With a roadmap to freedom in hand, we now have an idea of how the UK is going to navigate the months ahead in terms of easing lockdown. The economic effects of the pandemic have had a direct effect upon stock trading globally. Stock markets have fallen dramatically as investors are concerned about the wider impact that COVID-19 has had on the economy.
As ever, patience is key when it comes to investing in the stock market. If you’re looking for the best stocks to invest in this March, then read on.
PayPal (PYPL)
Been doing some online shopping this lockdown? Who hasn’t? If you’ve been buying from small businesses frequently and want some buyer protection, you probably have, or should have a PayPal account.
PayPal is ever-increasing its network of clients and its profitability has been increasing at an astounding rate. The company is investing heavily on projects which will procure future expansion. As well as expanding its internal infrastructure, PayPal’s revenue has also experienced impressive growth.
PayPal, unlike younger companies, doesn’t come with a high-risk investment warning. This is because of its impressive revenue growth. In 2021, analysts predict an 18.7% growth and a 19.3% growth in 2022.
The company also plans to introduce QR code scanners to our brick-and-mortar shopping experience. This would see PayPal expand its influence by taking over the way we exchange funds physically as well as online.
As the world embraces and prioritises a digital reality, PayPal is investing heavily to secure its place as a global go-to payment method.
It’s a high-quality holding so comes at a premium price but, if you plan on holding it for a few years, it could be an investment that you won’t regret. As our spending habits shift and e-commerce booms, PayPal is a solid investment for the future.
Goldman Sachs (NYSE:GS)
Good value stocks have been few and far between lately. Their sparsity has been influenced by record GDP expansion. Currently they are experiencing a resurgence driven by the economic effect of the pandemic and market volatility. This means that the value of companies such as Goldman Sachs has fallen below its intrinsic value.
The leading financial institution was excelling in the fourth quarter, generating $4.5 billion in net earnings (an increase of over $4.69 compared with its fourth quarter in the previous year). In 2020 earnings per share were up 17.6% in comparison to 2019 and revenue reached $44.5 billion.
Investment banking is only one string in Goldman’s Sachs’ bow and makes up just 21% of their revenue. The remaining revenue is a combination of global markets, fixed income and equity trading which represents 48%. Asset management accounts constitute 18%, and consumer and wealth management amounts to 13%. Impressively all areas of distributed revenue reported growth.
With the company prospering throughout the pandemic and holding leading positions in both investment banking and global markets, Goldman Sachs has placed itself in an enviable position for long-term growth. If you’re an investor looking for high value, Goldman Sachs delivers.
When it comes to stock trading this March, one strategy you could implement is contract for difference (CFD) trading. With a CFD broker via an online trading platform, you can have access to commission free trading, for example when you can trade stocks on Plus500. CFD trading also allows you to open a position based on your price prediction of the stock value, so you can benefit from both a rising and falling market in these uncertain times.
It’s been a year since the world was submerged in a global pandemic. With a plan in place for a steady return to normality, the future is looking up. Key indicators in the market could also give reason to feel optimistic for prospective financial recovery in the next few years.
It’s apparent that the pandemic is still present, restrictions are still in place and there’s plenty of factors which could pose as potential bumps in the government’s road map. All things considered, it’s vital to do your research prior to any investment. By understanding the market, making a smart stock-picking decision and trading with a predetermined strategy, you can trade and invest with confidence.
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