Markets are rocketing higher.
The Dow is up to a record high of 34,000, with its sights set on 40,000. The S&P 500 is up to nearly 4,200, and could potentially see 4,500 on wild market optimism. The NASDAQ is up to 13,950 and could push well above 14,000 if it can make it above double top resistance.
No wonder investors are excited.
All thanks to hopes the economy is returning to some sort of normalcy, stimulus checks, a potential $2 trillion infrastructure boom, improving unemployment numbers, and better than expected consumer spending. Better, jobless claims just hit a pandemic low. Sure, markets may be overdue for a healthy pullback, but long-term, investors are excited for higher highs.
Better, we’re still finding plenty of opportunity in the markets, especially when it comes to green energy-related stocks, and cryptocurrencies. In fact, here are three top stocks you may want to buy and hold, long-term. All could explode.
Opportunity No. 1 – Nio Inc. (NIO)
Once left for dead, NIO has become one of the top electric vehicle stocks to own.
Better, it’s excessively oversold, and overdue for a rally back to $64.60 highs. At the moment, it trades at triple bottom support and is just beginning to pivot from over-extensions on RSI, MACD, and on Williams’ %R. In addition, we have to remember the EV boom is only set to accelerate. Governments all over the world want millions of them on the road. Auto makers are quickly switching to electric, with plenty of demand.
Analysts, like Mizuho’s Vijay Rakesh now has a buy rating on the stock with a near-term price target of $60 a share. While the EV industry is seeing semiconductor supply shortages, the analyst still believes NIO could see strong sales through the year.
Plus, delivery numbers continue to be impressive. According to a company press release, “NIO delivered 7,257 vehicles in March 2021, increasing by 373% year-over-year. NIO delivered 20,060 vehicles in the three months ended March 2021, increasing by 423% year-over-year. Cumulative deliveries of the ES8, ES6 and EC6 as of March 31, 2021 reached 95,701.”
We have an initial price target of $50 on shares of NIO.
Opportunity No. 2 – Lithium Americas (LAC)
For the electric vehicle boom to continue, auto companies must have far more supply of lithium. Problem is – there’s more demand than there is supply at the moment, which is leading to higher lithium prices. With EV production only increasing, demand isn’t likely to let up any time soon. That could force lithium prices even higher – and fast.
According to Bloomberg, “Miners to battery makers have rushed to secure lithium supply amid expectations the EV frenzy will create a structural deficit as soon as this year, and prices are already roaring back after a three-year slump. Battery demand is expected to surge tenfold by 2030, according to Bloomberg NEF, as the global clean-energy transition accelerates.”
One of the mines that may be able to help is Lithium America’s Thacker Pass in Nevada. The company expects that its feasibility study will include an initial production capacity greater than 20,000 tonnes per annum of lithium carbonate equivalent, as noted by the company.
Analysts are bullish, too.
B. Riley analyst Lucas Pipes has a buy rating on the stock with a price target of $25. According to Barron’s, “Thacker Pass really appeals to Pipes because the project is in the U.S.; most lithium is mined in South America and Australia.”
With Lithium Americas, we have an initial price target of $20.
Opportunity No. 3 – Riot Blockchain (RIOT)
Cryptocurrencies may be one of the most volatile opportunities on the market. However, with plenty of retail and institutional interest, coupled with rapid adoption by companies like PayPal, Square, Visa, and Mastercard, digital currencies are here to stay.
In fact, we’d use any weakness as a buy opportunity, especially in mining stocks, like Riot Blockchain (RIOT). You see, as Bitcoin for example, runs to higher highs, the miners have historically followed. Considering folks like MicroStrategy CEO Michael Saylor believes Bitcoin could be worth $5 million one day.
“I can see bitcoin going to a million. I can see it going to $5 million,” he says, as quoted by Coin Speaker, “because if it simply replaces all the indexes as a monetary index money, why shouldn’t it go to $100 trillion in market cap or something?”
Also, RIOT doesn’t seem to have a problem growing.
It just recently noted that “In March 2021, Riot produced 187 BTC, an increase of 80% over its pre-halving March 2020 production of 104 BTC. In Q1 2021, the Company produced 491 BTC, an increase of 75% over its pre-halving Q1 2020 production of 281 BTC.”
With RIOT, we have an initial price target of $50 a share – with plenty of patience.