If you have extra grand sitting around, you may want to consider investing in it some of the top stocks with major catalysts nearing.
In fact, here are five we like the most.
Albemarle (ALB)
The lithium bull market is far from over.
Countries around the world are pushing for millions of electric vehicles to hit the roads.
However, for that to happen, we must have far more lithium supply. Even the International Energy Agency warned, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”
It’s another reason investors may want to consider lithium stocks, such as Albemarle, which continues to show strong signs of growth. “Albemarle delivered another strong quarter, generating $195 million in adjusted EBITDA, driven by continued strength in demand for our Lithium and Bromine products,” said Albemarle CEO Kent Masters, as quoted in a release.
Affirm Holdings (AFRM)
Affirm Holdings is involved with the popular “buy now, pay later” market.
According to Barron’s, “BNPL is gaining popularity given that interest rates are ultralow, reducing costs for consumers. Other fintech apps have entered the market, including Affirm, a pure play on the sector, and PayPal (PYPL). Apple (AAPL) is also developing a BNPL service with Goldman Sachs Group (GS), its credit-card partner.”
Two, AFRM just posted incredible earnings, with solid guidance.
AFRM just provided solid earnings and raised its guidance. The company’s gross merchandise volumes (GMV) more than doubled year over year to $2.5 billion. Its active customer base rocketed to 7.1 million. Revenues were up 70% to $261.8 million. As for 2022, the company sees GMVs running higher by 70%, with revenues of between $1.16 billion and $1.19 billion.
Cameco Corporation (CCJ)
Uranium stocks like Cameco are starting to push aggressively higher.
Investors are betting that nuclear power could be a big part of our future, as we move away from fossil fuels. In fact, according to Benzinga, “According to the latest Nuclear Fuel report by the World Nuclear Association, the grand decarbonization goals of the world’s main economies need a great deal of low-carbon nuclear energy.”
“This, in turn, will increase a demand for uranium that could not be fulfilled, should new mining projects not emerge quickly. Meanwhile, Mining.com reports that Sprott has accumulated more than 24 million pounds of uranium, sometimes buying more than 500,000 pounds in a single day,” they added.
Unfortunately, there’s a massive supply-demand issue brewing, which could send uranium prices and related stocks to higher highs.
In 2021, demand for uranium is expected to climb to 162 million pounds this year to 206 million pounds by 2030. From there, it could increase to 292 million by 2040, as countries like China increase power generation, and look to cut emissions. At the same time, thanks to a lack of new uranium mines, supply could fall 15% by 2025, and by as much as 50% by 2030.
Bloom Energy (BE)
Keep a close eye on hydrogen stocks, like Bloom Energy (BE).
For one, hydrogen demand is only expected to rise.
In Europe for example, countries want to increase consumption by 2% to 14% by 2050. China could become a “hydrogen powerhouse,” according to NS Energy, as it moves to become carbon neural by 2060. Even the United States’ infrastructure bill could help fuel the sector. In addition, Goldman Sachs believes the hydrogen market could be worth $11 trillion.
Those are massive catalysts for companies like Bloom moving forward.
Company earnings growth has also been solid.
“Revenue of $228.5 million in the second quarter of 2021, an increase of 21.6% compared to revenue of $187.9 million in the second quarter of 2020. Product revenue of $146.9 million in the second quarter of 2021, an increase of 26.4% from the second quarter of 2020, primarily driven by a 41.5% increase in acceptances,” as noted in a company release.
“Gross margin of 16.3% in the second quarter of 2021, an increase of 2.3 percentage points compared to gross margin of 14.0% in the second quarter of 2020, primarily driven by improved product cost and favorable sales mix from growth in product and electricity.”
Activision Blizzard (ATVI)
Beaten down, Activision Blizzard could see massive upside, especially as we head into the 2021 holiday season. We also have to consider that video game sales aren’t slowing – and won’t slow for some time. In the first half of the year, video game sales were up to $28.9 billion – up 15% year over year, according to the NPD Group.
According to the NPD Group, video game sales were 30% in the first quarter of the year rising to $14.92 billion. “Video game content (which includes new games, expansions, and DLC) went up by 25% to a total of 12.8 billion, while video game accessories (including microtransactions) went up 42%,” reports The Gamer. For the second quarter, gaming sales totaled $14 billion — a 2% increase year over year.
In addition, “For the quarter ended June 30, 2021, Activision Blizzard’s net revenues presented in accordance with GAAP were $2.30 billion, as compared with $1.93 billion for the second quarter of 2020. GAAP net revenues from digital channels were $2.03 billion. GAAP operating margin was 42%. GAAP earnings per diluted share were $1.12, as compared with $0.75 for the second quarter of 2020. On a non-GAAP basis, Activision Blizzard’s operating margin was 44% and earnings per diluted share were $1.20, as compared with $0.81 for the second quarter of 2020,” as noted by the company.
