May 2021 - The Stocks to Trade In
There have been many unprecedented events that have taken place of the past few years, that have had a detrimental effect on the stock market.
17:43 18 May 2021
However, as April marks the start of a new financial year, there was hope for economic recovery. Lockdown restrictions have begun to ease, and the coronavirus vaccine has been rolled out across various nations, all of which bodes well for the future of stock trading.
When it comes to the month of May, investors are looking to stocks that align with this return to normality, as prices have seen a rise in the travel and leisure industry, construction sector, as well as a continuous growth in the use of technology. Let’s take a look further into the worthwhile stocks to currently trade in.
Ryanair Holdings plc (RYA)
It may seem like an obscure choice, as travel restrictions still remain in place across the majority of Europe, and the aviation industry has been hit hard by the pandemic, but there may be some hope on the horizon for RYA shares.
The airline giant is set to release its full year’s financial results on 17th May 2021, and although expectations remain low for the company’s profit, the recent news of potential travel corridors could see a spike in the company’s share price.
There have been reports that the EU Commission plan to open up the borders for non-essential travel. This will be on offer to travellers who can prove they have had the vaccine, can provide a recent negative test or show signs of immunity after recently recovering from having the virus.
With talks between the EU and the UK about travel corridors for tourism over the summer, RYA and other airlines could see a positive movement in share prices. This is of course, dependant on the rate of infection across Europe, so investors can expect some volatility in the case of another outbreak.
Builders FirstSource Inc. (BLDR)
With its headquarters in Texas, Dallas, BLDR is a F500 company that manufactures and supplies building materials. Under the administration of new president, Joe Biden, the US has seen an influx in American infrastructure and construction. This boom has, of course, subsequently driven the demand for building materials, of which BLDR can supply.
As the stock is dependent on supply and demand, BLDR can be a worthy investment, especially with a continuous upward trend in their value. Investors are likely to see increasing profits when trading in this stock as a part of a long-term strategy.
Zoom Video Communications Inc. (ZM)
Despite the return to some sense of normality, with restrictions easing to allow family members or colleagues to meet again, the video communications technology company still remains the fastest growing stock for this month.
The rise in value has likely come as a response to their announcement and launch of the Zoom Apps Fund on 19th April 2021. This includes $100 million investment into the growth of Zoom’s apps, integrations, developer platforms and hardware.
With this huge injection of funds into the company, there is the assumption that as a business, ZM will continue to expand, and fundamentally profit, having a positive effect on its movement in the market.
Investors should watch the technology sector in general for future trades, as the investment plans for ZM also include funds ranging from $250,000 to $2.5 million that will go towards portfolio companies. The plan is that these firms will essentially improve Zoom’s product offerings and help with the growth of the business.
If you are looking to trade on the best value stocks, you should look to stocks that are currently trading at a price that you believe is less than they intrinsic worth. For fast growing stocks, you want to look for companies that have seen an increase in revenue, sales and earnings.
For a short-term strategy, investors should turn to stock that has gained momentum, performing better than the market as a whole. These stocks will have sharp rising prices, and are likely to continue to prosper depending on the fundamental factors in question.
When trading in the stock market, it is always worth remembering that every investment comes with its own risks, so conduct extensive research before making any decisions. It is also important to implement trades that are suited to your trading strategy and style.