Where to invest $ 10,000 right now
Should I buy stocks in companies that have performed well during the pandemic – or companies that are heading for a rebound? This may be a question you are asking yourself at the moment. Especially if you have a large amount of money to invest.
The answer is simple: both. Right now, it’s a good idea to buy shares in a company that has excelled during the pandemic – and is now taking things to the next level. And it’s also a good idea to grab shares of companies ready for a lasting rebound. This will allow your portfolio to grow in the years to come. Here I am going to talk about a pandemic winner and two companies whose revenues are expected to skyrocket.
Amazon (NASDAQ: AMZN) benefited during the pandemic, as consumers opted for online shopping and home entertainment. Sales climbed 38% last year. And net income jumped 84%. As of January 2020, the Prime subscription service has added around 50 million new members worldwide for a total of over 200 million today.
But Amazon’s gains are not over. In the first quarter of this year, Amazon reported a 44% increase in sales. And the profit more than tripled. Perhaps more importantly, sales of the company’s main profit driver grew by more than 30% for the first time in a year. This is Amazon Web Services (AWS), the company’s cloud computing business. Amazon said more companies are turning to tech infrastructure help – and that’s what is driving AWS growth.
At the same time, consumers will likely come back to Amazon. The retail giant continues to improve its already fast and easy delivery options. For example, Amazon recently extended its secure garage delivery of groceries to more US cities.
Amazon shares are trading near their all-time high – but Wall Street predicts it may climb at least 20% over the next 12 months.
Intuitive surgery (NASDAQ: ISRG) is the world leader in robotic surgery. The company sells its Da Vinci System for minimally invasive procedures in urology, gynecology, general surgery and other areas. Surgeons have performed over 7 million procedures worldwide using the Da Vinci System.
Last year was not easy for Intuitive, however. The pandemic has put an end to plans for many non-essential surgeries around the world. This is because hospitals have devoted all of their resources to COVID-19 patients. The good news is that this was a temporary situation – and things are starting to improve.
During the first quarter ended March 31, Intuitive shipped 298 Da Vinci systems. That’s a 26% increase year over year. Procedures climbed 16%. Income and profits have also increased. The rebound has started, but there is more to come as the pandemic eases and hospitals further postpone surgeries postponed from last year. Another plus point is that Intuitive doesn’t just rely on installing systems to generate income. The company actually earns a greater share of revenue from the sale of instruments, accessories and services.
In the years to come, Intuitive will also benefit from innovation. The company says it is still in the “early stages” of developing robotic surgeries around the world.
Nike (NYSE: NKE) managed the coronavirus pandemic rather well thanks to a plan it put in place in 2017. The company then aimed to increase its direct sales to consumers and used digital to do so. So, during the worst days of the pandemic, Nike fans haven’t forgotten about the company. They used the Nike Training Club app to exercise, for example, and bought Nike shoes and clothing online.
During the quarter ended Feb. 28, Nike’s digital sales jumped 59%. Digital sales have also advanced double digits in the previous four quarters.
Still, Nike has had its share of struggles due to the pandemic. The company has had to temporarily close stores around the world as infection rates rise in various locations. The Europe, Middle East and Africa region saw lower sales at physical Nike stores as the pandemic closed 45% of them during part of the quarter.
Better days are ahead. The pandemic is easing in Europe and countries are gradually reopening their stores. Sporting events have picked up in many countries – and in the future we can expect them to welcome more fans to the stands. This is the key for Nike. Sporting events and promotional deals with sports stars give the company the opportunity to promote its brand and connect with its fans.
Nike’s digital strength and the return to normalcy of its stores and the athletic world means a chance for significant revenue growth at Nike – and spectacular performance on the road.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.