Looking for returns that are less likely to be marred by market conditions? These stocks may just do the work for you. On Feb. 23, Jerome Powell, Chairman of the Federal Reserve, reemphasized the central bank’s commitment to the current loose monetary policy. He noted that inflation and employment levels are still far below their targets, and interest rates should remain low.
Despite this, concerns about increasing inflation and the subsequent dive of the high-flying stock market have left many investors baffled. These are just a few reasons why it’s imperative for investors to pick fundamentally strong stocks that can withstand any market condition or economic swing.
1. Cresco Labs
Shares of Chicago-based pure-play cannabis company Cresco Labs have jumped by over 215% in the past 12 months and by 49% so far this year — and for good reason.
Many short-term and long-term tailwinds make this company an attractive investment idea. Chances of federal legalization (or at least decriminalization) of marijuana are looking brighter, considering that Democrats control both Congress and the White House. In a legalization scenario, Cresco Labs would have far easier access to financial services from the traditional banking system. Although shares are currently available over the counter in the U.S., Cresco Labs may also start trading on major U.S. exchanges, and increased liquidity could push share prices up even further.
2. Fiverr
The freelancer ecosystem has rapidly evolved in response to COVID-19-related disruptions. Businesses opting for remote work and talent looking for at-home work opportunities have together infused momentum in the gig economy. Freelancer marketplace Fiverr stands a solid chance of capturing a significant share of the online U.S. freelancer marketplace opportunity, which is currently estimated to be worth $115 billion. This is also a very sustainable opportunity, considering that the various digital transformation initiatives and a significant portion of our remote-work reality will persist even after the pandemic.
In fiscal 2020, Fiverr reported 3.4 million active buyers — buyers who used Fiverr’s services — purchasing freelancer services on its platform, which is a steep 45% year-over-year jump. In addition to robust new buyer addition, the company is also witnessing significant buyer retention, with existing buyers purchasing more frequently and purchasing higher-cost services on the platform. In fiscal 2020, Fiverr saw spend per buyer spike by 20.6% year over year to $205.
