[ad_1]
Does the absolute price level of stock prices actually matter? That premise is debated. Some investors argue that rising stock prices reflect the quality of the company. Others say that stock prices are purely arbitrary, like holding a $1 bill for four quarters.
The thing is, regardless of the pros and cons of a large stock price, it’s easier to buy a more meaningful number of shares when the stock price is relatively low. For investors who don’t have large amounts of cash at their disposal, the lower the price, the more shares they can buy.
If you are, let’s take a closer look at three different stocks worth owning that you can buy for less than $20 per share.
1.Rocket Lab USA
Current price: $4.92 per share
You may not be very familiar with it, but rocket lab usa (RKLB -0.81%). However, there is a good chance that you may be benefiting from their services without even knowing it.
As the name suggests, Rocket Lab USA gets things going. The company’s rocket business has launched more than 170 satellites to date, and more than 1,700 satellites use at least one of the company’s satellite technologies. We are also working to support the return of humans to the moon.
This type of work used to be within the purview of government agencies such as NASA and the European Space Agency. But privatized service providers are proving they can do the job at least as well, if not better, than government-run organizations. It can also meet the growing needs for satellite launches resulting from the vast amount of digital information the world is now able to create.
This demand is expected to expand in the near future. Straits Research suggests that the space launch services market will grow at an average annual rate of nearly 16% through 2030, in line with the outlook of Polaris Market Research and Precedence Research.
It’s still not for the faint of heart. Rocket Lab USA is currently unprofitable and is expected to remain in the red through 2025. Unprofitable companies can have unpredictable stock prices.
But look at the bigger picture. Analysts expect sales to rise to $1.8 billion in 2028 from about $257 million last year. This is enough progress to prompt the analyst community to look for a swing towards modest gains in 2026 as well. This stock could be worth whatever volatility it faces. During, and after.
2. Plug Power
Current price: $3.40 per share
Using hydrogen-based fuel cells to generate electricity is not an entirely new idea.fuel cell manufacturers plug power (plug) Strictly speaking, they are not spring chickens. It’s safe to say that neither this technology nor this company has lived up to the initial hype.
Now, hydrogen fuel cell energy is finally making real headway, and Plug Power isn’t far behind.
A game-changer is the increasing affordability and availability of hydrogen itself. The price of hydrogen produced in an environmentally friendly manner has risen throughout 2022, hampered by (among other things) supply chain disruptions caused by the COVID-19 pandemic, but this supply chain disruption has finally subsided. It’s coming. At the same time, things are starting to calm down as the clean hydrogen industry finally gains a firm grasp on cost-effective, large-scale production.
These two related trends also tend to continue moving in their respective directions. PwC predicts that the production price of so-called green hydrogen will halve between now and 2030, while McKinsey estimates that green hydrogen production will increase from virtually zero today to around 400 million tons per year by 2050. It’s supposed to be. . Notably, McKinsey suggests that nearly all new hydrogen production facilities built after 2025 will produce significant “green” renewable hydrogen, realizing one of the clean energy movement’s biggest goals. are doing.
Of course, more and cheaper hydrogen is exactly what companies like Plug Power have been waiting for for a long time. The company’s fuel cells cost-effectively convert hydrogen into usable electricity and are environmentally friendly. The technology can be used to power everything from forklifts to cars to entire buildings, when and on demand, at a cost comparable to traditional mechanical power generation methods. It’s becoming more and more.
Like Rocket Lab USA, Plug Power is not yet profitable and probably won’t be in the near future. However, like Rocket Lab, Plug Power is likely to ride the tailwind out of the red and return to profitability by 2026. The company’s underlying story and its financial trajectory alone could be enough to propel this perennially volatile stock higher. During.
3. SoFi technology
Current price: $7.65 per share
SoFi technology (Sophie -0.39%) is not a very common name. However, please give it time. This online-only bank is rapidly growing with a wide range of traditional banking services including checking, investing, lending, and even insurance.
SoFi Technologies boasted nearly 7 million unique customers at the end of the third quarter, an increase of 47% year-over-year, continuing its uninterrupted growth trend since the beginning of 2020. Last year’s total top line should also be reflected. When the fourth quarter numbers are released, they will be 33% better than the 2022 tally. Revenue is expected to grow another 21% this year.
Analysts expect sales growth this year to help lift earnings to $0.06 a share. As with Plug Power, this isn’t a big deal, but trajectory is the key here. This is also the pace of sales and profit growth that is expected to be sustained until at least 2028. This pace of growth is likely to persist beyond that point.
What gives?
San Francisco-based SoFi is capitalizing on a shift in the way people overall look at the business of banking. According to a report by the American Bankers Association, 48% of U.S. bank customers currently say mobile apps are their preferred method of accessing their accounts online. In fact, 57% of Gen Z and 60% of Millennials indicate that apps are the most commonly used method for handling banking transactions. The younger individuals tend to be, the more ‘digital natives’ they become, so as people grow up and have tech-savvy children of their own, interest in purely online, app-based banks is increasing.
Admittedly, this too is a precarious outlook. But the company, founded from the ground up as an online-only bank, has made surprising inroads against its brick-and-mortar rivals. Even better, the majority of U.S. banking customers are still targeting companies like SoFi that offer great banking apps.
[ad_2]
Source link
