4 Surefire Stocks to Buy in a Biden Bull Market
For many, saying goodbye to 2020 couldn’t have come soon enough. But that’s not the case for the investment community. Despite the benchmark S&P 500 losing over a third of its value in the first quarter of 2020, it ended the year higher by 16%. That’s nearly double its average annual return over the last four decades.
The good news for investors is that this young bull market might be just starting to stretch its legs. The Fed’s insistence on maintaining historically low interest rates through at least 2023, coupled with President-elect Joe Biden’s pledge to offer additional fiscal stimulus to support businesses and reignite the U.S. economy, could lead to an unstoppable bull market.
If you want to take advantage of this Biden bull market, the best way to do so would be to buy the following four surefire stocks.
Image source: Getty Images.
Fastly
If investors learned one thing from the coronavirus disease 2019 (COVID-19) pandemic, it was how important an online presence and/or cloud computing will be for the future of business. When Biden officially takes office in less than two weeks, businesses will continue to spend aggressively to establish an online or cloud presence. That bodes extremely well for one of the fastest-growing tech stocks, Fastly (NYSE:FSLY).
In simple terms, Fastly ensures the secure and expeditious delivery of content to end users. With people stuck in their homes due to COVID-19 and doing much of their shopping online, Fastly’s content delivery network has been busier than ever.
Though things haven’t gone perfectly for Fastly — in the third quarter, the company’s largest customer (TikTok) pulled most of its traffic from Fastly’s network — the company’s operating results suggest it can sustain high double-digit growth for the foreseeable future. Even with TikTok parent ByteDance pulling traffic as it dealt with a potential statewide ban from the Trump administration, Fastly’s Q3 showed a 10 percentage point improvement in dollar-based net expansion rate. In English, the company’s existing clients are growing (i.e., seeing more traffic) and spending more with Fastly. Both the company’s total customer count and enterprise customer count continue to grow at a rapid pace.
With lending rates remaining low, many of Fastly’s brand-name clients will be spending aggressively to reach new audiences. This has the looks of a recipe that could triple Fastly’s annual revenue with Biden in the White House.
Image source: Getty Images.
salesforce.com
Yes, I’m still pounding the table on cloud-based customer relationship management (CRM) software provider salesforce.com (NYSE:CRM). My top stock to buy for January has lost more than 20% of its value since late August, representing the perfect after-holiday bargain for growth investors.
As sales continue to shift online in a post-pandemic world, any business that has a consumer-facing presence could potentially benefit from what CRM software has to offer. Aside from just…