2020 has been a very challenging year for investors so far. The coronavirus (COVID-19) pandemic has been keeping everyone on the edge of their seat with all-time highs and lows divided by just days. However, the S&P 500 has regained a lot of what was lost, which gives hope to long-term investors. Also, there are some companies that appear to gain profit even during these trying times.
If you’ve got some money to spare outside your emergency fund, you can change your financial future for the better by investing in these three no-brainer buys.
NextEra Energy
So this isn’t the most obvious choice. Anyway, over 10 years NextEra Energy (NYSE:NEE) has returned 385% for the shareholders, which is twice more than the return of the benchmark S&P 500 over the same period of time.
Owning a utility company stocks is great because of predictability, as both consumers and businesses tend to be consistent in the amount of electricity they need. What is more, NextEra focuses on renewable sources of energy (wind or solar energy). Currently, it’s the leader in this sphere, and the company is determined to consolidate its superiority in the future. With an 8.4% annual growth rate over the past 15 years, NextEra can be considered a no-brainer buy for any portfolio.
Social media company called Pinterest (NYSE:PINS) is a traditional growth stock. So, why should you prefer it to, let’s say, Facebook?
To begin with, Pinterest is great at attracting new users. The monthly active user (MAU) count on this site has grown from 102 million to 367 million by the end of March 2020 comparing to the beginning of 2019 thanks to increasing presence on the international markets.
What is more, the company’s idea that users can share their interests and ideas freely with the world allows small and medium-sized businesses to capitalize on shared interests via e-commerce. Suggestive technologies help consumers find products that are like their pins, making everyone involved happy, including investors, who see rapid growth.
Trupanion
Finally, let’s talk about the companion animal insurance provider Trupanion (NASDAQ:TRUP).
If you have a look at pet industry statistics, you’ll see steady growth for more than a quarter of a century. In 2020 the U.S. pet industry is estimated $99 billion. No surprise here, as we treat our pets as family members. That said, the insurance policy penetration on companion pets compounds only between 1% and 2% in North America, which obviously shows great potential for growth.
Trupanion is well prepared for the upcoming competition as it has necessary connections with the veterinary and medical service communities. Even though the company is operating in a slow-growing industry, is has 50 consecutive quarters of impressive 20%-plus sales growth.
