The recent economic recovery from the COVID-19 pandemic sent retail investors into a frenzy, leaving many tech stocks artificially overvalued and eventually triggering a significant correction in the major indexes. In the span of less than a week, the Nasdaq Composite declined 11% from its all-time high Sept. 2…
When volatility hits the markets, it’s best to buy stocks that give investors the confidence to hold and endure short-term pitfalls. Today, let’s take a look at three such stocks that fit in this category, and why you should invest $1,000 into any one of them.
In the near term, the U.S. Food and Drug Administration (FDA) will soon be ruling on whether to approve Biogen‘s (NASDAQ:BIIB) aducanumab, a potential first-line therapy to reduce cognitive decline in patients with Alzheimer’s disease. By the end of 2021, the company will also see the results of seven phase 2/3 clinical trials for various drugs in treating dementia, ALS, lupus, retinal disorders, and stroke.
Even beyond near-term catalysts, Biogen’s core portfolio of drugs is also performing well. In the second quarter of 2020, the company grew its revenue by 2% year over year to $3.68 billion, led by the strength in its multiple sclerosis and neuromuscular treatments. Meanwhile, Biogen’s earnings grew 12% annually, to $10.26 per share.
The company’s market cap stands at $42.7 billion, even though management projects $14 billion in revenue this year and $35 in earnings per share. In other words, the company is trading for as little as 3 times price-to-sales and 8 times price-to-earnings going forward. This cheap biotech stock is one that value investors will not want to miss. Shares are up about 15% over last September’s price.
2. Sea Limited
Sea Limited (NYSE:SE) is quickly becoming one of the world’s premier holding companies. The company specializes in gaming services, e-commerce, and digital finance. There are currently over 500 million players utilizing Sea Limited’s gaming platform, Garena, up 61% over last year.
That’s not all; the company’s online shopping business, Shopee, is gaining rapid traction in countries including Taiwan, Malaysia, and the Philippines. During the entirety of Q2 2020, Shopee saw $615.9 million worth of gross orders on its platform, an increase of 150% over Q2 2019.
Finally, Sea Limited’s payment processing solution, SeaMoney, has also been on a tear this year, with $1.6 billion worth of payments processed during the quarter ended June 30. That is a 60% increase over the payment volume in Q1 2020 alone.
Overall, Sea Limited’s revenue increased by…
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