Investing Your Third Stimulus Check: 3 Actions That Could Make You Rich

With around 130 million stimulus checks already in the hands of Americans, it’s likely that you’ve already received your third economic impact payment or are about to do so. Depending on your financial situation, you could use this money for bills, groceries, to increase your savings or for other miscellaneous expenses. If, however, you have the financial leeway and are looking to invest your $ 1,400, you’ve come to the right place.

I am thinking in particular of three unstoppable growth stocks that have continued to attract increased investor interest and offer strong financial performance, all despite the increased unpredictability of the market over the past year. A long-term investment in any of these stocks could give a serious boost to your journey to building real wealth.

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1. Adobe

Adobe (NASDAQ: ADBE) is not a new name for technology investors. The action had a solid history of progress on most lines of its balance sheet before the era of the pandemic. Case in point: the company achieved 24% revenue growth in fiscal 2018 and fiscal 2019. Adobe has clearly demonstrated its ability to continue to generate profitability despite the business environment. pandemic market. In fiscal 2020 (ended November 27), the company generated 15% revenue growth and increased net income 27% year-over-year.

Adobe has already started fiscal 2021 on a high note. When the company released its financial results for the first quarter (ended March 5), management reported that Adobe’s digital media segment saw 32% year-over-year revenue growth, while revenues from its digital experience segment jumped 24%.

Additionally, Adobe’s total revenue over the three-month period was a 26% increase over the prior year quarter. Management has raised its guidance for the full year on the back of these excellent first quarter results and is targeting revenue growth of approximately 20% compared to fiscal 2020.

When the market plunged a year ago, Adobe’s stock price remained stable. And over the past 12 months, the company’s shares have climbed more than 50%. Adobe operates in a highly competitive space, but the steady growth of the company’s stocks and balance sheet – especially in light of volatile economic conditions over the past year – reinforces its indomitable presence in the cloud software industry.

Investors looking for a recession-resistant tech security with continued high growth potential that won’t introduce undue risk into their portfolios should consider adding Adobe to their buying list.

2. GrowGeneration

Cannabis stocks are often a mixed bag for investors, who must weigh the delicate balance between high risk and potentially high rewards. Corn GrowGeneration (NASDAQ: GRWG) is one of the few stocks in this industry that does not force investors to walk a tightrope.

The company owns dozens of hydroponic and gardening supply centers nationwide and is a key supplier to the ever-growing population of growers entering the U.S. cannabis industry. GrowGeneration’s business model allows it to capitalize on the profitable side of the cannabis industry without racking up the particular risk that traditional cannabis producers and retailers typically face.

In 2020, the company’s revenue grew 143% year-over-year. Comparable store sales increased 63% from 2019, while store operating revenue increased 171%. The company also has a thriving e-commerce business. Sales of this segment alone grew by 123% in the year 2020. In the 2020 financial report, CEO Darren Lampert said:

We added 14 new locations to create 52 hydroponic garden centers in 12 states, increased our e-commerce channel and sales division by over 123% and 188% respectively, and acquired Agron.io, a B2B portal for commercial growers to plan. and optimize their operations with real-time online ordering and execution.

The company is expected to generate between $ 86 million and $ 88 million in revenue in the first quarter alone. Management plans to expand GrowGeneration’s presence to 15 states and more than 60 garden centers by the end of the year, and has set a goal of opening up to 100 retail outlets throughout. the country by 2023.

3. Platoon

With gyms and health centers across the country closed or operating at partial capacity throughout the pandemic, it’s no wonder that increasing numbers have turned to home workouts like way to maintain their fitness routine.

platoon‘s (NASDAQ: PTON) Exercise equipment and fitness programs give users the flexibility to customize their workout plans and enjoy all the benefits of a gym membership from the comfort of their own homes. And even as gyms and fitness centers reopen, this type of workout routine remains a very appealing solution for millions of people to work out their personal fitness journey while juggling a schedule. more loaded.

Peloton’s revenue grew 100% in fiscal 2020. And the company increased its membership to over three million at the end of the 12-month period. This was a significant increase from its membership just a year before the end of fiscal 2019, when Peloton announced it had around 1.4 million members.

Management released the Company’s fiscal 2021 second quarter financial results on February 4. During this three month period, Peloton achieved a number of key milestones. The company surpassed the 4.4 million member mark, while connected fitness subscriptions and paid digital subscriptions jumped 134% and 472% year-over-year. The company’s revenue also rose triple digits in the second quarter.

Some investors have speculated that Peloton may see a slight drop in demand for its products and services as the company slowly normalizes. While it is possible, I believe the company has enough grip on the digital fitness industry to continue its long-term growth path.

And in an era when people increasingly appreciate convenience and more and more workers are moving remotely, Peloton’s equipment and fitness programs are a logical solution for an ever-growing world. digital. Even with the end of the pandemic potentially in sight, Peloton still has a lot of untapped growth for investors to explore.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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