3 Top-Tier Internet Stocks to Watch Right Now Internet stocks are quietly making a comeback right. Here’s why Nerdwallet Inc (NASDAQ: NRDS) and 2 more stocks are watchlist-worthy right now.
By Lyndon Seitz
This story originally appeared on WallStreetZen
With this newsletter as Exhibit A, we live in an age of information. And there is an information site (and company) for practically everything, but how are those stocks doing? There are standouts, but not every “next big thing on the internet” will turn out that way. How do you distinguish between companies with solid foundations and the rest of the pack?
Our Zen Ratings system can help. It examines 115 factors to determine which stocks are best suited for long-term, stable growth. A-rated stocks get an average return of +32.52% per year. And if you’re looking for a particular type of stock for your portfolio, there are Component Grades such Value, Financials, etc. that can help you narrow things down.
Here are the top three internet stocks to watch, all with a Zen Rating of A or B, indicating they’re in the top 20% of stocks we track:
1. Nerdwallet (NASDAQ: NRDS)
Nerdwallet is one of the top stocks we cover, ranking in the 99th percentile of the 4600+ securities we track and earning an overall Zen Rating of A.
The company is in a strong position with the current economic situation (it helps people budget and works in consumer education). If people are looking for a cheaper deal, they often turn to Nerdwallet, and we suspect demand for their services will increase in the coming months.
In addition to its excellent overall grade, which puts it in a class of stocks that have historically generated annual returns of 32.52%, it has extremely strong Component Grades, receiving an A in Artificial Intelligence and Financials. It also has B Component Grades in Value, Growth, and Sentiment.
What makes it worth your attention otherwise? It has recently been expanding into new verticals, and it shows no signs of slowing down. Additionally, the recent downturn in the stock price makes now a potentially great time to invest in it.
2. Yelp (NYSE: YELP)
The famous ratings and review platform rates well in our book, falling in the 97th percentile of stocks we track with a Zen Rating of A.
Among its high points? A Financials Component Grade of A. Here’s how boring Financials can unlock potential gains…
And while YELP has seen a bit of a dip in recent months, it’s still looking like a strong value or growth stock. Our AI algorithms also indicate that it is showcasing patterns that could lead to great future results.
Right now, you might want to look at YELP’s year-over-year earnings growth (a forecast of 14.4% currently) and new AI-powered features to help determine if the stock is for you.
3. Trivago (NASDAQ: TRVG)
Iif you are looking for something a little different, TRVG might be a great answer. The German accommodation search platform was recently noted as a stock with plenty of momentum behind it (its component grade agrees), and it has indeed shown excellent growth over the last year.
Like the previous picks, it boasts an overall Zen Rating of A, ranking in the 95th percentile of all of the stocks we track. Momentum is the name of the game for this stock — based on a careful review of factors including sub-industry momentum, share turnover, and volume-weighted momentum, TRVG earns an A grade, indicating its upward trend could continue.
But as with any investment, you should do your own research before clicking “execute” on a trade.
To determine if these or other stocks are the right pick for your portfolio, I strongly suggest checking out WallStreetZen Premium. With it, you’ll get an unlimited watchlist, all the fundamental information you need, and more.
And if you’re looking for a more guided approach, there’s Zen Investor, where our own Steve Reitmeister provides you with detailed picks, insights, and more. His 40+ years of investing experience and long-term view will help guide your portfolio through even the roughest economic storms.
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