In the long run, the stock market has proven time and time again that it is certainly a money maker. Despite a 38-digit drop from the early 1950s, the benchmark S&P 500: eventually erased each of these declines. Moreover, the index has averaged 11% annual revenue (including dividends paid) since 1980. No traditional asset has provided a better long-term return.
But perhaps the best thing about investing your money in the stock market is that you do not need a lot of cash to start or advance your journey to financial freedom. Since most brokerage firms have waived the minimum deposit requirements and commercial commissions, no amount is too small for your money to work for you, even $ 50.
All I can say is that these are the three smartest stocks you can buy right now for $ 50.
Bank of America
One of the benefits of long-term economic recovery is that you invest your money in bank stocks. The list of potential deals is headed by the giant of the money center Bank of America (NYSE: BAC).
To begin with, it is obvious that the banking sector is cyclical. When inevitable downturns occur, banks often see an increase in loan overdue payments. Conversely, when the economy works on all the cylinders, net interest income on loans tends to grow. It should be noted that periods of economic expansion are significantly longer than the average recession. This means that banks take a few quarters of their weight, but generally enjoy a multi-year expansion of deposit, loan and interest income.
Bank of America makes interest rate sensitivity so interesting compared to other big banks. As the US economy heats up, the country’s central bank will inevitably start raising interest rates. According to BofA, as of the last quarter of June, the parallel movement of the 100 base points of the interest rate yield curve will amount to $ 8 billion in additional net interest income. Since this income is based on existing variable rate loans, it will practically direct everything directly to the company’s main line.
Bank of America is also doing a good job of reducing the image of the banking dinosaur. As of June, 40.5 million people were providing digital banking to BofA. Moreover, 44% of all sales were digitized in the second quarter of 2021, up 15 percentage points from the same period three years ago. This drive of online բանկ mobile banking allows the company to consolidate some of its branches և to reduce its unprofessional costs.
Cake stripping is a heartfelt program of Bank of America return on investment. It currently pays a yield of 2.2%, տնօրեն CEO Brian Moynihan has expressed a willingness to buy a majority stake in the company when allowed to do so by the country’s central bank. As the US economy recovers, Bank of America stocks will make progress.
Kirkland Lake Gold:
Another very smart buyer that investors can buy for $ 50 is the Gold Fund Kirkland Lake Gold: (NYSE: KL). While gold reserves are usually not high on investors’ shopping lists, there are macro-specific catalysts that make Kirkland Lake a crazy deal in its current valuation.
No discussion about Lake Kirkland can begin without the many tails designed for physical gold. Historically low lending rates make gold a very attractive investment opportunity compared to bonds and bank CDs. Meanwhile, as inflation rises, gold becomes a fascinating storehouse of years of value. It does not hurt that the recovery of the US economy should lead to greater demand for physical gold. Suffice it to say that a solid case can be made for gold at $ 2 ounces or more.
But recognizing the high price of gold is just one reason to like Kirkland Lake Gold. The second reason for these mining resources (sorry) is the exemplary recording of its production և costs. In the second quarter, Kirkland Lake produced nearly 379,200 ounces of gold (a new record for the quarter), with two of its three manufacturing assets recording double-digit percentage growth. It is also driven by a total value of $ 790 / ounce. up to $ 810 / ounce. Throughout the year 2021. At this point, we are talking about $ 1000 per ounce in the operating margin.
Both BofA and Kirkland Lake Gold’s management team are great at giving back. It recently completed a 20 million share repurchase program and introduced a new 5 million share repurchase program in June. The company’s share also tripled last year, with a return of close to 2%.
However, Kirkland Lake Gold’s biggest highlight may be its unchanged balance. The company closed June with $ 855 million in debt-free cash, giving it the best balance sheet of all gold stocks. This is a mining company that will add shine to your portfolio.
The third smart stock that can be bought for $ 50 is the cyber security company Ping identity (NYSE: PING). As you can guess by name, Ping specializes in authentication solutions.
Cyber security is one of the most meaningless investment opportunities of the decade. Data protection of consumers և enterprises, as enterprises have moved to the online cloud, is not mandatory. This is a fundamental need in today’s world, especially since hackers and robots are not going to take a vacation just because Wall Street may have a bad day. This ability to protect enterprise և consumer data is increasingly being embraced by third-party cloud security providers, such as Ping Identity.
The Ping Intelligent Identity Platform aims to integrate heritage protection with its cloud-based artificial intelligence (AI) platform. AI is used by cybersecurity companies to make their software more effective in detecting and responding to potential threats over time. Instead of working with the basics, Ping Cloud Services constantly monitors users, allowing them access to protected data.
Ping Identity is also on a multi-year shift. While this transformation will take time, we are seeing a fairly steady increase in the annual recurring income (ARR) of around 15%. As subscription revenue is recognized during the subscription, it will take several years for the sales growth rate to reach ARR growth. It is an opportunity for investors to make a deal before other investors catch the wind of this value.
Ping is already profitable on a regular basis և it can be broken down by seven times a very reasonable multiplication of sales expected in 2021.
This article presents the opinion of a writer who may disagree with the position of the “official” offer of Motley Fool Premium Consulting. We are motley! Investigating an investment thesis, even our own, helps all of us think critically about investing, making decisions that will help us become smarter, happier, and richer.