In this edition of The Bull & The Bear podcast, I want to look into why Magic Software Enterprises (Nasdaq: MGIC) belongs in your portfolio.
When I first stepped onto the floor of the BMW Manufacturing Co. production plant in Greenville nearly a decade ago, I was in awe.
It wasn’t what I envisioned for a massive automotive production plant that manufactures all the X model SUVs you see on the road today.
There weren’t thousands upon thousands of workers standing in an assembly line.
Instead, I found smaller groups working alongside robots and computers automating what used to take hundreds more people to do.
Talking to the plant CEO, I found out they use software and other technologies to cut down on cycle time, employee downtime and speed up the production process. It’s what helped the plant churn out more than 1,500 vehicles … in a day!
Well, I used Chief Investment Strategist Adam O’Dell’s six-factor Green Zone Ratings system to find the underlying stock of a consulting company that provides this kind of cutting-edge technology to some of the largest manufacturers operating today.
I’ll tell you about it in this episode of The Bull & The Bear.
Let’s look at why this company’s stock is positioned to outperform the broader market by three times in the next 12 months.
Businesses Are Always Looking for an Edge
Businesses want their technology to work when it’s supposed to.
More importantly, they want that technology to always be at the cutting edge of development … without big development expenses.
Just like BMW constantly looking to stay ahead of the manufacturing and production curve.
This is where information technology firms come into the picture.
The Vanguard Information Technology ETF (ARCA: VGT) has consistently grown off its March 2020 lows.
VGT Jumps 106% Since its March Bottom
The exchange-traded fund invests in stocks of companies operating across information technology sectors.
And I’ve found a stock dealing with information technology that will beat the broader market by three times over the next 12 months.
Magic Software Provides That Edge
Magic Software Enterprises Ltd. (Nasdaq: MGIC) has gained more than 180% in its share price since March 2020.
I think it still has a lot of growth left.
It has projected sales growth of 71% from 2017 to 2022 in an industry where spending will hit $4.1 trillion by 2022.
In this episode of The Bull & The Bear, I tell you why MGIC is worth a spot in your portfolio for 2021.
MGIC landed on our Money & Markets Hotlist this week. If you don’t know about the hotlist, it’s a weekly basket of 10 stocks that are topping our Green Zone Ratings metrics. Go here to gain access to this list each week, free of charge!
This is just one stock that made it onto the hotlist this week, but Adam and Co-Editor Charles Sizemore highlighted another recent hotlist stock in February’s issue of the Green Zone Fortunes newsletter. It just published this week, so there’s plenty of time to get into this recommendation now.
To gain access to this pick, and many other high-conviction monthly picks like it, check out Adam’s Millionaire Master Class here.
Remember, knowing the data and the details about a specific stock or sector of the market helps you determine whether it is worth investing in.
That’s why we do the work for you and give you our analysis every week.
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Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.