If you’re searching for must-have stocks for wealth, look no further. In investing, identifying the right stocks leads to a fear of missing out. Here, in this labyrinth, treasures are unearthed – treasures that may lead to financial abundance. This is a blueprint or guidebook for high-return stocks that yield short-term gains and massive long-term wealth. These stocks are the crème de la crème of the market.
From the life-saving pharmaceutical innovations of the first one to the tech juggernaut of the second one, each company on my list holds unique strategies for growth. Learn how the third’s streaming empire is reshaping the entertainment space and how the fourth’s diversified revenue stream is fortifying its market lead. Similarly, explore how the fifth one’s AI integration is propelling its valuations. The sixth one’s financial edge, with the seventh’s strategic restructuring initiatives, further enriches wealth-building motives.
Read more to dissect the fundamentals behind these seven must-have stocks that lead you to the gates of Wealthy Town.
Must-Have Stocks for Wealth: Bristol-Myers Squibb (BMY)
Bristol-Myers Squibb’s (NYSE:BMY) product performance boosts its top-line growth. This is what fundamentally supports its valuation growth. To begin with, Eliquis continued to be a considerable revenue contributor, with worldwide revenues increasing by 7% year-over-year (YOY) in Q4 and 4% in 2023. This growth was based on higher demand, particularly in the U.S. market, partially offset by GTN adjustments and generic erosion in international markets.
Similarly, Opdivo witnessed solid top-line growth, with revenues increasing by 8% in Q4 and 9% in 2023. This growth was attributed to higher demand in the US and international markets based on launches for new and core indications. On the other hand, the new product portfolio emerged as a leading driver of top-line growth, with revenues increasing by 66% in Q4 and 77% in 2023.
Overall, this growth suggests Bristol-Myers Squibb’s lead in launching advanced therapies and expanding market share across therapeutic areas.
Meta (META)
Meta (NASDAQ:META) has solid advertising efficiency and rapid monetization capabilities, supporting its growth potential. The company is implementing tech advancements (like AI) to boost ad impressions and monetization. In detail, ad impressions delivered across the Family of Apps increased by increased by 21% (YOY) in Q4 2023. Similarly, the average price per ad increased by 2% YOY in Q4 2023. These metrics signify that Meta has optimized ad delivery and pricing strategies, leading to higher ad engagement and monetization rates.
At its core, Meta capitalizes on its massive user database (nearly 4 billion) through algorithms to deliver targeted ads. As a result, this maximizes relevance and engagement for advertisers. The company constantly refines its ad algorithms and targeting parameters to improve ad performance. This, in turn, improves the return on investment for advertisers, driving higher ad spend and, apparently, Meta’s revenues. Similarly, Meta provides numerous ad formats across its platforms, including video ads, carousel ads, and sponsored content. This means matching diverse advertiser demands and maximizing ad revenue potential.
Overall, the growth in ad impressions with an increase in average price per ad breeds Meta’s fundamental capability to balance supply and demand, optimizing ad inventory utilization and maximizing ad revenue per impression.
Must-Have Stocks for Wealth: Disney (DIS)
Disney’s (NYSE:DIS) streaming business performance and expansion strategies yield solid valuation growth potential. For instance, entertainment direct-to-consumer operating income more than doubled, with an 86% improvement YOY. Here, Hulu subscribers increased by 1.2 million, while Disney+ core subscribers decreased by 1.3 million sequentially. Looking forward, net additions are expected between 5.5 and 6 million Disney+ core subscribers in Q2 2024.
Fundamentally, Disney’s direct-to-consumer segment, mainly its streaming services, has witnessed substantial operating income growth. This improvement reflects Disney’s streaming strategy, content offerings, and subscriber acquisition efforts. Despite a slight decline in Disney+ core subscribers, the overall streaming business has shown resilience and growth potential. The increase in Hulu subscribers indicates the effectiveness of bundling strategies and the attractiveness of Disney’s streaming content portfolio.
Disney’s projection of continued subscriber growth for Disney+ suggests the platform’s long-term viability. Lastly, the company focuses on expanding its subscriber base through content investments, pricing strategies, and international expansion moves that will continue to support its valuation ascension.
Pfizer (PFE)
Pfizer’s (NYSE:PFE) diversified top-line and strategic acquisitions are the core of its valuation expansion. For 2023, Pfizer has derived revenues of $58.5 billion, reflecting a 41% operational decrease primarily due to expected declines in revenue from its COVID-19 products, Comirnaty and Paxlovid. Excluding contributions from these products, revenues grew by 7% operationally, based on a combination of new product launches and in-line product growth.
Additionally, completing the Seagen acquisition in December 2023 marked a considerable milestone for Pfizer’s oncology segment, enhancing its portfolio and expanding its market presence. Furthermore, Abrysvo, Vyndaqel family, and Eliquis delivered operational top-line growth in Q4 2023, offsetting declines in other products. This diversified revenue stream minimizes the risk associated with dependency on specific products and positions Pfizer for sustainable growth.
Finally, Pfizer’s solid pipeline of new molecular entities, including nine approvals by the U.S. Food and Drug Administration (FDA) in 2023, suggests its focus on advancement and revenue generation. Hence, these approvals signify potential revenue streams from new products in the coming years, contributing to Pfizer’s growth trajectory.
Must-Have Stocks for Wealth: Intel (INTC)
Intel’s (NASDAQ:INTC) AI Integration Across Product Portfolio and Market Differentiation may provide a solid valuation and lift up potential. By integrating AI capabilities across its portfolio, Intel may capitalize on the growing demand for AI-driven applications across diverse verticals.
Similarly, introducing Core Ultra processors represents the largest architectural shift in decades. These processors are designed to usher in the age of the AI PC, offering superior performance and dedicated acceleration capabilities across CPU, GPU, and NPU. Intel began the installation of the industry’s first on-site high-NA extreme ultraviolet lithography (EUV) tool in Oregon to address challenges beyond Intel 18A. This initiative signifies Intel’s focus on advancing semiconductor manufacturing technologies.
Looking forward, Intel expects to ship approximately 40 million AI PCs in 2024 alone, with over 230 designs from OEM partners. This indicates considerable market penetration and demand for AI-enabled computing solutions, positioning Intel as a leading player in the AI PC segment. Lastly, Intel aims to regain transistor performance and power performance leadership by 2025, indicating its strategic objective to excel in semiconductor technology.
PayPal (PYPL)
PayPal’s (NASDAQ:PYPL) operating margin and liquidity expansion are vital for its market value growth. In Q4 2023, PayPal reported considerable operating margin expansion, with non-GAAP operating margin expanding by 0.39% to 23.3% YOY. Similarly, for 2023, the non-GAAP operating margin expanded by 1.1% YOY to 22.4%. These improvements in operating margins indicate PayPal’s fundamental capability to optimize its cost structure, improve operational efficiencies, and derive higher profitability from its revenue streams.
Additionally, PayPal has delivered solid cash flow generation based on progressive performance and solid capital management. In Q4, the company reported cash flow from operations of $2.6 billion and free cash flow of $2.5 billion. Meanwhile, for 2023, cash flow from operations amounted to $4.8 billion, with free cash flow reaching $4.2 billion.
Finally, the substantial cash flow generation suggests that PayPal can derive cash from its core operations and indicates its stability and liquidity. Overall, the solid cash flows provide the company with flexibility for strategic investments, expansion moves, and deriving market value through share repurchases.
3M (MMM)
3M’s (NYSE:MMM) progress on restructuring initiatives is a primary factor impacting market valuations. 3M’s restructuring efforts, aimed at streamlining operations and reducing costs, have yielded tangible results.
In detail, the restructuring actions undertaken by 3M in 2023 derived over $400 million in savings during the year. This considerable cost reduction reflects the company’s focus on enhancing efficiency and agility. Despite pre-tax restructuring and related charges amounting to $109 million in Q4, 3M achieved a substantial YOY expansion in operating margins based on the benefits of restructuring initiatives.
Furthermore, the ongoing restructuring program may deliver pre-tax savings of $700 million to $900 million upon completion, with additional benefits extending into 2025. This forward-looking perspective signifies 3M’s focus on sustained operational improvement and cost optimization.
Overall, these numbers highlight 3M’s edgy approach to restructuring, resulting in enhanced competitiveness and resilience and making it one of those must-have stocks for wealth.
As of this writing, Yiannis Zourmpanos held long positions in META, DIS, PFE, INTC, PYPL and MMM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
