The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
The 2020 pandemic turned the world on its head, especially in the investment sphere. Businesses were forced to cease many physical operations and adapt out of the blue to new government guidelines. This resulted in stocks from all around the world taking a massive beating.
Some tech stocks recovered significantly quickly, while other sectors weren’t as lucky. Disruptions in services and customers staying in their homes caused many industries to face challenges like never before.
However, vaccine distribution is currently being done. The end of the pandemic is already near. This means that regular activities will resume soon, and many companies are trading at lower rates.
Is this the time to invest? Definitely.
Great companies have reduced trading values. Navient is an example of one of those companies. Let’s take a look at why companies like Navient should be on your radar for investing.
Will Navient bounce back in 2021?
Navient (NASDAQ: NAVI) is a student loan provider.
The company experienced around 28.5% of its federal borrowers and 14.7% of its private loan borrowers go into forbearance in the second quarter of last year. However, as the year continued, the numbers improved significantly to 13.8% and 3.9%, respectively.
The lingering effects of the pandemic might affect the company during the first half of 2021. It expects higher charge-offs as loans go from forbearance back to payment. However, the company is confident that the year will bring a 20% growth in private loan requests.
The company has spent $523 million in dividends and share repurchases (14% of its total shares), committed to returning capital to its investors. Navient’s repurchase of these shares came when the value was at its lowest point after falling 28%, and the company’s P/E (Price-to-earnings) and P/TBV (Price-to-tangible-book-value) ratios fall.
Navient is slowly making its way back up, increasing 35% in 2021. The stock is still at a low price. This low value and new lending increases make Navient a stock to keep an eye on.