Regardless of who we are and where we live and come from, we all must have looked at the sky at least once and wondered:
What is Space Travel and Exploration?
Space travel and exploration is not a new endeavor. Our parents and grandparents saw a huge step for humankind when we landed on the Moon decades ago. However, there is renewed interest in the last few years and a focus on pushing the space travel frontier and becoming a multi-planetary species. Numerous startups have emerged in the private market, and many public companies have focused on space travel. A new industry has been born from creating reusable rockets to making space travel more affordable and enabling unmanned exploration vehicles to prepare for humans' arrival.
We started our research by identifying direct exploration and space travel companies. Such companies manufacture probes, rockets, and unmanned robots to use on other planets. From there, we extended our research to space travel enablers who create the necessary tools, hardware, and software for such exploration. Solutions such as ground-based operations to support the interstellar missions, highly advanced materials for outer space usage are excellent examples of space travel and exploration enablers. In the end, we summarized the world of Space Travel and Exploration into four subsegments:
The result of our research is now available to you on Stock Card's Featured tab. You will find 49 companies in this collection pushing humanity for its next leap, working in areas where most investors have never assumed possible.
As always, you are investing in future-shaping companies that come with an inherent risk. Many smaller companies focused on space exploration, and travel are unprofitable. Some haven't yet turned a single dollar in revenue, and the larger ones would still need billions of dollars in investment before making money from space travel and exploration. Should you choose to invest in stocks from Space Travel and Exploration, make sure to go for cash-rich companies with substantial competitive advantages. Those are some of the criteria that would protect your investment even if the sector goes through the typical stock market ebbs and flows.
These days, many of us are relaxing in our homes' comfort, streaming good movies, documentaries, and music on our favorite streaming platform. The streaming service has changed our world. From learning something new to streaming video games online to listening to our favorite book or podcast show, that's all possible because of the rise of streaming. Thinking about that, we are excited to introduce our most recent list of stocks: the Streaming War collection.
The Streaming War is one of the most talked-about stock market wars we may have seen in our lifetime as stock market investors. Why would you only stream your entertainment and keep paying the likes of Netflix a monthly subscription if you can profit from it by picking up a few shares?
What does the term Streaming War mean?
The term was invented to define the heated battle between different streaming services for your attention and wallet. Streaming platforms are frequently signing new deals with producers, developing original content, and investing in the new segments of the markets such as music, video, podcasts, and video games to keep you hooked. This competition is so intense that even powerful TV providers are rethinking their business model. Such a competition resembles a flown-blown war, and like any war, there would be winners and losers. As stock market investors, we all need a powerful research tool to find the winners and dodge the losers easily.
We started our research by identifying the direct streaming services, including pure-play streaming platforms or traditional TV operations that also offer a streaming option. From there, we expanded the investigation to companies that provide software services for streaming. We did it because the winners of this new market are the streaming service companies and all the companies that develop the technology to make a better, faster, or more reliable streaming experience. We then repeated the research for various streaming segments such as video content, audio, video games, music, and books. In the end, we summarized the world of Streaming War into these subsegments:
The result of our research is the Streaming Wars collection on the Featured tab. In this collection, you will find 77 companies that are revolutionizing the scene in the areas of video, video-on-demand, subscription services, audiobooks, podcasts, songs, and much more.
Don't forget that investing in several streaming stocks means investing in relatively overvalued shares. When there is hype, there is excitement, which typically leads to overvalued stocks. We'd recommend you use the Streaming Wars list of stocks as your starting point and use filters to narrow down the list to a sub-segment of stocks that are worth adding to your watchlist.
Hey folks, it's Hoda, Stock Card's CEO. The presidential election period tends to be a difficult time for investors. The news cycle gets faster, and there is a lot more attention to the state of the economy and the stock market. That leads to more speculations, regular changes in investor sentiments, and more rapid transitions between fear and hope cycles. Being jittery and worried about what to invest in and what to do about your portfolio is very normal and common and we all experience those ups and downs in emotions. In this post, I dig deep into whether everyone's worries about the impact of the election on the stock market are justified and how to pick stocks despite the election jitters. I'd also share a list of stocks that can help you election-proof your portfolio.
Are the jitters real?
If you look at the market volatility index (VIX) in the days leading up to the election in the last eight elections (since 1988), the implied volatility in the market peaks running up to the actual day. Wells Fargo Investment Research Institute had a chart that visualized such implied volatility:
Considering such a volatility level, investors have two choices:
At Stock Card, we tend to camp in the second category. It's essential to calm your emotions with the power of data and information. Let's look at whether being worried about the election result and its impact on the stock market is grounded on reality. When you look at the S&P 500 return in election years since 1928, there are only four instances when the market ended the year in negative. Let me say that again, in 23 election years, there were only four years that the return has been negative. Does that mean this year is going to be the same? No! But, as a rule of thumb, the stock market's odds of success are in favor of investors, election year or not.
Comparing the heightened implied volatility and the actual historical return of the market, it seems that there is a true disconnect between market jitters, perception, and reality. If someone is day trading, perhaps there is an opportunity to play with the market's jitters. For example, there is a theory called Presidential Election Cycle Theory that says the market typically hits its best return on the 3rd year of any president's term, all the way to the December of the election year. And, if you look at the history of the market in the last 50 years, there is actually enough evidence to support that. However, statistically, the theory is not proven. Fifty years of history only gives us 12 election cycles. Without getting to the science of calculating statistical significance, that's just not enough data to prove the presidential election theory. And, by the same notion, whatever historical analysis you'd want to do in order to play market jitters is not going to be scientifically proven. Media shares data that are correct, but they can't be used as a single source of truth due to the lack of statistically proven investment theories during the election years. You would need hundreds if not thousands of election cycles to come up with a scientifically proven election-based strategy, and there are simply not enough election cycles in our history.
How to pick stocks despite the reality and sentiment disconnect
Okay, we said all that, and I hope you've found such information enlightening and could use it to tame your emotions. But, now what? What does it mean for those of us who would want to invest in the stock market now? The answer to that question is to look at the current environment and evaluate what strategy goes well with the current economic and market conditions:
What are some of the sources of uncertainty when it comes to individual companies:
That's where Stock Card can help you.
Use Stock Card to pick election-proof stocks
On Stock Card's Discover page, you can find a "Filter" tab. This is one of the most powerful features of Stock Card. It enables you to screen stocks by themes that matter. For example, narrow the universe of publicly-traded stocks to those with no cash concerns and have a track record of sales and growth success. You don't need to figure out which financial metrics translate to those themes. You can simply choose the themes such as no cash concerns as filters and Stock Card does the rest for you.
A list of election-proof stocks
As we discussed above, stocks with low inherent uncertainties can help you reduce overall uncertainty in your portfolio and reduce the impact of the so-called election jitters. I used market capitalization, stock exchange, growth potential, cash availability, and past performance to build a list of stocks that fit such a description. I also went ahead and saved the list as an "election-proof watchlist." You can easily access that watchlist by visiting Stock Card. Click on the link below and get the list. You can add them to your personal watchlist, add additional filters and save a new filter that better fits your criteria. Go ahead, try it now!
Hey folks, it's Karen, Head of Data Science at Stock Card. This week I used the COVID-19 Testing Kit and meshed it with one fundamental indicator and two technical indicators using the new Filter function on the Discover page, used to result to come up with stock on my Watchlist. Let me share with you how I went about this screening.
Steps to follow
Visit Stock Card's Discover page, and follow these steps:
If you are a Stock Card user (on our free Starter plan or premium plans), you can see the final results by clicking on this link. It is noteworthy that the results may vary day to day due to price changes in the stocks included in the collection. As of the closing on Friday, September 11, 10 stocks are included in the screening results. Click to view the results, or continue reading.
Using filter results
The overall market has been quite volatile since the indices (e.g., Nasdaq-100, S&P 500) peaked on September 2. In particular, the rally of tech stocks fueled by Softbank has receded, and cautious investors may be inclined to refrain from “buying the dip” in the FAANG and tech stocks resulting in drastic declines in some of Stock Card most popular stocks. What other stocks can investors consider to diversify their portfolios away from the technology sector? Investing in the stocks in the COVID-19 Testing Kit collection could be an excellent way to get exposure to the biotech and healthcare sectors and diversify one’s portfolio.
Let’s take Thermo Fisher Scientific Inc (NYSE: TMO), one of the ten stocks in the filtering results, as an example.
Add to watchlist
The chart below shows that TMO has outperformed the S&P 500 index throughout the year and is very close to the Nasdaq-100 (NDX) Year-to-Date returns daily based on returns. In the most recent pullback since Sept 3, as both S&P 500 and Nasdaq have been laggard, TMO has shown increasing strength, which is reflected in the daily returns. This may qualify TMO as a good addition to your watchlist.
Investing in biotechnology companies that focus on the fight against COVID-19 involves understanding four main components: diagnostics, cure, vaccine, and distribution. More than 100 companies are competing in the vaccine development race, and several others are already getting ready to produce and distribute it. However, to contain the spread, diagnostic testing is an important frontier as the vaccine development is. As always, what becomes a society's priority tends to become a noteworthy investment too. This week, we turn our focus on COVID-19 Testing Kit stocks to give StockCardians and our broader community a starting point for their fight against COVID-19, investing-style.
The overall process of diagnostic testing depends on several different products such as swabs, glass vials, RT-PCR testing machines, a laboratory apparatus most commonly in DNA segmenting via the polymerase chain reaction (PCR), electronic or disposable pipettes, filter tips, and refrigerated microcentrifuges. To those products, one can add services such as test sample transportation and imaging centers. To build a robust list of companies involved in manufacturing testing kits and distribute diagnostic testing, we first referred to Stock Card’s proprietary market database to look for diagnostic testing companies. We then validated the list with holdings of exchange-traded funds such as the GERM ETF, which seeks to track the Prime Treatments, Testing, and Advancements Index.
Because of the priority and popularity of the COVID-19- related topics, almost every pharmaceutical, and healthcare company associate its operations with developing a testing kit, vaccine, or cure. However, the tricky part of the research was to screen for companies that are much more committed to finding the cure, assisting with diagnostics, and producing materials needed for various efforts in the COVID-19 ecosystem and are achieving early success. Our analyst team spent more than two weeks evaluating the list qualitatively, and the result has turned out to be a reliable yet robust list of companies worthy of your attention.
Risk and opportunity
As always, when you invest in companies without a proven track record of product and financial success, it involves risk. The risk is exacerbated when dealing with biotechnology companies in the COVID-19 ecosystem of vaccine and testing kits developments and has no other revenue sources. Your investment success would have two possible extreme outcomes. Either the company succeeds, and you win with it. Or, despite all the efforts and stock price volatility, the investment loses all its value. A binary result is the most typical risk you'd need to be ready to face, should you choose to invest in the COVID-19 testing kit stocks. The evidence of such binary outcome is visible in the rapid decline of the stock prices of testing kit frontrunners such as Quidel, Hologic, and Quest Diagnostics, since the launch of the low-cost testing kit by Abbot.
While that's a substantial risk, it may also mean an opportunity. It is worth evaluating some of the beaten-down testing kits stocks to find well-managed companies that are not purely reliant on a testing kit's success and can recover into more reasonable valuation in the future.
After the thorough research and curation of the list, we identified more than 80 companies involved in producing the COVID-19 testing kits and providing diagnostic testing services. You can access them directly by clicking on the below button. Alternatively, type in "COVID-19 testing kit" in the search bar, and you get the list.