For quite some time now, big crypto companies have complained that U.S. bank regulatory authorities have been telling banks to be cautious about lending money to the crypto sector without directly asking them not to lend.
While companies like Coinbase Global, Inc. COIN have been leading the charge against the regulatory bodies with litigations made in courts, it is only the Trump administration’s dovish signals to woo the sector which has been one of the biggest reasons it has rallied in recent months. Crypto-exposed stocks like Riot Platforms, Inc. RIOT, Interactive Brokers Group, Inc. IBKR and NVIDIA Corporation NVDA are thus well-positioned to benefit in the near future.
The industry has forever lamented that existing U.S. regulations are inappropriate for cryptocurrencies and has called for public representatives and regulators to write new guidelines to regulate the market. Last Thursday, Donald Trump passed an executive order pertaining to broadening the horizon for cryptocurrency, which includes the creation of a working group responsible for proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile. The self-proclaimed “Crypto President” also ordered that banking services for crypto companies be protected, thereby leading to massive cheer in the sector.
It is not a secret that while the erstwhile Democrat regime was crypto-skeptic and was trying to bring in further regulations to contain crypto in a way, the Trump administration is going to usher in a phase where the crypto industry will have the full backing of the institutions. Much of that euphoria has already been priced in. And yet, with the policies finally taking shape, Bitcoin (BTC) touched an all-time high price, $109,071, on Thursday, Jan. 23. However, with investors booking profit, it has come down to the $105,000 range at the time of writing this article.
Apart from volatility, one of the major reasons investors shy away from crypto is regulatory clampdown. In the Trump era, one can be confident that institutions would support the industry, and the following stocks can be looked into.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy) and positive returns and margins. You can see the complete list of today’s Zacks #1 Rank stocks here.
Riot Platforms is a Bitcoin mining and data center hosting company in North America. RIOT’s expected earnings growth rate for the next year is 6.2%. The company has a return on equity (ROE) of 2.2% and a current net margin of 16.7%. The company currently sports a Zacks Rank #2.
Interactive Brokers Group is a global automated electronic broker that executes, processes and trades in cryptocurrencies. IBKR’s expected earnings growth rate for the current year is 5.1%. The company has an ROE of 5% and a current net margin of 9.3%. The company currently sports a Zacks Rank #1.
NVIDIA Corporation is a graphic processing unit (GPU) designer. GPUs are necessary for running crypto data centers. NVDA’s expected earnings growth rate for the current year is 126.2%. The company has an ROE of 114.8% and a current net margin of 55.7%. The company currently carries a Zacks Rank #2.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpInteractive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
