Two COVID-19-era Beneficiaries Looking To Rise Again

• The twice-weekly TheBull.com.au stock picks
• This week we feature two leaders in their respective fields
• A listed buy-now-pay-later arm of a massive international payments service provider and one of Australia’s leading natural gas producers

Block Inc. ASX:SQ2 (SQ2) and Santos Limited ASX:STO (STO) are leaders in their respective markets. SQ2 dominates the buy-now-pay-later segment of the Australian market, and STO is Australia’s second-largest natural gas producer.

SQ2 stock appreciated quickly due to the explosion in online retail during the COVID-19 pandemic, as buyers looked for alternative payment options. Following an initial selloff, STO benefited from the displacement of Russian gas on international markets.

Block Inc. ASX:SQ2 (SQ2)

SQ2 is the listing of the well-known Australian buy-now-pay-later service provider, Afterpay. After being acquired by US payments service provider Block Inc, the ASX listing was rebranded as Block Inc in Australia, and the ticker was rebranded to SQ2.

SQ2s market and its financial position have created a volatile share price that can fluctuate rapidly in either direction. Despite this, the company is viewed as one of the most innovative in the payments industry, making it a potentially good investment for those with an appetite for risk.

The stock has experienced significant fluctuations recently, closing at $115.15 AUD on March 22 and dropping to $88.94 AUD on March 24. It then rebounded to $99.28 AUD on March 30, so its innovative approach to payments suggests long-term potential.

As the buy now, pay later market continues to expand, SQ2 is well-positioned to capture a growing share of the business, potentially leading to increased revenue and profits.

Source: Yahoo! Finance

Santos Limited ASX:STO (STO)

Santos (STO) is an energy giant that reported a significant increase in net profit after tax and free cash flow for 2022, with a reduction in gearing to 18.9%.

The initial displacement of Russian gas on international markets greatly benefited its achieved sales prices before US competition dampened the hitherto hot markets.

The increase in profit was attributed to higher oil and LNG prices, which are expected to remain strong, contributing to the company’s long-term growth prospects. Furthermore, Santos forecasts production growth, likely to result in additional revenue and profit increases.

Investors interested in Santos (STO) should consider the company’s positive financial results and growth prospects. With strong demand for its products and a track record of profitability, Santos is positioned to benefit from ongoing demand for energy resources.

Furthermore, its reduction in gearing suggests a prudent approach to financial management, which should provide greater stability in the long term.

Overall, Santos may be a good stock investment for those seeking exposure to the energy sector and is a company with a solid track record of financial performance.

Source: Yahoo! Finance