June was a tough month, triggering market volatility and concern among investors. Inflation scored a 5.4% jump YoY – the highest since 2008 – while the Federal Reserve emphasized its commitment to keeping interest rates low.
Q2 2021 hedge fund letters, conferences and more
However, the ensuing small market pullback could prove to be a masterstroke for shrewd investors on the lookout for some futures.
According to The Motley Fool, investing long-term in the following stocks with just $5,000 to spare could “make you much richer in the second half of 2021 and beyond.”
Cloudflare (NYSE:NET)
Cloud-based enterprise architectures have been quickly adopted, along with Internet-of-Things and remote working. With this outlook, Cloudflare products have been met with great demand, with regards to cybersecurity services and edge computing –– data and computation shifted from a centralized data center to a localized data center.
“Cloudflare's total addressable market (TAM) is expected to expand from $72 billion in 2020 to $100 billion in 2024.”
Despite profitability yet to arrive, the company is trading at a rich valuation of 69.61 times trailing-12-month sales. Cloudflare’s partnership with NVIDIA (NASDAQ:NVDA) can also pay dividends for retail investors at such high levels.
CrowdStrike (NASDAQ:CRWD)
The company is poised to expand significantly within the global cybersecurity industry, by offering its cloud-based real-time protection platform and a sloid software-as-a-service (SaaS) model.
“CrowdStrike has a strong balance sheet with cash and cash equivalents of $1.68 billion and lower long-term debt of $738 million. The company's first-quarter free cash flow was up 34.48% to $117 million.”
Despite trading at a steep multiple of close to 59 times ––trailing-12-month sales–– the company boasts a striking risk-reward proportion among retail investors, given its vigorous portfolio and healthy financial numbers.
Pinterest (NYSE:PINS)
According to statistics, 85% of internet users state that they research on Pinterest when starting a new project. Pinterest is a favorite among advertisers and e-commerce partners.
Further, by the end of Q1 that ended on March 31, monthly active users (MAUs) of Pinterest grew by 30% YoY to 478 a whopping million.
“Trading at 23.75 times trailing-12-month sales, Pinterest appears quite expensive. Investors are also concerned about the anticipated deceleration in growth rate of its MAUs in the second quarter (ending June 30).”
Since 80% of Pinterest’s MAUs belong to international markets, the swelling monetization at this point would be a massive opportunity.
The post 2021 H2: Three “Smoking” Stocks To Buy With $5,000 appeared first on ValueWalk.
