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Stock with Upside Potential to Consider for Investment in 2021

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BT Group (LON: BT.A), a British Telecom Company has been said to have 47.2% upside potential, and ABN Amro Bank NV (AMS: ABN), a Dutch bank has been said to have an upside potential of 50.6%.

2020 will soon end and the uncertainties surrounding the general performance of the stock market for the coming year are building high. Investors are running out of patients to identify the next stock with upside potential.

To summarize what a lot of the equity analysts are saying, 2021 will be an extension of the recovery that has started after the global pandemic crippled the world economy. The new US president will likely come up with new policies, with low interest set to spread out in Europe to help individuals and companies recover. Moderna Inc (NASDAQ: MRNA) and Pfizer Inc (NYSE: PFE) have already assured a 90% plus efficacy of their vaccines which means things will be better in the coming year as well as economic activities. Beyond a doubt, the global economy is more likely to get back on its feet and leave a positive mark on most of the stock prices.

Barclays have assessed the performance of the stock market. According to them, the European equities will stage a bull run to record new all-time highs following a predicted Gross Domestic Product (GDP) growth of 5.4% in 2021. Stoxx 600 (INDEXSTOXX: SXXP) has been predicted to have a potential upside of 13%. BT Group (LON: BT.A), a British Telecom Company has been said to have 47.2% upside potential, and ABN Amro Bank NV (AMS: ABN), a Dutch bank has been said to have an upside potential of 50.6%. Oil major BP Plc  (NYSE: BP) will be the biggest winner with 63.7% upside potential.

Stocks with Upside Potential

Nvidia Corporation (NASDAQ: NVDA) suffered a lot from the global pandemic seeing its stock recording declines for four successive quarters. However, it took a swift rebound to record a 57% growth in revenue as well as a 66% adjusted earnings this week. Having surged by 122% on Friday, the semiconductor pioneer is set to record a massive run in the reflection of Its stake in the data center and the gaming industry. NVIDIA is a stock with upside potential in 2021.

Pinterest Inc (NYSE: PINS) one of the leading social media platforms has been predicted to record revenue growth of 40.5% in 2021 and a 60% revenue growth in the current quarter. Its EPS is expected to record a 152.3% per annum in the next five years according to analysts, it stands a great chance of surging 106% in 2021. It is rated as a Strong Buy and “A” as a trade grade according to a report.

Peloton Interactive Inc (NASDAQ: PTON) a world-renowned supplier of interactive fitness products internationally has been tipped to do well following its recent collaboration with Chase Sapphire, a credit card company. It has increased its product portfolio in some selected countries, and it is expected to do well in the coming year. Its revenue is expected to surge by 32.2% in 2021 and 115.2% in the current year. Its EPS has been predicted to grow by 92.1% next year.

Adobe Inc (NASDAQ: ADBE) is another stock with upside potential. The computer software company announced its definitive agreement to obtain Workfront for $1.50 billion. The acquisition of the leading work management platform will ensure that Adobe gets a wider customer base coupled with efficiency and improved productivity. Its effort is expected to increase its revenue by 15.4% next year. Interestingly, it is expected that Its EPS will record a growth rate of 17.4% per annum in the next five years.

The likes of DraftKings (NASDAQ: DKNG) and JD.com (NASDAQ: JD) are also a strong buy as the former has been said to have expected revenue of $540 million to $560 million this year. DraftKings which is the leading wager of fantasy sports has been predicted to have its revenue increased to 45% next year. The coming year is a very promising one as the face of the gaming industry would likely be restored with live fans expected to go back to the stadiums.

JD.com which has more than doubled in 2020 is expected to continue its run in 2021. The above-mentioned stocks will guide investors to find the next stock with upside potential.

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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.



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MicroStrategy Buys the Dip, Adds $10M to Bitcoin Treasury

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CEO Michael Saylor bought the coins for an average price of $31,808.



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Russia’s Sber Bank Files to Launch Its Own Stablecoin

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Sber, Russia’s largest retail bank, has applied for a license with the country’s central bank to issue its own digital token for corporate clients.

The digital asset will be available for the companies banking with Sber, which have been expressing interest for blockchain-based deals for some time, a spokesperson from the bank told CoinDesk via email.

“This stablecoin will allow companies to use smart contracts on Sber’s platform based on the Hyperledger Fabric blockchain. Tokenizing both material goods and fiat money on this platform will allow transactions to be fully automatic,” the Sber press office said.

The digital token will not be a cryptocurrency, but instead “a tokenized form of the rubles the companies hold on their Sber accounts,” they said. “Just like money on a bank account, but running on a different tech infrastructure.”

Sber Deputy Chairman Anatoly Popov told the Interfax news agency on Friday that bank applied to register its blockchain platform with the Bank of Russia at the beginning of this month. According to Russia’s law on digital assets, which came into force Jan. 1, 2021, all centralized issuers of digital assets in Russia must register with the regulator.

According to Popov, the registration process takes up to 45 days, after which Sber expects to receive either approval or comments and requests from the central bank. If the projects gets the green light, it’s expected to launch some time this spring. One possible challenge might be the lack of clarity regarding taxation of digital assets in Russia, he said – detailed regulation for which is yet to be passed.

Sber launched its Hyperledger Fabric-powered blockchain platform last summer and aired plans to launch its own digital token at the time. The bank has been consistently active in the blockchain space, participating in a number of pilots involving securities on a blockchain.

Russia passed its first law regulating digital tokens last fall, detailing the criteria and regulation process for companies that want to issue digital assets for the Russian market. It also mentions cryptocurrencies that have no entity controlling them, like bitcoin, which are recognized as property, are subject to taxation and can’t be used to pay for goods and services.

Non-qualified investors in Russia can not purchase more than 600,000 rubles (about $7,740) worth of digital assets in one year, according to a Bank of Russia directive issued in December.

Sber, recently rebranded from Sberbank, is the first Russian mainstream company that has publicly announced an application for a digital asset registration with the central bank. The Bank of Russia itself has been exploring the possibility of launching a Russian ruble-backed central bank digital currency (CBDC), the digital ruble.



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Ethereum’s Road to $2K: 3 Reasons to Be Bullish

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Ethereum, the second-largest cryptocurrency by market capitalization, set a new all-time high of $1,439.33. This is the first time the digital asset has been over the $1,400 level since Jan. 13, 2018. Ethereum’s YTD gains now total 66.15% – over 6x higher than the leading cryptocurrency and outstripping both Polkadot (DOT) and Chainlink (LINK). Despite experiencing a temporary correction, it is still one of the strongest performers among the top 10 assets.

While there were no obvious fundamental catalysts to spur the rise to a new all-time high, ether had been close to breaking the key level for over two weeks after climbing to $1,350 on Jan. 10. The exponentially growing market for decentralized finance, known as DeFi – which now holds over $24 billion worth of crypto assets in its protocols – was also a likely contributor to the bullish momentum behind the asset.
Now, with Ethereum heading closer towards uncharted territory, all eyes will be on the second-largest cryptocurrency hitting its next major milestone, the psychological $2,000 mark. This fabled level is more than a 50% gain away from the current price (at press time), but there are 3 major events scheduled to go live in 2021 that could help make this possible.

1. CME Ethereum Futures

The world’s largest derivatives platform, the Chicago Mercantile Exchange (CME), publicly announced on Dec. 16 its plans to launch Ethereum futures by Feb. 8, provided it receives regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC). Derivatives are essentially trading contracts that allow investors to bet on the future price of an underlying asset without having to actually own it.

This new cash-settled financial product – which means any profits made will be paid out in US dollars as opposed to ether – comes three years after the exchange launched bitcoin futures, which is now the world’s most traded bitcoin futures product and accounts for over 20% of all open contracts.

The arrival of Ethereum futures will ultimately bring more maturity to the crypto market and, although futures are not physically delivered, greater liquidity. This is beneficial because it will give institutional investors in particular the opportunity to hedge spot positions, which reduces overall risk and in turn makes Ethereum a much more attractive investment. 

2. Ether Burning and Predictable Fees

Any action carried out on Ethereum-based decentralized applications (dapps) or protocols are treated as transactions, which require a fee attached to them to encourage miners to process them.
Right now, transaction fees are determined via an auction-style system where users who attach the highest fees to their transactions get them processed the quickest by miners. This system causes a number of issues, namely unpredictable and often extremely high fees during periods of heavy congestion. Network congestion arises whenever there’s a spike in trading activity. For example, if ethereum’s price changes sharply and thousands of traders suddenly want to enter or exit the market around the same time. 

EIP 1559 is an Ethereum Improvement Proposal put forward by the project’s co-founder Vitalik Buterin, along with developers Eric Corner, Ian Norden, Rick Dudley, and Matthew Slipper, to implement changes to the way ether transaction fees are presented to users, as well as the management of ethereum’s supply.
EIP 1559 suggests scrapping the current auction-style fee system in favor of an algorithmically determined base cost, called the “BASEFEE.” The BASEFEE aims to introduce a uniform fee across all ethereum-centric platforms and services that rises and falls depending on network activity. This means no more fee discrepancies between ERC-20 compatible wallets, protocols, and exchanges.
The EIP does, however, include an option for users to tip miners should they want their transaction processed faster.
The second function of EIP 1559, and the one that will likely have the greatest impact on Ethereum’s future price, is the introduction of burning ether.
Burning means completely removing tokens from existence, causing a reduction in the circulating supply. EIP 1559 plans to burn the BASEFEE so the vast majority of the ether used to process transactions is destroyed as opposed to being given to network validators. 

The idea is this will encourage the steady deflation of ether, which, in turn, should help bolster prices over time. 

The EIP is anticipated to go live sometime after the Berlin hard fork, which could be as early as February.  

3. Ethereum 2.0 Phase 1 Rollout

Ethereum is in the process of transitioning from a Proof-of-Work blockchain to one that operates using a Proof-of-Stake consensus mechanism, with the goal of becoming a faster, more efficient, and more scalable platform. There are four separate phases to the Ethereum 2.0 upgrade – Phase 0, Phase 1, Phase 1.5 and Phase 2 – each laying the technical foundation for the next until the final phase is completed.

Phase 0 went live on Dec. 1, 2020, and saw the implementation of the Beacon Chain – a new blockchain layer that will coordinate activity between individual Ethereum shard chains.

Phase 1 is the next stage in Ethereum’s development and will see the launch of 64 shard chains. All transaction activity across the network will eventually be divided among and processed by these separate blockchains. The benefits of this new system will be that transactions won’t need to be validated by the entire network, only by a single shard chain. This will greatly reduce the time it takes to confirm transactions, and it means the overall network will be capable of handling significantly higher volumes without suffering the level of congestion it currently does.

While there is no confirmed date for the launch of Phase 1, it’s expected to arrive sometime this year.



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