2 growth stocks that outperformed Tesla and Bitcoin in 2021

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This year, top performing investments like Tesla and Bitcoin have increased by 36% and 67% respectively. That’s well ahead of the S&P 500, which is up a modest 25% year-to-date. But as good as these investments have been, there are two that have generated higher returns for their shareholders.

Moderna (NASDAQ: MRNA) and Nvidia (NASDAQ: NVDA) have doubled and are up more than 125% so far. And they’ll likely be better buys than Tesla and Bitcoin in 2022, too.

Image source: Getty Images.

1. Modern

Moderna has been one of the biggest buys on the market since the start of the pandemic, as its COVID-19 vaccine has played a key role in keeping people safe. And with the pandemic not yet drawing to a close (certainly not with the omicron variant still in its infancy), its stock has remained a hot commodity.

In the first nine months of the year, the healthcare company’s sales of $ 11.3 billion are 49 times greater than the $ 232 million generated by Moderna in the same period last year. And that was when he was simply accumulating income from grants and collaborative efforts. This year, the company recorded more than $ 10.7 billion in product sales from its vaccine.

Heading into 2022, with a new variant of COVID-19 to be concerned about and a potential fourth recall underway, demand is not expected to decline. In fact, Moderna predicts more revenue in 2022 than it has generated this year (its forecast for 2022 peaks at $ 22 billion in sales versus $ 18 billion for 2021).

With a futures price-to-earnings ratio of just 11, Moderna looks like a bargain compared to automaker Tesla, where investors pay 155 times future earnings for its shares. Of course, Tesla is in a different industry, but Moderna’s ratio falls just below the S&P 500 Pharmaceuticals pre-PE ratio of 13. And it’s safer than investing in Bitcoin, which over the past month has seen its value drop by more than 25%. (while Moderna increased by 22%).

Image source: Getty Images.

2. Nvidia

Shares of tech stock Nvidia have risen 125% this year. With more companies migrating to the cloud and digitizing their operations, the demand for computer chips has skyrocketed, and there is such a shortage in the industry that it may not be until 2023 that ‘she balances.

This ensures that chipmaker Nvidia will stay busy for the foreseeable future. In the company’s latest earnings call, Nvidia said it expects continued growth in its data center business, which provides businesses with the infrastructure they need to run their cloud operations. CEO Jensen Huang said that “customers are very concerned about securing their supply for their expansion.”

In the first nine months of 2021, the company’s sales totaled $ 19.3 billion and grew 65% year-over-year. The bulk of its sales (85%) come from its gaming and data center segments. And while games have grown at a rapid 72% so far, the company expects the data center to grow at a faster pace before the last quarter of the fiscal year. Nvidia has yet to provide guidance for 2022, but with strong demand and the company working on increasing supply, its business could be in a good position for next year to continue to build on it. on its already impressive numbers.

The stock’s forward P / E of 68 versus the S&P 500 Semiconductors’ forward PE of 24.2 isn’t cheap, but it’s still significantly lower than Tesla’s. And demand for its products appears to be a safer bet than it will be for electric vehicles, especially as inflation erodes consumers’ purchasing power. Nvidia has been a better buy this year than Tesla and Bitcoin and there’s a good chance it will stay that way in the long run.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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