The second round of economic stimulus tests will soon be in the hands of many Americans. Direct deposits can arrive in bank accounts starting this week, and paper checks and debit cards will be posted shortly thereafter.
An extra $ 600 will help many individuals pay bills or add to their emergency funds. This is absolutely the highest priority for your stimulus money. After addressing these important items, investing in the long run is a great way to use the extra cash. If you want to invest your stimulus test, here are three of the best stocks you can currently buy.
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1. Etsy
Probably the most important thing to know Etsy (NASDAQ: ETSY) is this: 88% of buyers say that the online e-commerce site contains articles that they can not find anywhere else. Etsy’s platform connects 69.6 million active buyers with 3.7 million active sellers in a unique handmade goods market. And these numbers are increasing.
Etsy’s inventory has risen by almost 300% so far in 2020. This impressive performance was driven in part by the COVID-19 pandemic, with face mask sales significantly increasing revenue in the second and third quarters. During both quarters, the company also reported an influx of millions of new and returning customers who had not bought in a year.
This momentum is unlikely to evaporate once the pandemic has ended. Etsy found that buyers increased their spending year-over-year in the third quarter by more than 50%, excluding the purchase of face masks. Customers simply like the platform and buy more products on it.
Etsy first started scratching his full opportunity. The company estimates that it has a 5% stake in the retail market “special” products of $ 100 billion. But the pandemic has made management realize that the real addressable market is much larger. With its tremendous growth prospects and laser focus on caring for buyers and sellers, I think Etsy needs to generate huge returns for investors in the long run.
2. Fiverr
Like Etsy, Fiverr (NYSE: FVRR) is an e-commerce business. But instead of connecting buyers and sellers of handmade goods, Fiverr connects freelancers and businesses to digital services.
The stock was hot in 2020 and increased by more than 730%. CEO Micha Kaufman said the company benefits from ‘sustainable business trends that increase its investment in digital transformation and their increased willingness to hire a remote and flexible workforce.’
The company estimates that its accountable market totals $ 115 billion. Fiverr expects to generate nearly $ 187 million in revenue by 2020, well below 1% of the eligible market.
It is not a problem to take advantage of more of the market. The workplace is changing where teams work digitally from anywhere. Fiverr is rapidly expanding into new markets and recently launched its platform in Brazil and Mexico. My opinion is that this stock is likely to be a big winner for a long time to come.
3. Innovative industrial properties
A real estate investment trust (REIT) can seem tedious compared to the excitement of Etsy and Fiverr. But Innovative industrial properties (NYSE: IIPR) is not an ordinary REIT.
IIP focuses on the US medical cannabis industry. It provides a valuable service to medical cannabis growers who face challenges in raising capital due to restrictive federal laws. IIP buys the properties of these companies and leases the properties back to them. These resale transactions give medical cannabis operators much-needed cash and give IIP a good long-term revenue stream.
The US medical cannabis market is growing like a weed (forgive the pun). Two states voted in November to legalize medical marijuana, bringing the total number of states where medical cannabis is legal to 35. IIP currently owns 66 properties in 17 states. Many of these markets are still in their early stages and are still seeing strong growth.
The IIP share rose by more than 130% in 2020. I think it could double – or more – in the new year as the company adds more medical cannabis properties.