The U.S. market stays scorching — even an epidemic can’t cease it.
Whereas China and different international locations are scrambling due to the coronavirus, the U.S. markets preserve chugging alongside.
And disruption overseas is definitely an excellent factor for the U.S. markets, since all that cash from outdoors the U.S. wants a spot to go for progress and security.
However at Growth Investor I’ve been reminding folks for a very long time that the U.S. is the oasis all over the world. Our economic system is rising, and the Federal Reserve continues to take a seat on its palms and permit an easy financial coverage that helps companies proceed to develop. Gradual and regular is profitable the race proper now.
And small shares are a technique to leverage that progress. The seven shares below $5 to take an opportunity on beneath are from a wide range of industries however all have “A” rankings from my Portfolio Grader.
Be aware that given their measurement and the volatility of the market now, some could have popped barely above $5, however they’re nonetheless price your curiosity. And bear in mind, don’t put all of your cash on one horse; these are small firms that can lead the market up and lead it down as nicely.
Shares to Purchase: Orion Power Techniques (OESX)
Orion Power Techniques (NASDAQ:OESX) has discovered a distinct segment that’s now increasing quickly.
What do I imply by quickly? The inventory is up 420% previously yr and almost 60% year-to-date.
It’s in what looks like a fairly boring house, to be sincere, constructing and retrofitting lighting programs. However take into consideration the demand for vitality environment friendly lighting programs not solely in shops however in warehouses and places of work.
It has a $154 million market capitalization at the moment and continues to win sizable contracts. These programs are yet another method firms can shave working prices off their companies and in some circumstances even get some inexperienced tax breaks. And with low rates of interest, it is a nice time to improve.
The inventory has damaged via $5 and continues to rise, so it might be sensible to ascertain a place after which purchase extra on dips.
Spar Group (SGRP)
Spar Group (NASDAQ:SGRP) is a world firm that does one thing few of us ever take into consideration as a enterprise however impacts our lives daily.
It focuses on merchandising options. Or extra merely put, it designs the shelving and shows that go in main retailers’ shops.
If in case you have ever gone via a retailer that’s going via a reorganization of its house — like a grocery retailer or a drug retailer — you get the thought.
Two huge developments are a play right here that lean to SGRP’s benefit. Older shops are being redesigned to assist customers entry the shops higher. And different shops are being revamped as business consolidation expands.
For instance, Walgreens (NASDAQ:WBA) bought almost 2,000 Ceremony Assist (NYSE:RAD) shops. All of them should be transformed into Walgreens areas. SGRP does that form of work. It has over 25,000 worldwide shoppers and does over 20,000 resets yearly.
It has a $25 million market cap and is up over 90% previously yr. And it’s nonetheless sufficiently small that establishments aren’t concerned but, however already it’s an “A”-rated “robust purchase” in my stock-picking system.
Envela (NYSEMKT:ELA) has been round since 1965 and labels itself as a “recommerce” firm.
Basically, it operates gold and jewellery shops in addition to web sites that promote jewellery, watches and even bullion. The opposite facet of its enterprise is re-selling older pc elements to creating markets in want of IT tools. On this capability, ELA acquires the tools, wipes the info and secures contracts for repurchases.
Clearly, the IT facet of the enterprise is a more moderen addition. However each are very stable companies. And with collectibles in addition to valuable metals being extremely popular proper now, it is a nice house to be in.
ELA inventory is up almost 420% previously 12 months, almost 70% year-to-date. And it’s nonetheless buying and selling at a price-to-earnings ratio beneath 25. It has a $63 million market cap, so an excellent economic system can be good for Envela inventory.
B2Gold (NYSEMKT:BTG) is on the opposite finish of valuable metals enterprise — it’s a Canada-based gold mining firm with mines in Namibia, Nicaragua, Mali and the Philippines.
With a market cap of $4.three billion, it’s one of many largest firms on this record.
Usually, the sample with gold miners is their efficiency is leveraged to the worth of bodily gold. When gold is trending decrease, miners’ efficiency is leveraged decrease. When gold is rallying, miners’ efficiency is leveraged to the upside.
Over the previous yr, we’ve seen gold costs rise, and with the coronavirus-driven volatility within the markets, that ought to proceed.
BTG inventory is up 40% previously yr, and that form of upside ought to proceed at the very least via 2020.
Plug Energy (PLUG)
Plug Energy (NASDAQ:PLUG) is a type of renewable vitality firms that has been in a position to survive the dot-com bubble and each different market obstacle that has been thrown at it since 1997.
But it’s not within the photo voltaic or wind enterprise. It’s within the hydrogen gasoline cell enterprise. Even right now, this looks like a fairly futuristic idea. And the truth that hydrogen automobiles could by no means have their very own Elon Musk doesn’t imply that hydrogen gasoline cells aren’t an enormous deal.
As a matter of truth, they’re already in use in forklifts and different warehousing and shipyard tools. They’re used as batteries and vitality storage in electrical autos. And they’re additionally in large use as back-up turbines. Their potential makes use of vary from aerospace to robotics.
And PLUG can be the largest hydrogen fueling provider within the enterprise.
A latest article in Forbes notes that 50% of all provide chain transport prices come within the final mile of supply. Hydrogen-powered supply autos can be nice for firms and customers.
Merely put, what was a tech fantasy is now a actuality and PLUG has endured to be a frontrunner within the subject. That’s the form of firm I goal in my Growth Investor suggestions. The inventory is up 210% previously 12 months and has robust momentum. And its $1.2 billion market cap means it has a stable basis behind it.
Veru (NASDAQ:VERU) is a biotech that focuses on drug remedies for prostate points, together with prostate most cancers. Presently it has one drug going via the approval course of for benign prostatic hyperplasia (BPH) and erectile dysfunction. The drug, Tadfin, ought to hit the market within the second half of 2020.
It has 4 different medicine in superior drug trials, with its most promising drug being VERU-111 for metastatic prostate most cancers. It continues to progress via trials.
The corporate’s earnings have been stable and it appears to be like nicely positioned to ascertain itself available in the market as its medicine come on-line.
Prostate most cancers and different prostate points are a part of the ageing course of in males, so these medicine may have a rising viewers as many countries all over the world see a graying inhabitants with persistent points equivalent to these.
The inventory is up 190% previously yr and 103% previously quarter.
FlexShopper (NASDAQ:FPAY) is an internet rent-to-own enterprise that may be a new twist on the standard rent-to-own companies on the market. It doesn’t should take care of brick-and-mortar shops.
All the pieces is on-line. You obtain the app. You apply for credit score — as much as $2,500 on the spot credit score ($113 per week). Then you definately choose what you wish to hire, and it ships to you. Your cost is then deducted weekly out of your checking account.
And on the finish of the yr, you personal that merchandise.
Given the corporate is creating wealth on the price of the merchandise and the financing with out having to take care of any overhead, the margins are fairly tempting. Profitability is a significant component I search at Growth Investor.
It additionally continues so as to add merchandise, like tires. Presently the corporate is aggressively rising its market however the idea is sound and the rise of digital banking and e-commerce make this an ideal thought for those that have poor credit score or lack the disposable earnings to purchase big-ticket gadgets without delay.
The inventory is up 260% previously yr, and 73% previously quarter. Its present market cap is about $50 million, so it has loads of headroom in an excellent economic system the place the buyer is assured.
Talking of e-commerce, it is a time of phenomenal progress for web and software program firms. Going ahead, a lot of that progress might be pushed by an earth-shaking technological advance that’s gearing up now.
The ‘Mom of All Applied sciences’: Synthetic Intelligence
If synthetic intelligence sounds futuristic, even far-fetched — nicely, take into account, you’re already utilizing it daily. In case you’ve ever used Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Assistant or Apple’s (NASDAQ:AAPL) Siri … should you’ve had Netflix (NASDAQ:NFLX) advocate a film or Zillow (NASDAQ:Z) advocate a home … even an e-mail spam filter … then you definitely’ve used synthetic intelligence.
On this new world of AI in all places, information turns into a scorching commodity.
As scientists discover much more functions for synthetic intelligence — from hospitals to retail to self-driving automobiles — it’s unimaginable to think about how a lot information might be concerned.
To create AI applications within the first place, tech firms should accumulate huge quantities of knowledge on human selections. Knowledge is what powers each AI system. As one AI researcher from the College of South Florida places it, “information is the brand new oil.”
To money in, you’ll need the corporate that makes the “mind” that each one AI software program must operate, spot patterns and interpret information.
It’s referred to as the “Volta Chip” — and it’s what makes the AI revolution possible.
You don’t must be an AI skilled to participate. I’ll tell you everything you need to know, in addition to my purchase suggestion, in my special report for Growth Investor, The A.I. Master Key. The inventory remains to be below my purchase restrict value — so that you’ll wish to join now. That method, you may get in when you can nonetheless achieve this cheaply.
Louis Navellier had an unconventional begin, as a grad scholar who by accident constructed a market-beating inventory system — with returns rivaling even Warren Buffett. In his newest feat, Louis found the “Grasp Key” to taking advantage of the biggest tech revolution of this (or any) generation. Louis Navellier could maintain among the aforementioned securities in a number of of his newsletters.