The crash of crypto-coins witnessed in the last few months was a phenomenon that took many by surprise. The suddenness of the crypto fall came almost as unexpected as the rise of what many had called ‘digital gold’. Even the king of digital coins, Bitcoin (BTC) is trading 62% below its all-time high achieved a mere 9 months ago. With so many that lost their fortunes built up over the years, in a matter of hours, many enthusiasts are turning back to conventional stocks to invest in. A number of stocks, at the present moment, appear to be far superior investment choices than cryptocurrencies. In this article, we present three different stocks that have significantly higher potential than the cryptocurrency market presently offers. Each of these 3 stocks is unique and holds different core strengths that any investor could consider buying and holding, just as they would digital currencies.
RCM Technologies: More Positive Market Sentiment than Cryptocurrency
Cryptocurrency investors are essentially sentiment chasers. They determine which coins market sentiment favor. In the case of stocks, if one wants to prioritize market preference, you cannot go wrong with RCM Technologies, Inc. (NASDAQ: RCMT). In the last 12 months, which saw the S&P500 drop by almost 11%, RCMT gained an incredible 381%. This is even more impressive considering Bitcoin holders saw their capital devalue by a hard 40% during the same time:
RCM Technologies is essentially a business solutions provider that covers a wide area of segments. These include engineering, specialty healthcare, and IT. A primary focus of the company in many of these segments is staffing, placement services, and executive search, in many economic sectors. Given the tight labor conditions, RCM saw a surge in demand for its services. Due to this, its revenue for FY22Q1 grew by a staggering 84% on a year-on-year basis. Its operating income saw explosive growth of almost 560% in a single year, rising to over $9 million.
Growth of such proportions is something that would impress even cryptocurrency enthusiasts. Although the company presently has a market capitalization of less than $200 million, its growth potential remains explosive. With the possibility of a looming recession, RCM could see its business boom further, especially in its specialty healthcare segment. Moreover, the company commits to a share buyback to further enhance the value of shareholders’ capital. This is a company that holds over 40% of its outstanding shares within its treasury. A percentage of this level is almost unheard of for a publicly-traded entity. Everything about this stock screams buy and it holds exponentially higher potential than what one would expect to find in the cryptocurrency market.
Stanley Black & Decker: Stronger Money-Maker than Cryptocurrency
Another feature of stocks that cryptocurrencies are not capable of delivering is that of dividends. Cryptocurrencies are typically unable to periodically distribute earnings because there is no backing for a company to turn in a profit. There are different ways cryptocurrency holders can earn a passive income such as staking or airdrops, however, none of these match the strengths of stock dividends. In this spirit, we present the dividend king, Stanley Black & Decker Inc. (SWK). SWK is a multinational company that specializes in storage, tools, and industrial business needs.
Stanley Black and Decker are unlike any cryptocurrency on account of its longevity alone. It has existed since 1843 and has never missed a dividend return to its shareholders since 1876. That represents almost 150 years. Payment reliability to this degree is not known in the cryptocurrency market. Presently the stock is down nearly 50% given its price of a year ago. This represents a golden opportunity for those seeking money makers in the market. With its dividend yield presently hovering close to 3%, this is an extremely attractive stock to buy.
SWK Trading at a Discount
Despite its price crash coinciding with that of the wider market, the stock continues to hold extremely robust potential. It is a clear market leader in the industrial machinery sector, being associated with some of the largest global brands out there. A low price for a stock as good as SWK is a rare growth opportunity that investors find on a platter. Regardless of what price the stock is presently trading at, SWK is bound to maintain its growth. It is also bound to keep its dividend trend ongoing, as it has for nearly 150 years.
One way to multiply the growth from SWK would be the DRIP feature. This refers to the dividend reinvestment program. In this way, the stock could see perpetual growth. Cryptocurrency holders, although risk chasers, yearn for growth. There is no safer and more stable option for them to consider than Stanley Black & Decker Inc.
Arrowhead Pharmaceuticals: Better Short-Term Boost than Cryptocurrency
Cryptocurrency enthusiasts often chase explosive growth, which is generally a high-risk strategy. For this reason, investors with such a temperament take little interest in stable and predictable stock movements. However, retail traders know that even stocks can offer short-term explosive growth. One stock category that is capable of this is biotech stocks. The growth explosion typically comes when a treatment candidate gets approved and eventually commercialized.
A great stock capable of delivering short-term price boosts is Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR). Arrowhead is a market leader in the biological domain of ribonucleic acid (RNA). Its treatments typically consist of RNA interference, which seeks to address genetic conditions that engage in protein synthesis.
The company holds a healthy pipeline, with a number of its candidates approaching mature phases in development. We see a healthy mix of early players and those approaching maturity, which opens up multiple catalyst points where short-term climbs are probable. Just like in the case of cryptocurrencies, these catalysts present opportunities where the market sentiment would guide the price of ARWR. At each stage where a drug candidate approaches a stage closer to commercialization, the market will react accordingly. With so many treatment candidates in its pipeline, the stock faces many growth explosion opportunities throughout the year.
ARWR On the Verge of Price Explosion
Arrowhead also holds multiple licensing agreements and partnerships with other companies, which enhances its financial position. Its total revenue of over $150 million comes mostly from its licensing contracts with Horizon, Takeda, and GSK. The licensing deals with GSK and Horizon are worth $1 billion and $700 million respectively. Its cash holdings as per its recent financial release stood at over $600 million. This gives the company plenty of runways to fulfill its research and development programs.
What we find most impressive about Arrowhead is how much its market capitalization has fallen in the present bearish climate. ARWR is trading at almost 40% below its value from a year ago. This comes despite its financial and market position seeing a significant strengthening throughout this period. This makes the stock a bargain investment, with an almost imminent growth surge.
Conclusion
There are a number of fundamental differences in the strategies undertaken by cryptocurrency and stock market investors. The present crypto-crash has been one of the hardest experiences, which caused many to reconsider this domain. Each of the stocks presented above holds unique strengths and capabilities that make them more desirable than cryptocurrencies. For this reason, we deem them as having greater potential than you would presently find with any cryptocurrency. We hope these recommendations would help you consider making a shift to stocks for investment.
