Last Updated on: 22nd November 2023, 07:13 am
The key to successful stock trading is to formulate a diverse investment portfolio, as well as continuously monitoring the market for new, potentially profitable, opportunities.
As we enter April, and a new financial year, let’s take a look at some of the stock market assets which could be valuable additions to your portfolio.
United States Steel Corp. (X)
At the time of writing United States Steel (X) stock can be seen as a value stock, meaning it can be inferred it’s trading for less than its intrinsic value. A widely accepted value metric to measure this is the price-to-earnings (P/E) ratio, and X stock is currently among the stocks with the lowest 12-month trailing P/E ratio.
With operations in the US and Europe, US Steel is set to achieve $1.3 billion in earnings (before interest, taxes, depreciation, and amortisation) in the first quarter, which will be a record number for the company. As such, the diluted earnings per share (EPS) are predicted to reach between $2.96 to $3.00.
US Steel President and Chief Executive Officer (CEO), David B. Burritt, commented:
“We expect to deliver another strong quarter of safety, adjusted earnings, free cash flow, and operational performance in the first quarter.”
If a value stock fits with your trading strategy, then you may consider adding US steel to your portfolio. To diversify your investments further, it may be worth investing in contracts for difference (CFDs), which will allow you to speculate on the price of X stock, without owning the underlying asset.
In addition, you can use CFDs to hedge against any potential losses of stock you actually own, and are trading on the market in the traditional way.
Poshmark Inc. (POSH)
Poshmark stock can be seen as a long-term growth opportunity, with the resale market, in general, expected to rise in value and reach an impressive $47 billion by 2025.
This is worth noting, as Poshmark is a third-party resale marketplace for clothes, shoes and accessories, and currently has 7.6 million active buyers. It incorporates a social aspect into its platform, with users able to like, comment and share.
In the last year alone, the company generated $326 million in revenue, with $1.8 billion worth of merchandise bought and sold through its platform, in the same year. This is markedly up on the previous numbers in 2020 — to be precise, 25% and 27%, respectively.
Manish Chandra, Founder and CEO of Poshmark, recently said:
“We had a strong finish to a historic year for Poshmark with record GMV and revenues… Throughout the year, consumers came to Poshmark to discover, shop the latest trends, and connect with our community. This culminated in our strongest-ever holiday performance.”
Launched in 2011, Poshmark caters for users in the US, Canada, and Australia. Now, the company itself is valued at over $1 billion.
Realty Income Corp. (O)
Realty Income is a real estate investment fund, which you can add to your portfolio if you’re looking for dependable monthly dividends.
It has currently delivered 620 consecutive monthly dividends to date, each with rising value for 27 years straight, meaning it has qualified as a Dividend Aristocrat. As such, it can be an attractive dividend stock to include in your investment strategy. As a shareholder, there can be a lot of value gained from its steady dividend growth, which is set to continue for the years to come.
Its stock, at the time of writing, has gained 9.89% over the past month. Its next earnings release is expected to be 4th May 2022, and analysts predict it will reveal earnings of $3.95 per share, and a revenue of $3.14 billion. This would be an increase of 10.03% and 50.65%, respectively, from last year.
The stock market can experience levels of volatility, and as with an investment, does involve an element of risk. Therefore, it’s recommended that you research the factors which can affect the market, technically analyse the trends and performance of the industry, as well as the individual asset you wish to invest in.