Are you looking for a stock to buy before the beginning of Christmas Holidays?
We are nearing the first Christmas Holidays in a pandemic era. So, what stocks you should be buying? Is there any change from last Christmas? What’s coming up in 2021? Here are what investors need to know.
Analysts and investors are quite attracted towards EV titan Tesla and grocery store leader Walmart. These two giants in their respective industries are a long-term stock that will get you megabucks, but you have to be a bit patient; maybe Warrant Buffet, if you’re seeking value maximization. One is a growth stock and the other is a dividend-yielding stock.
We cannot be sure about anything because the circumstances are still uncertain. However, the vaccine development and these following stocks being more long-term investments are in another league, as far as the pandemic is concerned.
Tesla (NASDAQ: TSLA)
Tesla (TSLA) is few of those stocks that have bamboozled the market with their rapid growth in such crisis. The master behind the EV leader, Elon Musk is unlike anyone else. Where fellow CEOs like Page look at Musk in reverential awe, the CEO of Tesla has brought next-level concepts; from developing Space renewable rockets to EV cars to moving humans on to Mars.
Elon’s vision is the reason behind so many investors putting their stake in TSLA stock. But what about on-ground reality? The EV maker has now recorded profits for five straight quarters, along with a seven-fold rise in its shares price in 2020 so far. Tesla has had a whopping return of approximately 18,000% since the IPO in 2010.
TSLA is about to join the S&P 500 on December 21, 2020, just before Christmas week. Electric Vehicle stocks have been a deity in the stock market in 2020. From Chinese EV stock including Nio and XPeng to Tesla itself, these stocks have recorded stunning growth. With the increasing EV deliveries each quarter, the sales have grown rapidly despite lockdown and restricted conditions.
Wall Street analyst, Goldman Sachs targets the price of TSLA at $780. Based on the growth of the EV market and Musk’s vision; the probability is that the stock would target $1,000 in the next five years’ time.
Walmart (NYSE: WMT)
Walmart (WMT) is trading around its all-time highs. The question is what’s the potential, Is the stock going to shrink or what?
Walmart might not see massive growth like Tesla, but the prospects say that it is a dividend stock with a yield of 1.48% as we write this.
Considering the growth of grocery stores and the increase in their online sales, WMT particularly stands at the top. It’s difficult to overlook Walmart (WMT). Ultimately, it’s the biggest global enterprise by revenue—also the biggest retailer.
Walmart reported a stunning 97% online sales in the second quarter of 2020. Usually, firms as big as Walmart can’t show that much growth. The Q2 growth was followed by a 74% rise in Q1.
The company has highly competitive advantages that include large economies of scale and stores within every 10 miles of more than 90% of the U.S. population. The company is expected to generate over $550 billion in revenue by the end of 2020.
Walmart (WMT) is relatively a cheap stock if we consider itslarge-scale progress. It looks like a long-term dividend stock rather than high growth stock. So, it will be more suitable for dividend-oriented investors to buy WMT stock.