Note: Post may contain affiliate links.

3 Stocks to Buy March 2021 for the Great Reopening

3 Stocks to Buy March 2021

Consumers are about to pump $2.5 trillion into the economy and it could mean booming stock prices! In this video, I’ll show you exactly what to look for in reopening stocks and the stocks to watch. I’ll then reveal three stocks to buy in March that could jump as the recovery takes hold. We’re talking best stocks for March 2021, today on Let’s Talk Money!

We’re building a huge community of people ready to beat debt, make more money and make their money work for them. Subscribe and join the community to create the financial future you deserve. It’s free and you’ll never miss a video.

Join the Let’s Talk Money community on YouTube!

What to Expect in the Reopening

Nation, the reopening is here and while a lot of those travel and tourism stocks are up twenty or thirty-percent already, I just found data that could send them up even higher!

The recent personal income report showed the household savings rate at 20%…that’s the highest since World War II and already up from a multi-decade high over the last year. The chart shows American households are sitting on $15.3 trillion, up $2.2 trillion from the year prior…and this was back in the third quarter of last year. Before a booming stock market, before another $900 billion in stimulus AND before the current $1.9 trillion stimulus!

We could be looking at upwards of $2.5 trillion in extra savings. On a $22 trillion economy, that’s like an 11% boost to growth and if you’re like me…you’re itching to get out and spend it!

All three of these stocks are going into our 2021 Bow Tie Nation portfolio.  The portfolio on Stockcard.io has jumped over the last few months, up 29% and beating the market by 22% over the period. Some of these have jumped higher. A return of 138% in Diamondback Energy, 61% in shares of Citigroup and 42% in ride-sharing Lyft.

Sign up on Stockcard for free and make stock-picking easy with the research tool I use! Use promo code: bowtienation for an exclusive discount!

I’m not going to do a portfolio review this month because I want to get into those March stock picks. I’ll do a full update on all the stocks in the portfolio next month but be sure to click through the link in the video description, look for the Bow Tie Nation portfolio on Stockcard and click the bell icon to get notified whenever I buy or sell a stock from the portfolio.

As a special bonus, I’ve negotiated an exclusive discount for everyone in the community. Use the promo code bowtienation for an exclusive discount beyond the free trial.

When Will the Pandemic Be Over?

Of course, in this reopening theme, the big question is timing. How long until people are able to go out and spend their money, how long does it take to reach the herd immunity where the virus dies out?

And on that, I think we’re further along than medical experts want to admit. We now have three vaccines approved between Pfizer, Moderna and Johnson & Johnson and it’s going into the arms of over two million Americans every day. In fact, more than 15% of the population has already received at least one dose and studies show just that first shot protects people by 74% from getting COVID.

There have been 30 million reported cases but doctors estimate that at least 100 million have had the virus, many of which didn’t have symptoms or thought it was the flu and didn’t get tested.

That’s about 30% of the population already infected and with some level of immunity plus 15% with at least one dose of the vaccine. Another two million doses a day through March is another 15% of the population…that’s nearly two-thirds of the population immunized and very close to herd immunity. Now medical experts don’t want to start talking about this because they’re worried people will start going out early but reopening will be in full gear by April!

That means a big chunk of that $2.5 trillion in additional savings could show up in second-quarter earnings for companies…and I want to be ready for it!

Stocks to Avoid for Now

So first, I want to highlight the industries and sectors I’m looking at for that theme, show you the data behind which companies could benefit. I’ll show you which reopening stocks I’m avoiding and then reveal the three I’m adding to the portfolio this month.

The idea here is that while consumers have continued to buy all the household goods and tech gadgets through the pandemic, they’ve missed out on those experiences and the services. Now there’s this huge pent-up demand that gets unlocked and with more zeros in their savings account, I think people reach for those higher-ticket experiences as well.

This is going to include industries like theater operators, hotel, gaming and resorts, restaurants, travel services, sporting events and outdoor retailers.

Now you’ll notice two of the most popular reopening stock groups aren’t in the list, airlines and cruise operators. For cruises, while the CDC is set to release permitting requirements any day now that will give a timeline for when these can resume…I think it’s further out than a lot of these other themes. Cruise ships are walking petri-dishes and you won’t see cruising again until later in the year. Shares of the big three cruise operators have run up an average of 60% in the last six months and enormous debt loads will weigh on these for years.

For airlines, this one almost got an honorable mention because we have seen promising signs. Southwest Airlines, ticker LUV, got 26 million web visitors in January, 62% more than any of the other major carriers. Passengers through TSA checkpoints crossed one million on February 25th, a number that had only previously been reached over holidays over the last year…so travelers are returning to the airports.

Southwest should outperform the other airlines on its domestic route focus and it’s the most efficient of the major carriers. The problem is, besides shares of airlines have already jumped, business travel and international is a big chunk of profits and that’s still not looking so great. International is about 15% of carrier revenue and was still down 80% year-over-year at the end of 2020.

So I’m avoiding the obvious and popular stocks to pick up ones that might have more to benefit and further to run.

Reopening Stocks to Buy this March

First on our stocks to buy list is Dick’s Sporting Goods, ticker DKS, and while shares have doubled over the last year I think sales continue to surprise.

According to data analytics by SimilarWeb that tracks web searches, the top trending getaway searches over the last month have been Yellowstone National Park, Disney World, Disneyland, Universal Studios and the Grand Canyon.

People are looking for safe, remote ways to get out and I think that trend continues through the summer. Same store sales increased 23% in the last quarter and online sales nearly doubled. Q4 earnings, which are expected before the market opens tomorrow, are expected 70% higher on a year-over-year basis.

The company has a strong balance sheet and upped its share repurchase program last year along with the dividend. Despite that solid share performance, it’s still only trading around 18-times on a price-to-earnings basis and 0.73-times sales. Now earnings are out tomorrow which could make the shares volatile so maybe invest half now and half later to see what management says about the 2021 outlook.

The next stock I’m buying this month is Cinemark Holdings, ticker CNK, the third largest theater operator in the U.S. with 4,500 screens.

Now Cinemark isn’t the reddit favorite like competitor AMC Entertainment. Shares of the Texas-based company are up 36% so far this year, just a fraction of the 315% run in AMC after investors targeted it for a short-squeeze.

Cinemark is clearly the better company though with net balance sheet debt of just $3.4 billion versus $10.9 billion in debt on AMC’s books. Cinemark is expected to narrow its loss this year to $2.94 per share from a savage loss of $5.24 per share last year and on revenue that could nearly triple to $1.6 billion.

2022 revenue is expected to be back up to $2.9 billion and I think theaters see surprise numbers this year. Hollywood studios have been sitting on their best movies for more than a year, summer blockbusters will be HUGE and everyone will want to get back to the movies.

Another stock I think could surprise higher is Madison Square Garden Sports, ticker MSGS, the $4.8 billion operator of the event center in New York.

Besides the marquee events center, the company also owns the New York Knicks, the Rangers hockey team, two development league teams and an esports franchise.

This one is the value play in the list, still trading 6% below its pre-pandemic high and some solid growth prospects for this year.

The NBA regular season started late February and the garden already has some events planned. The company is expected to report $1.29 in earnings per share versus a loss of $1.69 a share last quarter which would be a big turnaround. Revenue for the next four quarters is expected to rebound to $548 million and then 32% higher to $724 million next year.

Follow these and all the stocks in our 2021 Bow Tie Nation portfolio on Stockcard. Use promo code bowtienation for a special discount beyond the free trial! ​

Sharing is caring!

Speak Your Mind

*