7 Undervalued Blue-Chip Stocks to Buy for June 2023

In the wake of the 2022 stock market rout, astute investors should focus on top undervalued blue-chip stocks. All as these sturdy market contenders promise a silver lining with incredible upside potential for the long-term investor. After all, the current market turmoil, spurred by inflation concerns and Federal Reserve rate hikes, is unlikely to persist. Investing in undervalued blue-chip stocks is critical in finding hidden gems that preserve capital and deliver attractive long-term returns. While they might not glitter as brightly as growth stocks, the steadiness they can provide cannot be underestimated. These blue-chip stocks to buy serve as the cornerstone in a powerful portfolio. Hence, as we navigate through the storm, the spotlight is on screening for undervalued blue-chip stock picks that promise substantial returns for the long haul.

DE Deere $357.21
JNJ Johnson & Johnson $154.34
WFC Wells Fargo $41.23
TSLA Tesla $193.17
XOM Exxon Mobil $104.97
CVX Chevron $154.08
IBM IBM. $128.89

Deere (DE)

% Below 52-week high: 19.6%

Deere (NYSE:DE) has solidified its spot as a leading manufacturer of agricultural and heavy-duty machinery. The firm’s robust offerings are rooted in supporting the country’s food supply chain, an area that will continue to grow rapidly, in line with population growth and rising incomes.

Deere’s strong position in diverse segments across forestry, diesel engines, and lawn care equipment effectively underscores its growth potential. With that said, it has had an excellent track record of long-term expansion with more than 12.4% and 19.5% revenue and EBITDA growth over the past five years on average. Recent results have held up remarkably well, beating estimates across both lines by healthy margins. In its most recent quarter, it beat revenue estimates by a whopping $1.2 billion and by $1.2 in its earnings per share.

Johnson & Johnson (JNJ)

% Below 52-week high: 14.5%

Johnson & Johnson (NYSE:JNJ) stands tall in the healthcare sector, symbolizing robust stability. It boasts a whopping 60-year unbroken chain of dividend growth, making it arguably the most popular dividend king out there. However, JNJ has seen its share of fluctuations, recently making the stock’s performance a mixed bag.

Earlier in the year, its talcum powder lawsuits shadowed its shares. However, the sun peeked through when almost a $9 billion settlement of these claims was announced in April, causing a sharp rally in the stock. Additionally, there is the spinoff of its consumer division in Kenvue in a bid to streamline operations and focus on its pharma and medical device divisions. Therefore, the short-term slowdown provides a golden opportunity for market enthusiasts to get a slice of JNJ at a compelling entry point.

Wells Fargo (WFC)

% Below 52-week high: 15.6%

Amid ongoing banking upheaval, investors are having it incredibly tough. The current trend appears to be selling first and asking questions later. Consequently, banking stocks have taken a monumental beating of late, effectively giving way to interesting value plays.

Wells Fargo (NYSE:WFC) boasts a strong banking franchise, emerging as an appealing value investment option. As the fourth-largest bank in the U.S. and with a nationwide presence, the bank has arguably the lowest deposit costs in the sector. Furthermore, its commitment to improving efficiency and streamlining operations reinforces its long-term stability. Additionally, WFC has been remarkably profitable, with year-over-year net income margins at more than 19% and cash from operations at over a whopping $34.3 billion, dwarfing the sector median of $153 million.

Tesla (TSLA)

% Below 52-week high: 41%

Despite the most earnings turbulent in April, EV pioneer Tesla (NASDAQ:TSLA) showed its mettle, delivering an impressive 422,875 vehicles in the first quarter, a massive leap from the 310,000 vehicles it delivered during the same period. Lower pricing may have dinged margins, but the delivery numbers speak volumes about Tesla’s market traction.

A glance at its financials affirms the strength of its balance sheet. Tesla reported a whopping $16 billion in cash and equivalents for the first quarter, complemented by a healthy operating cash flow of $2.5 billion. This demonstrates its formidable cash flow position, notwithstanding pricing pressures. Tesla’s trajectory remains mighty compelling, with an ambitious aim to sell 20 million vehicles annually through 2030. Add to this is the return of Maverick Elon Musk’s hands-on leadership, a fresh approach to advertising, and the upcoming Cybertruck launch.

Exxon Mobil (XOM)

% Below 52-week high: 11.3%

Riding high on record-breaking profits, Oil and gas giant Exxon Mobil (NYSE:XOM) cemented its financial prowess last year. It raked in an unparalleled $55.7 billion, sailing through the quarter on the back of robust production growth.

The fortune continued in the first quarter, with Exxon doubling its profits from the same period last year. On top of that, offshore developments and new refining facilities drove this prosperity, boosting gas and oil production by nearly 300,000 barrels per day. Its quarterly report highlighted earnings of $11.43 billion and earnings per share at $2.79. Moreover, as our resident InvestorPlace expert, Louis Navellier, remarks, the potential buyout of Pioneer Natural Resources could lead to Exxon’s largest deal since the historic Exxon-Mobil merger almost 25 years ago. Despite these positives, XOM stock offers a 22% upside from current price levels, according to Tipranks.

Chevron (CVX)

% Below 52-week high: 17.3%

I agree with my fellow InvestorPlace contributor Faisal Humayun, who believes that  Chevron (NYSE:CVX) could be the next trillion-dollar company. The company is undoubtedly among the top value providers among oil and gas stocks. It’s imperative to note that valuation relies heavily on the potential and predictability of cash flow, and in that regard, Chevron is showing promising prospects. Based on its stellar first-quarter showing, it is expected to exit the year with rock-solid operating cash flows of more than $36 billion.

Its spectacular investment strategy further underpins the forward momentum in its stock. The energy titan plans to inject a massive $13 to $15 billion annually through 2027, promising an uptick in revenue and cash flow. Its investment-grade balance sheet is second to none, with cash and short-term investments at more than $15.8 billion, positioning it for potential growth-boosting acquisitions. Further sweetening the deal is Chevron’s investments in renewable energy assets present another avenue for value creation.

IBM (IBM)

% Below 52-week high: 16.3%

IBM (NYSE:IBM), affectionately known as “Big Blue,” has gone through a rather rough patch, with its share price dwindling by more than 35% in the past ten years. Such a trend might seem discouraging, but the tech titan refuses to lose ground. Marching ahead, it offers a high-dividend yield of more than 5.1%, standing tall among its tech counterparts.

Despite wrestling with restructures and navigating through various turnaround strategies, IBM has shown an unwavering commitment towards dividend growth for 28 consecutive years. This resilience is underpinned by the firm’s potent cash flow generation, where year-over-year free cash flow margin growth has increased by almost 100% while increasing by almost 22% over the past five years on average. Moreover, IBM stock trades at just 1.8 times forward sales estimates, which is 30% lower than the sector median.

On the publication date, Muslim Farooque did not have (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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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7 Overvalued Blue-Chip Stocks to Sell Before June 2023

When looking at a number of overvalued blue-chip stocks, “Sell in May and Go away” fits. Typically, blue-chip stocks are generally among the safest stocks to own. These are companies that generate consistent revenue and earnings because their products are generally in demand no matter what’s happening in the economy. But even blue-chip stocks can get overvalued. That appears to be the case now. For a variety of reasons, there are several blue-chip stocks to avoid in this market. Here are seven overvalued blue-chip stocks to sell now. 

TGT Target $138.93
BUD Anheuser-Busch $57.15
DIS Disney $88.29
AXP American Express $157.24
CAH Cardinal Health $82.83
CPB Campbell Soup $51.51
T AT&T $15.50

Target (TGT) 

As I write this, many investors may be getting ready to pound the Buy button on the Target (NYSE:TGT) stock. The stock is down 14% in the last 30 days. And over the last year, the stock is now down about 11%. All thanks to what appears to be an overreaction to the company’s earnings report. But Target is a dividend king and with the stock trading at a heavy discount, it should hardly be considered one of the overvalued blue-chip stocks, right? Maybe and maybe not.  

The immediate pressure on the stock is due to backlash surrounding the company’s recent launch of Pride wear. The company has offered Pride-related merchandise for over 10 years. But this is a different time, as is some of the merchandise. Investors, and Target management, would make a mistake to believe this is simply a case of consumers protesting LGBTQ+ merchandise.  

In general, I’m not a fan of a company committing an unforced error. And that’s what I see here. At a time when sales and earnings are under pressure, a boycott of any length and severity would be less than helpful. And don’t forget that Target is still facing problems surrounding theft and organized retail crime. The company said this will affect the company’s profit by $500 million compared to 2022.  

Anheuser-Busch (BUD) 

Another company facing a boycott is Anheuser-Busch (NYSE:BUD). By now the reasons are all too familiar. BUD stock is down 13% in the last month and that has wiped out virtually all of the stock’s gains in the last 12 months. This is significant because prior to the recent controversy, Anheuser-Busch was managing to reverse what was a five-year downtrend for the stock.   Like I said of Target above, this is an unforced error that the company doesn’t need at a time when revenue and earnings are precious. However, I do see a light at the end of the tunnel for the company.  

Bud Light remains the official light beer of the National Football League. That means the brand will be front and center in consumer’s living rooms and at stadiums throughout the country in less than 90 days. But until then, it could be tough sledding for BUD stock which did receive a downgrade from HSBC after its May earnings report.  

Disney (DIS) 

The Disney (NYSE:DIS) stock is currently trading near the low it reached at the onset of the Covid-19 pandemic. And that’s despite the return of Bob Iger as the company’s CEO. The company’s Disney+ streaming business lost four million subscribers in the most recent quarter. Consumers are still feeling the pinch of prices at the company’s theme parks. And the company is still mired in a political battle with Florida governor Ron DeSantis.  

Eventually, Disney is likely to be just fine. And you could make a case to jump on DIS stock at a hefty discount now. But there are better stocks for investors and that’s why Disney still looks like one of the blue-chip stocks to avoid.  

American Express (AXP) 

The next stock on this list of overvalued blue-chip stocks is American Express (NYSE:AXP). Once again, by some fundamental and technical indicators, American Express looks like a value. But looking at the company’s last earnings report, there are some reasons for concern. 

For the second consecutive quarter, AmEx delivered earnings that were lower from the prior year. And since the earnings report, several analysts have lowered their price targets on AXP stock. At least one analyst issued a downgrade on the stock as well. In this day and age, it’s very uncommon for a blue-chip stock like American Express to get a Sell rating, but that’s what happened here. The likely issue is that the U.S. is still, by most accounts, heading for a recession. And with consumers overextended on their credit cards the company could be looking at charge-offs. The good news for investors is that AXP stock typically performs well out of recessions. But there is likely to be downside risk in the near term.  

Cardinal Health (CAH) 

Cardinal Health (NYSE:CAH) is the first of the stocks on this list to have at least a fundamental case for being overvalued. The company is trading at a price-to-earnings ratio of 48x. That combined with the CAH stock trading at its 52-week high and you have a combination that generally points to a correction. That is unless the company has a near-term catalyst. The problem for Cardinal Health is that doesn’t appear to be the case. The ongoing concern for the company is shrinking margins. Cardinal Health already operates on tight margins, and the company is facing more competition.  

CAH stock is up nearly 5% in the last month. But in the week ending May 25, 2023 the stock is down just over 1%. Since the last earnings report, several analysts have boosted their price targets on Cardinal Health. But the overall consensus is a Hold and at least one analyst has retained a Sell rating on the stock.  

Campbell Soup (CPB) 

In March, Campbell Soup (NYSE:CPB) delivered a stellar earnings report. It not only beat estimates on the top and bottom line, but both numbers were higher on a year-over-year basis as well. At a time when investors were looking for green shoots wherever they can find them, CPB stock shot higher.  

But in the last month, that good feeling has taken a back seat to macroeconomic concerns. Campbell’s Soup will always be a staple play. But it’s also largely a cyclical play. Specifically, the country is moving out of “soup season.” Historically the current and following quarter are the company’s weakest in terms of revenue and earnings. And although the company’s dividend has a respectable yield of around 2.8%, it hasn’t increased the dividend in several years. That means that there’s very little to act as a catalyst for CPB stock. And with short interest up about 4.75% in the last month, it’s a good idea to step away from the stock for now 

AT&T (T) 

The last of the overvalued blue-chip stocks on this list is AT&T (NYSE:T). And like several other names on this list, at first glance, T stock doesn’t look overvalued at all. But the problem for AT&T comes down to debt.  One of the most appealing aspects of T stock is its dividend. But the company missed on free cash flow expectations by $1.5 billion. That means that the company had to fund its most recent dividend with debt. And the company’s debt, which was starting to go down, has started to grow again on a sequential basis. That debt will only get more expensive to refinance.  

It would help if the company was growing revenue and earnings. It’s not. Earnings have been down year-over-year for the last year. And revenue is basically flat and also down year-over-year. I can understand if some investors look at T stock around $15 and think that it’s too good to be true. I would encourage them to go with that thought because with no growth catalysts on the horizon, T stock may be a yield trap in the making.  

On the date of publication, Chris Markoch 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. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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3 Unstoppable Stocks Strong Enough to Defy a Market Crash

Even though there will always be stock market volatility, traders shouldn’t worry about short-term declines. In the end, stocks reflect the growth potential of the underlying company. Sustainable revenue and profit growth over the long run are what truly make an unstoppable stock generate significant wealth for its shareholders.

When macroeconomic conditions become uncertain, investors can turn to certain stocks that have a track record of defying market downturns. Here are three unstoppable stocks long-term investors will want to consider on any significant downturn moving forward.

McDonald’s (MCD)

McDonald’s (NYSE:MCD) is one of the largest fast-food restaurant chains in the world. While the broader market has been down since early 2022, this company is setting new highs. Sales growth and profitability are increasing, making it an attractive option for Wall Street despite consumer spending cutbacks in other areas.

McDonald’s stock has gained over 8% in equity value since the start of the year due to its Q1 2023 net income increase. Although McDonald’s impact on consumer health is a concern, analysts view it as a strong buy due to its potential for portfolio growth, with a target price of $317.79.

McDonald’s is thriving in the expanding fast-food industry with a 13% increase in comparable-store sales in Q1. The chain is outpacing competitors like Chipotle (NYSE:CMG) and Starbucks (NASDAQ:SBUX) due to higher customer traffic and increased spending from rising menu prices. Customer satisfaction initiatives such as better staffing, training and quicker order delivery are contributing to this growth, making it more sustainable than relying on new limited-time menu items. This is good news for investors.

Newmont Gold (NEM)

Despite the Federal Reserve’s continuous tightening of monetary conditions, gold is performing strongly lately. This should make it deflationary for gold, but it hasn’t been the case. Therefore, Newmont Gold (NYSE:NEM) is a potential option for investors looking for inflation-resistant stocks.

Newmont is an attractive option for investors seeking inflation-resistant stocks due to the strong performance of gold, despite the Fed’s monetary tightening program. The company’s copper business is also a contributing factor to its success. Although its financials may need some improvement, analysts rate NEM as a strong buy with an average price target of $59.59, indicating a potential 46.48% upside.

Newmont has strong high-quality assets, with 96 million ounces of reserves, ensuring stable production in the future. It has planned to reduce its all-in-sustaining cost over the next three years, which will lead to EBITDA margin expansion, even if gold prices remain flat. With a stable investment-grade balance sheet, Newmont is well-positioned to provide sustained shareholder value.

PepsiCo (PEP)

Investors today may not recall the 1980s cola wars between PepsiCo (NASDAQ:PEP) and Coca-Cola (NYSE:KO), as both companies have expanded beyond carbonated drinks. This strategy has enabled them to provide shareholder value through dividends and share buybacks.

But for several decades, PepsiCo has proven to be a popular pick for dividend shareholders looking for steady revenue. But the stock has also attracted other investors, as it recently surged to record highs and approached the $200 level.

PepsiCo outperformed the overall market with strong Q1 earnings per share of $1.50 versus the anticipated $1.37. Sales for the firm climbed by 10.2% to $17.85 billion, exceeding estimates of $17.27 billion and demonstrating PepsiCo’s tremendous expansion.

PepsiCo recently increased its dividend by 10%, and also raised its full-year organic growth guidance. This food and beverage conglomerate has an impressive brand and a long history of raising its annual payout for 51 years straight, making it an attractive investment option.

On the date of publication, Chris MacDonald has a position in MCD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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Why I’m Still Not 100% Sold On QuantumScape

QuantumScape (NYSE:QS), a high-risk startup, aims to revolutionize the EV industry with its ambitious “forever battery” development, has become a polarizing stock to discuss.

Some investors think that this is a company holding the “holy grail” of battery technology. However, many are impatient with the ongoing capital losses and uncertain timeline.

Is it wise for dip-buyers to invest in QuantumScape at this time? Unfortunately, the risk-to-reward ratio for QS stock in 2023 is far from ideal. QuantumScape’s financial situation is concerning, and the development of its multi-layered battery cell product is progressing at a slow pace.

The Thing About Quantumscape

QuantumScape’s business model has recently generated excitement among investors. Solid-state batteries, which are considered a revolutionary advancement in battery technology, have sparked enthusiasm.

These batteries fulfill the long-awaited desires of electric vehicle enthusiasts. They offer  faster charging, longer battery life, extended range capabilities and improved efficiency compared to current technologies.

QuantumScape is an ambitious startup with the potential for great success or failure. Their goal of developing a revolutionary “forever battery” for electric vehicles has captured attention.

QuantumScape’s shares have experienced a significant decline, losing half of their value since mid-February. With the stock nearing the critical $5 level, there is a possibility of it becoming a penny stock.

This indicates that the hype surrounding QuantumScape has faded, and investors are faced with the challenging reality of the situation.

QuantumScape’s press releases page lacks frequent operational updates. It has been five months since QuantumScape delivered its 24-layer prototype to automotive manufacturers. Although time may seem to pass quickly, QuantumScape’s progress has been disappointingly sluggish.

Why Am I Hesitant

In 2021, Scorpion Capital’s sent-out allegations raised concerns about QuantumScape’s ability to deliver a solid-state battery within the projected timeline.

Their detailed report delves into the scientific aspects of QuantumScape’s breakthrough. It questions the feasibility of the company’s solid-state battery capabilities.

According to Scorpion, the presented claims regarding the batteries are either impossible or misleading. The report challenges several assertions made in QuantumScape’s battery demonstrations and public communications.

Short-sellers doubt the possibility of QuantumScape’s solid-state battery technology becoming commercially available at scale within the next few years. They question the credibility of the CEO’s claims, drawing comparisons to Elizabeth Holmes of Theranos.

Scorpion Capital’s report alleges false and misleading statements, raising concerns about deceptive practices.

QuantumScape’s shareholder letter in late April 2023 also failed to halt the decline of QS stock. The company acknowledged the need for improvement in reliability as they move from prototype to commercial product.

However, QuantumScape has not provided investors with a clear timeline for this transition.

Moreover, QuantumScape’s prolonged development of multi-layer battery cell technology comes at a high cost.

Operating expenses grew to $109.978 million in Q1 2023 from $90.657 million in the same period last year. Net earnings loss expanded from $90.353 million to $104.631 million, while total cash declined from $300.535 million to $258.733 million.

What Now?

QuantumScape has not given a clear timeline, which is concerning as the company continues to invest in research and development. While QuantumScape shows promise, waiting indefinitely is not advisable. 

Investing in pre-revenue companies like QuantumScape comes with risks of overvaluation and volatility. Shareholders face uncertainty regarding the timeline for the company’s potential and the size of its market. 

Ultimately, buying QuantumScape stock requires trusting one’s instincts. But personally, I remain bearish on the outlook for QS stock over the medium-term. Until some sort of concrete and realistic commercialization timeline is put forward, stay clear.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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RingCentral stock rockets after shareholder says it may push for a merger

RingCentral Inc. shares
RNG,
+17.90%
were rocketing more than 16% in Friday trading after Sylebra Capital Ltd. disclosed a 8.68% stake in the company and said that it plans to engage in strategic discussions with management. Sylebra wants to “consider exploring and/or developing plans (whether preliminary or final) that may relate to, among other things, the operations, governance, management, business, assets, financial condition, corporate structure and strategic merger and acquisition plans,” it said in the 13-D filing. “Such discussions may include proposals regarding possible strategic transactions including possible business combinations.” Piper Sandler analyst James Fish flagged that Sylebra put out a similar filing Friday for 8×8 Inc.
EGHT,
+12.57%,
whose shares are up more than 14% in afternoon trading.

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Gold futures tally a third straight weekly decline

Gold futures finished a bit higher on Friday, but still logged a third straight weekly loss. Gold’s attempted recovery ahead of the weekend was dampened a bit by “further evidence of still-stubborn U.S. inflation,” said Han Tan, chief market analyst at Exinity Group. Prices for the metal may decline further, closer to the psychologically-important $1,900 level “if the U.S. debt deal is sealed in the immediate future,” he said. Gold for June delivery
GCM23,
+0.09%
edged up by 60 cents, or less than 0.1%, to settle at $1,944.30 an ounce on Comex. For the week, the most-active contract fell 1.9%, according to Dow Jones Market Data.

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TipRanks reveals the top Wall Street analysts in consumer goods

A Citibank sign in front of one of the company’s offices in California.

Justin Sullivan | Getty Images

Over the past decade, rising household incomes have helped boost the consumer goods sector, providing a great investment opportunity for those who know where to look.

TipRanks recognized Wall Street’s 10 best analysts in the consumer goods sector for identifying the best investment opportunities. These analysts outperformed their peers with their stock picking and generated significant returns through their recommendations.

related investing news

Wall Street analysts say these stocks have more room to run through the rest of 2023

CNBC Pro

TipRanks used its Experts Center tool to identify the pros with a high success rate, and analyzed each stock recommendation made by analysts in the consumer goods sector over the past decade. 

The ranking highlights the analysts’ ability to deliver returns from their recommendations. TipRanks’ algorithms calculated the statistical significance of each rating, the analysts’ overall success rate and the average return. Further, each rating was measured over one year.

Top 10 analysts from the consumer goods sector

The image below shows the most successful Wall Street analysts from the consumer goods sector.

 

1. John Baugh – Stifel Nicolaus 

John Baugh tops the list. Baugh has an overall success rate of 63%. His best rating has been on RH (NYSE:RH), a leading retailer of luxury home furnishings. His buy call on RH stock from March 31, 2020, to March 31, 2021, generated a solid return of 493.8%.

2. Paul Quinn – RBC

Paul Quinn is second on this list and has a success rate of 58%. Quinn’s top recommendation is Interfor (TSE:IFP), a Canadian company offering a diverse range of lumber products. The analyst generated a profit of 440.2% through his buy recommendation on Interfor stock from May 8, 2020, to May 8, 2021.

3. Anthony Pettinari – Citi

Citi analyst Anthony Pettinari ranks No. 3 on the list. Pettinari has a success rate of 69%. His best recommendation has been on Lennar (NYSE:LEN), a home construction company. The analyst generated a return of 161.2% through a buy recommendation on LEN from April 15, 2020, to April 15, 2021. 

4. Sam Poser – Williams Trading 

Sam Poser bags the fourth spot on the list. The analyst has a 53% overall success rate. Poser’s best recommendation has been on Crocs (NASDAQ:CROX), a footwear company. His buy call on CROX stock generated a 375.5% return from May 13, 2020, to May 13, 2021.

5. Martin Landry – Stifel Nicolaus

Fifth-place analyst Martin Landry has a success rate of 57%. His best recommendation is Canopy Growth (TSE:WEED), a Canadian cannabis company. The analyst delivered a profit on this stock of 580.8% from Sept. 8, 2017, to Sept. 8, 2018.

6. Toshiya Hari – Goldman Sachs

Taking the sixth position is Toshiya Hari. The analyst has a success rate of 62%. His top recommendation was for leading chip company Nvidia (NASDAQ:NVDA). Through his buy call on NVDA stock, Hari generated a solid return of 206.4% from June 2, 2016, to June 2, 2017.

7. Chip Moore – EF Hutton

EF Hutton analyst Chip Moore is seventh on this list, with a success rate of 61%. Moore’s best call has been a buy on the shares of Plug Power (NASDAQ:PLUG), a company focused on developing hydrogen fuel cell systems. The recommendation generated a return of 382.5% from Sept.19, 2019, to Sept. 19, 2020.

8. Michael Swartz – Truist Financial 

In the eighth position is Michael Swartz of Truist Financial. Swartz has an overall success rate of 49%. The analyst’s top recommendation is MarineMax (NYSE:HZO), a retailer of recreational boats and yachts. Based on his buy call on HZO, Swartz generated a profit of 609.6% from March 20, 2020, to March 20, 2021. 

9. Nik Modi – RBC

Nik Modi ranks ninth on the list. The analyst sports a 65% success rate. His top recommendation has been on Boston Beer (NYSE:SAM), offering craft-brewed beers. The buy recommendation generated a return of 230.2% from March 23, 2020, to March 23, 2021.

10. Mark Astrachan – Stifel Nicolaus

Mark Astrachan has the 10th spot on the list, with a success rate of 65%. Astrachan’s best call has been a buy on shares of Celsius Holdings (NASDAQ:CELH), a consumer packaged goods company focused on lifestyle energy drinks. The recommendation generated a return of 174.5% from May 11, 2022, to May 11, 2023.

Bottom line

Investors can follow the ratings of top analysts to help them make an informed investment decision. We will soon return with the top 10 analysts of the past decade in the service sector.

 

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3 High-Growth Stocks to Buy Before They Join the Trillion-Dollar Club

trillion-dollar club - 3 High-Growth Stocks to Buy Before They Join the Trillion-Dollar Club

Source: shutterstock.com/marozhka studio

The trillion-dollar club is an exceedingly rare group. In fact, there are only 5 companies on that list currently. Investors can buy shares in 4 of the 5 on U.S. exchanges. The fifth, Saudi Aramco, trades on the Tadawul, Saudi Arabia’s stock exchange. Regardless of where they can be purchased, companies valued at $1 trillion make up a tiny fraction of all firms on the planet, and investors are always looking for the next trillion-dollar companies.

It’s a safe bet that the next trillion-dollar firm already ranks fairly highly by market capitalization. Companies of this magnitude don’t emerge overnight. The firms below have strong chances of joining the short list of trillion-dollar club stocks, perhaps as the next entrant.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is highly likely to be the next high-growth stock for the trillion-dollar club. It is currently ranked 6th by market cap at $963 billion, roughly $300 billion behind entry number 5, Amazon (NASDAQ:AMZN), valued at $1.2 trillion. 

That said, Nvidia still has a long way to go to reach the trillion dollar threshold. Yet, it is the most likely to join the club. Not only because of all the firms below that milestone it is the closest, but also because of artificial intelligence (AI). The emergence of AI has again catalyzed Nvidia into another period of rapid growth. 

In 2023 alone Nvidia’s value has increased more than 160%. This could be the fifth year since 2016 that the company has seen its value increase by 100% or more if current trends continue for the year. 

The company seems to move by trends more than fundamentals. If 2023’s AI boom continues and markets continue to favor the tech then NVDA shares could reach that threshold quickly. 

UnitedHealth Group (UNH)

UnitedHealth Group (NYSE:UNH) stock is a safe bet to cross the $1 trillion threshold at some point. That said, UNH is valued at $448 billion right now. Meaning it’s likely going to take a while before it could reasonably be expected to more than double in value. 

Apple (NASDAQ:AAPL) was worth $500 billion in 2012. Apple broke the $1 trillion mark in August 2018. That probably means UNH stock will take longer given that the healthcare sector doesn’t grow nearly as quickly as valuations do in the tech sector. But it at least gives investors some idea of what to expect in regard to the growth trajectory. 

What’s more important here is that UnitedHealth will grow steadily to one day reach $1 trillion. Shareholders should expect roughly $25 in earnings for each UNH share they own in 2023. Add to that, its dividend, and UnitedHealth is one of the steadiest companies that will one day reach that valuation. 

Eli Lilly (LLY)

Eli Lilly (NYSE:LLY) is the 15th most valuable firm globally, worth $405 billion. Like UnitedHealth Group, it’s a long way from $1 trillion. 

However, Eli Lilly has a potent catalyst on its side in the form of Mounjaro, its diabetes drug that is showing massive promise as a weight loss therapy. It could receive an FDA recommendation as a weight loss drug by the end of this year. If it does, expect share prices to rise. Over time the appetite suppressant has the possibility to become among the best-selling drugs ever.

Analysts believe Mounjaro could reach peak sales of $25 billion. That would be far above the $20.7 billion Humira recorded in 2022, a record aside from Covid-19 vaccines. Eli Lilly’s Alzheimer’s drug, Donanemab, continues to show promising results and is considered to be among the best candidates for treating that disease. A win there would only hasten LLY’s march to $1 trillion. That said, analysts believe that even without an Alzheimer’s breakthrough Eli Lilly will only continue to increase in value. $1 trillion is far away now but breakthrough pharma sales will act as a powerful valuation catalyst. 

On the date of publication, Alex Sirois 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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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