The crypto sector, which has been hit by capital outflows and other technological challenges, appears ready to bounce back, which could potentially buy blockchain stocks. Recently, this space received good news that can support recovery efforts.
On Friday, Federal Reserve Chairman Jerome Powell said the new inflation report is “in line with where we want to go.” Chairman Powell believes the path to tackling inflation will be difficult, but the central bank is on track to reach its 2% target. Importantly, this statement suggests that the Fed probably won't consider raising interest rates, which could hurt sentiment in the crypto market.
Still, buying cryptocurrencies directly comes with risks. Alternatively, some investors may wish to mitigate some of the inherent risks by choosing an indirect route. For those people, here are some blockchain stocks you can buy below.
Coinbase (COIN)
Source: Primakov/Shutterstock.com
As a cryptocurrency wallet and exchange service, coinbase (NASDAQ:coin) is one of the top blockchain stocks to buy. It's not exactly a pure blockchain company. However, it provided a way for millions of investors to participate in this still fairly opaque field. Therefore, even if there are legal and regulatory issues, COIN stock should be of interest to him due to its underlying importance.
What needs to be noted here is that the investment narrative is consistent with cryptocurrency speculation. If I were to just look at economic newspapers without any context, I would probably run for the hills screaming. For example, in the fourth quarter of 2022, Coinbase posted a loss of $2.46 per share. Although his expected loss is better than $2.52, this is not a great performance.
But fast forward a year and we see a different paradigm. For Q4 2023, Coinbase delivered his EPS of $1.04 versus the expected stock price of 2 cents. As long as the crypto market continues to shine, COIN stock may continue to prove doubters wrong.
Robin Hood (HOOD)
Source: salarko/Shutterstock
Technically speaking, robin hood (NASDAQ:hood) is also not a pure candidate blockchain stock to buy. Nevertheless, HOOD stock could easily move higher as sentiment towards the crypto market increases. That's because, like Coinbase, financial services company Robinhood offers access to cryptocurrencies to curious retail investors. Moreover, its gamified platform is gaining popularity mainly among young users.
Additionally, the combination of attention to hot stocks and diversified assets contributed to the surprisingly strong earnings performance. For example, in the second and fourth quarters of last year, Robinhood achieved the same results. EPS was 3 cents versus expected loss of 1 cent. Overall, the average positive expected earnings over the past four quarters was 204.15%.
For fiscal 2024, analysts expect EPS of 27 cents and revenue of $2.19 billion. This is a marked improvement over last year's statistic of a loss of 61 cents on sales of $1.86 billion.
If cryptocurrencies continue to rise, HOOD stock could receive a boost. Therefore, it is worth considering for speculators.
Clean Spark (CLSK)
Source: Rapha Press / Shutterstock.com
The last thing I have to say is clean spark (NASDAQ:CLSK), is one pure idea on this list of blockchain stocks to buy. According to its public profile, CleanSpark is a cryptocurrency miner. But unlike your run-of-the-mill miner, the company owns and operates data centers that run primarily on low-carbon electricity. In particular, we focus on benchmark digital assets, which are known to be incredibly energy-intensive.
In theory, CleanSpark could change the name of the game if there was a cheaper mechanism to mine assets with less strain on the environment. Still, this is an incredibly speculative bet. Financially, sometimes things work out and sometimes things don't. And sometimes it's terrible. For example, in last year's third quarter, the company posted a loss of 63 cents per share compared to his expected loss of 13 cents per share.
Still, if you want to attribute this volatility to growing pains, consider the 2024 forecast. Analysts expect revenue of $432.67 million and EPS of 75 cents. These numbers largely depend on where cryptocurrencies go.
Still, it's a significant improvement from last year, when the company posted a loss of $1.33 on revenue of $168.41 million.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
