Investing Your Stimulus Check? 3 Best Stocks to Buy Now
The second round of stimulus measures will soon be in the hands of many Americans. Direct deposits could be coming into bank accounts starting this week, and checks and debit cards will be mailed out shortly afterwards.
An additional $ 600 helps many people pay bills or top up their emergency funds. These are absolutely the top priorities for your stimulus money. Once you’ve addressed these crucial points, a long-term investment is a great way to capitalize on the money that has been added. If you’re looking to invest your stimulus check, here are three of the best stocks to buy right now.
Probably the most important thing to know Etsy (NASDAQ: ETSY) is this: 88% of shoppers say the online ecommerce website has items that they cannot find anywhere else. The Etsy platform connects 69.6 million active buyers with 3.7 million active sellers in a marketplace for unique handcrafted goods. And these numbers are growing.
Etsy stock is up nearly 300% so far in 2020. This impressive feat was driven in part by the COVID-19 pandemic. Face mask sales increased sales significantly in the second and third quarters. In both quarters, the company also saw an influx of millions of new customers and returning customers who hadn’t made purchases in over a year.
This momentum is unlikely to dissipate after the pandemic ends. Etsy found buyers increased their spend more than 50% year over year in the third quarter, not including face mask purchases. Customers just like the platform and buy more products on it.
Etsy has only just begun to scratch the surface of its full potential. The company estimates it has a 5% share of the retail market for “special” products valued at $ 100 billion. But the pandemic has led management to realize that its actual addressable market is much larger. I am of the opinion that Etsy, with its enormous growth prospects and its laser focus on serving buyers and sellers, should generate enormous returns for investors in the long term.
Like Etsy, Fiverr (NYSE: FVRR) is an e-commerce company. Rather than connecting buyers and sellers of handmade goods, Fiverr connects freelancers and digital services companies.
The stock was sizzling hot in 2020, rising more than 730%. CEO Micha Kaufman said the company is benefiting from “sustained trends in companies that are increasing their investment in digital transformation and increasing their willingness to accept a remote and flexible workforce.”
The company estimates its addressable market to be $ 115 billion. Fiverr expects sales of nearly $ 187 million in 2020, well below 1% of this addressable market.
Capturing more of this market shouldn’t be a problem. The workplace is being transformed into a workplace where teams can work digitally from anywhere. Fiverr is rapidly expanding into new markets and most recently launched its platform in Brazil and Mexico. I think this stock is likely to be a big winner in the long run.
3. Innovative industrial real estate
A real estate investment trust (REIT) may seem boring compared to the excitement generated by Etsy and Fiverr. But Innovative industrial real estate (NYSE: IIPR) is no ordinary REIT.
IIP focuses on the US medical cannabis industry. It provides a valuable service for medical cannabis growers who are struggling to raise capital due to restrictive federal laws. IIP buys these companies’ properties and then leases them back to them. These sale-leaseback transactions give medical cannabis operators the cash they urgently need and give IIP a nice long-term source of income.
The U.S. medical cannabis market is growing like weeds (excuse the pun). Two states voted to legalize medical marijuana in November, bringing the total number of states where medical cannabis is legal to 35. IIP currently owns 66 properties in 17 states. Many of these markets are early stage and continue to see robust growth.
IIP stock rose more than 130% in 2020. I think it could double or double in the New Year as the company adds more medicinal cannabis properties.