With the UK on course for following the government’s roadmap plan to ease lockdown gradually, the country is witnessing a phased resuming of the economy. With retail and many small businesses set to open again this month, along with-it being earnings season, this month should provide investors with an insight into a more certain future, which will aid decision making in regards to trading.
Since macroeconomic factors like economic growth have a direct impact upon the stock market, this could see the market move higher in the short term. As ever, the key to successful stock trading is to do your research and be patient. To help you on your journey, this article will advise you on the stocks to invest in this April.
Caterpillar (CAT)
As the economy is set to recover, the price of commodities is rising, and construction equipment companies like Caterpillar could benefit greatly from increased demand for copper and oil. The future also looks bright for the company because it is expected to be a significant beneficiary from a 2021 bull market.
Caterpillar is also affected by the Chinese economy. This is because of the country’s vastness and economic focus upon the industrial sector. Since China was the first country to have suffered from the effects of the pandemic, it has also been one of the first to recover and therefore, the resumption of their largely industrial economy could see CAT benefit.
The company expects an average revenue growth of 12% over the course of the next five years and offers attractive financial prospects, with a forward price-to-earnings ratio of 24.
Taking into consideration the yearly projections for Caterpillar’s stock and the likelihood of it having a strong earnings year, this stock could be your opportunity to take advantage of a 2021 bull market.
Playtech (PTEC)
Gaming is a multi-billion-dollar industry and Playtech is one of the giants in the software supply industry. Though the company has experienced a 10.6% decline in B2B revenue in the previous year and has a long journey to recovery, the low price point reflects this and could be a worthy gamble this April. By utilising a trading platform, you can keep on top of Playtech’s stock value and reduce trading risks. By stock trading on Plus500, for example, you can also speculate on the price movement of the stock using contracts for difference.
Since Playtech’s software is used by many online betting agencies, the planned return of sporting events, specifically the UEFA European Championships and the Olympics, could see the company benefit significantly. Since households have recently saved on travel expenses, have not splashed out on holidays, or even eaten out, they may have more disposable income to spare to bet on these esteemed sporting events.
The company has already seen a dramatic rise in its share price in the last year, with a 130% increase and though it still has a long way to go to reach its record highs which it experienced in 2017, it could be a worthy buy at its current reduced price.
eBay (EBAY)
If you’re wanting to invest in a more established stock, the e-commerce and digital retail leader presents itself as an attractive investment. Despite being a large-cap stock, EBAY pays a 1.2% dividend, meaning you could prevail with a moderate income if you’re patient.
eBay’s predicted revenue growth is equally attractive, as analysts believe that it could experience a 16% growth this year. This, paired with the fact that it increased its share buyback authorisation by $4 billion in February (which is around 10% of the company’s $40 billion market capitalisation), means that it could pose as a worthwhile investment this April.
FedEx Corp. (FDX)
Since global e-commerce demand has sky-rocketed during the pandemic, largely due to the mass closure of physical retail, multi-national delivery services like FedEx have thrived throughout this period. Though online shopping is likely to experience a decline once physical retail reopens, analysts believe that the company will still experience a sales growth of 20% in 2021 and 5% in the following year.
Though many people are itching to go on a shopping trip once shops open again, e-commerce is likely to remain the most popular way to shop for the indefinite future, because of its accessible and convenient nature. Because of this, FDX poses as a notable investment for the foreseeable future.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.