Is a stock really safe?
If one has to google search for the answer, a motley of parametric definitions emerge.
A stock is safe if it is a consistent performer, is paying regular dividends, the product/service is on a growth trajectory, has a strong brand image, and so on.
However, at Investor Telegraph, we define a safe stock as one which is presently undervalued in terms of the core product/ service and the market for it; now and in the future.
Till a decade back, nobody had heard of biotechnology, the solar sector, and even cashless payment getaways but 2020 was the year of these sectors as the core product/service was strong although. Tesla stock is one such rock-solid example.
We list five such stocks listed on NYSE/ NASDAQ which are strong to the core but are relatively undervalued.
1. Jinko Solar.
JinkoSolar Holding Co., Ltd, the world’s largest solar panel manufacturer, went public a decade back on NYSE.
It operates one of the industry’s largest R&D centers and UL certified module testing facilities with over 250 scientists and solar experts. A recent rejig at the top order gave the company more muscle. Although the share has more than doubled in one year, it is on a high growth trajectory and at a price range of $ 70 -80, it is still to peak.
2.Atlas Air Worldwide Holdings.
Atlas Air Worldwide is a leader in global airfreight, with more than 25 years of experience serving freight, commercial, charter, and military customers. Wall Street analysts have divergent views on its future. As early as this November, its shares entered into oversold territory, hitting an RSI ( Relative Strength Index) reading of 29.9, after changing hands as low as $52.20 per share.
But one cannot overlook the fact that the stock raced from $15 to $ 60 in less than 12 months in 2020. At a present price of $ 50- 55, it seems to be a safe bet as the air cargo industry is showing growth signs globally. The stock was bought by a variety of institutional investors this year.
3. Campbell Soup Company.
Campbell Soup Company is an American processed food and snack company that is most closely associated with its flagship canned soup products and is known for paying dividends consistently.
With COVID triggering increased home dining, shares of Campbell have gained over 3 % in the past three months compared with the industry’s rise of over 5%.
Its organic sales gained from a solid volume in the Meals & Beverages and the Snacks segments. The company expects the elevated demand scenario to continue and is also focused on undertaking increased brand investments.
At a price of below $ 50, it is poised to touch greater heights.
It was a gutsy decision by our team to put a real estate firm on this list but Redfin, the real estate brokerage company which was listed just three years back has its stock price up by 50% this year.
The company only charges a 1.5% commission for selling your home and 1% if you buy a home with Redfin within 12 months. Its scalable tech-based platform enabled it to facilitate over 24,000 real estate transactions last quarter.
With a unique concierge service, for both buy and sell customers, its share at$ 80 looks set to touch further highs.
The Square Inc. stock was a popular buy of 2020 due to its being the most relentlessly innovative company at the gateway of cashless, e-commerce, and alt currency growth trends.
Lately, the company announced it was acquiring Credit Karma Tax, a free do-it-yourself tax-filing service, for $50 million and would make it a part of its Cash App unit. The stock price has risen more then than five-fold from its March lows of around $35 to above $175.
Experts may view it as volatile stock, but its core fundamentals are very strong and will make it scale to new heights in 2021.
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