile (and it’s always best to enter on the ground floor). Once the property deepens, volatility will subside.
Despite the recent liquidation, the fundamental story remains intact. Bitcoin is moving more and more from a simple store of value to a transactional currency. You’re here Aside from, the number of companies looking to transact in the currency continues to increase with fintech payment processors like Pay Pal and Square lead efforts for further adoption.
Adoption aside, there is still a great case to be made for bitcoin as a store of value investment. Last week, the US Bureau of Labor Statistics reported that inflation was up 5% year-on-year in May, the biggest increase in nearly 13 years. Bitcoin will benefit from the erosion of the dollar due to the scarcity of its limited supply of coins.
Bitcoin is not for the faint of heart. But for fathers who believe in long-term investing, have a high risk tolerance, and significant exposure to equities, the asset class is a way to take advantage of the next-gen economy while further diversifying your business. wallet.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.