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I've been researching the stock market extensively today when I had a thought. How many stocks are held by people of color? There aren't many publicly listed businesses with black ownership.
I discovered a few businesses that were minority-owned and publicly traded. This is an issue of the utmost importance in the era of Black Lives Matterpanding our horizons and creating places where Black voices can be heard and Black money can be spent.
Generating wealth through generations is possible by investing in Black-owned companies.
Each of the aforementioned businesses has a distinctive past and a particular industry they serve. After addressing some alarming statistics regarding Black-owned firms on Wall Street, we'll go into more depth about each one.
Only 33.5% of black households and 61% of white households own stock in 2019, according to statistics recently provided by the Federal Reserve.
This is because to a variety of factors, including the idea that investing in stocks involves gambling.
However, the stock market is not a game of chance. Making prudent investments with the money you make is what it means. Unfortunately, there aren't many options for investing in Black-owned companies on the stock market.
Only nine publicly listed businesses are run by black businesspeople.
The Washington Post claims that since the introduction of shared ownership, the number of black-owned enterprises on Wall Street has decreased by more than 40%. A long history of institutional racism in America is to blame for the wealth divide.
Covid-19 has made the problem worse. How can I invest in stocks that are held by Black people?
In order to address this query, we will detail each one along with the marketplaces in which you may locate these Black-owned publicly listed firms from 2020 to 22.
The Top Black-Owned Stocks to Buy Right Now
1. Best Black Stock in Real Estate: RLJ Lodging Trust
We'll start out by talking about RLJ Lodging Trust. The ticker symbol for this stock is RLJ. A real estate business, more precisely a Real Estate Investment Trust, is called RLJ (REIT).
Hospitality is their industry. They have hotels in 23 states totaling more than 103 in their portfolio.
Urban areas and heavily populated cities are where their business is mostly concentrated.
High levels of tourists, business gatherings, and vacationers create a need for their services in these areas. In May 2011, this business was admitted as a Black-owned, publicly listed corporation on the NYSE.
Their most recent revenue was projected to be $231.28 million, and Yahoo Finance predicted that their sales will increase by 153.90%.
Any firm would benefit from these figures. Despite being impacted by COVID (as did the whole hotel sector), they were still able to make money and boost sales. The company's founder and chairman is Robert L. Johnson, and its current CEO is Leslie D. Hale.
Pros
Investment in real estate is profitable.
It's simple to enter a market.
This business is expanding quite well.
Cons
Real estate investment calls for extensive understanding of the housing industry.
Refer to this: Consider the Best Ethical Mortgage Lenders
Urban One, a radio station and broadcasting firm, is next on our list. They are experts in showcasing Black culture. They claim 40 million video streams, 20 million unique visits, 200 million app streams, and 82% of Black America reached on their website.
TV One, Radio One, Reach Media, One Digital, One Solution, and Cleo TV are all owned by Urban One. As a media organization, they have a wide range of projects in their portfolio, and its founder was recently honored by the House of Representatives.
The business has been run by its creator, Cathy Hughes, for more than 40 years. It is now the most well-known Black broadcasting network in America because to her. The business was started by her in 1979, and it has its main office in Silver Spring, Maryland. Sourcian is a dedicated platform for the recommendation of the best manufacturers. Your sourcing journey starts right here at sourcian.
Almic Broadcasting was its original name upon founding. WOL was the only radio station the business had at first (AM). The first Black woman to run a publicly listed firm is Cathy Hughes.
Under the ticker symbol UONE, Urban One is traded on the NASDAQ. On September 30, 2021, the firm recorded $111.5 million in sales. Additionally, they saw a rise of 21.3% from the same time in 2020.
Broadcast and digital operations generated operating income of $49.1 million.
For the quarter ended September 30, 2021, regular operating income was recorded as $34.5 million, down from $4.0 million in 2020. The reduction is probably a result of difficulties with COVID that harmed the whole economy.
Pros
There are several assets in this business.
Their income is substantial for a media firm.
They have several assets.
Cons
Particularly during COVID, their operational income has been declining.
Andre Durand established the Black-owned stock Ping Identity Holding in 2002. They provide a broad range of identity protection service specialties. They trade openly on the NYSE under the PING symbol.
They specialize in a range of digital and online identity protection services, including multi-factor authentication, identity data management, and their patented Ping intelligent identification platform.
The business was acquired by Vista Equity Partners in 2016 and went public in 2019.
Thirteen of the biggest banks in the country, five of the biggest retailers, and seven of the biggest healthcare organizations are among their clients.
For the three months ending in December 2021, Ping Identity Holding forecasts revenue of $71.22 million with a rise in sales of 12.60%. Over the next five years, growth is anticipated to be 17.30%, according to experts at Yahoo Finance.
Pros
They are a technology firm.
Without any previous information, investing in this firm is simple.
They have great clients.
They anticipate significant growth over the next five years.
It could be challenging for you to understand what the business does if you have no background in technology.
The business is still quite new. The best black stock in medicine is Global Blood Therapeutics.
Another publicly listed firm with Black ownership is Global Blood Therapeutics. The CDC and Investopedia both estimate that 100,000 Americans suffer from sickle cell disease.
More than any other population, the Black community is most impacted by this illness. There must be a treatment for sickle cell anemia, which affects one in every 365 children. The mission of Global Blood Therapeutics is to discover that treatment. They operate as a biopharmaceutical business.
Under the symbol GBT, this Black stock is traded on the NASDAQ. Black people have historically had little to no access to healthcare. Another manifestation of institutional racism is the treatment of Black lives as inferior to or less valuable than those of White people.
Thanks to organizations like GBT, medicines are being created to treat a serious condition that affects the community. Just four years after its founding, GBT became public.
They obtained a patent for the first FDA-approved therapy for sickle cell disease. Global Blood Therapeutics and Syros Pharmaceuticals joined together in 2019 to create novel treatments for Beta Thalassemia and sickle cell disease (another blood disorder).
The expected profits for the quarter ending in December 2021 for GBT were $55.34 million. From 2020, their sales growth increased by 34%.
The FDA has authorized the once-daily oral medication Oxbryta (voxelotor), which the firm just revealed is now accessible via their network of pharmacy partners.
They have made progress in improving healthcare for minority populations and have extended the life expectancy of sickle cell disease patients. The FDA also gave the therapy approval for kids between the ages of four and twelve.
The only drug that specifically targets sickle hemoglobin polymerization is Oxbryta.
Vice President of the company and in charge of research and development Kim Smith said, "We are pleased to make this new dosage form of Oxbryta available to patients by prescription. The FDA's recent approval of the new dispersible tablet dosage form of Oxbryta is a significant advance for people and families affected by this devastating disease.
We appreciate everyone who helped make sure that more people with sickle cell disease who need Oxbryta medication may get it.
Pros
They are investigating a condition that affects the Black community.
Investing in medical firms is always popular.
Cons
Before releasing any new medications or therapies on the market, they must first get FDA clearance.
5. Best Black Stock in Investment Capital: Carver Bancorp
One of the few Black-owned corporations on the stock market worth researching is Carver Bancorp. Their corporate headquarters are in New York City, where they were established in 1948.
The stock ticker for them on the NASDAQ is CARV. Carver Federal Savings Bank is housed under Carver Bancorp. The business was established in 1948 by a group of businesspeople.
Both Black small business entrepreneurs and Black community leaders made up the organization. This is significant since the Jim Crow period was still in effect in the United States. Although it was important, it was difficult for black people to establish their own enterprises and own real estate.
Blacks often had to form collectives to build their riches because of the pervasive racism in the nation.
Therefore, it was usual to find Black-owned hospitals, schools, and financial organizations. Minority communities are still served by Carver Bancorp today.
In 1949, the first location in Harlem opened. They now have eight branches and several ATM locations.
They are mostly seen in low- to moderate-income communities. They are committed to assisting minorities in managing and building their money.
This community service contributes to closing the wealth gap between Black and White people.
This banking establishment is categorized as a community development financial institution by the US Treasury Department (CDFI). This indicates that their main areas of concentration are personal financing for underserved populations in the US and company development initiatives.
They give personal loans to those who may be turned down by other banks and handle business loans impartially.
They provide a practical solution to stop corporate redlining. Red-lining is the process of dividing up neighborhoods according to a person's residence.
This would prevent whole communities from obtaining personal loans, mortgages, or commercial loans. Carver Bancorp decided to combat this behavior head-on in its last mission.
Pros
Financial industry professionals often use banking institutions.
One of the market's oldest institutions is this publicly listed Black-owned enterprise.
They are committed to fostering community growth.
Cons This business has a history you can rely on.
For newcomers, investing in the financial industry might be complex.
This Black stock market corporation is dependent on the Federal Reserve's fixed interest rates. Best Black Stock in Banking: Broadway Financial Corp.
Another CDFI is Broadway Financial Corporation. Their present headquarters are in Los Angeles, and they were established in 1946, during the Jim Crow period. Banking organizations were blatantly racist and refused to lend money to Black people or companies.
This would not stop the founders from continuing. They formed their financial institution against the grain in order to support the areas who needed it the most.
This is the pinnacle of Black greatness. They purchased a property in Los Angeles and set up its initial offices there in 1954.
Three years after the 1992 Rodney King riots, when the previous office was destroyed by fire, a new location was built. The bank has made it a priority to provide low- and moderate-income households with a variety of deposit and lending alternatives ever since it was founded.
The parent company for Broadway Federal Bank is called Broadway Financial Corp. In 2020, the business will have three locations and one lending office.
The bank amalgamated with City First Bank on April 1, 2021, making it the biggest Black-owned financial institution in the country.
They have assets worth more than $1 billion. In 1995, they raised $9 million in capital when they went public, changing from a mutual savings bank to a stock savings bank.
Under the symbol BYFC, these Black-owned stock businesses may be found trading on the NASDAQ. According to the most current data from the firm, grant and fee revenue climbed by $496 thousand while net income was $426 thousand.
Operating costs were estimated at $1.7 million, mostly as a result of the merger. The merger had a major impact on the financial sheet.
Despite having greater assets currently, figures like a net loss of $2.6 million for the nine months ended September 30, 2021, give the impression that the corporation is losing money on the balance sheet.
The corporation received a grant for $1.8 million during the second quarter; however, this was offset by $207k in merger expenses and a modification in income tax expense expectations.
Pros
This publicly traded Black-owned business is one of the country's oldest financial organizations.
They recently merged, increasing their size even more than before.
This dependable Black-owned stock is a good investment.
They seem to be losing money after their merger.
7. The best biopharmaceutical black stock is Axon Therapeutics.
The next Black-owned publicly listed firm on our list is Axon Therapeutics. Axon is a biopharmaceutical business with a focus on cutting-edge therapies for disorders of the central nervous system. There are few effective treatments for the illnesses they cure.
Their goal is to provide treatment choices that significantly enhance patients' lives. They also assist in quitting smoking and treat conditions like major depressive disorder, Alzheimer's illness, migraines, narcolepsy, fibromyalgia, and migraines.
On their primary page, you may view all of their scientific work. The stock will constantly increase as the FDA authorizes new treatments for ailments.
Under the symbol AXSM, they are traded on NASDAQ. The company's stock recently increased when news spread that many of its medications had issues with the FDA.
Its AXS-05 medication candidate was the main topic of its pending new drug applicaton to the FDA.
Two issues with the drug's analytical techniques were disclosed by the manufacturer. Despite these
concerns, a lot of analysts still believe the stock is a buy. This stock has a favorable outlook.
Advantages This business is a wise choice for any portfolio looking to diversify.
There is always a need for medical businesses.
They are doing research that is exclusive to their business.
The firm must get FDA certification of its medicines in order to maintain its growth and high value, which sometimes takes years.
Before the business turns a profit from its research, it may take a few years.
8. Best Black Stock in Medical Equipment is provided by American Shared Hospital Services.
Another healthcare organization is American Shared Hospital Services. They concentrate on the technological part of the medical sector and provide hospitals and medical facilities equipment. The business was established in 1980 and became a corporation in 1983.
For medical facilities that may not consistently be able to buy the newest equipment, they offer several financing choices.
They specialize in leasing equipment for radiosurgery, intensity-modulated radiation treatment (IMRT), and proton beam radiation therapy. Additionally, they possess the most Gamma Knife units in the whole planet.
Under the ticker AMS, American Shared Hospital Services trades on the NYSE. They announced a change to their board of directors in December 2021.
They now have five directors as a result of the board changes. The company's most recent financial results release had a few noteworthy points.
For the quarter that ended on September 30, 2021, the firm earned $4 million in sales. Operating income was $186 000 and net income was $3 3 000 during the third quarter.
They continue to lose money as a result of COVID-19. Currently, they are losing money in several areas, including sales and net income from prior quarters in 2020.
Pros
This firm, which is not a medical company, may benefit from the medical industry's earnings.
The amount of research needed to create new medical equipment is little.
They make money every year without waiting for the FDA.
They make a lot of money.
Due to COVID, they are now operating at a loss.
9. Best Black Stock in Finance: Citizens Bancshares Corporation
Our last stock held by Black people is Citizens Bancshares Corporation. It has been there for a century.
In 2021, they will have recently celebrated their 100th anniversary. The business was established in 1921. In places that wouldn't often be served, they have given communities access to financial resources.
They were established on a foundation of foresight, bravery, and dignity. The "Fervent Five" combined their expertise, money, and vision in 1919 to form a financial organization devoted to serving their neighborhood.
They were five businessmen of color. This carries on the tradition of previous Black business owners who started their companies in Black communities.
The Black Wallstreet was a group of like-minded Black businesspeople who constructed banks, started hospitals and schools, and provided services to their communities during a time when White people held them in lower regard.
The foundation of Citizen's Bancshares Corporation is this societal strength. They want for their customers to be able to live the American Dream.
Heman E. Perry was the founder and president of this neighborhood bank in Atlanta. They placed a strong emphasis on the value of homeownership, financial responsibility, and thriftiness.
The tale of Citizens Trust Bank is exceptional, according to Ray Robinson, chairman of Citizen Bancshares Corporation. We are quite proud of the goal of our bank. It remains the cornerstone of the bank's dedication and long-term influence. The stock ticker for this Black-owned business is CZBS.
According to Citizen's Bancshares Corporation, non-interest expenses was $13,776 million, while total income was $16,467 million.
They earned $2,854 million before taxes. Analysts haven't commented on its soundness, although this is a well-established business with a distinguished reputation in the neighborhood. CZBS has maintained its position although COVID-19 has forced several businesses out of business.
Pros
The oldest Black stock traded on the stock exchange is this one.
They provide financial services to populations that are underserved.
Their pretax income is large, and their profits are strong.
Investments in financial equities are wise for balancing a portfolio Cons
Their interest rates are under Federal Reserve regulation.
Many novice investors won't get how complicated financial markets are.
Recent analyst opinions on the firm have not been released.
Investment in Minority Owned Businesses is Important to Close the Wealth Gap
Anyone should be able to discover Black stocks to invest in with all these alternatives.
Unfortunately, the chances are minimal given the long history of systematic racism in the United States. There are now just nine firms, but there may be more soon.
It may soon be possible to close the stock ownership gap between white and black families.
Dream Exchange, a stock exchange that will be controlled by black people, is being developed by Joe Cecala. The first black stock exchange would be The Dream Exchange. This is a straightforward strategy for bridging the wealth divide in America.
This seems to be an honest strategy for closing the wealth gap, given that African-American households earn less than 15% of what Caucasian families do.
In a recent interview with Complex magazine, he dispelled a number of misconceptions regarding stock trading. Owners of Black company stocks will be directly impacted by the launch of his stock market.
He has been collaborating with William Ellison, the creator of Cadiz Capital Holding, a private equity business.
Even though he is no longer involved in the project, his assistance had a significant influence. The founding group's current priority is to increase possibilities for minority-owned financing providers.
This is a thorough list of Black-owned companies that you may invest in right now. The conventional strategy for creating generational wealth is stock market investing. The wealth gap is a term used to describe how different American households are from one another.
While some individuals are forced to live paycheck to paycheck, others are taught how to save money and invest.
By making an investment in these businesses, you are actively working to raise the standard of life for Black Americans and improve circumstances for minorities.
Additionally, if you've never made an investment in the stock market, you'll be doing yourself a favor. Historically, investment has been the most effective strategy to increase wealth. You become a part-owner of a firm when you make an investment in it on the stock market.
So, by making an investment in these businesses, you too may own a piece of Wall Street. You may use this to create your legacy and leave it to your children and grandkids.
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