Top Performing Stocks Worth Investing in Without Delay

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Top Performing Stocks Worth Investing in Without Delay

THE S&P500 is booming and confirmed earlier this year that we are in investors’ favorite investing period: a bull market. This environment of expansion and optimism often boosts growing businesses as well as businesses that rely on the consumer. And we’ve seen many soar lately, leading the index’s gains.

In some cases, you might not invest in certain players that have risen significantly in recent weeks or months. The risk is that they have become too expensive and are ready to stagnate or decline. But in other cases, the recent increase could be just a taste of the company’s long-term performance potential. This means that investing now is a great idea. Here are two booming stocks that match your expectations, and that means I would buy them today without hesitation.

Top Performing Stocks Worth Investing in Without Delay

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1. Target

TargetIt is (NYSE:TGT) Profits and stock prices have suffered over the past two years as rising inflation has weighed on consumers’ purchasing power. But the retailer has leaned on strengths such as the importance of its stores in the order fulfillment process and the popularity and high margins of its own brands, to name just two examples – and Target has also launched a efficiency plan.

Above all, Target continued to focus on long-term development, opening new stores and revamping others to keep customers loving the shopping experience.

The result? Target’s most recent earnings report showed tremendous progress, with the company reporting full-year gains in many metrics. Operating cash flow more than doubled year over year to $8.6 billion, operating margin rate of 5.3% was nearly two percentage points higher than the previous year, and GAAP and adjusted earnings per share of $8.94 were both about 50% higher than in 2022. Target also achieved cost savings of more than $500 million.

All of this shows that Target is headed for better days and its stores should continue to drive growth. As CEO Brian Cornell pointed out during the recent earnings conference call, the majority of purchases in the United States still happen in stores on any given day. Now Target trades only 17 times forward profit estimateseven after rising 17% this year – so this seems like the perfect time to access this top stock that stands to benefit from the recovery and prosperity of the US consumer in the long term.

2. Amazon

Amazon (NASDAQ:AMZN) has also gone through a tough time in recent years as higher inflation has hurt the consumer and also made the company’s operations more expensive. But Amazon has overhauled its cost structure, an effort that has already paid off and is expected to continue growing profits in the future.

In the most recent quarter, the e-commerce giant reported double-digit net revenue growth and more than quadrupled operating profit. This is of course due to the company’s growth in e-commerce, but also to its cloud computing activity, Amazon Web Services (AWS). In fact, historically, AWS has driven profits at Amazon, and this trend is expected to continue. AWS generated $7.1 billion in operating profit during the quarter, representing 54% of Amazon’s total operating profit.

Amazon is also benefiting from its investment in the high-growth field of artificial intelligence (AI). The company uses AI to streamline operations, save time and money, and delight customers by delivering packages faster. And AWS sells a wide variety of AI services to its customers, from chips and coding companions to a fully managed service that allows customers to tailor the best language models to their needs.

Amazon, after rising 15% so far this year, trades at 41 times forward earnings estimates, up from more than 56 just a few months ago. And that’s a good deal for a company that has what it takes to profit in a bull market and over the long term.

Should you invest $1,000 in Target right now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon and Target. The Motley Fool holds positions and recommends Amazon and Target. The Mad Motley has a disclosure policy.

2 sharply rising stocks that I would buy now without hesitation was originally published by The Motley Fool

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