Whether it’s higher inflation, the Federal Reserve’s next move, or a recovery from the pandemic, investors today are faced with more questions than they possibly have answers. An effective way to deal with this uncertainty is simply to have good quality companies that can survive anything thrown in their way. This also saves shareholders the headache of keeping track of the endless financial news cycle.
However, if those concerns lead to a market sell-off, look no further than the following four: Stock market winners. With a $ 1,000 investment, you can afford at least one share in any company.
1. Your local but global shop next door
As the leading online marketplace for handmade and vintage items Etsy (NASDAQ: ETSY) is benefiting from growing consumer interest in e-commerce and helping small businesses. the The company flourished even before the pandemic surge last year. And last quarter, Etsy’s 5.2 million active sellers and 90.5 million active buyers had gross sales (GMS) of more than $ 3 billion.
Etsy network effects make it extremely difficult for any competitor to compete, and the more users join the platform, the more valuable it becomes to everyone else. The business is currently concentrated in seven key regions namely the US, UK, Canada, Germany, Australia, France and India. Management believes these countries offer Etsy a huge addressable market with an annual revenue opportunity of $ 1.7 trillion.
With the recent acquisitions of Depop (global fashion retailer) and Elo7 (Brazilian marketplace for handmade goods), Etsy is building what CEO Josh Silverman calls the “House of Brands”. Expect the formidable success of Etsy to continue.
2. Ride the hot housing market
The largest home improvement company in the world, Home depot (NYSE: HD), will certainly be influenced by developments in the housing market. Still, the historically low interest rates combined with the scarce housing supply have given the Atlanta-based retailer a tailwind. But let me make it clear that this is a company that excels regardless of the economic situation.
Home Depot revenue grew 8.1% in 2018 last quarterbut that has been compared to remarkable sales growth of more than 20% in each of the previous four quarters. Stuck at home with more free time than usual during the pandemic, consumers focused on completing home renovation projects. And while the do-it-yourself customers pushed Home Depot forward last year, it’s the Professional (or Pro) customer who has seen accelerated growth recently.
This gigantic $ 342 billion company also has excellent margins and returns on invested capital, demonstrating its ability to rely on significant supply chain investments made over the years to increase store productivity. A P / E ratio of 22 makes this stock a breeze.
3. Make chiropractic more accessible
The United States spends an estimated $ 90 billion each year on treating back pain. Of this, $ 18 billion goes to chiropractic. But there is only one problem – 50% of Americans don’t even know what the word “chiropractic” means. Fortunately, with its 633 clinics across the country, The common corp. (NASDAQ: JYNT) is here to change that.
This rapidly growing franchisor and operator of chiropractic practices offers patients an affordable and accessible way to manage their back pain. Sessions are only $ 29 and no appointments are required. The remarkable success speaks for itself, because since 2015 The Joint Corp. its store base more than doubled. The wellness company has also proven that it can be good in good times and bad. System-wide sales in the same store grew 9% in 2020 despite the negative impact of the pandemic restrictions.
The Joint Corp. has already been a huge winner, shot up more than 500% in the past 12 months. But the growth story is not over yet. Management believes the US can one day support a whopping 1,800 clinics, which shareholders are very excited about.
4. The TV operating system of the future
Streaming entertainment continues to share traditional cable television and year (NASDAQ: ROKU) is immensely up for grabs. The $ 49 billion innovator connects viewers, content companies and advertisers on one powerful platform. Revenue for the last quarter grew 81% year over year, and Roku’s 55.1 million active accounts streamed a remarkable 17.4 billion hours of content in the second quarter.
Like Etsy, Roku’s competitive strength lies in its network effects. Advertisers increasingly want to go where the eyeballs are, and Roku offers them a tool to reach their audiences through connected televisions. Additionally, this attracts content companies that want Roku to be distributed. All of this creates an unstoppable flywheel that gets better over time.
For consumers, Roku’s easy-to-use interface brings all of your subscriptions together. And with an estimated 70% of the streaming happening on a television, Roku is well on its way to taking control of our living room entertainment experience. The business will benefit as long as streaming continues to grow in popularity, which it definitely is. By 2025, there will be 60 million cable TV households in the US, up from 100 million in 2015. Don’t be surprised if Roku grows many times its current size in the next decade.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.