Dow Jones futures, S&P 500 futures, and Nasdaq futures all dropped marginally on Wednesday. Big Tech and small caps performed well, leading the stock market to rally modestly. The stock prices of NVDIA NVDA and Ford rose while Tesla lagged behind. Meme stocks aided in boosting Dow futures. GameStop GME and AMC are also performing well
With the markets being so volatile and retail investors regaining power from the big boys, investors are finding it difficult to profit from the stock market. At this point, the stocks listed below appear to be showing all of the signs of a promising future.
Tesla (NASDAQ NDAQ : TSLA) was established in 2003 and is headquartered in Palo Alto, California. Elon Musk’s goal is to transition people from non-renewable resources to renewable resources by guiding consumers to e-mobility. It is a vertically sustainable energy company that also produces electric vehicles.
Although the company has performed beyond expectations, it is currently under fire. The firm’s revenues in the first quarter increased compared to the same quarter in the previous year, but fell later on.
Tesla explained that the dip was due to a decline in the average selling price of its products. The company also earned most of its profits from regulatory credits rather than its core business of selling cars. Tesla’s reputation was also harmed as a result of the infamous car crash, which raised concerns about the safety of the company’s self-driving cars. In China, the company is facing increased rivalry from local firms, which resulted in a drop in vehicle sales in April.
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Elon Musk has proved multiple times in the past that Tesla can move past such hurdles successfully. The company is still working on new ways to solve problems for customers all over the world. Tesla is still working to expand its manufacturing units, improve its battery range and add FSD features. Owing to operational issues, the price of Tesla’s stock has fallen recently. As a result, the price to sales ratio has improved to 18 and has pushed its price to a more appealing level.
Beyond Meat (NASDAQ: BYND), headquartered in Segundo, California, is a seller of plant-based meats such as chicken, sausage, and beef, as a meat substitute. It caters to both vegetarian and non-vegetarian customers, and the items are sold in supermarket meat sections.
The company has a long way to grow; as it needs to prove that its products can compete with traditional meat products and to try to change consumer habits, by convincing consumers to convert to its products. Revenue only increased by 11% YOY in Q1 2021, as the company still has a long way to prove that its plant-based meat substitutes are sustainable and viable in the long term, and not just a fad. The company still needs to prove that its plant-based meat substitutes are sustainable and viable in the long term.
Last year, retail sales in the United States increased to $264 million, while food service income fell 14% to $60 million. Deals with franchises such as Pepsi, McDonalds MCD , KFC, Taco Bell, and Pizza Hut can boost profits even further. As more restaurants and stores start offering the firm’s vegetarian items, sales are anticipated to rise to $298 million in 2021.
Virgin Galactic Holdings Inc SPCE . (NASDAQ: SPCE) is a vertically integrated aerospace firm located in the United States. It aims to establish space travel for private citizens and organizations and, at the same time, produce advanced space vehicles and aircraft.
Virgin has not been performing well recently because of flight test delays leading to the recent stock sell-off. The first test, which was initially planned for December 2020, was later postponed to May. As a result, the other two following tests have also been rescheduled to take place later this summer.
However, investors should not be worried about the recent sell off, but rather should take this as an opportunity to buy a solid stock at a lower price. The company is a good investment because the future is space travel and exploration. Amazon AMZN and Tesla, for example, are investing billions of dollars in this cause. The ability of Virgin Galactic to roll out innovative technology and meet timelines would be a compelling reason to purchase this stock. Belief in the potential of space tourism is itself the biggest reason to invest.
The Bottom Line
The stocks mentioned in this article are all good picks, having great potential to grow and increase the wealth of investors. Because of the unique circumstances, or challenges relevant to each company, these stocks are trading at lower prices, providing an opportunity for investors to profit.