Enphase Energy (ENPH)
Renewable energy has been one of the market’s favorite investment themes in recent years. As a result, companies like Enphase have delivered outsized returns.
Enphase is one of the world’s leading suppliers of solar energy storage systems. At the beginning of 2020, the company’s shares were trading at around $29 per share. Today, they’re at $215.
That’s a gain of over 640%.
Cramer still sees plenty of upside ahead. In fact, he believes Enphase is the only player in the solar panel space worth owning for the long term.
In Q3, Enphase generated $351.5 million of revenue, nearly double the $178.5 million earned a year ago and marked a new record.
For Q4, management expects revenue to be in the range of $390 million to $410 million.
Enphase shares trade in the triple-digits. But you can get a piece of the company using a popular stock trading app that allows you to buy fractions of shares with as much money as you are willing to spend.
Affirm Holdings (AFRM)
Affirm is one of the major players in the growing “buy now, pay later” space, which allows consumers to split the payment of their purchases into future installments.
Business is booming at Affirm, and Cramer has taken notice.
In the September quarter, Affirm’s active consumers rose 124% year over year to 8.7 million. Meanwhile, active merchants on the platform jumped from 6,500 to 102,000.
Gross merchandise volume surged 84% to $2.7 billion for the quarter. Total revenue came in at $269.4 million, marking a 55% increase from a year ago and smashing Wall Street’s expectations.
Affirm also recently announced an expanded partnership with Amazon. Customers will be able to use Affirm for all eligible U.S. purchases of $50 or more on Amazon. At the same time, Affirm will be integrated into Amazon Pay’s digital wallet in the country.
In exchange, Amazon will receive multiple tranches of warrants to buy Affirm’s class A common stock.
In the ecommerce world, custom and vintage goods marketplace Etsy still lives in the shadow of industry titan Amazon.
But Cramer highlighted Etsy’s differentiated offering and appeal to millennials as reasons that set it apart.
He said that Etsy is the platform where “young people like to buy presents that are often more environmentally friendly than what you get in a store.”
“They like the connection with the creator, too.”
In Q3, Etsy’s top line improved 17.9% year over year to $532.4 million. For Q4, management is projecting revenue of between $660 million and $690 million, which at the midpoint, would translate to year over year growth of around 10%.
Since the beginning of 2020, Etsy shares have soared roughly 400%.
But Cramer warned Etsy isn’t for investors who want a “smooth ride,” referring to the high volatility of the company’s shares.
If you don’t feel comfortable picking individual winners and losers, you can always build a diversified portfolio automatically by using your “spare change.”
Look beyond the stock market in 2022
At the end of the day, stocks are volatile. Even Wall Street experts aren’t right 100% of the time.
Diversification is key. And you don’t have to stay in the stock market to get it.
If you want to invest in something without the violent swings of the S&P 500, take a look at some hidden alternative assets.
Traditionally, investing in things like exotic vehicles or multi-family apartments or even litigation finance have only been options for the ultrarich.
But with the help of new platforms, these kinds of opportunities are now available to retail investors, too.
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.