Finding the top stocks to buy for the next bull run greatly improves an investor’s portfolio and increases profits. The research emphasizes the need to make wise investing decisions before favorable market circumstances emerge. Investors may profit from market surges and steer clear of the traps associated with reactive investing by having a solid understanding of which stocks will likely expand. It is important to have a well-thought-out investing plan since there is a chance for substantial rewards.
Scanning companies with solid growth indicators, resilient past performance and innovative histories is crucial. These traits indicate the possibility of consistent success and market leadership. Examining the fundamentals of the three exceptional companies provides insights into why they are the best investments for the upcoming bull market, providing a tactical edge in the volatile stock market. This proactive strategy increases the likelihood of significant returns when the market trend turns upward and is consistent with long-term financial objectives.
Vale (VALE)
Vale (NYSE:VALE) leads mining operations, mostly for iron ore and copper. With a 15% rise in sales year-over-year (YoY) in Q1 2024, Vale produced the most iron ore for Q1 since 2019. This increase indicates improved operational dependability and efficiency, especially at the S11D complex, which amounts to an additional 8.2 million tons of iron ore sold. The expansion plans for Vale are expected to increase capacity by 50 million tons by 2026. Moreover, a critical milestone is the Vargem Grande project, which is 90% finished and set to begin in Q4 2024. The impending capacity expansions will strengthen Vale’s ability to produce iron ore.
Further, with the help of a truckless system and more geological information, the S11D complex produced more than it had in any Q1 since 2020. Thanks to increased output at the Salobo 1 and 2 facilities and the ramp-up of the Salobo 3 project, Vale’s copper production increased significantly by 22% YoY in Q1. Sales of copper increased by 14K tons YoY, indicating Vale’s effective entry into the copper market. To sum up, Vale’s strategic projects are set to add substantial capacity, reinforcing its position among the top stocks to buy for the next bull run.
Palantir (PLTR)
Palantir (NYSE:PLTR) specializes in data analytics and software solutions. Its top-line growth has mostly been driven by its U.S. commercial segment, which has shown solid revenue and client base growth.
Moreover, the U.S. commercial revenue surpassed the overseas commercial revenue for the first time in Q1 2024, rising by 40% YoY to $150 million and growing 14% sequentially. The number of US business clients increased by 69% YoY and 19% sequentially to 262 customers. Both new and existing clients’ use of the AI Platform (AIP) is a major factor in this increase. Thus, the company gained 41 net new clients in the US business sector in the first quarter alone.
Additionally, Palantir’s strategy for interacting with customers and its accomplishment in shortening the sales cycle are important assets that underpin the company’s potential for quick expansion. The company has maintained many programs, with over 915 businesses participating in boot camps. This has greatly helped to fulfill the incoming demand. Hence, these boot camps have proven to be successful in turning curiosity into large agreements very quickly.
Crowdstrike (CRWD)
Crowdstrike (NASDAQ:CRWD) is a cybersecurity leader. With a record Q1 net new annual recurring revenue (ARR) of $212 million, the business posted a 22% YoY gain. This massive growth in new ARR reflects the market’s confidence in CrowdStrike’s products and suggests solid client acquisition and retention. With a 33% YoY rise, the company’s closing ARR of $3.65 billion was achieved. Similarly, a solid subscriber base and recurring income stream are indicated in the high-end ARR.
Moreover, CrowdStrike attained an unprecedented 80% subscription gross margin. This high margin shows effective cost control and the potential to profit from subscription services. The business announced $322 million in record free cash flow, or 35% of revenue. This result demonstrates outstanding cash-generating capabilities and aligns with the free cash flow rule 68. Free cash flow is a vital indicator of the company’s financial stability and capacity to finance expansion plans without significantly depending on outside funding.
To conclude, Crowdstrike is a top choice among stocks to buy for the next bull run due to its high subscription gross margins, substantial increases in ARR and free cash flow.
As of this writing, Yiannis Zourmpanos held a long position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
