7 Stocks That Would Make Great Graduation Gifts in 2021

Posted on Tuesday, June 1st, 2021 by MarketBeast Staff
7 Stocks That Would Make Great Graduation GiftsGraduations are often seen as an ending. But they also have the potential to be an exciting new beginning. We may be biased, but we believe an ideal way to launch your graduate into the world is by helping them begin their investing education. And one way to help them do that is by having them invest in what they know.

This current crop of graduates has never lived in a world without things like iPhones, the internet, and they were the generation that likely had smartphones when they were in high school. This is a generation that has embraced and demanded relentless technological innovation. And they have rewarded the companies that have delivered.

Now it’s time to reward them, and maybe yourself as well. In this special presentation, we’ll take a look at seven stocks that would make ideal graduation gifts. Each of these stocks has a lesson(s) for graduates to take throughout their lives and careers.

#1 - Disney (NYSE:DIS)

The Walt Disney logo

Disney (NYSE:DIS) is one of my all-time favorite stocks for many reasons. But the company’s business model provides so many lessons for graduates. Those of us of a certain age can remember when DIS stock wasn’t an ideal growth stock. However, Disney was reinventing itself before that phrase became cliché.

Today’s graduates grew up watching The Disney Channel. They don’t remember a world without Pixar Films. And during the pandemic, it’s likely that many of them turned to Disney+ as a way of passing time. This concept of reinvention gives Disney multiple revenue streams; an attribute that helped the company weather the pandemic when their theme parks and cruise lines were not in operation. 

Disney suspended its dividend during the pandemic, but that will likely be reinstated as the company begins to fire on all cylinders. When the dividend comes back into play, it will be yet another compelling reason to buy and hold Disney shares.

About The Walt Disney
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates domestic cable networks under the Disney, ESPN, Freeform, FX, and National Geographic brands; and television broadcast network under the ABC brand, as well as eight domestic television stations. Read More 

Current Price: $173.50
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $201.19 (16.0% Upside)



#2 - Apple (NASDAQ:AAPL)

Apple logo

Apple (NASDAQ:AAPL) is a brand known for its iconic iPhone and for its innovation. Like Disney, the company continues to reinvent itself in an attempt to “skate where the puck is going.” That’s why the company has broadened its reach into Services and may even be making a foray into the electric vehicle (EV) sector.

It may be enough for some investors for to point to AAPL stock as a “Warren Buffett stock.” But when you look at Buffett stocks, you also include a stock like Coca-Cola (NYSE:KO) …not exactly a growth stock. Apple on the other hand is part of the FAANG stocks. But unlike many of those companies, Apple operates much more like a value stock.

To illustrate that, Apple initiated a four-for-one stock split in 2020 showing that the company is mindful of keeping AAPL stock accessible for many investors. Plus it just increased its dividend and its share buyback program.

About Apple
Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. Read More 

Current Price: $133.98
Consensus Rating: Buy
Ratings Breakdown: 26 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $149.50 (11.6% Upside)



#3 - Amazon (NASDAQ:AMZN)

Amazon.com logo

It would be irresponsible to create a list of great graduate stocks without including Amazon (NASDAQ:AMZN). The idea of buying stock in companies that you buy from doesn’t always fit. However, in the case of Amazon, it really does.

This current crop of graduates was born around the turn of the century. At that time, Amazon was still largely known as an online bookseller. AMZN stock was trading at around $69 per share.

But today, many of these graduates are Amazon Prime members and ordering products of all types for next-day delivery. And AMZN stock is trading at over $3,000 per share.

When you’re a company that becomes synonymous with a category the way Amazon is with e-commerce, then you’re a company that is worth investing in for the long haul.

In fairness, buying a graduate an entire share of AMZN stock would be an elaborate gift. But if they’re on Robinhood or Webull, perhaps you can buy them a fractional share to get started.

About Amazon.com
Amazon.com, Inc engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. Read More 

Current Price: $3,505.44
Consensus Rating: Buy
Ratings Breakdown: 45 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $4,188.37 (19.5% Upside)



#4 - PayPal (NASDAQ:PYPL)

PayPal logo

Speaking of skating where the puck is going, that is a great reason to make shares of PayPal (NASDAQ:PYPL) a great gift for a graduate. PayPal is one of the pre-eminent names in the financial technology (fintech) sector. This is a sector that JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon expressed concern about as a clear and present threat to traditional banks.

But that’s not news to anyone that’s been doing business with PayPal in the last 10 years. The company has become so much more than a vehicle for peer-to-peer transactions. On the business side, the company offers small business loans through its PayPal Working Capital program.

The company also has business debit and credit cards. In short, the company gives small businesses many of the tools that traditional banks can provide.

Plus, investing in PYPL stock provides an indirect, and perhaps safer, exposure to cryptocurrency. PayPal began allowing its customers to buy Bitcoin (CRYPTO:BTC) and other cryptocurrencies in 2020. And recently the company announced plans to allow customers to transfer crypto “off platform” to their digital wallet.

About PayPal
PayPal Holdings, Inc operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, and iZettle products. The company's payments platform allows consumers to send and receive payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. Read More 

Current Price: $286.75
Consensus Rating: Buy
Ratings Breakdown: 35 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $285.36 (0.5% Downside)



#5 - Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices logo

Having the patience to wait on something good would be sage advice when offering graduates a share or two of Advanced Micro Devices (NASDAQ:AMD). This is a company that has been doing a lot of the right things for a long time.  But for the last 10 years or so, its profit margins have lagged behind its competitors.

That shouldn’t be the case for much longer. That’s a great reason to look at AMD stock as a buy-and-hold play that would make a thoughtful gift for any graduate. And as of this writing, AMD shares are down 30% in 2021.

In the short term, investors can expect AMD to generate significant revenue and profit from the global chip shortage. However, over time, this supply chain issue will resolve itself. When it does, the semiconductor sector will go back to being defined by the best in class. That’s a description that fits Advanced Micro Devices well.

About Advanced Micro Devices
Advanced Micro Devices, Inc operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. Read More 

Current Price: $83.58
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 8 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $97.33 (16.5% Upside)



#6 - RingCentral (NYSE:RNG)

RingCentral logo

Although many of us would prefer to never take another “Zoom meeting” anytime soon, it’s been a way of life for many college graduates for the better part of a year. But if we’re honest with ourselves the workplace was heading that way long before the pandemic.

In some form, work-from-anywhere is not going away. And that means there will be demand for services such as the kind that RingCentral (NYSE:RNG) provides. But if you believe that RingCentral is simply a pandemic stock, you’re missing the bigger story. RingCentral has a recurring revenue narrative termed Unified-Communications-as-a-Service (UCaaS) that will continue long after the new normal arrives.

Currently the company only has about 1.2 billion out of a market that generated $50 billion in 2020. However, with a service that they can provide for as low as $19.99/month, RingCentral has an opportunity to expand their market share.

After surging by 122% last year, RNG stock is down 30% for the year. But once investors cast a more discerning eye at tech stocks, RingCentral is likely to recover in a big way.

About RingCentral
RingCentral, Inc provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. Its products include RingCentral Office that provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Engage Digital, a digital customer engagement platform that allows enterprises to interact with their customers. Read More 

Current Price: $298.34
Consensus Rating: Buy
Ratings Breakdown: 18 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $426.32 (42.9% Upside)



#7 - DocuSign (NASDAQ:DOCU)

DocuSign logo

DocuSign (NASDAQ:DOCU) is a stock that was on my radar long before the pandemic. The company is best known for its e-signature platform. But that is only one aspect of this technology company that is a strategic play on the cloud. DocuSign sells its products via a Software-as-a-Service (SaaS) model which makes its revenue extremely sticky.

What I appreciated about the company from the first time I was introduced to it is the “it’s about time” characteristic. The current crop of graduates is part of a generation that is comfortable with e-commerce and they’re becoming comfortable executing even the most complex of transactions from their smartphone.

Just as the pandemic has highlighted the convenience of e-commerce, it’s also transformed the way many consumers think of the value of their time. If they can sign documents electronically, they will.

And while that may be an argument for a cybersecurity stock, it’s also a reason to buy DOCU stock. The company’s business model makes sense for a paperless, and increasingly contactless, world.

About DocuSign
DocuSign, Inc provides cloud based software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. It also offers CLM, which automates workflows across the entire agreement process; Insights that use artificial intelligence (AI) to search and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce; Negotiate for Salesforce that supports for approvals, document comparisons, and version control; Analyzer, which helps customers understand what they're signing before they sign it; and CLM+ that provide AI-driven contract lifecycle management. Read More 

Current Price: $277.27
Consensus Rating: Buy
Ratings Breakdown: 17 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $272.29 (1.8% Downside)

 

In many ways, the advice today’s graduates will receive hasn’t changed from years gone by. Embrace change. Take calculated risks. Invest in yourself. And as this generation becomes the next generation of investors those are the same characteristics they should look for when they consider companies to invest in.

While the pandemic has popularized a category of low-priced “meme stocks,” investors are beginning to realize that price and value are two separate things. There’s no shortcut to building your personal wealth. And there’s no shortcut for building wealth in your portfolio.

The stocks in this presentation are not pre-revenue companies and all of them are profitable. While they shouldn’t comprise the whole of an investor’s portfolio, they do illustrate the concept of anchoring a portfolio with high-quality stocks. These stocks present low risk and high reward. These stocks won’t necessarily be the ones they brag about to their new colleagues, but they’re the ones that will keep them sleeping well at night.

10 Great Cheap Stocks to Buy Now for Under $10

As the P/E ratios of most S&P 500 companies look very expensive and the stock market continues to hit new all-time highs regularly, it's challenging for investors to find cheap stocks to buy now.

This goes for both share price since most stocks are trading higher on a per-share basis and valuation relative to earnings. Right now, the typical S&P 500 company is trading at about 25 times forward-looking earnings. Historically, S&P 500 companies have traded at about 15 times earnings in more normal markets.

While the S&P 500 as a whole is expensive, there are still a handful of undervalued stocks trading at less than $10.00 per share. Value investing opportunities for value exist if you know where to look. Putting together a list of cheap stocks to buy now requires looking into some smaller, riskier, unloved, or undiscovered parts of the market. These low-priced stocks might not look especially attractive today, but long-term investors stand to profit if they are willing to be patient and hold onto shares of these companies through multiple market cycles.

Some of these companies are great investing ideas because they're too small and too risky to attract most mutual funds and Wall Street money managers. Others have been beaten up by the market after a period of slowing earnings and profits but are now trying to turn around and bounce back.

You might find marijuana stocks, dividend-paying stocks, large-cap stocks, growth stocks, small-cap stocks, and even some bitcoin stocks in this list. While these low-priced stocks have many differences, these 10 stock picks all share a common characteristic, a super-low share price of $10.00 or less.

View the "10 Great Cheap Stocks to Buy Now for Under $10" Here.







MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.