Marathon Digital Holdings (MARA)

Bitcoin mining farm. IT hardware. Electronic devices with fans. Cryptocurrency miners.
PHOTOCREO Michal Bednarek / Shutterstock

Marathon is a cryptocurrency miner. Year-to-date, its mining fleet has produced approximately 2,712 self-mined bitcoins.

And while some bitcoin miners might be tempted to sell their coins in the recent crypto rally, Marathon simply hoards them — an act known as “holding on for dear life,” or HODL, to crypto enthusiasts.

Unsurprisingly, the stock did well in the crypto boom. Despite recent turbulence, Marathon shares have returned 225% in 2021.

The stock came up in Goldman’s screening process because the consensus estimate for its annual revenue growth is 105% from 2021 to 2023. Meanwhile, the consensus estimate for its 2023 profit margin is 51%.

Join Masterworks to invest in works by Banksy, Picasso, Kaws, and more. Use our special link to skip the waitlist and join an exclusive community of art investors.

Skip waitlist

Riot Blockchain (RIOT)

macro miner figures working on group of bitcoins. virtual cryptocurrency mining concept
Morrowind / Shutterstock

Riot Blockchain is another crypto play that showed up in Goldman’s search. It mines bitcoin and hosts mining equipment for institutional clients.

In Q3, revenue totaled $64.8 million, up a staggering 2,532% year-over-year.

But Wall Street believes the best is yet to come. The consensus annual revenue growth projection is 69% from now till 2023, with the profit margin reaching 46%.

The shares have been walloped in recent weeks along with the broader cryptocurrency market. But now might be an opportune time to pounce.

Of course, there are many ways to jump into the crypto boom. For instance, some apps allow you to pick up crypto ETFs or buy cryptocurrency directly, all commission-free.

Marvell Technology (MRVL)

Marvell microchip
Raimond Spekking/Wikimedia Commons

Chipmakers are firing on all cylinders right now, and Marvell Technology in particular is receiving plenty of investor attention.

Its stock has surged 87% over the past year.

Thanks to growing demand from data centers — Marvell’s largest end market — the company’s revenue grew 48% year-over-year to $1.076 billion in its most recent fiscal quarter.

Going forward, Wall Street expects the company’s sales to grow at an annual clip of 20% in the next two years, with a profit margin estimated at 35%.

Sign up for Credit Sesame and see everything your credit score can do for you, find the best interest rates, and save more money at every step of the way.

Get Started—100% Free

MP Materials (MP)

Open pit mine
RobSt / Shutterstock

MP Materials is a rare earth mining company that billionaire investor Chamath Palihapitiya helped take public through a SPAC last year.

The company owns and operates Mountain Pass, the only integrated rare earth mining and processing site in North America.

Shares are up 43% over the past year.

One of the reasons behind the investor enthusiasm is that electric vehicles (EVs) need powerful rare earth magnets to turn energy into motion. Given the growth rate in the EV industry, MP’s outperformance shouldn’t come as a surprise.

The company is expected to deliver annual revenue growth of 50% through 2023.

Mastercard (MA)

Mastercard
garmoncheg / Shutterstock

In terms of market cap, Mastercard is bigger than all the previously mentioned companies combined.

While smaller companies tend to be more nimble, the financial services giant can also deliver rapid growth, especially as pandemic restrictions are being lifted.

In Q3, Mastercard’s gross dollar volume rose 20% year-over-year on a local currency basis. Cross-border volume, on the other hand, surged a more impressive 52%.

Analysts expect the company’s revenue to increase at an annual clip of 18% in the next two years.

Yes, Mastercard does trade at over $360 per share at the moment. But you can still get a piece of the company using a popular app that allows you to buy fractions of shares with as much money as you are willing to spend.

A fine strategy further afield

Woman hangs a painting
SeventyFour / Shutterstock

Of course, you don’t have to limit yourself to the stock market.

There are real assets that have survived all kinds of interest-rate environments while also delivering market-beating returns.

For instance, contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

Investing in fine art by the likes of Banksy and Andy Warhol used to be an option only for the ultra rich. But with a new investing platform, you can invest in iconic artworks, too, just like Jeff Bezos and Bill Gates do.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.