In the current year, the markets have shown that multiple returns can arrive in a matter of weeks. In particular, it has been a year to remember for action in penny stocks. With a few weeks still before the holiday season, there are Christmas stocks to buy that can make for quick profits.
A risky way to trade is to use leverage or overweight speculative stocks.
Reading: Stocks to buy for christmas
However, there is a safer way to seek quick profits: trading fundamentally sound stocks without using leverage. If these stocks tend to rise in the short term, quick gains can be made. in the worst case, investors will have to hold the shares longer than expected.
My focus is on Christmas buy stocks that look poised for a breakout in the coming weeks. i think these stocks can be added to the wallet for christmas and new year spending. At the same time, these holiday stocks are worth holding onto to buy well into 2022.
Let’s talk about the reasons to be optimistic.
- xpeng (nyse:xpev)
- digital marathon (nasdaq:mara)
- target corporation (nyse:tgt)
- carnival corporation (nyse :ccl)
- apple (nasdaq:aapl)
- intel strong> (nasdaq:intc)
- bumble (nasdaq:bmbl)
7 Christmas actions: xpeng (xpev)
xpev shares have seen a bit of a rally in the recent past. however, so far in 2021, the stock is largely sideways. Recently, morgan stanley(nyse:ms) opined that xpev shares are “very likely” to rise in the next 15 days.
For November 2021, xpeng reported delivery of 15,613 vehicles. year over year, deliveries increased by 187%. therefore, the company is on a high growth trajectory, which is likely to continue in 2022.
xpeng will also launch the g9 model in the third quarter of 2022. the key point here is that the off-roader is aimed at international markets. xpeng is likely to enter more European countries in 2022, helping to boost vehicle deliveries.
Another reason to be bullish on xpeng is the sustained expansion in vehicle margin. for the third quarter of 2020, the company vehicle margin was 3.2%. Margin expanded to 13.6% for Q3 2021. With strong delivery growth, margin expansion is likely to be sustained.
Overall, xpeng stands out for its innovation and is among the electric vehicle companies that are positioned to survive and grow. At current levels of $46.45, the stock looks attractive in the short and long term.
digital marathon (mara)
In November 2021, mara shares hit highs of $83. With a sharp correction in bitcoin (ccc:btc-usd), the stock has dropped sharply to $42. It appears that the correction is overdone and mara shares are poised for a strong reversal rally.
marathon digital is likely to have a great 2022. to put things in perspective, marathon reported mining capacity of 2.7 eh/s as of the third quarter of 2021. by mid-2022, the company expects the mining capacity increased to 13.3 eh/s.
The company expects this to translate into revenue of $92.4 million per month. this would imply an annualized revenue potential in excess of $1 billion. Clearly, the best part of growth is yet to come for Marathon Digital.
Another point to keep in mind is that the company is dedicated exclusively to bitcoin mining. however, as capacity increases, marathon will have strong financial flexibility. this will provide scope for organic and acquisition-led growth. it is very likely that the marathon will diversify more in the coming years.
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In the short term, bitcoin is likely to rally after a sharp correction. inflation is still a concern and bitcoin is considered one of the hedges against inflation. with limited supply and wider adoption, rising bitcoin price will benefit the digital marathon.
7 Christmas actions: target company (tgt)
the consumer sector is one of the key engines of us growth. uu. economy. a key part of the consumer sector is retail spending. therefore, tgt stocks are among the best christmas stocks to buy.
Data from the National Retail Federation indicates that 180 million Americans shopped from Thanksgiving through Cyber Monday. Even with the omicron scare, retail spending is likely to remain strong.
shares of tgt touched highs of $269 in November 2021. shares are currently trading at $238. I wouldn’t be surprised if the stock goes up 10-15% in the next few weeks.
It is worth noting that the target corporation has built a strong omnichannel sales network. therefore, even if physical store sales decline relatively due to virus fears, online sales will remain strong.
I also like tgt stock from a valuation perspective. The shares are currently trading at a forward price-to-earnings ratio of 18.8. this is attractive for a stock that offers a dividend yield of 1.47%. In addition, comparable store sales growth has been healthy in recent quarters.
From a medium to long-term perspective, target will invest $4 billion annually for the next several years. this will help drive capabilities across the company’s retail platform. therefore, comparable store sales growth is likely to remain attractive.
carnival corporation (ccl)
ccl shares have tumbled in the recent past due to omicron fears. however, the selling appears to be overdone and a reversal rally is ahead.
A key reason is that initial reports suggest that variants of the coronavirus may be causing milder symptoms than before. this has translated into a renewed rally in travel & tourism stocks. this rally can potentially be sustained well into the holiday season.
It is worth noting that the company noted in its Q3 2021 results that bookings for the second half of 2022 are better than 2019 levels. So if Omicron’s fears subside further, the company is positioned for a strong year ahead.
Another important point to note is that Q3 2021 travel was cash flow positive. this trend is likely to continue in the coming quarters. A key concern for Carnival Corporation is leverage. however, as cruise capacity increases and cash flow increases, the company will be in a position to deleverage.
In general, there is a significant amount of pent-up demand for travel. therefore, ccl shares are attractive not only in the short term, but also for the coming quarters.
7 Christmas actions: apple (aapl)
In another bullish call, Morgan Stanley increased the price target on AAPL stock to $200. the stock has already been trending up, which is likely to continue.
One of the reasons for the bullish momentum is the anticipated events for next year. As Morgan Stanley points out, Apple is working on augmented reality, virtual reality, and autonomous vehicles. potential announcements on these will serve as a catalyst for higher prices.
In addition, Apple is on a high-growth trajectory and the company appears more diversified. in the recent past, the services and portable segments have generated healthy growth. at the same time, the 5g phone is likely to be a growth driver in 2022.
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From a medium to long-term perspective, AAPL shares are also worth holding for dividend investors. Taking into account the growth in operating cash flows, the growth in dividends is likely to continue.
During the last fiscal year, Apple reported an operating cash flow of $104 billion. Healthy cash flows also give the company financial flexibility for opportunistic acquisitions to drive the innovation pipeline. Overall, AAPL shares are poised for a further rally and are among the top Christmas stocks to buy.
intelligence (intc)
intc stocks are probably among the most undervalued names in technology stocks. at a forward p/e of 14.29, the stock is a value buy.
However, that’s not the only reason to consider the stock among the best stocks to buy before Christmas. Recently, it was reported that Intel plans to list its Mobileye self-driving unit.
It is believed that the unit is likely to have a valuation of more than $50 billion. With this news, intc shares have witnessed a breakout, which could continue in the coming weeks.
It’s also worth noting that in September 2021, Intel broke ground on two new factories in Arizona. Intel expects to invest $20 billion in these two factories amid global chip shortages.
In addition, by 2022, Intel expects to invest between 25 and 28 billion dollars. With strong cash flows, the company is positioned for organic growth through product innovation. the company already has a line of innovation including “next generation discrete gaming gpu” and asic based ipu among others.
the key point here is that the worst could be over for intc shares. With the potential listing and growth plans, the stock is very likely to trend up in 2022.
7 Christmas actions: bumble (bmbl)
In another brokerage update, jp morgan (nyse:jpm) believes bmbl shares have a $55 price target. this would imply a 46% upside potential from current levels of $37.
an important point to note is that bmbl shares have been trending down since the initial public offering. the stock remains significantly lower compared to all-time highs of $85. the recent update is likely to lock in a near-term rally.
As of Q3 2021, bumble reported total paying users of 2.9 million. during the same period, the average revenue per paying user was $22.97. although the ebitda margin decreased, it was due to investment in product development and marketing. as arpu continues to improve, bumble is positioned to deliver healthy long-term margins.
another point to note is that bumble is gradually expanding to latin america, south east asia and india. there is a large addressable market in these regions. this will guarantee a sustained growth of active users.
Overall bmbl shares look attractive for some quick gains from current levels. if the initial outlook for 2022 is bright, the rally may extend.
At the date of publication, faisal humayun did not have (either directly or indirectly) any position in any of the securities mentioned in this article. Opinions expressed in this article are those of the writer, subject to investorplace.com’s posting guidelines.
faisal humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research, and financial modeling. faisal is the author of more than 1,500 stock-specific articles focused on the technology, energy, and commodity sectors.
