Blog 13

Stocks

Realty Income defines themselves as a “real estate investment trust that invests in free-standing, single-tenant commercial properties.” They have left a global footprint, with clients in America, Spain, and the UK.

Realty Trust invests primarily in single-tenant retail properties such as Walgreens and Dollar General. Having huge partners like these companies speaks to their impact and overall role in the global marketplace. They also are in an industry that is not as reactive as other industries (like the e-commerce industry) to recessions.

Realty Income also has a management style that is proven, efficient, and easy to employ. Thus, they have enjoyed fruitful results and are poised to grow quite a bit in the future.

  • Financials:
    • Market Cap: $35.94B
    • Revenue: $2.6B
    • Profit Margin: 17.28%
    • Operating Margin: 37.01%
    • Gross Margin: 93.58%

Next, Monday.com is a “cloud-based platform that allows users to create their own applications and project management software.” With clients from Coca-Cola to Hulu, Monday.com has some of the partners in the world. Thus, they have enjoyed successful returns in a world where planning and execution are becoming ever so important.

Not only do they have zero competitors in 70% of their deals, but they also have a large market opportunity and are an easy tool that any industry or company can use. With a 219% year-over-year growth in terms of paying customers and a 65% ARR, Monday.com strives to spread its software all over the world and to different industries. This philosophy accounts for 52% of their revenue coming outside of the US and 106% of year-over-year revenue in 2020. They have tremendous upside and will definitely grow within the next few years.

Monday.com places an emphasis on transparency, trust, and execution, allowing them to serve their customers quickly and efficiently.

  • Financials:
    • Market Cap: $5.11B
    • Revenue: $123.72M
    • Gross Margin: 86.48%

Financial Term

Birthed in January 2004 by former UN Secretary-General Kofi Annan, ESG – environmental, social, and governance – is a prevalent investment factor analysts use to gauge companies’ impact on the community. In January 2020, BlackRock CEO Larry Fink brought ESG to the global stage, making a positive rating a requirement for high profits and sustained investing by various firms.

Fink kept his promise. Already, BlackRock has put 191 companies on watch, shut down 69 companies, and removed 64 directors. More importantly, Fink has requested that all companies adopt a strategy to eliminate net greenhouse gas emissions by 2050.

Today, total global assets pertaining to ESG have almost doubled, with more than $4 out of every $10 invested into ESG. In fact, nearly one-third of all professionally managed US assets comprise sustainable strategies.

As companies begin caring more about their ESG footprint, the financial sector and the world have seen positive returns. Since Mr. Fink’s ESG policy inauguration, 225+ companies now expect over $2.1T in possible revenue opportunities by 2023. Had it not been for Mr. Fink, according to a Computer Climate Model, the world’s financial sector could lose anywhere between $1.7T to $24.2 T.