The stock market doesn’t rise and fall according to the seasons. But it almost seems to be doing so lately. After a sizzling summer in 2018, stocks began dropping in the fall and early winter months. Now that spring is almost here, the stock market is close to its levels from August and September.
There’s no way to know for sure how the market will perform going forward. However, there are stocks that you can buy that appear to be great picks. In particular, Square (NYSE:SQ), Teladoc Health (NYSE:TDOC), and Vertex Pharmaceuticals (NASDAQ:VRTX) look attractive. Here’s why these are three hot stocks to buy in March.
Square hasn’t yet regained its highs of last year, but the payment applications stock is still up nearly 70% over the last 12 months and almost 40% so far in 2019. Although the stock might seem ridiculously expensive, with shares trading at close to 70 times expected earnings, I think that Square has a lot of growth potential.
The company should have a significant growth opportunity by just penetrating more of the U.S. payments market for small to medium-sized businesses. However, the global opportunity could be five times greater than the U.S. market.
Square started out with its credit card devices but now provides an ecosystem of products and services. This expanding ecosystem provides even more ways for the company to grow. For example, Square thinks that the market opportunity for its e-commerce and software applications is around $18 billion. That’s more than five times the company’s total revenue over the last 12 months.
Newer products open up more avenues for growth. Square’s free business debit card for businesses, the Square Card, enables the company to collect interchange fees. It’s likely that Square will move more into the banking services arena, with the company recently reapplying for a bank charter.
2. Teladoc Health
Teladoc Health is another stock that swooned in the fall but is rebounding nicely. The telehealth services provider’s share price is up more than 55% over the last 12 months and has jumped over 30% year to date in 2019.
The investing thesis for Teladoc Health appears…
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