What will be the Fastest Growing Stocks Rest of The Year 2020
In the past year, 2020, the stock market experienced quite the shake up, from a significant 30%+ drop from all time highs to a strong rally, some markets like Nasdaq and the tech sector are back into the positive for the year. There is still good upside potential for a lot of stocks for the rest of 2020. This involves cherry picking quality stocks that have a high probability of rallying. In this article we’re going to outline the 3 fastest growing stocks for the rest of 2020.
First we need to talk about the criteria of the fastest growing stocks for the year 2020. There are already a lot of stocks, mainly in the tech sector that have already rallied significantly throughout the year. Companies like Apple, Microsoft and Facebook are at new highs or near all time highs. So the potential there is not that great. However there are a lot that are yet to pop. So what criteria are we looking for?
Fastest growing stock criteria
It’s pivotal to understand what you’re looking for when you want to find stocks that are going to grow a lot for the remainder of the year. We’re going to look at stocks that are at least 20% away from their highs, are well known and high market cap companies and will rally a lot when restrictions are lifted from the COVID quarantine.
We want to find stocks that have not yet taken advantage of the rally from lows and are still slightly stifled by the current restrictions. Meaning their revenue is still not at full force but still rallying. We’re expecting these companies to easily withstand the rest of COVID without going bust. So that means stocks that have at least 20% of a gain till they reach their highs pre COVID downside.
Which are the fastest growing stocks for 2020?
We’ve rounded up a list of the 3-stocks that we think are going to make it back to their highs are not late buys like stocks such as Apple and Microsoft. The following companies are all at least 20% off all time highs. They are large cap companies with at least $8 Billion. Two of which have market capitalizations above $70 Billion. That tells us that these are large established companies that are very likely to survive the rest of this pandemic and return to highs when the US workforce is back.
The first stock in the list is Beyond Meat (BYND). The company has a market cap of $8 Billion. It is a newly established company and has been publicly traded for a year now. We did hit a strong high of $239.71. From there the stock plummeted from profit takers and eventually hit it;s IPO price at $48.18 as the COVID pandemic was starting to ramp up. From there we’ve rallied well into $138 but we’re still 40% off highs.
The plant based meat producing companies are on their way to making big moves with massive food-service deals which has seen a massive demand in plant-based meat. However through COVID we’ve seen a lot of restaurants shut down which has hindered some of the demand in the company and consumer discretionary spend. However there is already a demand increase in BYND products as people are staying away from real meat throughout COVID and some restrictions are getting lifted with restaurants getting reopened. Consumer behaviour is expected to normalize into the end of the year. When this starts, we’ll most likely see good earnings reports from the company and a rebound back to the $200 area on BYND. The company is expanding into China with their Starbucks partnership. Low rates in this market environment are also a factor to consider not just for this stock but for the others as well as the fastest growing stocks in 2020.
The next stock we have identified for the fastest growing stock for the rest of 2020 is American Express (AXP). American Express is a credit card company that has been around for a while. Known for its amazing benefits and multiple credit card levels. The company has a market cap of $72 Billion. It hit a high of $138. Once COVID hit the company dropped down to $67.00. The drop off was expected because a lot of businesses use AXP. When businesses halted the use of the card halted and the stock took a hit. A lot of people are not spending as much so the consumer demand for goods caused the stock to take a hit.
The stock is down 33% from it’s highs so it has a high potential to get back to $140 when the restrictions start easing. Companies get back to business and continue spending. As long as consumer spending and business spending is back even fractionally of what it was before we will see a strong spike in the stock.
Lastly the third stock that we see as a strong growing stock for the remainder of 2020 is Disney. This stock has immense potential especially after introducing the streaming platform Disney+. It gained a lot of revenue from the Netflix competitor and is what is holding up some of the revenue lost by the closure of Disney theme parks.
The stock dropped aggressively due to COVID from loss of revenue streams like the theme parks. From the high of $153.41 Disney dropped down to $79.07 before starting the rally back. The stock is 21% off highs. This means there is a lot more room to rally. Especially as the streaming service has become more popular in quarantine around the world and the expected reopening of the theme parks when restrictions are lifted and the vaccine comes in. The massive company has a market cap of $220 Billion so it’s not expected to go anywhere anytime soon. The potential for the rally is also above all time highs as money will start flowing in as the innovation and competition continues with streaming services like Netflix.
We’ve listed our choice of the top 3 fastest growing stocks for the rest of the 2020 year. This is not financial advice or investment advice but an opinion and used for educational purposes only. Do you think there are other high potential stocks for 2020 growth? Let us know! If you want to learn more about technical analysis and trading join TRADEPRO where we day trade the futures market every day with YOU!
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