2 Top Shares You Will Be Glad You Bought Cheap Now In 10 Years | news

Buying top stocks cheaply can mean many things. After all, a cheap valuation is relative, especially in the growth segment. Sometimes it’s about a stock market valuation with a gigantic market potential. Especially in the case of a correction or a crash, however, it is partly about real valuations.

Today we want to focus on two top stocks that represent the entire range here. I think in ten years, investors will be happy that they bought them cheap now. In any case, the markets are large, and the orientation so far is promising.

Trade Desk: Top Stock to Buy Cheap Right Now?

The proportion of The trading table Granted, (NASDAQ: TCFT) is never really cheap. Even after a correction of more than 50% in the meantime, the stock is still valued at a market value of $ 24.9 billion. This means that the price-to-sales ratio continues to trend towards 20. Not exactly cheap. But the overall market is significantly larger and the approach is truly revolutionary.

Trade Desk is a top stock that has a good approach to the digital advertising area. So-called programmatic advertising means that the viewer’s interests and any advertising inventory are compared while the website is being loaded. As a result, the placement of ads is usually more efficient, creating added value for consumers, advertisers and the sales department. If the company achieves a significant market share in the digital advertising market, then easily attract double-digit billions. Possibly even three-digit numbers over several years or decades.

This means that the valuation is not cheap, but the market value is. Trade Desk is a top stock that is now even growing profitably. However, in a slightly cyclical market, which now opens up the possibility of buying this stock on a bottom or in a falling market.

Etsy: Quite simple, P / E of less than 24

If The Trade Desk’s rating as a potential top stock is too expensive, you can find it Etsy (WKN: A14P98) may be a more attractive choice. The e-commerce player is currently priced at around 23.8 times earnings. This, in turn, means that there could be an annual earnings dividend of 4%, even if operating figures were flat.

In case of doubt, this is really a cheap top stock, where you as an investor can ask yourself: What should really go wrong? In any case, e-commerce is not dying, it is only taking a break, if at all, in times of reopening. Etsy has built itself an ecosystem with nearly 100 million buyers and over 7 million sellers. A critical mass has also been reached in relation to the value of the goods. Merchandise worth over $ 13 billion changed hands in 2021, of which over $ 12 billion through the Etsy platform alone.

The question of what can go wrong is particularly relevant. But when it comes to cheap top stocks, one can also ask: What can work? With a price / earnings ratio of less than 24, long-term moderate sales growth with solid earnings growth is enough to generate excellent returns. If Etsy is a completely different place in e-commerce in ten years than it is today, a market value of about $ 10 billion should be relatively inexpensive.

Article 2 Top stocks you will be glad you bought cheap now in 10 years first appeared on The Motley Fool Germany.

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Vincent owns shares in Etsy and The Trade Desk. The Motley Fool owns shares in and recommends Etsy and The Trade Desk.

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