Shopify (SHOP), Etsy (ETSY), 10X Genomics (TXG), Square (SQ), and Pinterest (PINS) saw shares soar last year amid the coronavirus pandemic. These five winning stocks from 2020 are near a buy point again as the market rebounds.
Stocks From 2020 To Watch Again
One way to find the best stocks is to look at their IBD Composite Ratings. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity and relative price performance.
Pinterest stock has a best possible 99 rating, while Square has a 98 rating and Etsy has a 95 rating. Shopify stock has an 82 rating but 10X Genomics has a weaker 50 rating.
Investors generally should focus on stocks with a Composite Rating of 90 or higher. But the rating is only a single metric and investors should take others into consideration when deciding to buy or sell stocks.
Pinterest is a social media site that allows users to browse and share images and videos. The site is used to inspire wedding or household aesthetics or build recipe collections. Pinterest became popular during Covid-19 as users spent more time at home. At the end of the fourth quarter, Pinterest had 459 million monthly active users, up 37% year-over-year. Pinterest is highly dependent on advertising, which took a hit during the pandemic, but earnings are surging as the site expands e-commerce growth.
Pinterest edged down 0.5% to 85.53 in Friday’s stock market trading. But PINS stock jumped 10% for the week after the prior week’s 12.5% spike, moving toward a 90 buy point in its cup base. Pinterest stock offered an early entry on April 1 as it broke a downtrend and reclaimed its 50-day line.
The e-commerce platform provider helps businesses to set up shop online. Over 1.75 million merchants use the platform to help reach customers. Shopify makes money through a subscription service that ranges from $29 up to $2,000 and up for large companies.
On Thursday, SHOP stock reclaimed its 50-day line as it rebounded from its 21-day line, according to MarketSmith chart analysis. Along with breaking a downtrend, that triggered an aggressive entry.
Shopify stock edged up 0.3% on Friday to 1,227.30. It popped 6.2% for the week. SHOP stock is building the right side of a cup base with a 1,499.85 buy point.
Q1 results are due April 28. Analysts see Shopify earnings soaring nearly 300% to 75 cents with revenue up 79% to $838.35 million.
Square offers multiple services for merchants and consumers. The company makes credit-card readers that plug into mobile devices for merchants and its Square Capital division provides loans to sellers. Its Cash App allows users to send each other money virtually. The app has a stock trading feature and allows users to buy and sell the digital cryptocurrency Bitcoin.
Square stock rose 1.3% to 261.65 on Friday, capping a 14% weekly surge. Shares reclaimed their 50-day line on Wednesday. SQ stock on Thursday topped another early entry at 252.60. Square stock’s official buy point is 283.29. But after running up for eight straight sessions, a modest pullback wouldn’t be surprising. A handle would make the SQ stock chart more attractive, while offering a lower official buy point.
Square is the top-ranked stock in IBD’s Finance-Credit Card/ Payment Processor group. The company will announce Q1 results on May 6.
Etsy is an online marketplace where small vendors of arts and crafts and other items can sell their wares. The site’s sellers were among the first to start selling nonsurgical face masks at the start of the pandemic.
“In March, when the offline world largely shut down, demand for essentials on Etsy exploded,” said CEO Josh Silverman, in his comments to analysts after the Etsy fourth-quarter earnings report.
Etsy stock rose 1.5% on Friday to 218.57, for a 5.8% weekly gain. On Thursday, Etsy was the S&P 500’s top performer as it reclaimed its 50-day average and broke a downtrend, two positive signs for investors to start a position in the stock. Etsy’s official buy point is 251.96, but investors can also look at 231.44 as another early entry.
10X Genomics Stock
The genetic testing company sells machines that read cells within a tissue sample. Scientists use 10x Genomics’ technology to research treatments for cystic fibrosis, Alzheimer’s disease and a number of cancers.
10x Genomics went public in September at 39 per share. TXG stock rose 2.3% to 194.64 on Friday, up 4.8% for the week.
10X Genomics is consolidating into a cup base with a 201.80 entry point. It could still yet form a handle.
The company is set to report Q1 earnings on May 5. Analysts see a loss of 25 cents per share but revenue is seen rising 43% to $102.75 million.
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