3 Dogecoin Alternate options to Purchase When Cryptocurrencies Enter a Bear Market – Investorplace.com
While Elon Musk continues to play along Dogecoin (CCC:DOGE-USD) investors keep losing money.
A 14% drop in the past seven days, it’s clear that cryptocurrencies, including DOGE-USD, are facing a huge bear market.
When will it end? Who knows.
For those just looking to make money on their investments, here are three stocks to buy that have a market cap roughly equal to Dogecoin’s $ 26 billion valuation:
- ViacomCBS (NASDAQ:MORE)
- Interactive brokers (NASDAQ:IBKR)
- Best buy (NYSE:BBY)
These Dogecoin alternatives are the type of substitution your portfolio will thank you for.
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As Dogecoin continues to absorb water, investors are sacrificing significant economic opportunities in search of riches in cryptocurrencies. How The Motley Fools David Jagielski pointed out that the 13th of July compared to the previous month of June S&P 500 surpassed Dogecoin by 36% on a relative basis.
How has ViacomCBS (NASDAQ:MORE) done in the last month? It hasn’t done nearly as well as the index, essentially flat for the past 30 days. However, last year it posted a total return of 83.6%, roughly double the index.
InvestorPlace’s Mark Hake recently suggested that ViacomCBS would move significantly higher as the free cash flow (FCF) continues to grow.
And for me he’s 100% on the money.
ViacomCBS currently has a trailing 12-month (TTM) FCF from F. $ 3.33 billion. The current market cap of $ 27.6 billion has an FCF return of 12%. I consider anything over 8% to be value territory.
However, as Hake suggests, with an FCF of $ 6.36 billion in fiscal 2021, we’re talking about an off-the-chart FCF return of 23%.
Recent speculation that the company could be a takeover target seems to be growing. The spin-off of WarnerMedia from AT&T (NYSE:T) and their subsequent merger with discovery (NASDAQ:DISCOUNT, NASDAQ:DISK) highlights how the consolidation game stays alive and well.
As a result, the down bet on VIAC is much safer than DOGE-USD.
Interactive Broker (IBKR)
This online broker made waves recently when they announced they were going to cut their monthly amount $ 20 inactivity fee for clients who did not have $ 2,000 in their trading account or who generated less than $ 20 in commissions. Already one of the cheapest online brokers if that fee is dropped Interactive brokers (NASDAQ:IBKR) extremely competitive.
I am drawn to the company for a number of reasons.
First, IBKR is a founder-run company. Thomas Peterffy, currently Chairman, founded the company in 1993. He currently holds 70% of the company’s shares. He does not take any cash bonus or receive any long-term stock incentives. He believes his ownership position is motivating enough.
At the end of the first quarter, Interactive Brokers had net cash of $ 2.4 billion and its capital position was 6.7 billion. The company’s services provide investors with access to 135 markets in 33 countries and 25 currencies.
At the end of March, IBKR had 1.33 million customer accounts valued at $ 331 billion. Much of this has to do with offering investors some of the best fees and margin rates in the industry.
Plus, based on a TTM FCF of $ 6.54 billion and a market cap of $ 26.8 billion, Interactive Brokers has an FCF return of 24.4%.
Best Buy (BBY)
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Raymond James analyst Bobby Griffin noted in late June that Best buy (NYSE:BBY) didn’t offer its customers nearly as attractive discounts as a year earlier (during the pandemic). That’s a mark of this electronics retailer doesn’t hurt business.
At the end of May, Best Buy reported strong results, including a 36% increase in revenue and earnings per share of $ 2.23, 60% more than analyst estimates of $ 1.39.
Sales in the same store, a key performance metric, rose 37.2% in the quarter, well above the consensus estimate of 22.4%.
As a result of the strong first quarter, the company raised its revenue growth expectations for the same business for the year from a 0.5% decline to a 4.5% increase by the middle of its forecast.
For the past 12 months, Best Buy had one FCF of $ 3.51 billion. That’s an FCF return of 12.7% on a market capitalization of $ 27.6 billion.
Over the past five years, BBY has posted a total annualized return of 30.6%, nearly double the total US market. Unlike Dogecoin, Best Buy lets you sleep at night.
On the day of publication, Will Ashworth had no positions (either directly or indirectly) in the securitiesit mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing guidelines.
Will Ashworth has been a full-time investing writer since 2008. Publications he has appeared in include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in the United States and Canada. He is particularly fond of creating sample portfolios that will stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing, Will Ashworth had no position in any of the above securities.