For Immediate Release
Chicago, IL – January 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sea Limited SE, CRISPR CRSP, Alibaba BABA, Nvidia NVDA and Splunk SPLK.
Here are highlights from Thursday’s Analyst Blog:
SCANS: The FAANGs of the “Roaring 20s”
The roaring 20s are upon us, and the investment opportunities set in front of us are exhilarating. This new decade has a lot in store for us with tech as the driving force.
FAANG was the acronym that drove the stock market to continuously new highs over the past decade: Facebook, Amazon, Apple, Netflix and Google aka Alphabet. This is an acronym that I am sure you are familiar with. These stocks’ exponential returns may be exhausted, and a new set of equities are ready to take their place. It is time to look for the new “FAANG.”
When assessing “market-shifting” companies, you need to look for firms with an exciting product offering characterized by longevity and a substantial total addressable market (TAM). Firms with savvy management teams that are able to navigate through both the best and worst times nimbly.
I have chosen a new acronym of stocks that I believe could change the world in the roaring 20s. The companies include Crispr, Sea Limited, Alibaba, Nvidia and Splunk, or SCANS, as I like to call it.
Here I will give a brief introduction of each stock and explain why I believe these shares will drive the market in this new decade.
Sea is the leading internet company in Southeast Asia and Taiwan. These economies are digitalizing at an exponential rate, and Sea is well-positioned to take on the quickly expanding addressable market. The company operates three market leader segments, including an ecommerce platform, a digital entertainment division, and a digital payment company (Shopee, Garena, and AirPay, respectively).
The internet economy in Southeast Asia has tripled in the past 5 years to $100 billion and is expected to triple again by 2025 to $300 billion. Sea is growing at an even faster rate, with year-over-year topline appreciation in the high triple-digit percentages as the company continues to take an increasing amount of market share.
Sea Limited is going to be the tech powerhouse that helps turn the third world economies of Southeast Asia and Taiwan into digitalized world markets.
CRISPR is a biomedical firm that is on the verge of changing the world. This company can edit an individual’s DNA, an achievement that is going to change modern medicine. This technology could be used to cure almost any disease if it is successfully implemented. What CRISPR’s gene therapy does is splice out the bad or disease driving DNA and add healthy strands. The company is also a leader in regenerative stem-cell medicine, which could save the lives of 100s of thousands.
CRISPR has an established portfolio of life-changing therapies in its pipeline at various stages of development. Hemoglobinopathy is the closest to commercially viable and is currently in clinical trials. If it passes clinical trials, I see this stock jumping substantially.
These shares are still a risky asset considering the possibility that none of its gene-therapies make it past the clinical stage. Based on early trials, it appears that the therapy does indeed work, and this potential has begun to be priced into CRSP. The stock has appreciated 350% since it went public in late 2016, and I believe that this is just the beginning of its growth. The ability to change an individual’s DNA is going to change the world of medicine.