Despite significant challenges, the U.S. economy has showcased remarkable resilience. Fears of an imminent recession have been allayed by two consecutive quarters of robust GDP growth exceeding 3%. Consumer stocks remain strong, with record-high household net worth and solid personal income growth. Looking ahead, the Fed’s cautious approach reinforces confidence in the future of the U.S. economy. Our economy is looking strong, and the following companies’ 52-week lows offer an opportune time to invest for long-term growth. If you don’t buy now, prices are likely to rise, and you may miss out on getting a good deal on these retirement stocks to buy.
Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) is a leading roaster, marketer and retailer of coffee that operates in 86 countries. At a current valuation of $90.71, Starbucks saw unshakeable growth of $17.75 in the past 5 years.
Starbucks reported a revenue of $35.98 billion ending the fiscal year of 2023, marking an 11.55% YOY growth from the previous year. Net incomes were reported at $4.12 billion and diluted EPS at $3.58, showing YOY growth of 25.69% and 26.50% respectively. Starbucks’s levered FCF margin stood at 11.7%, far exceeding the market average of 5.6%.
Starbucks continues to execute its business plan of providing customers with premium coffee. As part of the plan, Starbucks will invest its money in services that justify the brand’s higher prices. This strategy will significantly increase Starbucks’s revenues and profits aiding the company in further expansion projects. Despite Starbucks showing great prospects, the stock remains at a 52-week low and shows an undervaluation. Starbucks’ superior brand recognition, great utilization of its resources and good valuation make it a great option among retirement stocks to buy.
Brown-Forman (BF-A, BF-B)
Brown-Forman (NYSE:BF-A, NYSA:BF-B) is an alcoholic beverage provider, best known for Jack Daniel’s, Woodford Reserve and others. It also sells used barrels, bulk wine and whiskey, and has contract bottling services. The company serves consumers, retailers through distributors and local governments directly.
Brown-Forman’s earnings are shaky at the moment due to the the market recalibration after the unsustainable Covid-19 surge in alcohol demand. Higher input costs, when combined with this demand surge, have lowered revenue estimates. 17 Yahoo! Finance analysts have projected an average growth of 14.6%. Additionally, last quarter the brand saw a 185% YOY increase backed by an impressive profit margin of 22.65% and EBITDA of $1.29 billion.
The consumption of lower-end, traditional whiskey is slowing down. To combat this, the brand has released higher-end offerings, including Jack Daniel’s Single Barrel Barrel Proof and Jack Daniel’s 12-Year-Old Tennessee Whiskey. Additionally, it is appealing to younger consumers through methods such as a Coca-Cola (NYSE:KO) collaboration.
21 hedge funds have a stake in Brown-Forman stock, totaling a value of over $1.03 billion, and 54.32% is held by institutions. This confidence is another indicator of why Brown-Forman would be a great option in retirement stocks to buy.
CONMED (CNMD)
CONMED (NYSE:CNMD) is a medical technology company that develops, manufactures and sells surgical devices and related equipment worldwide. It is known in particular for its orthopedic surgery products, along with other specialized products.
Earnings have been trending up for the last financial year, and 7 Yahoo! Finance analysts have set an average growth potential of 46.08%. It has a profit margin of 5.18% and an operating margin of 12.24%, which suggests that in the future, management might try to streamline production. Quarterly revenue growth is at 30.40% YOY, with EBITDA at $197.71 million.
The global medical devices market size has a projected CAGR of 5.9%, projected to grow to $799.67 billion by 2030. Additionally, 23 hedge funds are holding investments in CNMD. Further product innovations are likely to continue the company’s growth.
High institutional confidence, combined with relatively strong financials, a dividend yield of 1.05% and great future growth prospects combine to create a bullish outlook. This stock has the potential to rise in the future, and you should consider investing when it’s at this low.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
