From a distance, 2020 looks like a beautiful trading year. This S&P 500 This weekend trades about 15% higher this year, which is a better return than average – but not a spectacular run. Perhaps refreshing to see the market rolling with the epidemic and recession on the plate, but some stocks are doing better.
There are about 200 stateside exchange-listed stocks with a market cap of more than 1 1 billion that will more than double in 2020. Only a few of them will repeat next year, but I think Freshpet (Nasdaq: FRPT), C Ltd. (NYSE: SE), And Magnetite (Nasdaq: MGNI) There are the right ingredients to double again in 2021.
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Freshpet
It is not surprising that Freshpet shares will see a 128% increase in 2020 by Friday’s close. Freshpet has a cornered supermarket in the field of refrigerated food for dogs and cats with 22,371 branded fridges in its growing network. The COVID-19 crisis has resulted in an understandable spike in the adoption of pets, and we are pampering our dogs and cats more than ever.
Freshpet is at the intersection of all these convenient headwinds. The humanization of pets that wants us to feed our furry friends rather than dry kibble is a dinner bell for freshwater refrigerators in grocery stores, warehouse clubs and mass market superstores. Its net sales rose 29% in the last quarter.
Demand for this specialty has grown significantly as a result of recent corporate scandals. It is building a new facility that will more than double its production by mid-2022. There are plenty of “stay-home t-home” stocks that will slip into popularity once they go out and almost often, but Freshpet wins. ‘T not one of them. We will not stop spoiling our pets when we are starving.
C Ltd.
One of the hottest stocks this year is still not the household name of most US investors. C Limited is the fastest growing provider of platline platforms in Southeast Asia. It started as a gaming company a little over a decade ago, but now also manages the region’s top e-commerce hub shop. Its C Money digital payment and let platform platform is not moving the needle yet, but it is the fastest growing business for C Ltd.
Things could be interesting on the Fintech front in 2021. C Ltd was granted a digital bank license in its home country of Singapore on Friday. Revenue has almost doubled in its last quarter, and C Ltd runs on all cylinders. Its main online online gaming platform was Relative Lagarde, and even there it grew revenue by more than 73% year on year. There are now 572.4 million players on the platform. The stock has nearly quadrupled in 2020, but the roof remains high until it becomes a household name outside the home.
Magnetite
Advertising is an industry that doesn’t usually thrive in a recession, but the combination of the Magnet – Tallaria and Rubicon project made things play out well earlier this year. The merged company is earning two evolving trends with Rubricon’s scaled programmatic exchange and Tallaria’s connected TV prowess.
Reported revenue rose 62% in its last quarter, but ignore that the parent company will break the top line because the two companies were not together a year ago. The stick for measuring more accurately here is 12% of the increase in combined revenue for the period, an amount that may not be more but should be clicked in the reconciled quarters here. The stock has risen 158% this year, more than doubling in November alone after posting better-than-expected financial results.
Freshpet, C Ltd and Magnet Growth stocks are winning. The climate is right for them to continue winning in 2021.
