Amidst a robust U.S. economy, pinpointing top ‘stocks to buy’ becomes imperative for investors looking to leverage the current economic environment. February’s forecast hints at a treat for the market, with the Biden administration’s policies fueling historic job growth and a sturdy labor market.
Despite the headwinds linked to economic cycles and creeping costs, the underlying momentum behind the stock market is largely positive, hinting at a fertile ground for investment. For those looking to balance stability with growth, these seven stocks stand out, primed to keep pace with the market.
These promising candidates are efficiently riding the wave of innovation, ready to effectively capitalize on a bullish economic outlook while offering investors a chance to share in the prosperity of a promising future.
Visa (V)
Visa‘s (NYSE:V) financial prowess remains unshaken as it reaps profits from every card swipe. With a 21% bump over the past year in its stock price and a notable 92% over five years, its shares reflect a company in robust health. Moreover, the first quarter of fiscal 2024 was particularly glowing, showcasing a 9% increase in sales and a 17% jump in net income year-over-year, indicative of Visa’s unwavering expansion. Underlining the optimism, CEO Ryan McInerney highlighted strong consumer spending, with an 8% rise in payment volume and a 16% bump in cross-border volume year-over-year.
Strategically deploying its capital, Visa has efficiently balanced share buybacks, dividends and acquisitions. Its aggressive repurchase program saw $3.4 billion in stock buybacks, with a hefty $26.4 billion already reserved for future buybacks. In a move that sweetens the deal for shareholders, its quarterly dividend surged 15.6% year-over-year, climbing from 45 cents to 52 cents a share. This strategy rewards investors and underscores Visa’s confidence in its financial health and growth trajectory.
Qualcomm (QCOM)
In the dynamic realm of 5G technology, Qualcomm (NASDAQ:QCOM) shines as a true beacon of innovation, offering investors a golden opportunity to be part of the 5G revolution. With its expansive product lineup and deep licensing acumen, Qualcomm is a key player in moving the 5G ecosystem forward. Moreover, the acquisition of NUVIA marks a strategic move, diversifying Qualcomm’s portfolio and solidifying its position in server CPUs and automotive technologies.
Following its fiscal first-quarter achievements, Qualcomm’s stock experienced a considerable uptick, marked by an EPS of $2.75 and revenues hitting $9.92 billion. Notably, it returned to positive sales growth after four previous quarters of double-digit, negative top-line expansion. This financial success was fueled by a 7% increase in QCT revenue and a notable 16% rise in handset sales, along with a remarkable 31% surge in automotive sales. Furthermore, its optimistic outlook for the second quarter is what took the cake, with expected earnings between $2.20 and $2.40 per share on projected revenues of $8.9 billion to $9.7 billion, surpassing analyst expectations.
BYD (BYDDF)
Electric vehicle (EV) behemoth BYD (OTCMKTS:BYDDF) continues to set the pace as the number one EV maker and the second-largest battery manufacturer globally. Its diversified portfolio and formidable pricing power have fueled its ability to deliver a record three million unit sales target, making it the top global new EV seller for two consecutive years. With a 62% year-over-year growth, BYD dominates the Chinese market and demonstrates its unwavering dominance and appeal.
Expanding its horizons, BYD has now ventured from the roads to the seas. January saw the maiden voyage of “BYD Explorer No. 1,” which carried a striking 5,000 cars and signaled the launch of BYD’s shipping fleet. This strategic initiative caters to global demand and streamlines cost efficiencies. With plans to augment its fleet by seven vessels within the next two years, BYD’s vertical integration strategy can be a game-changer.
UiPath (PATH)
UiPath (NYSE:PATH) is revolutionizing workplace efficiency with its AI-driven software and its innovative prowess in the robotic process automation (RPA) space. Its unique competencies have led to an impressive 18.6% jump in sales in 2023, reaching $1,059 million. Moreover, UiPath exceeded analyst estimates for the third quarter, marking the 11th consecutive quarter of it surpassing expectations dating back to the first quarter of 2021.
Demonstrating robust growth, UiPath’s annual recurring revenue (ARR) surged by 24% in the third quarter, indicating strong customer acquisition and retention. Also, its strategic focus on select market segments has paid off, with a 31% bump in customers generating more than $1 million in ARR, totaling 264.
Moreover, according to InvestorPlace’s Michael Que, UiPath has a massive growth runway ahead, as it dives into a growing software industry, projected to expand at a CAGR of 11.90% to $15.86 billion by 2030.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE:PLTR), renowned for its advanced data analytics platforms, has made significant strides in the software space. Its glowing financials are a testament to that notion, with its revenue growth on a year-over-year basis at 16.75%, which shatters the sector median by a staggering 253.12%. Looking ahead, analysts anticipate forward revenue growth of 19.10% for PLTR, signaling an even more promising trajectory for the company.
Palantir’s AIP Logic platform marks a significant leap. This innovation enables the utilization of large language models without complex coding, positioning the firm to efficiently capitalize on the surging trend. With its fifth consecutive profitable quarter, Palantir has often been criticized for its reliance on government contracts. However, with it achieving a sizeable 20% increase in commercial revenue year-over-year compared to a 14% rise in government sales debunks that argument.
Rivian Automotive (RIVN)
Rivian Automotive (NASDAQ:RIVN), with its EVs gaining traction among both businesses and consumers, remains on a clear path to becoming a significant force in the EV industry. Additionally, the company’s promising outlook is bolstered by its achieving positive gross margins by the conclusion of the year, a testament to its financial health and operational efficiency. Moreover, the company’s commitment to expansion and innovation is further underscored by its plans for a second EV plant in Georgia, indicating a strategic move to scale.
Despite concerns over EV demand, as seen in Ford’s (NYSE:F) recent adjustments, Rivian continues to garner interest with its compelling R1T truck model. Moreover, the support from behemoths like Amazon (NASDAQ:AMZN) and AT&T (NYSE:T) not only elevates Rivian’s credibility in the EV space but also signifies a robust vote of confidence in its technological capabilities and market trajectory. With its stock currently trading at an attractive 1.5 times book value, Rivian presents a compelling investment opportunity.
Lululemon (LULU)
Lululemon (NASDAQ:LULU), an athleisure titan, continues dominating the apparel industry, making it a no-brainer apparel stock. Its consistent performance is no fluke, surpassing estimates across both lines by a comfortable margin in the past seven consecutive quarters. Moreover, with offerings that resonate with a broadening customer base, LULU has yet to show any sign of slowing down anytime soon. LULU’s stock has surged impressively over the past year — delivering a 44% gain.
The third quarter’s financials underscore this trajectory, with its Non-GAAP EPS of $2.53 beating estimates by 25 cents and sales climbing to $2.2 billion, a robust 18.3% year-over-year bump. With total comparable sales rising by 13%, or 14% on a constant dollar basis, the figures speak volumes to Lululemon’s momentum. Furthermore, Lululemon is forecasted to offer a 14% upside despite its steep valuation, as per Tipranks analysts.
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
