Yahoo Finance 10 Unstoppable Stocks That Will Make You Richer
In this article, we discuss the 10 unstoppable stocks that will make you richer. To skip the detailed analysis of the economy and market, go directly to the 5 Unstoppable Stocks That Will Make You Richer.
On April 12, the week closed out with stocks tumbling as the S&P 500 recorded its worst day since January 31, declining 1.46% on the day. On top of that, oil prices are rising significantly as tensions in the Middle East grow. The WTI Crude has risen around $10 since January and is at $85.5 per barrel. The stubbornness of inflation has kept investors and other experts wondering what would happen next.
Interest Rates Amid Current Inflationary Environment
The latest inflation report showed a higher-than-expected increase of 3.5% which has shaken markets and raised concerns about the possibility of a recession. In an interview with Bloomberg, on April 11, BMO Capital’s strategist, Ian Lyngen, suggests that if inflation continues at these levels, the Federal Reserve may feel compelled to induce a recession in order to meet its 2% inflation target. Manulife Investment Management’s chief economist, Frances Donald also agrees with Ian Lyngen and thinks that inflation is going to “surprise upside” in the near term, causing the Fed to lose the data support to cut interest rates. She said:
“That increases the probability of a recession and I remember members of my team, back in December said, the Fed is pivoted early, this is gonna provide indirect easing, we should lower our probability of recession calls for 2024. But now that we're back to an environment where we're losing those embedded rate cuts, we actually have to increase the chance of something bad happening here."
BlackRock, Inc.’s (NYSE:BLK) CEO, Larry Fink told CNBC on April 12, that he still expects two rate cuts this year but the Fed isn’t likely to meet the 2% inflation target. We previously mentioned the comments from BlackRock, Inc.’s (NYSE:BLK) Managing Director, Tony DeSpirito, that he keeps a bullish view of the current year and the years ahead. For more information on that, go to 12 Dirt Cheap Stocks To Buy According to Hedge Funds.
Stocks that Made People Rich in 2023
NVIDIA Corporation (NASDAQ:NVDA) has been the forerunner among the stocks that have made investors rich in 2023, as the company surged nearly 240% last year and is continuing its upward run with year-to-date gains of over 83% on April 12. The stock isn’t on our current list as analyst price targets do not show enough upside for the stock. However, the company still has massive future growth potential despite new competitors rising to take away a bit of AI accelerator market share from NVIDIA Corporation (NASDAQ:NVDA).
Nevertheless, Bank of America’s Vivek Arya still believes in the stock’s upside potential and says that the company’s commanding presence in business sales not only shields its market share but also positions it strategically to potentially increase its market share. On April 10, the analyst reiterated a Buy rating on NVIDIA Corporation’s (NASDAQ:NVDA) stock with a $1,100 price target, up from $925.
During the tech industry surge of 2023, there were a few multi-baggers that remained in the dark with all the news surrounding the AI revolution. XPO, Inc. (NYSE:XPO) was one such company that returned massively when everyone was busy looking at the Magnificent 7. It is a Connecticut-based company that handles less-than-truckload (LTL) shipping across North America. While the broader industrial sector significantly underperformed the market in 2023, XPO, Inc.’s (NYSE:XPO) share price gained over 163%. Additionally, the company's stock is up 48.2% year-to-date on April 12 compared to the Industrial Select Sector SPDR Fund’s (XLI) 23% gain over the same period. On top of that, the company isn’t looking to slow down in the next few years. Its CEO, Mario Harik made the following comments at the company’s latest earnings call:
“For 2024, we expect our LTL capex level to be in the low-teens as a percent of revenue, and again, primarily allocated to our fleet. In terms of the 28 service centers, we acquired from Yellow, the largest impact on our capital strategy is timing. We've put forward dozens of real estate investments that we plan to make over the next several years. I'll add some strategic color to my earlier comments on the acquisition.
These service centers will deliver important benefits to the business for years to come. First, they'll get us closer to customers, and give us larger facilities in major metro areas. This should drive substantial cost efficiencies across our line haul, pickup-and-delivery and dock operations. Second, they'll enhance our yield growth by further improving, our service with fewer freight three handles, reduce damages, and better on-time performance.
And third, that'll give us more capacity in key metros like Indianapolis, Columbus and Las Vegas. These are markets where we are currently turning away profitable customers, because we don't have enough door capacity. We plan to start bringing these locations online in April and have all of them operational within the next 12 months to 18 months. We expect the transaction to be accretive to EPS and our LTL operating ratio in 2025.”
Now let us move on to unstoppable stocks of the current year that can potentially make you richer. The list includes Sarepta Therapeutics, Inc. (NASDAQ:SRPT), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and CRH plc (NYSE:CRH).
Our Methodology
For this article, we identified 20 large to mega-cap stocks that have experienced a share price gain of at least 20% year-to-date as of April 11, and have an average analyst price target upside of at least 10%. We narrowed down our list to 10 stocks with the highest average analyst price target upsides and listed them in ascending order of upside potential, primarily, and year-to-date gains, secondarily. Analyst ratings and price targets were taken from TipRanks.
We also added the hedge fund sentiment around each stock. The hedge fund data was taken from Insider Monkey’s database of 933 elite hedge funds as of the fourth quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
10 Unstoppable Stocks That Will Make You Richer
10. Broadcom Inc. (NASDAQ:AVGO)
Price Target Upside: 13.79%
Year-to-date Gain as of April 11: 27.37%
Number of Hedge Fund Holders: 91
Broadcom Inc. (NASDAQ:AVGO) is a California-based company that focuses on designing and manufacturing semiconductors and infrastructure software products and services. As of April 11, it has gained 27.37% year-to-date.
As of the fourth quarter of 2023, 91 hedge funds have stakes in Broadcom Inc. (NASDAQ:AVGO) at a combined value of $8.88 billion. Fisher Asset Management has maintained its position as the most dominant shareholder of the company for four straight quarters. As of December 31, 2023, the firm owns 2.129 million shares of Broadcom Inc. (NASDAQ:AVGO), valued at $2.376 billion.
Over the last three months, 20 of 23 analysts maintain a Buy-equivalent rating on Broadcom Inc. (NASDAQ:AVGO), with an average price target of $1,573.10. The average price target represents a 13.79% upside from current levels, as of April 11.
Sarepta Therapeutics, Inc. (NASDAQ:SRPT), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and CRH plc (NYSE:CRH) also made it to our list of unstoppable stocks that will make you richer, along with Broadcom Inc. (NASDAQ:AVGO).
ClearBridge Multi Cap Growth Strategy made the following comment about Broadcom Inc. (NASDAQ:AVGO) in its Q2 2023 investor letter:
“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology.
Semiconductor and software solutions provider Broadcom Inc. (NASDAQ:AVGO), for example, is an important supplier of networking chips that power ethernet switches and routers for connectivity between AI servers. The company sees quarterly revenue from this part of their business exceeding $1 billion in their fiscal third quarter, on a trajectory toward doubling over the course of the year.”
9. Uber Technologies, Inc. (NYSE:UBER)
Price Target Upside: 14.48%
Year-to-date Gain as of April 11: 30.49%
Number of Hedge Fund Holders: 129
Uber Technologies, Inc. (NYSE:UBER) offers ride-hailing services and operates through three segments, Mobility, Delivery, and Freight. For the quarter ended on December 31, 2023, the company recorded 28 million trips per day and 150 million monthly active platform consumers. The company is 30.49% higher year-to-date, as of April 11.
Over the last three months, 36 Wall Street analysts have given their recommendations on Uber Technologies, Inc. (NYSE:UBER), with 34 analysts rating the stock a Buy. As of April 11, the stock’s average price target of $87.19 represents an upside of 14.48% to its current price.
Uber Technologies, Inc. (NYSE:UBER) was part of 129 funds’ portfolios and the total stake amounted to $8.74 billion in the fourth quarter of 2023. D E Shaw has increased its stake in the company by 30% to 14.39 million shares worth $886.123 million and is the most significant shareholder, as of the fourth quarter of 2023.
RiverPark Advisors stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its fourth quarter 2023 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 3Q23 earnings and 4Q23 guidance. Gross bookings of $35.3 billion were up 21% year over year. Mobility gross bookings of $17.9 billion grew 30% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 16% from last year and continued to be strong throughout the quarter. 1Q Adjusted EBITDA of $1.1 billion, up $576 million year over year, was better than management’s guidance of $1 billion, and the company generated $900 million of free cash flow, up from $358 million last year. Management guided to continuing growth in 4Q Gross Bookings (23.5% growth) and Adjusted EBITDA (of $1.2 billion).
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates.1 Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.2 billion of unrestricted cash and $5.1 billion of investments, the company today has an enterprise value of $128 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”
8. Corebridge Financial, Inc. (NYSE:CRBG)
Price Target Upside: 14.78%
Year-to-date Gain as of April 11: 23.82%
Number of Hedge Fund Holders: 39
Corebridge Financial, Inc. (NYSE:CRBG), previously known as SAFG Retirement Services, Inc., offers retirement solutions, and insurance products in the U.S. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets businesses.
Corebridge Financial, Inc. (NYSE:CRBG) has gained 23.82% year-to-date, as of April 11. Hedge fund sentiment was positive toward the stock in Q4 of 2023 as hedge funds with investments in the stock were 39, with positions worth $841.095 million. This is compared to 23 funds with positions worth $266.028 million in the previous quarter. The company takes the 8th spot on our list of unstoppable stocks that will make you richer.
Corebridge Financial, Inc. (NYSE:CRBG) has a consensus rating of Strong Buy as per the 9 Wall Street analysts that have covered it over the last three months. The average price target of $31.22 implies an upside of 14.78% from the present levels, as of April 11.
Artisan Partners made the following comment about Corebridge Financial, Inc. (NYSE:CRBG) in its Q3 2023 investor letter:
“Corebridge Financial, Inc. (NYSE:CRBG), a provider of life insurance and retirement solutions, was a standout in the financials sector. Corebridge was previously a unit of AIG and a September 2022 IPO. Earnings and cash flow have been solid, aided by increased spread income in the general account due to higher reinvestment rates. We added Corebridge to the portfolio in Q1 2023. Our thesis is now that Corebridge is not a part of a large inefficient and capital-constrained parent, the company should have plenty of room to improve its competitive position. Establishing new processes that both improve capabilities and wring out efficiencies as a standalone entity should help improve ROE in coming years. It has a 4%+ dividend yield and a double-digit free cash flow yield, even in 2022 when negative fixed income and equity markets reduced fee revenue. In addition to the dividend, free cash flow will be used to ensure holding company liquidity, repurchase stock and support modest growth expectations.”
7. Celsius Holdings, Inc. (NASDAQ:CELH)
Price Target Upside: 15.12%
Year-to-date Gain as of April 11: 37%
Number of Hedge Fund Holders: 42
Celsius Holdings, Inc. (NASDAQ:CELH) is a developer and seller of functional energy drinks and liquid supplements. The company sells its products under multiple brands, including CELSIUS, CELSIUS ESSENTIALS, FAST Brands, etc. The stock is up by 37% year-to-date, as of April 11.
In the fourth quarter of 2023, 42 hedge funds had stakes in Celsius Holdings, Inc. (NASDAQ:CELH), with total positions worth $518.873 million. With 2.6 million shares worth $142.671 million, Marshall Wace LLP is the most prominent shareholder in the company as of December 31, 2023.
Based on 9 Wall Street analysts’ ratings over the past three months, Celsius Holdings, Inc. (NASDAQ:CELH) has a consensus rating of Strong Buy. The average price target of $93.10 implies an upside of 15.123% from the last price of $80.87, as of April 11.
Artisan Partners stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its fourth quarter 2023 investor letter:
“We initiated new GardenSM positions in Equifax, Celsius Holdings, Inc. (NASDAQ:CELH) and Xylem during the quarter. Celsius is an energy drink company viewed as providing a healthier option than its large competitors. We believe Celsius’ product portfolio appeals to a broad demographic, attracting new consumers and more frequent usage occasions in the energy drink category, enabling Celsius to grow sales through market share gains and market expansion. Furthermore, the company signed a US distribution partnership with PepsiCo in October 2022, which is bringing the product into new points of distribution while also improving its penetration across existing points of presence. The end result should be better product availability, increasing brand awareness, higher sales volumes and scale-driven margin improvements.”
6. Sea Limited (NYSE:SE)
Price Target Upside: 15.34%
Year-to-date Gain as of April 11: 44.84%
Number of Hedge Fund Holders: 51
Sea Limited (NYSE:SE) is involved in digital entertainment, e-commerce, and digital financial service businesses, through Garena, Shopee, and SeaMoney, respectively. The company takes up the 6th spot on our list of unstoppable stocks that will make you richer.
As of April 11, Sea Limited (NYSE:SE) is up by 44.84% year-to-date. In the last three months, 18 Wall Street analysts covered the stock, and 13 kept a Buy rating on the stock. The average price target of $64.38 represents an upside of 15.34% from the last price of $55.82, as of April 11.
Sea Limited (NYSE:SE) was part of 51 funds’ portfolios and the total stake value was $2.173 billion in the fourth quarter of 2023. As of Q4 of 2023, Tiger Global Management LLC is the top shareholder in the company and has a position worth $579.966 million.
Sea Limited (NYSE:SE) is one of the unstoppable stocks that will make you richer, in addition to Sarepta Therapeutics, Inc. (NASDAQ:SRPT), CrowdStrike Holdings, Inc. (NASDAQ:CRWD), and CRH plc (NYSE:CRH).
Lakehouse Capital stated the following regarding Sea Limited (NYSE:SE) in its fourth quarter 2023 investor letter:
“Meanwhile, the largest detractor was Sea Limited (NYSE:SE) (-17.1%), which sold off following the release of its quarterly results where earnings came in below expectations. For our part, while a headline drop in profitability can appear worrying, we aren’t overly concerned as it was merely a function of management’s intentional decision to increase investment towards e-commerce to drive growth. As the broader Southeast Asian e-commerce market recovers from some post pandemic headwinds and their primary competitor TikTok is entangled in a regulatory setback in Indonesia, we agree with management that now is the time to be aggressive and pivot back to growth mode and consolidate market share.”
Click to continue reading and see the 5 Unstoppable Stocks That Will Make You Richer.
Suggested articles:
Disclosure. None. 10 Unstoppable Stocks That Will Make You Richer is originally published on Insider Monkey.