- Wise has a huge competitive advantage in the cross-border payments market
- Quantum Blockchain is working on making Bitcoin mining more efficient
- Flutter’s investment in FanDuel is paying off
Q4 is likely to be a mixed one for UK stocks. On the one hand, the market is rebounding as the worst of the pandemic is over. On the other hand, policymakers in major economies have been signaling an end to the easy money policies prevalent throughout the pandemic.
However, whichever direction the broader market takes in the short term, there is never a bad time to buy stocks. In the long run, stocks with solid fundamentals always go up.
For someone with £1000 to spare, and would like to put it in the equity markets, Wise (WISE), Quantum Blockchain (QBT), and Flutter Entertainment (FLTR) look pretty good right now. Here’s why.
This fintech firm has a strong competitive advantage
Shares of Wise (WISE) has been on an upward trajectory all through 2021, and for a good reason.
The company has seen its share grow exponentially in the cross-border payments market and now has clients in more than 50 countries.
One of the factors that make Wise an excellent stock to buy is the company’s strong value proposition.
Wise identified a gap in the payments market where banks charge high fees for transfers, and in most cases, these charges are hidden.
The company solved this problem by charging an upfront fee, which means clients are fully aware of how much it will cost them to send and receive money. The company’s exchange rates are also always fixed for two days, which protects customers from the potential increase in costs due to fluctuations in interest rates.
This is a huge source of competitive advantage for WISE and is likely to play a role in this stock’s value appreciation going into the future.
Wise also has some pretty good financial metrics that could be instrumental to the stock’s value growth going into the future.
For instance, from its balance sheet, the company has a current ratio of 1.07. This means it has more than enough resources to cover its current liabilities.
Considering that governments are looking to reverse pandemic monetary policies to lower the risk of inflation, this is a good thing. That’s because rates could go up, and undercapitalized companies could face challenges going forward.
A combination of these factors make WISE a good stock to buy at current prices.
Quantum Blockchain (QBT)
A crypto mining company working on enhanced mining efficiency
Quantum Blockchain (QBT) has a lot going for it at the moment. For one, cryptocurrencies have been on a parabolic growth trajectory over the last 12-months.
Save for a dip in May/June; the overall trajectory is up. Bitcoin is still holding above $44k support and has been flirting with $50k for a few weeks now.
This means mining companies like Quantum that mine Bitcoin have been enjoying a windfall in this period.
This positive environment is likely to continue going into the foreseeable future. In the near term, the adoption of Bitcoin by El Salvador is likely to drive up confidence, and by extension, the demand for Bitcoin.
There are also analysts predictions that Bitcoin’s price is yet to test its peak after the block halving of 2020. According to a Standard Chartered analysis, Bitcoin should peak anywhere between $100k and $175k by the end of 2021, or in early 2022.
If Bitcoin is able to his such price levels, then Quantum could see a huge increase in its revenues from its Bitcoin mining operations.
However, it is not just the bullish nature of the crypto market that is working in this company’s favor at the moment, it is also innovating to make the mining process more efficient.
Quantum is in the process of developing an innovative way to mine Bitcoin faster and more cost-effectively. It is doing this by leveraging the power of A.I. and Quantum computing.
The company has brought together a team of computing experts and is also partnering with university departments to achieve this objective. As per its recent reports, the company expects to start filing for patents soon.
If it gets a breakthrough on this front, then Quantum would have a significant edge over other companies that are involved in Bitcoin mining. This could see its revenue grow exponentially in the long term, which would reflect its stock price.
This makes it one of the top stocks to buy now for someone who has £1000 to spare.
Flutter Entertainment (FLTR)
A sports betting company that hit the jackpot
Companies invest in other companies all the time, but it’s not every time that such investments turn out right.
Flutter Entertainment (FLTR) happened to have hit the jackpot in 2018 when it bought a majority stake in the US fantasy sports company FanDuel.
At the time, many analysts did not expect fantasy sports to get that big. However, since the 2020 COVID-19 pandemic, demand has increased, and the market has grown exponentially.
FanDuel’s revenues have skyrocketed, and the company expects to turn a profit within the first half of 2023. The strong performance of FanDuel has been a huge boost for Flutter and will have a significant impact on its price action going into the future.
The purchase of a stake in FanDuel couldn’t have come at a better time. The US gambling market is getting liberalized, opening up the market for key market players like Flutter.
This means that the amount of revenues that this company could generate from the US gambling market is set to grow in the long run. Since revenues and market share growth always reflect in the value of a stock long term, Flutter makes for a good buy today.
Even in the short term, Flutter’s prospects look good. That’s because the sports season is back on both sides of the Atlantic, and this time, fans are getting back to the stadiums. This means there is a lot more excitement in sports than last year.
This is good for all stakeholders in the sporting market, especially for sports betting companies like Flutter Entertainment.
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