The stock market has experienced its fair share of peaks and troughs in the past year. Amidst this vast expanse is a select group of promising S&P 500 stocks effectively carving out an impressive niche and offering strong upside.
As summer’s heat and humidity descended upon us, the resilient bull market didn’t break a sweat, continuing its spirited trot as the Federal Reserve reignited its rate hikes in July. Perhaps we’re even gearing up for a new crescendo, with the stock market potentially hitting unprecedented highs in August. A testament to this optimism, the S&P 500 dazzled investors with a striking 19% bump in the first seven months of 2023.
Beyond the uplift from a brighter-than-anticipated mid-year earnings season, the undercurrent of excitement stems from a collective realization that the Fed, against all odds, has tamed inflation without triggering a recession. So, as we navigate this momentum, let’s delve into some S&P 500 stocks to buy that could further amplify your portfolio’s strength.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) continues to redefine its status as a commercial titan, expertly straddling the realms of eCommerce, cloud computing, and ad tech sectors poised to deliver double-digit expansion over the next several years. The company’s commanding online retail and advertising presence, backed by a formidable logistics network, is further strengthened by its cloud computing arm, Amazon Web Services (AWS).
The firm’s second quarter was a blow-out success for the tech giant, delivering an earnings performance that left Wall Street estimates in the dust. To illustrate, Amazon’s reported EPS of 65 cents eclipsed the anticipated 35 cents, marking an 85% surge. AWS shone particularly bright, registering revenues of $22.1 billion, a notch above the $21.8 billion expectations. Additionally, advertising across Amazon’s eclectic platforms raked in $10.7 billion, surpassing consensus forecasts again. This remarkable second-quarter spectacle stands as Amazon’s most significant earnings triumph since the fourth quarter of 2020, a testament to its astute cost-management strategies.
American Tower Corp (AMT)
American Tower Corp (NYSE:AMT) is a compelling blend of income and potential growth for discerning investors. Though the stock has taken a hammering of late, analysts rate it as a Strong Buy, offering a 32.4% upside from current levels.
AMT is poised to ride the tailwinds in the tech space on the back of the burgeoning growth expected in evolving technologies, including 5G, the Internet of Things, and others. As a real estate investment trust (REIT), it promises consistent dividends, allocating 90% of its taxable earnings to shareholders.
Although the company saw its per-share distributions swelled by 9.8% in Q2 year-over-year, its stock is down due to dwindling net income. This dip is attributed to unfavorable foreign exchange rate shifts, making remittances to the U.S. headquarters pricier, thus denting overall income. However, AMT stands to gain from a softening dollar in the long run. Highlighting its sturdy blue-chip credentials, American Tower REIT boasts brisk revenue growth over the past three years, enriched by its strategic exposure to 5G.
Invitation Homes (INVH)
Invitation Homes (NYSE:INVH) reigns as a premier owner of single-family rentals in the U.S., boasting a massive portfolio of 82,837 homes, with 92.5% under its belt in the past year. July witnessed the company boldly acquiring nearly 1,900 homes, costing $650 million, mainly cash-driven. Moreover, the second-quarter financial shuffle included purchasing 276 homes and offloading 378, with its second-quarter 2023 same-store NOI marking a 3.6% annual rise to $355.4 million.
Additionally, its strategic footprint is evident, with over 95% of its assets nestled in growth hotspots such as Florida and the Western U.S. Moreover, its sprawling presence across 16 markets, averaging 5,200 homes each, solidifies its standing as an exceptional choice for renters eyeing single-family residences. Also, my InvestorPlace colleague Will Ashworth argued that it is one of the top S&P 500 stocks to own for the next 50 years, with five large big-money investors owning 51% of the stock.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
