During the past year with the pandemic, we have seen some new trends emerge. One trend is employees working from home. Another trend is renewable energy stocks are back in favor. Knowing these trends can help us decide on which stocks to invest in.
Adobe
Adobe Inc (ADBE) is one company that will benefit from the current trend of employees working from home. Almost everyone uses at least some of their products for editing, reading, and creating PDF files. In addition, they also are well-known for their Photoshop software.
Their sales have continually grown the past three years, by an average of 24%. If this rate continues, they could have sales of $21.3 billion by 2023.
Adobe is now working with Microsoft and its cloud services. This gives Adobe access to Microsoft’s 180 million customers. Some analysts believe that the stock price could double in price within the next 2.5 years.
Alibaba
The pandemic also showed us just how popular shopping from home is. Alibaba (BABA) operates out of China and is considered one of the largest e-commerce companies. They have a market cap of $540 billion with revenues similar to that of Amazon.
What makes Alibaba one of the better stocks to invest in is its staggering sales figures. In November 2020, 180 million customers worldwide spent more than $74.1 billion on their sites.
According to Money Morning,” Alibaba is an earnings machine, earning $7.20 per share for 2020, which is a 29% increase over 2019.” They beat earnings forecasts by an amazing 25% in each of the last 4 quarters.
SolarEdge Technologies Inc
SolarEdge Technologies Inc (SEDG) is another company that could take advantage of the renewable energy trend. The new administration has promised to get America carbon-neutral by 2035.
SolarEdge Technologies sells both hardware and software solar installations to commercial and residential customers. The hardware they manufacture and sell are direct current optimized inverter systems.
Without direct current optimized inverter systems, solar installations wouldn’t work. SEDG has also developed a monitoring platform on the cloud that helps manage energy consumption.
This brings in revenue from both the inverter sales and the energy management service after the solar system has been installed.
Constellation Brands Inc
Constellation Brands Inc (STZ) is the beverage company that brings us Corona beer, Modelo beer, Svedka vodka, and Ravenswood wine. Three years ago, they expanded into the growing cannabis market.
Constellation Brands has a $4 billion stake in the Canadian cannabis company Canopy Growth Corp. They are well-positioned to take advantage of the trend of legalizing medicinal and recreational marijuana in the United States and Canada. Look out for them in the future of the cannabis industry.
Buying a pure cannabis company can still be risky. With STZ, you get an established beverage company and a cannabis company that already has $2 billion in profits every year for the past four years. And they pay a dividend, something you cannot get from a start-up cannabis company.
With these four companies, investors can take advantage of the work-at-home, shopping at home, renewable energy, and cannabis legalization trends.
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