5 Stocks To Consider Investing In Now

Updated: Nov 29, 2021

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In this article, I am going to take a look at 5 stocks that I believe offer a good risk vs reward at current valuations.

Rather than looking at stocks that have run up a lot recently, I am going to take a look at stocks which I believe could be timely buys with the intention of holding for the long-term. Just to be clear, I believe that all of the stocks referenced are high quality companies and this is not about trying to time the market. The price you pay ultimately results in the return that you will achieve.

As always, this article does not represent investment advice and is designed to act as a starting point for you when doing your own due diligence. For disclosure, I hold long positions in all of the stocks referenced in this article.


Square, Inc (Ticker: SQ)

Brief Overview

Square, Inc can be best described as a commerce ecosystem. The Company enables its sellers to start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. The tools help sellers make informed decisions through the use of analytics and reporting. The company can be viewed as two significant ecosystems namely the Seller Ecosystem and the Cash App Ecosystem.

Click here to read my full investment thesis on Square

Why Invest Now?

The overall Square share price has been pretty flat over the past 12 months but it’s price to sale ratio has halved.

Square released Q3 2021 earnings recently and the headline was that it missed Wall Street revenue estimates by 13%. The following day the share price closed down 4%. You might assume that this meant the company reported a really bad quarter. However, when you dig into the financials you will realise that the revenue miss was entirely due to Bitcoin revenue which is really low margin. For every $100 of Bitcoin transactions that Square processes it only pockets $2. As a result, Square only missed the gross profit estimate by 2%. Further to this, Square improved its overall gross margin from 26% at Q3 2020 to 29% at Q3 2021 meaning that it is growing its higher margin pr