Business

Ten Stocks to Buy in 2021

Understanding how to pick the best stocks is paramount to your success as a trader, which is why the best traders learn about how value investing and day trader taxes affect their outcomes and keep them in compliance.

Value investing is a factor-based investing strategy where traders pick stocks they believe are trading for less than their actual worth. This approach means that the trader will likely see a higher stock price and profit in the way of future gains.

Traders measure the ratio of the price of the stock to fundamental business metrics, with most traders using the price-to-earning or (P/E) ratio to measure their stock price and make the decision to purchase or not. This type of investment is called value investment, is driven by the belief that a business that is cheap compared to its intrinsic value or P/E ratio will have a fast-rising stock price once the price aligns with the company’s net worth.

This method is considered the best way to trade stocks and below are some of the lowest 12-month trailing P/E ratio stocks with the best value.

UWM Holdings Corp. (UWMC)

This stock has a P/E ratio of 1.3 over a 12 month period with a market cap of 0.8 and is currently trading at $7.52. UWM Holdings is a holding company that underwrites and provides relevant closing documentation through various subsidiaries for residential mortgages. It processes these claims faster on average of 17 days, compared to the industry 45 to 60 days. While the company reported a plunge in income for Q2 2021, its originations climbed by 90% (YOY).

Qurate Retail Inc. (QRTEA)

This stock has a 12-month trailing P/E ratio of 3.2. It has a market cap of $4.5bn and is trading at $11.00. This retail e-commerce services company provides its services to at least 218 million homes and actively operates via seven brands that are QVC, Zulily, Frontage, and HSN to name a few. It holds partnerships with television networks, e-commerce sites, social media, apps, streaming, and print catalog to reach its extensive consumer base.

Sage Therapeutics Inc (SAGE)

This stock has a 12-month trailing P/E ratio of 3.4. It has a market cap of $2.5bn, currently trading at $43.29. Safe Therapeutics creates treatments for many central nervous system disorders such as schizophrenia. It is a biopharmaceutical company whose flagship drug Zulresso is used to treat postpartum depression. The company reported a narrowing net loss for Q2 2021 and a 50.9%(YOY) growth for its product revenue. It is currently developing Zuranolone, which won breakthrough therapy status from the FDA to treat the major depressive disorder.

Athene Holding Ltd (ATH)

The 12-month trailing price-to-earnings ratio is 3.5, with a market cap of $12.3bn. It is currently trading at $64.20. This insurance holding company provides reinsurance, insurance, and a vast array of global services in relation to retirement savings and protections. Athene reported $215.5bn in total assets as of June 30, 2021. The company has continued to report net income growth and revenue across Q2 2021.

Annaly Capital Management Inc (NLY)

Annaly Capital Management, Inc. has a price-to-earnings ratio of 3.8, with a $12.6bn market cap and trades at $8.70. Annaly Capital Management focuses on diversified capital management and invests as well as finances residential and commercial assets. The company’s investment strategies focus on agency mortgage-backed securities, middle-market lending, and residential and commercial real estate.

Fastest Growing Stocks

These are ranked using a growth model that scores the company using a 50/50 weighting based on their most recent quarterly YOY percentage growth in revenue and YOY earnings per share (EPS) growth.

Fastest growing stocks are those whose sales and earnings show promise because these are critical indicators of a company’s success. Below are companies whose EPS or revenue growth totaled over 2,500%.

Freeport-McMoRan Inc(FCX) had 88.2% revenue growth with 2,330% EPS. The company is currently trading at $35.21 with a market cap of $51.7bn. Ross Stores, Inc. (ROST) reported a 79.0% and 2,220% revenue growth and EPS. The company is trading at $123.79 with a $44.2bn market cap. Others are Louisiana-Pacific Corp. (LPX), ConocoPhillips(COP), and Chipotle Mexican Grill, Inc. (CMG) with 141.8%, 247.6%, and 38.7% in revenue growth.

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