Blockchain technology continues to be profitable for many buyers due to the cryptocurrency rally. Today we will review three blockchain stocks that could benefit from this investor interest.
Buying blockchain stocks of companies related to blockchain technology, in general, is a good way to participate in the cryptocurrency market without risking so much. Here we tell you about three stocks that you will be able to buy in October 2021.
1. CME Group
CME Group is not a typical blockchain stock, but it is the company in charge of implementing many of the financial innovations in this sector. However, it is all about going hand in hand with the growing popularity of cryptocurrencies as it offers bitcoin futures trading.
The stock has gained from CME has gained 8.47% in one month and almost 20% in the year. The company has a dividend yield of almost 1.7%.
CME Group, Inc. operates a derivatives marketplace and offers a range of futures and options products for risk management. The company was founded in 1898 and is headquartered in Chicago, IL.
Its exchanges offer a range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange (FX), energy, agricultural commodities, and metals.
As the popularity of cryptocurrencies grows, CME could launch more cryptocurrency-based products. Meanwhile, Wall Street analysts don't seem too bullish on the stock and their average price target is $217.
However, given that the stock has performed well lately, a small break before new purchases are viable. This stock should be kept under watch by investors as it has lately been directly related to the blockchain market.
The total insider purchases and sales Reported to the SEC last 3 months are 12 purchases (61,180 shares) and 54 sales (27,032 shares).
2. Tesla Inc.
Tesla is a fast-growing company, and the latest quarterly earnings report proves it. The bullish approach comes as Tesla now has a price-to-earnings ratio of 111 times estimated 2022 earnings.
Tesla's goal, for now, is to grow volumes at an average of 50% per year. This growth would put 2030 annual deliveries at more than 30 million, a difficult figure to achieve in our opinion.
On Wednesday's Q3 conference call, CFO Zachry Kirkhorn said Tesla's goal is to make 20 million vehicles a year. However, he did not say when they would do so.
As we can see from the chart, Tesla's stock prices are at all-time highs, and many experts are concerned that the $900 area is a strong level to beat. However, after an expected pause, news about innovation and new technologies could help the bulls.
Some experts have said that the market assumes that Tesla's growth will come at the expense of traditional automakers. And because of this relationship, we should keep an eye on the evolution of the rest of the auto companies to consider our options in the market.
Total Insider Purchases and Sales Reported to the SEC (Last 3 Months)
- 17 Purchases 86,885 Shares
- 40 Sales 84,448 Shares
Payment processing company Mastercard is another blockchain stock you can buy. While the company is known worldwide for its payment solutions, it has been turning towards blockchain technology lately. Earlier this year, the company announced that it would begin supporting select cryptocurrencies on its platform.
The company’s most recent quarterly report revealed that such sales in July were about 79% of its July 2019 levels. For the entire quarter, cross-border sales were $1.08 billion, or about a quarter of total sales of $4.53 billion.
Should that revenue return to prior levels, the company could easily beat or meet analysts’ estimates. That’s because the company has strong operating leverage: every additional dollar of revenue translates into more profit dollars because the company doesn’t have to spend much more to rake in more fees. Analysts are currently looking for earnings per share to increase by 30% in 2022, to $10.62, according to FactSet data.
If you are a good investor, diversify your portfolio and take advantage of a good blockchain stocks to improve your profits.