4 stocks that can triple in a Biden Bull market

Great changes are expected for the US economy. Last week, the first emergency approved coronavirus vaccine for use in emergencies 2019 (COVID-19) was administered to millions of front-line workers. Based on the strong clinical efficacy of several late-stage vaccine candidates, the end of the pandemic is now in sight.

In addition, President-elect Joe Biden will be inaugurated exactly one month from today. Biden is expected to promote fiscal incentives, while the Federal Reserve is likely to maintain its extremely poor monetary policy until at least 2023.

In other words, the table is ready for a major bull market to take Biden into account.

Not all stocks will thrive, but the next four stocks have a good chance of tripling in value in a bull Biden market.

A bronze bull coming out of the shadows.

Image source: Getty Images.

Trupanion

No matter which political party controls the White House or Congress, one trend that never seems to slow down is spending on pets. According to the American Association of Pet Products, US pet spending has not fallen for a quarter of a century. Since 1988, the number of US households owning a pet has increased by 11 percentage points to 67%. That’s almost 85 million homes in the United States with a pet. All this adds up to an incredible opportunity for Trupanion 09.30 NASDAQ: TRUP.

For the past two decades, Trupanion has provided health insurance for pets (eg, cats and dogs). During this time, it penetrated between 1% and 2% of the North American market. Although it is a disappointingly low figure, it also implies how big the company’s advantage is if it can continue to register new pet owners. Trupanion has steadily increased its total registered pet and subscription revenue by a double-digit percentage. I see no reason why this would not continue throughout Biden’s presidential term. Keep in mind that subscription revenue tends to be large and highly predictable.

Trupanion’s two decades of pet health insurance have also allowed the company to build relationships with veterinarians and clinic staff. Even with the competition in the pet insurance space waiting to begin, Trupanion’s relationship with the veterinary community is invaluable.

An engineer connecting wires behind a data center tower.

Image source: Getty Images.

Quick

The COVID-19 pandemic completely disrupted traditional working and retail environments. However, the push for e-commerce and cloud-based business solutions will not stop even after the pandemic ends. That means a top cloud company Quick (NYSE: FSLY) has a real shot to triple the value with Biden in the White House.

Fastly solutions ensure that content reaches the end user as quickly and safely as possible. Its services clearly resonate with its customers. The total number of customers, the company’s average revenue per customer, the net expansion rate based on dollars and the adjusted gross margin have continued to grow during one of the most difficult years for the US economy in decades.

In addition, investors learned in the last quarter that Fastly is powered by much more than just TikTok. In October, the company modestly revised its revenue forecast for the third quarter down to reflect ByteDance (the parent company of TikTok) extracting most of the data from the Fastly network. This coincided with the fact that the Trump administration has threatened to ban TikTok downloads at the state level. In the first half of 2020, TikTok accounted for 12% of Fastly’s revenue. However, even without significant revenue from TikTok, Fastly Q3 sales increased by 42% over the previous year, with a substantial increase in spending from existing customers.

It is a cornerstone for long-term investors.

Five clear jars packed with unique cannabis buds on a dispensary counter.

Image source: Getty Images.

Cresco Labs

US marijuana stocks may also grow like weeds with Biden in operation, though not for the reason you might think. Biden pledged to decriminalize and reprogram cannabis. It is not the same as legalization at the federal level. State-level legalizations, organic growth in legalized states, and federal non-interference are the biggest catalysts for industry and more specifically for Cresco Labs (OTC: CRLBF).

The Cresco business model has two ways to deliver some of the strongest growth in the cannabis industry over the next four years. First, it has a somewhat small but flourishing retail presence. Cresco holds 29 total dispensary licenses, with 19 operational locations. Of those 19 stores open, about half are in Illinois. Lincoln Country is a state with a limited license, which is just a fancy way of saying it will limit the total number of licenses it approves. This should give Cresco a lot of opportunities to claim his share of what should be north of $ 1 billion in annual weed sales in Illinois by 2024.

An even more interesting growth opportunity is the wholesale segment of Cresco. The acquisition of Origin House in January 2020 gave it access to the California Cannabis Origin Distribution License. Only a handful of companies have a distribution license on the most profitable marijuana market in the world. As a result of this acquisition, Cresco is able to place products in over 575 dispensaries throughout California. Look for this wholesale segment to push Cresco solid into the profit column in 2021 (and beyond).

A young shopkeeper holding a credit card in his left hand while sitting in front of an open laptop.

Image source: Getty Images.

Etsy

Excellent actions can continue to be excellent and outperform. That’s why the fast-growing e-commerce company Etsy (NASDAQ: ETSY) offers a real chance to triple investor money in a Biden stock market.

To make it stand out: Etsy has really benefited from the COVID-19 pandemic. About 11% of the company’s sales in the third quarter were derived from face masks. Moreover, consumers choose to stay home and shop online to avoid going into retail stores.

But, like Cresco, Etsy has two key growth factors that will continue to be strong well after the pandemic ends. First, Etsy has its own market, which is responsible for the lion’s share of revenue. What is really notable in 2020 is that existing customers have significantly increased their spending. Etsy’s focus on small businesses and personalizing the buying process resonates with returning buyers.

Etsy’s other double-digit growth factor is services. Etsy can collect fees from companies that want to promote their products on the company’s platform. Video listing is also being tested to promote consumer engagement and probably to collect high-margin fees.

It would not be surprising at least if the sales and price of Etsy shares triple in the next four years.

Source