3 Stocks That Can Double In 2021
January 26 2021 - 5:57AM
Finscreener.org
Investors have just witnessed one of the wildest years in stock
market history. Major indexes such as the
S&P 500 lost over 35% in market value in less than two
months only to gain momentum in the second half of 2020 and end the
year with double-digit gains.
The world continues to grapple with the COVID-19 pandemic as
well as a sluggish macroeconomy. Several experts believe that
valuations are stretched and the snapback rally is not sustainable.
Alternatively, there are a few stocks that may continue to surge
higher this year as well.
SSR Mining
In case markets turn turbulent, investing
in alternate asset classes such as gold, makes perfect sense.
It also means gold mining companies such as SSR Mining (NASDAQ:
SSRM) should be on the radar of investors.
A low-interest-rate environment, a weak U.S. dollar, and
quantitative easing measures will be catalysts
that will drive demand for gold higher. Further, SSR Mining
recently completed a merger with Alacer Gold that owns an 80%
interest in the Copler mine, a high-yield low-cost mine.
SSR expects mining production to exceed 700,000 gold equivalent
ounces in 2021 and generate $450 million in free cash flow this
year. The stock has already surged over 300% in the last five years
and the company’s board of directors have announced plans to pay a
quarterly dividend of $0.05 per share in early 2021.
EverQuote
EverQuote (NASDAQ:
EVER) is an online marketplace for insurance products in the
U.S. It offers customers the option to choose from a variety of
products that include auto, home and renters, health, life, and
even commercial insurance.
EverQuote has also targeted revenue growth via acquisitions and
analysts expect company sales to grow by 37.3% year-over-year to
$341.5 million and by 21.6% to $415.3 million in 2021.
EverQuote is valued at a market cap of $1.04 billion indicating
a forward price to sales multiple of 2.93 which is quite
reasonable. The company went public back in June 2018 and has more
than doubled in the last 30 months.
EverQuote generates a majority of revenue from the auto
insurance market but is now widening its portfolio of products. In
the last five years, the company’s sales were up at an annual rate
of 32% and is a top growth stock for this year.
Planet 13 Holdings
Investors looking for a pure-play marijuana stock can look to
invest in Planet 13 Holdings (OTC:
PLNHF). Shares of this company have already gained over 600%
since the company IPO’ed in June 2018.
Planet 13 Holdings operates the largest marijuana dispensary in
the world in Nevada which is also one of the biggest cannabis
markets in the U.S. The company’s 112,000 square feet store is
located close to the Las Vegas Strip, which will ensure a steady
stream of in-store traffic among tourists and locals.
Despite the ongoing pandemic, Planet 13
reported record sales in Q3 by offering curbside pickup as well
as delivery options to patrons. In the September quarter, sales
were up 36.5% year-over-year to $22.8 million and EBITDA was up 84%
at $6.2 million.
The company is now all set to open another marijuana superstore
that will have a broad selection of cannabis-infused products in
California. Planet 13 said the 40,000 square-foot store will be
located close to Disneyland, another popular tourist
attraction.
Planet 13 (QX) (USOTC:PLNHF)
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