As Elon Musk continues to play with Dogecoin (CCC:DOGE-USD), investors continue to lose money.
Down 14% over the past seven days, it’s clear cryptocurrencies, including DOGE-USD, are in a hell of a bear market.
When will this end? Who knows.
For those who just want to make money with their investments, here are three stocks to buy with market caps that are roughly the same as 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 wallet will thank you for.
Source : Jer123 / Shutterstock.com
As Dogecoin continues to gain water, investors are sacrificing significant economic opportunities to seek cryptocurrency wealth. As David Jagielski of The Motley Fool pointed out on July 13, compared to the previous June, the S&P 500 outperformed Dogecoin by 36% on a relative basis.
Comment a ViacomCBS (NASDAQ :MORE) done in the last month? It did not do as well as the index, which has been essentially stable over the past 30 days. However, over the past year it has posted a total return of 83.6%, about double the index.
Mark Hake of InvestorPlace recently suggested that ViacomCBS will increase significantly as its Free Cash Flow (FCF) continues to grow.
And as far as I’m concerned, it’s 100% on the money.
ViacomCBS currently has a 12-month rolling FCF (TTM) of $ 3.33 billion. Its current market cap of $ 27.6 billion has an FCF return of 12%. I consider anything over 8% to be valuable territory.
However, as Hake suggests, if it hits a 2021 FCF of $ 6.36 billion, we are talking about an outsized FCF return of 23%.
Recent speculation that the company could be a takeover target appears to be growing. The WarnerMedia spin-off by AT&T (NYSE :T) and its subsequent merger with Discovery (NASDAQ :DISC, NASDAQ :DISK) highlights how much the consolidation game remains alive.
As a result, the downside bet on VIAC is much safer than DOGE-USD.
Interactive Brokers (IBKR)
Source : Shutterstock
This online broker recently made waves when he announced that he would be waiving his monthly inactivity fee of $ 20 for clients who did not have $ 2,000 in their trading account or were generating less than $ 20. commissions. Already one of the cheapest online brokers, the drop in these fees makes Interactive brokers (NASDAQ :IBKR) ultra-competitive.
I am drawn to the company for several reasons.
First, IBKR is a company run by its founder. Thomas Peterffy, currently Chairman, founded the company in 1993. He currently owns 70% of the shares of the company. He does not receive any cash bonus or receive long-term equity incentives. He thinks his position as an owner is sufficient motivation.
At the end of the first quarter, Interactive Brokers had net cash of $ 2.4 billion and its financial position was $ 6.7 billion above regulatory requirements. 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 accounts receivable worth $ 331 billion. A big part of that is that it offers investors some of the best fees and margin rates in the industry.
Additionally, 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) did not offer its customers such attractive discounts as they did a year earlier (during the pandemic). It’s a sign that this electronics retailer isn’t hurting business.
In late May, Best Buy reported strong results, including a 36% increase in sales and earnings per share of $ 2.23, 60% more than analysts’ estimate of $ 1.39.
Same-store sales, a key performance indicator, rose 37.2% in the quarter, well ahead of the consensus estimate of 22.4%.
Following a strong first quarter, the company raised its forecast for same-store sales growth for the year from a 0.5% decline to an increase of 4.5% in the middle of its forecasts.
For the past 12 months, Best Buy had an FCF of $ 3.51 billion. This gives an FCF return of 12.7% based on a market cap of $ 27.6 billion.
Over the past five years, BBY has generated an annualized total return of 30.6%, nearly double the overall US market. Unlike Dogecoin, owning Best Buy will allow you to sleep at night.
As of the publication date, Will Ashworth does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Will Ashworth has been writing about investing full time since 2008. His publications include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger and several others in the United States and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. As of this writing, Will Ashworth does not hold a position in any of the aforementioned securities.