There are two things I look for when investing in stocks: high gross margins and cheap valuations. If the cost of goods sold is eating up a good chunk of a company's revenue, it will be difficult for the business to turn a profit. And if its shares are trading at a low multiple of earnings, that can help sweeten the deal and make it a solid investment that other investors may be overlooking.
Three companies that are generating margins of more than 70% and that are trading at low multiples of their future earnings are Amgen (NASDAQ: AMGN) , TC Energy (NYSE: TRP) , and Oracle (NYSE: ORCL) . Here's why 2021 could be a great year for all of these stocks:
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3 Cheap Stocks to Buy for 2021