Looking into the future of the US economy reveals a mixed bag of signals, especially when trying to find the top stocks to buy. On the positive side, job opportunities abound, with many openings surpassing pre-pandemic levels. Hourly wages are rising, outpacing inflation, which means more consumer purchasing power. However, the specter of inflation remains, stubbornly resisting the Federal Reserve’s efforts to meet its targets. This inflationary pressure and consumers’ expectations of further price increases could lead to a cycle of rising prices. Additionally, while recent data shows a slowdown in consumer spending, driven by caution rather than retreat, household debt accumulation poses a significant risk.
Because of our uncertain economy, its important to find the top stocks to buy. Here are three potential candidates to give your portfolio a boost.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is a semiconductor company that offers services related to wireless technology. Its technology relates to the running of 5G and 4G networks. The company is priced near $211 and has had a YOY growth of 81%.
Although the company’s finances looked weak just two quarters ago, they have made a big comeback and are now in the positive growth area. This quarter’s diluted EPS was at $2.06, growing at 35.53% YOY. Additionally, its net income has grown at about the same rate of 36.50%. The finances have shown a higher growth rate for the past two quarters.
Recently, Microsoft (NASDAQ:MSFT) announced a new line of computers that showcased AI abilities. The chip included with computer is not Intel (NASDAQ:INTC), its usual partner, but Qualcomm. Qualcomm designed the processor Snapdragon Elite X, which focuses on AI technology. Microsoft choosing Qualcomm instead of Intel can be a big sign of this new chip. With AI slowly becoming the future, this collaboration shows immense potential for Qualcomm’s future.
The company’s recent financials show apparent growth, and with its recent innovations for Microsoft, it can show future success, making it one of the top stocks to buy.
Canada Goose Holdings (GOOS)
Canada Goose Holdings (NYSE:GOOS) manufactures and distributes products through its stores, both physical and online. Goose’s current price of $13.98 grew 21.14% YTD. The retail industry is expected to grow from $32.68 trillion in 2024 to $47.24 trillion by 2029, at a CAGR of 7.65%.
GOOS showed its historical financial growth during Q1 2024. GOOS reported $358 million in revenue, a 22.1% YoY increase. Net income and diluted EPS, $5 million and 4 cents respectively, increased over 230% YoY. Q1 2024 was successful for GOOS overall, beating the expectations on EPS and revenue by 119.57 % and 13.20%, respectively.
Goose has been expanding its presence, especially in critical markets like the U.S., Europe and Asia, leading to long-term growth as it helps reduce dependence on any single market. Additionally, Goose has been increasing its sales through its retail stores and e-commerce platforms, allowing for better control over the brand experience and customer data.
Wells Fargo & Co (WFC)
Wells Fargo & Co (NYSE:WFC) is a financial services company with retail and wholesale banking expertise. It is currently trading at $60.21, an increase of 47.32% YOY. WFC boasted revenue of $77.6 trillion, a growth of 5.09% YoY. Additionally, Net Income margin was assessed at 24.19%, 5.06% more than the sector median of 23.02%.
The American commercial banking industry is valued at $226.44 billion and is expected to reach a new height of $269.28 billion in 2029, demonstrating a CAGR slightly higher than 2.00%. Wells Fargo is a major player in this industry, which will correlate with WFC’s growth. Recently, Wells Fargo has increased its workforce and infrastructure, including going on a hiring spree and expanding customer support centers and offices in Virginia and New York. These expansions show the company’s dedication to its clients and hint at upcoming major innovations and launches.
Due to already proven financials and hints at further expansion, WFC has earned its spot on this list of the top stocks to buy in May.
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.
