Estimated read time: 3 minutes
Publication date: 26th Jan 2021 11:57 GMT+1
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.
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 (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.
Disclaimer: The writer is an experienced financial consultant who writes for Finscreener.org. The observations he makes are his own and are not intended as investment or trading advice.
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