You can probably think of dozens of ways to use the $ 1,400 incentive payment that most Americans travel. If you do not have enough cash to pay your bills or do not have an emergency fund, the items should be at the top of your list.
But many Americans have covered the most important bases and are looking for the best way to make money with their extra cash from Uncle Sam. If you are in the group and are already doing your stimulus research, buying these three stocks is an excellent step.
Image Source: Getty Images.
Cresco Labs
Investing in marijuana stocks may seem like a crazy way to spend $ 1400. And for many cannabis supplies it would be. However, I think buying shares of Cresco Labs (OTC: CRLBF) would be a crazy smart decision.
First, Cresco is already profitable – unlike most cannabis companies. It also generated impressive revenue growth, with sales up 63% in the third quarter from the quarter. I expect another great update when Cresco announces its Q4 results next week.
Cresco’s valuation also looks very attractive compared to its peers. The stock trades at a much lower price-to-sell price than other top U.S. multistate cannabis operators.
Most importantly, the growth prospects of the company are enormous. Cresco recently began selling in Arizona’s new marijuana market and plans to acquire Bluma Wellness to expand into the thriving market for medical cannabis in Florida. Cresco also already operates medicinal cannabis pharmacies in New York, a major state that is likely to legalize recreational marijuana soon.
PayPal Holdings
The COVID-19 pandemic has hurt many companies. But it only added fuel for PayPal Holdings (NASDAQ: PYPL). Coronavirus-related locks have spurred increased online shopping, boosting PayPal’s revenue in 2020.
Some may be worried that PayPal’s business could end up under the pandemic. I do not. My opinion is that the company will continue to enjoy strong growth in e-commerce. I also expect PayPal to gain momentum faster as retailers support their QR code functionality.
Even better, PayPal’s Venmo digital wallet app is getting better and improving more users. The company recently launched a Venmo credit card. In the second quarter of this year, PayPal is launching its “Pay with Venmo” feature supported by the company ” best in-class experience ” for in-store purchases.
PayPal also acquires Curv, an Israeli-based security provider for digital assets. This agreement will strengthen the cryptocurrency’s capabilities. My prediction is that cryptocurrency will become a major growth driver for PayPal in the next few years.
The commercial bank
The commercial bank (NASDAQ: TTD) belongs to the large group of companies that felt the sting of the pandemic last year. The company, which offers a software platform that enables advertisers to buy digital ads quickly and easily, has experienced a slowdown as advertisers cut their marketing spend.
More recently, shares of The Trade Desk got a nod AlphabetGoogle’s affiliate has announced plans to eliminate ad tracking cookies. This move limits the amount of data that companies like The Trade Desk can capture, and can potentially make their services less attractive to advertisers.
Why would you consider investing in The Trade Desk? Even with the pandemic, advertising spending on the company’s platform reached record levels last year. Investors should not worry about moving Google either. The Trade Desk expected cookies to disappear sooner or later. It even introduced in 2018 an alternative to cookies, the Unified ID.
Probably the most important reason to buy The Trade Desk, however, is the explosion in connected TV (CTV) television connected to the internet. CTV is transforming the advertising industry. And cookies are not relevant as CTV does not rely on browsers.
I think The Trade Desk remains in a great position to take advantage of the CTV boom. Using your stimulus test to buy shares in this stock will bear much fruit over the next few years.
This article represents the opinion of the author, who may not be in agreement with the ‘official’ recommendation position of a Motley Fool premium advisory service. We are furry! When we question an investment thesis – even one of our own – it helps us all to think critically about investing and to make decisions that help us become smarter, happier and richer.