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Heading into the festive period, you might be thinking about the best stocks to buy this December. When deciding whether a stock is a worthy investment, there are a few key things that you need to take into consideration. These include the stock’s:
- Potential for growth
- Price-to-Earnings (P/E) Ratio
- Whether they pay out dividends or not
- Past performance
- The size of the company
- Revenue and earnings
By considering these factors, you will be able to gain insight into whether the stock is overbought or oversold, how it is likely to perform in the future and, most importantly — whether it’s likely to provide you with a good return on your investment.
To save time, we’ve already taken these factors into consideration and compiled a list of stocks to trade in in December.
Keep reading to find out more.
Petco Health and Wellness Co. Inc. (WOOF)
Petco Health and Wellness is an American pet retailer that sells pet products, food and services to support your pet’s health and happiness. The company trades online and in physical stores — having over 1,500 stores in Mexico, the United States and Puerto Rico.
Petco is an impressive growth stock. In the third quarter of 2021, it recorded a net revenue of $1.4 billion — an increase of 15% on the previous year. In addition, the company’s net income increased by $156.8 million, and is in prime position to continue to grow moving forward.
The future looks bright for the pet company and because of this, we believe the stock could be a great long-term investment. Plus, since it has been trading at $20.39, it’s a promising value stock for December.
You could open a position on WOOF stock on an online trading platform like Plus500, for example, where you’ll be able to speculate on some of the best performing stocks right now, without owning the underlying asset.
Signature Bank (SNBY)
Signature Bank is a commercial bank with 37 private client offices across New York, California, North Carolina and Connecticut. The bank offers a wide range of services, which include: wealth and investment management, brokerage and insurance products.
In the third quarter of 2021, the bank generated a record earnings per share (EPS) of $3.88 — an increase on the record $3.57 that it hit in its second quarter of this year.
Since Signature caters to institutional cryptocurrency (crypto) traders and exchanges, powered by crypto traders, its stock price can be directly impacted by the value of crypto. For example, Bitcoin (at the time of writing) has experienced a surge in price, which should also boost the value of Signature stock.
Because of this and the fact that the bank has recorded ground-breaking EPS for four quarters straight, the stock is likely to perform well in 2022 and beyond, and is a worthy investment this December.
Duolingo (DUOL)
Our next suggestion is the leading language-learning company Duolingo. The American business provides its users with the opportunity to become bilingual, using its online learning portal and mobile app.
Since many individuals found themselves with more spare time on their hands, having to stay at home over the course of the pandemic, the company has experienced increased demand for its services.
As a result, subscription revenues rose by 42% (on the previous year) in the third quarter of this year. The company intends to expand its influence, claiming that their mission is to:
“develop the best education in the world and make it universally available.”
Though Duolingo is already a world leader, there is still plenty of scope for the company to grow. In December, the stock’s price has proved to be incredibly reasonable, so now could be the perfect time to add it to your trading portfolio.
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Investing in the stock market can provide potentially profitable trading opportunities, diversifying your portfolio and helping you to reach your financial goals sooner. However, before you open a position, you should make sure that you’re aware of the risks involved, since the market is highly volatile, and there is the risk of making losses on your investment.
To minimise the chances of this occurring, you should ensure that you’re aware of the factors that can cause prices to fluctuate in the market, and be able to use fundamental and technical analysis to inform your decisions in the market.
