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3 best stocks to buy in December

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IInvestors have faced record volatility and an overload of potential market catalysts to consider this year. 2020 has also presented opportunities to build positions in stocks that have generated incredible returns and look poised for more big gains. The major indices have passed through the uncertainty and reached new highs, but it’s not too late to add some fantastic companies that can fuel your portfolio and shape your financial future.

Read on to discover three stocks worth buying before the end of the year.

Image source: Getty Images.

1. Correspondence group

No matter what you might think of online dating, there is a lot to love Match group (NASDAQ: MTCH) Stock. The company operates a portfolio of leading dating apps, including Tinder, Hinge, Plenty of Fish, Match and OkCupid, and is positioned as the clear industry leader in territories such as the United States, Canada. and Europe. In fact, the company estimates that 60% of relationships started on an online platform in the United States in the past 12 months started on one of its platforms.

Tinder generated more revenue than any other non-gaming app in the past 12 months ending September 30, according to the tracker AppAnnie. Tinder was also the most downloaded dating app in the world. The company’s best app delivers eye-catching performance, and its overall app ecosystem has never been stronger.

With online dating poised to experience strong growth and expanding monetization opportunities in the decades to come, Match is poised to become one of the biggest winners in the business. Even with coronavirus-related conditions making dating more complicated, the company is still seeing impressive results. The company released its third quarter results in early November, posting 18% year-over-year sales growth and a 14% increase in operating profit.

With the potential of effective coronavirus vaccines to pave the way for a return to normalcy in 2021, Match could see its sales and profit growth accelerate significantly next year and beyond. It is a growth stock that offers attractive upside potential and attractive risk-return dynamics.

2. Zynga

The video game industry has become a destination of choice for investors seeking equities with attractive risk-return dynamics. crush stock market gains and limit downside risk.

Zynga (NASDAQ: ZNGA) is a leader in the mobile video game space, and it’s standing out as one of the industry’s most compelling stocks to buy this month. The company is known for its gaming franchises, including Zynga Poker, Words with friends, and Farmville, and it’s also been on a push for acquisitions that has brought game development studios such as Small Giant, Gram, Peak, and Rollic into its corporate fold. With strong performances for major franchises and an assortment of development teams stronger than ever, Zynga’s future hasn’t looked so bright in about a decade. Investors have the opportunity to build a position in the stock at prices that leave room for huge long-term gains.

Zynga has a market cap of around $ 9.5 billion and is trading at around 23.5 times expected earnings this year. The company has a strong balance sheet (with around $ 580 million in cash and short-term investments following its $ 180 million acquisition of Rollic), so it has plenty of resources to fund content updates for them. existing titles, develop new games and acquire new studios. which can accelerate growth.

There’s a good chance the company can continue to perform well with its current set of core franchises and launch new properties, and I expect the stock to become a big winner for shareholders in the long run. term.

3. Hanesbrand

Socks and underwear are notorious for causing moans when given as a holiday gift, but Hanesbrands’ stock has the potential to bring joy during the holiday season and beyond. Granted, the socks and underwear business looks pretty lackluster at a time when high-growth cloud software stocks are the darlings of the market, but the company’s Champion apparel brand is showing strong performance and remains a driving force behind. underrated performance, and stocks appear to be valued at low prices. .

The stock stands out as an attractive buy because it offers both defensive potential and the potential to generate overwhelming returns for the market. Major indexes are now trading at record highs, while Hanesbrands stock has lost around 6% year-to-date despite noticeable resistance in this year’s unprecedented conditions.

Sales and earnings in the third quarter actually far exceeded market targets, but management opted for weaker performance in the fourth quarter and indicated they may shift support for some of their underperforming brands. The market has overreacted to forecasts and investors have the opportunity to buy stocks at an attractive price.

Hanesbrands is now valued at less than three-quarters of this year’s expected sales and is trading at around 10 times this year’s expected earnings. The stock also pays a dividend of around 4.3% and the company appears to be in a good position to hold its payout even as management considers moving away from some aging brands. With its depressed valuation, high dividend yield, and large rebound potential, Hanesbrands is a overlooked stock that could elevate your portfolio.

10 actions we prefer over Match Group
When investment geniuses David and Tom Gardner have stock advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *

David and Tom have just revealed what they believe to be the ten best stocks for investors to buy now … and Match Group was not one of them! That’s right – they think these 10 stocks are even better buys.

See the 10 actions

* The portfolio advisor returns on November 20, 2020

Keith noonan owns shares of Hanesbrands, Match Group and Zynga. The Motley Fool owns stock and recommends Match Group and Zynga. The Motley Fool recommends the Nasdaq. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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