Investing in the long term is one of the best ways to become proficient as a trader, in my opinion. It can be difficult at times because investors want to immediately experience impressive returns from investments, which can lead to making irrational decisions that may lead to unnecessary losses. It isn’t the most flashy method of trading, but investing with companies that show strong potential for the future will give investors a great chance of becoming profitable over a long stretch of time.
Below are a few companies that have experienced rapid growth over the last year and offer future growth potential.
SkyWest (SKYW)
SkyWest (NASDAQ:SKYW) offers passenger and cargo airline services, aircraft leasing, and on-demand charters with a fleet of over 500 aircraft.
On Feb.1, SkyWest announced its earnings results for the fourth quarter of 2023, in which it stated that total revenue increased by 10% year-over-year. Net loss reported for the fourth quarter of 2022 was $47 million, which improved to a net income of $18 million for the fourth quarter of 2023. It also provided an updated timeline on deliveries of E175 to major airlines, including American Airlines (NYSE:AAL), United Airlines (NYSE:UAL), and Alaska Air (NYSE:ALK).
Skywest has performed remarkably well this past year, and its share price has skyrocketed compared to other airline companies. SkyWest definitely stands out. Its share price has more than tripled since last March.
Skywest also announced during Q4 that over 1 million shares were repurchased, totaling approximately $45 million. With increased travel demand and even trading at near all-time highs, it is still a company with room to grow and still offers a fair valuation. Investors should eye this company for its ability to experience prolonged growth.
Toyota Motor (TM)
Toyota Motor (NYSE:TM) is a large automobile manufacturer that produces a wide range of vehicles that are sold worldwide, including pickup trucks, sedans, minivans, SUVs, and luxury cars under the Lexus brand.
Toyota Motor reported earnings for the third quarter of fiscal year 2024 on Feb. 6, stating that total revenue increased by 24% and net income more than doubled compared to the previous year. Toyota raised its full-year fiscal 2024 sales projections from $290 billion to $294 billion.
Toyota has also announced multiple large investments in its facilities. In its Kentucky plant, $1.3 billion will help build a new electric three-row SUV. In Brazil, $2.2 billion in its Sorocaba facility will make a new SUV and hybrid vehicle.
Toyota has experienced rapid growth this past year, with its share price increasing by over 85% compared to the other auto manufacturers. Within that same time frame, Tesla (NASDAQ:TSLA) has seen its share price fall by 7%, and Stellantis (NYSE:STLA) has seen its share price increase by 63%.
It offers a dividend of 1.77% on an annual basis with a semiannual payment of $2.00 per share, which may see a future increase if Toyota continues to report very strong earnings like it has recently. TM is a solid choice for investors looking to gain exposure to the auto industry. Compared to other companies within the sector.
Salesforce (CRM)
Salesforce (NYSE:CRM) uses cloud-based technology and generative AI capabilities to gather sales data, forecast future customer trends, and provide other analytical services.
Salesforce and other tech companies involved in the rapidly expanding generative AI industry have seen impressive growth over the past couple of years. Since early 2022, CRM’s share price has more than doubled.
On Feb. 28, Salesforce released its earnings for the fourth quarter full year 2023, which stated that total revenue increased by 11% compared to the previous year. The net loss for Q4 2022 was $98 million, and in Q4 2023, it shifted to a net income of $1.4 billion. Salesforce increased its share buyback program by $10 billion.
CRM is following in the footsteps of other large tech companies, such as Meta Platforms (NASDAQ:META) and Nvidia (NASDAQ:NVDA), in offering its very first quarterly dividend for Salesforce. It will be 0.13% on an annual basis for a payout of $0.40 per share.
Salesforce’s initiation of a quarterly dividend and its new product, the Einstein Copilot, an AI automation platform, are expected to provide significant growth for Salesforce. CRM provides investors with promising upside potential with the booming tech industry.
As of this writing, Noah Bolton held a LONG position in TM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
