Heard Lululemon is evil why
Since 1926, about half of all profits in the US stock market have been made from just 86 stocks. This is what a group from the W. P. Carey School of Business at Arizona State University found. You wanted to study stock market returns.
This statistic is really staggering. It suggests that one can get rich by choosing individual stocks over index funds. Provided, of course, that you find and buy these rare specimens.
Stock picking is more of an art than a science, so there is no magic formula. However, successful companies often share characteristics that provide information. Here are two factors to look out for when buying a stock: high employee ratings (in this case, from the Glassdoor website with their anonymous employee ratings). Also, whether you have beaten the market in the past.
The five companies in this article have both. So I think they could be one of the relatively few stocks that can actually make you rich.
- 2021 Glassdoor ranking: second
- Five Year Stock Return: 2,000%
The high-performance computing company NVIDIA (NASDAQ: NASA) seems to be doing everything right. The employees really enjoy working there and appreciate CEO Jensen Huang. And happy employees often perform better, which leads to corporate success. Nothing is certain, but there is a certain correlation. That could partly explain why this company beat the market.
Just think of the global trends. The pandemic has pushed remote work and streaming like never before. This meant that data center companies had to increase their performance. Then there are video games, which are increasingly moving into the mainstream. According to the NPD Group, video game sales reached an all-time high in 2020. Finally, there are even more speculative trends such as the increasing acceptance of cryptocurrencies and the promise of autonomous driving. NVIDIA's products address all of these trends.
When I think about it and look five years into the future, I expect NVIDIA's products to be even more in demand than they are today. So I bet NVIDIA will continue to deliver for shareholders thanks to its strong corporate culture and success in the stock market.
- 2021 Glassdoor ranking: Not represented
- Five Year Stock Return: 1.100%
The cloud-based software company AppFolio (NASDAQ: GLS) fell from Glassdoor's Top 100 list in 2021, after ranking 45th in 2020. Nevertheless, the marks for the corporate culture remain good. The company proved resilient during the impact of the coronavirus on the economy. In the first three quarters of 2020, sales increased by 26% compared to the previous year. Additionally, the company went debt free through the sale of subsidiary MyCase for $ 193 million in 2020. This also strengthened the balance sheet.
About 90% of AppFolio's sales came from real estate customers. But thanks to the sale of MyCase, the company doubled its footprint in this industry that is about to reorganize. AppFolio helps landlords manage their properties. And because of the pandemic, digital leases and tenant screening have seen a boom. While the pandemic may have accelerated these changes, the gains are set to persist.
In the third quarter of 2020, AppFolio had over 15,000 real estate customers, an increase of 9% compared to the previous year. That's good growth, but more is possible. Fortune Business Insights estimates that the real estate management software market will be worth $ 23.6 billion by 2026. That means that AppFolio still has a lot of room for improvement.
- 2021 Glassdoor ranking: eighth
- Five-year stock return: 450%
At Lululemon Athletica It's about more than just yoga pants. Last June, the company spent $ 500 million to acquire MIRROR.
MIRROR did not hit the market until the end of 2018, but at the time of the acquisition was already on the way to generating 100 million USD in sales for the full year 2020. And since it was acquired by Lululemon, the company's growth has skyrocketed: Management expects MIRROR to generate sales of USD 150 million for 2020 as a whole.
This illustrates why this was such a smart acquisition from Lululemon. The two companies are complementary and can support each other. Not to mention, every sale of MIRROR hardware comes with a subscription. This should help Lululemon to increase profits in the long term.
In addition to the benefits of taking over MIRROR, there are other growth initiatives for Lululemon, such as international expansion. And that is by far not all that there is positive to report here.
- 2021 Glassdoor ranking: 28
- Five-year stock return: 280%
Mastercard (NASDAQ: CCN: A0F602) is a great way to invest in the global move away from cash. But one of the reasons why I particularly like Mastercard is its strong international presence. In the fourth quarter of 2020, nearly 70% of the company's gross dollar volume (the cash that flows through its network, including wire transfers) came from outside of the United States.
Many international markets are still at the very beginning of the transition to e-commerce and digital transactions. And while consumers are making the switch, Mastercard has a high recognition value in these markets. This gives the company a competitive advantage. That's one reason I'm eagerly awaiting the company's future.
As the growth story unfolds, Mastercard shareholders are rewarded by management. Although sales declined in 2020 due to the pandemic, the company still paid out $ 6.1 billion to shareholders through share buybacks and dividends. The longer you hold the stock, the more rewarding it can be.
- 2021 Glassdoor ranking: 43rd
- Five Year Stock Return: Not Applicable
Finally, we also have the feedback platform SVMK (NASDAQ: CCN), also known as SurveyMonkey. There is a lot of potential here. The company only went public in September 2018 and has beaten the market until recently. But the 2021 projections failed to impress Wall Street and the stock fell more than 20%. I think SurveyMonkey might be a pleasant surprise though.
SurveyMonkey's mission is to make sure all voices are heard. And the best confirmation of how effectively the company is doing this are its excellent Glassdoor ratings: Management apparently listens to its own workforce. But the business results alone underscore the company's relevance: In 2020, revenue grew 22% year-on-year to over $ 375 million and generated free cash flow of $ 45 million.
In 2021, SurveyMonkey expects revenue to be between $ 436 million and $ 443 million, up 16% to 18% year over year. But that's a slowdown from 2020 and why the stock has fallen.
This is where things get interesting for me: The company's sales to corporate customers are growing much faster than total sales (plus 65% in 2020). In the long term, overall growth could accelerate again if corporate business overtakes self-service. That's not far-fetched: More companies are realizing the need to make data-driven decisions, and SurveyMonkey software can provide the insights they need.
This is far from a sure thing. But SurveyMonkey stock is cheap at just eight times the sales. Anyone who buys today gets a stock with good free cash flow and the chance to get in before corporate business makes up a larger portion of sales.
As always, keep in mind that these stocks are unlikely to make you rich overnight. But stocks that beat the market can add wealth over the long term. But nobody always makes the perfect stock pick. So building a diversified stock portfolio is a good idea - and NVIDIA, AppFolio, Lululemon, Mastercard, and SurveyMonkey all deserve consideration.
The post 5 Stocks That Could Make You Rich appeared first on The Motley Fool Germany.
Our top share for 2021
There's one company whose name is very, very popular with analysts at The Motley Fool right now. For us it is THE top investment for 2021.
You could benefit from it too. To do this, you first have to know everything about this unique company. That is why we have now put together a free special report that presents this company in detail.
Click here to download this report now for free.
The Motley Fool owns shares of and recommends AppFolio, Mastercard, and NVIDIA, and recommends Lululemon Athletica. Jon Quast does not have any of the specified Shares.This article appeared on February 21, 2021 on Fool.com and has been translated for our German readers.
Motley Fool Germany 2021
- What is your rating of Hindu monotheism
- How do I survive a wolf attack
- Headlines should end with a period
- Is Sadhguru Jaggi Vasudev sexually towards women
- How wild is your husband
- Will Baerte go out of style at some point?
- How do I rob a house
- How can education end poverty
- Why is a thorough teeth cleaning necessary
- What are the 3 definitions of accounting
- Where can I find hidden apps
- Can you eat pepperoni pizza when pregnant
- Are strong muscles genetically determined
- Are scarves important in women's fashion
- You can get off social media
- Why can't my ex get over me
- Does anyone here like Chinese
- What is factory law
- Why are Indians unhappy?
- What makes IQ tests reliable
- Do you think VIT Vellore is overrated?
- Is it fun to be the only child
- What companies in Canada are hiring inexperienced teenagers
- How to download the Hindu newspaper
- Is diversity good or bad for Europe?
- Why is India called India
- Why do people like Selena Gomez
- Sex legal in which country
- What is the case of the rape in Unnao
- How much does an advertising company earn
- What do the Turks think of the Chinese
- What is spiritual masochism
- Can AVPD be cured