Dogecoin (CRYPTO: DOGE) It’s all in the news in 2021, and for good reason. By early May 2021, this meme-inspired cryptocurrency has gained over 12,000% since the beginning of 2021, and even now, when Dogecoin is 40% below its all-time high of $0.74, it is still rising. 6,880% so far year (as of this writing)
But Dogecoin is extremely volatile. and is not supported by any assets. The rally was driven by Reddit hype and celebrity endorsement, Dogecoin had no significant competitive advantage over it. other cryptocurrencies, whether it be transaction fees or payment speed. Retail investors should avoid such speculative investments. to protect their portfolios from fluctuations
But I have three companies in mind that are facing enormous secular issues. and can grow exponentially over the next few months. All of this without significantly increasing the risk to your portfolio. let̵7;s see why PayPal Holdings (NASDAQ: PYPL), lemon juice (NYSE:LMND), and Novokyo (NASDAQ:NVCR) fit the bill
Digital payment pioneer PayPal has benefited greatly from the rapid adoption of ecommerce and digital transactions. This is a trend that will likely continue after the pandemic is over.
at the end of the first quarter (Ends March 31st) PayPal has 392 million active customer and 31 million merchant accounts on its platform. As more and more users join PayPal. A payment facilitator is inevitable for businesses. which attracts more customers This network effect is difficult to destroy and is a major obstacle to competition.
To attract more customers, PayPal has focused on introducing innovative products and services, such as a cashless payment feature for in-store purchases. Includes payment cards, QR codes, and tap & pay & buy now. Pay Later: PayPal and Venmo wallets For Buy Now, Pay Later PayPal customers saw a 15% increase in total payment volume and a 16% decrease in cost per transaction (because debit payments are cheaper).
In the first quarter, PayPal’s revenue, adjusted earnings per share (EPS) and free cash flow rose 31%, 84%, and 27%, respectively, year over year. The company expects total active accounts to increase by 52 million to 55 million in fiscal 2021 and TPV to increase by 30% year-on-year. PayPal now forecasts fiscal 2021 revenue and adjusts EPS to increase year-on-year. year 20% and 21%, respectively, in fiscal year 2021.
Trading at 13.6x 12-month sales (TTM), PayPal isn’t the cheapest stock on the market. This digital payments giant can be an attractive investment for retail investors despite its high profile.
2. Lemon juice
Insurance technology company Lemonade shares are below an all-time high of $190 at $190, more than 47 percent in January. Investors were disappointed by the company’s first-quarter loss ratio. (Ending March 31) (Percent of Insurance Claims Charged) at 121%, significantly greater than 71% in fiscal 2020. Property damage caused by Winter Storm Uri in Texas resulted in processing company “One year’s worth of claims in just a few days.” Such natural disasters are largely unpredictable. Although some disadvantages can be prevented with reinsurance.
Despite these challenges Lemonade has shown some really important advancements. In the first quarter, the company’s total customers grew 50% year over year to 1.1 million. Premium per customer (combined annual premium) rose 89% to $252 million, and premium per customer increased 25% to $229. These figures highlight the strengths of the disruptive customer service model that utilizes Microsoft’s technology. Lemonade allows users to purchase policies and process claims in minutes. The company’s foray into pet insurance, life insurance, and now auto insurance has opened up multiple sales opportunities.
Lemonade now expects fiscal 2021 revenue to grow 24% to 28% year over year. This was up from its previous guidance of 21% to 24%. The company has maintained its previous EBITDA loss guidance of $163 million to $173 million, despite an increase in first-quarter losses. Finally, the company is sitting on the cash pile. unrestricted $1.03 billion This is enough to cover most of the losses at least over the next few years.
Lemonade is traded at a price per sale (P/S) that varies from about 59. However, considering that the company collects 100 times more data from its customers than traditional insurers, Lemonade can take advantage of its artificial intelligence (AI) capabilities. Yes, to develop a more robust customer experience and risk management system. The company uses bots and AI data capabilities for customer acquisition and claims processing. which reduces the cost of paying salaries This technology-focused approach allows companies to offer cheaper policies for similar coverage. (with a higher lifetime value), so choose lemonade over traditional insurance companies. Compared to this backdrop The company offers attractive risk propositions for long-term investors. even at a higher valuation level
Medical device company Novocure has developed unique technology to fight invasive cancer. The company’s flagship product is a wearable and portable device called Optune, which works by creating tumor treatment fields (TTFs). These are electric fields that help control the division of cancer cells without affecting existing cells. good health
The U.S. Food and Drug Administration (FDA) has approved Optune to treat mesothelioma (a rare cancer caused by exposure to asbestos) and for two types of glioblastoma multiforme (GBM), an aggressive type of brain cancer, in the first quarter. First, the company’s active patients rose 12% year-on-year to 3,454, although GBM was the company’s main revenue driver. But there is still considerable growth potential considering the penetration in this indicator in the United States, Europe, Middle East and Africa (EMEA); and Japan only 37%, 34% and 31% respectively.
Novocure’s TTF treatment has also been evaluated in other invasive cancers such as non-small cell lung cancer (NSCLC), pancreatic cancer, ovarian cancer, and gastric cancer. Investors have high hopes for these pipeline projects. In particular, after the FDA allowed the company to reduce registration requirements for the control arm in the pivotal phase 3 lunar trial to assess the efficacy of TTF in advanced NSCLC, this decision was based on an interim analysis of the trial. by an independent data review committee According to the committee “There is an unnecessary and potentially unethical possibility for patients randomized to the control arm to continue with 534 patients by 18 months of follow-up,” although clinical trial data are invisible. For Novocure, it’s not completely obscure for the data review board. When the committee considered refusing TTF treatment to patients in the control group was unethical. Novocure products seem to show significant clinical benefit.
In the first quarter, the company’s revenue rose 32% year over year to $134.7 million, while adjusted EBITDA rose 40 percent year over year to $21 million. The company had $864 million in cash on its balance sheet at the end of the quarter. first Unlike many medical technology companies with innovative products, Novocure is already profitable. In fiscal 2020, the company reported net income of $20 million. Against this backdrop, Despite trading at over 40 P/S, the stock can prove to be an attractive investment for retail investors.
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