Investing is one of the best ways to create a nest egg for you and your family. But with so much turmoil in 2020, how can you know which are the best new companies to invest in?
There are always new companies popping up on the stock exchanges, but they don’t all stand the test of time.
Although it’s tempting to just jump into investing, you can quickly lose a lot of money, if you don’t know what you’re doing. Make sure you know how to invest in stocks the right way before getting started.
However, there are a few outstanding businesses, either brand new or only a few years old, that really stand out when it comes to investing.
If you’re wondering how to make money, either over the long or short term, here are seven of the best new companies to watch.
Royalty Pharma (NASDAQ:RPRX)
One of the best new stocks to invest in is Royalty Pharma. It’s no surprise that a pharmaceutical tech stock is popular for 2020—with a global pandemic, plus a rapidly aging population, healthcare and medicines are more important than ever before.
Royalty Pharma is a growing company, having just acquired part of Vertex Pharmaceuticals, which operates in the field of cystic fibrosis. Royalty has a wealth of pharmaceutical drugs under their umbrella, so we think they are a key stock to watch.
Lemonade (NYSE:LMND)
Lemonade is certainly one to pay attention to, as this new company had one of the most popular IPOs of 2020.
The aim of Lemonade is to alter and improve the insurance industry for the better. It uses tech and artificial intelligence to offer homeowners, renters, and pet insurance, with a focus on social responsibility.
Its tech focus means fewer staff are needed, which leads to higher profits. We think Lemonade is a game-changer and could be a stock to hold onto for the long-haul.
The insurance industry hasn’t seen much innovation in recent years, which may lead to increased popularity in Lemonade and its new business model.
Xero Limited (ASX XRO)
Founded less than 15 years ago, Xero has already taken the world by storm. It offers cloud-based accounting software, designed with small businesses in mind, and it originated in New Zealand.
While it may see a small downturn due to the pandemic, it’s a good option for the long-haul, as more and more people start their own small business or become self-employed.
The nature of work is switching, with remote and freelance work becoming more common. Workers will always need accounting software, so it has potential to grow even more.
Figuring out the best new companies to invest in can be tricky, especially if you’re new to investing, so recommend working with financial advisors like Harvard Grace Corporation. An expert financial advisor can take the guesswork out of investing.
Direxion Work From Home ETF (NYSEARCA:WFH)
Direxion Work From Home was founded back in 1997, but the company has seen explosive growth in the last 12 months, due to the popularity of remote work and working from home.
Working from home is only going to increase in popularity as time goes on, so it’s not too late to get in on this great stock.
Direxion is a tech company, focused on both new and emerging technologies. This includes cloud technology, cybersecurity, and remote communications.
Opthea (ASX OPT)
As mentioned earlier, healthcare is a booming industry, with a huge demand for new treatments. Opthea is a company focused on eye and retina diseases, like macular degeneration.
Many eye diseases increase in risk with age, so an aging boomer popular means eyecare is big business.
Opthea is a great buy at the moment, thanks to low prices and clinical trial results that came out in 2020, showing big progress in age-related macular degeneration. Although stock prices have already increased this year, Opthea is going to continue to grow, so get in while you can.
Square (SQ)
Square is a financial services company, offering businesses innovative options for taking digital payments. It offers small businesses affordable methods for processing payments, selling online, and analyzing results.
Online shopping and digital payments aren’t going away anytime soon—we are shopping online more than ever this year.
Square is only going to continue to grow in the future, so buying now lets you get in at the best possible price.
Salesforce (CRM)
Another tech stock to watch over the coming years is Salesforce. Salesforce is a cloud-based CRM, or customer relationship management tool.
Businesses use CRMs to record data, manage customer records, and run reports. Salesforce, which came onto the market in 1999, has taken the world by storm.
It’s an easy to use product with a strong focus on customer support, which has drawn in businesses large and small. This company will continue to grow over time, so check out Salesforce stock.
Which of These Best New Companies to Invest in Is Right for You?
Which are the best new companies to invest in? After reading the above, you probably now have a better understanding of some of the newer companies on the market that are worth watching.
Before investing in a new company, we recommend taking the time to research and fully understand what the company does, along with their forecasted growth potential.
Talking to an expert financial advisor can help as well, especially for diverse or complex investments. Get started today and take control of your financial future!
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