7 Stellar Stock Picks to Generate a Decade Worth of Returns in One Year
Holding a stock for a decade can generate impressive returns for you, but what if I told you some stocks can generate a decade’s worth of returns in a year? The stock market is hitting new highs, and the Nasdaq is on a rally. If you consider stellar stock picks now, it could generate solid returns in just one year.
While there is no guarantee of stock market returns, the chances of these companies generating market-beating returns are high. Let’s take a look at the seven stellar stock picks worth adding to your portfolio for a decade’s worth of returns.
Stellar Stock Picks: Amazon (AMZN)
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One of the best e-commerce stocks, Amazon (NASDAQ:AMZN) is up 17% year to date and is exchanging hands for $176. The company is so much more than the modest beginning it had and sells everything including cars today.
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However, the two biggest revenue generators for Amazon are the cloud services segment, AWS, and its advertising segment. The company saw a 14% jump in revenue in the fourth quarter where AWS revenue was up 13% year over year while the advertising business saw a 27% YOY jump.
Amazon has a competitive advantage in the industry, and with more people coming to its website, it has the opportunity to cash in on the same with ads. Its presence across multiple industries makes it one of the best and the most resilient businesses to invest in today. The stock looks fairly valued to me and could keep moving higher in the coming quarters.
Nvidia (NVDA)
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Hands down one of the stellar stock picks, Nvidia (NASDAQ:NVDA) might be expensive today but if you wait for a dip, you will keep waiting forever. The company is a leader in the artificial intelligence (AI) industry and is expected to control over 80% of the chips market this year.
There is soaring demand for its GPUs, and the company has expanded production to meet the needs of the customers. Some of the biggest organizations are lining up for Nvidia’s GPUs. The company has steadily reported impressive financials and beat analyst expectations. It reported a revenue of $22 billion in the fourth quarter and $60 billion for the year.
NVDA stock is up 92% year to date, and we are just in the first quarter. The stock has massive upside potential, and as the company looks to tap into the custom chips market, the sky is the limit. You can take home massive gains with Nvidia.
SoFi Technologies (SOFI)
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One of the best fintech companies to own right now is SoFi Technologies (NASDAQ:SOFI). It has impressed investors with solid financials and reported its first-ever profit. The company has seen steady growth in products and users, proving its strength in the industry.
As one of the top fintech companies, SOFI is aiming to change the way people handle money and it is offering a one-stop solution for users. It ended the year with 7.5 million members and aims to add roughly 1 million members in each quarter this year.
SOFI has the potential to beat big banks in the coming years. The management is aiming for revenue growth in the range of 20% to 25% by 2026. Trading at $7.47, the stock looks incredibly cheap to me, and it is down 22% year to date. The stock could double your money in a year.
Microsoft (MSFT)
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You can never go wrong with Microsoft (NASDAQ:MSFT). The tech company can generate solid returns in a year and has already grown 10% year to date and 62% in the year. It is a leading company with an envious AI prowess.
Its biggest revenue driver is the Microsoft Cloud, which accounted for about half of the total sales in the recent quarter. Up 24% YOY, the cloud segment generated $33 billion. The quarter’s total revenue stood at $62 billion while the operating income came in at $27 billion.
Microsoft is advancing in the AI space and has already integrated it into the products and services it offers. The tech company has steadily achieved double-digit revenue growth, and its net income is also coming strong.
Trading at $409, the stock has a dividend yield of 0.73% and can steadily generate passive income for you. Buy MSFT stock to enjoy impressive returns in a year.
Chevron (CVX)
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Oil and gas giant Chevron (NYSE:CVX) has a lot working for it. The company has a massive business and has recently announced its entry into the hydrogen sector. Chevron announced a 5-megawatt hydrogen production project in California.
This project will create carbon energy using solar power and non-potable-produced water from the assets of the company. This is a huge opportunity for Chevron to tap into a hot market and could boost its revenue.
Trading at $149, the stock has dropped from the high of $172 and is one company that can survive even if the oil prices decline.
The company has a very strong balance sheet and is known for rewarding shareholders with steady dividends. The demand for oil and gas is never going to drop and that means Chevron will continue generating steady income. It enjoys a dividend yield of 4.36%, which is better than the industry standards.
Stellar Stock Picks: Palantir Technologies (PLTR)
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Palantir Technologies (NYSE:PLTR) is another company that benefits from AI. The stock is up 56% year to date and 217% in the year. It has finally crossed $20 and is trading for $26 today. The software company has proven its worth over the years, and its financials are solid.
It reported the first ever profit and bagged over 100 deals in the recent quarter. For the longest time, the company’s operations were considered highly secretive and it was criticized for relying heavily on government clients.
However, it has shown tremendous progress in the past few years and has achieved success with its Artificial Intelligence Platform. The company saw a 20% YOY rise in revenue, driven by a 70% YOY rise in U.S. commercial revenue.
I believe the company has reached a point where it can expand and see tremendous growth in margins. Buy and hold PLTR stock for solid gains in the coming year.
Meta Platforms (META)
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It is hard to imagine a world without Meta Platforms (NASDAQ:META), and the company’s growth rates show how important it has become in our lives. Having had a few rough quarters, the company showed it has gained control over its financials.
The company generates the majority of its revenue from advertising and uses different social media platforms and strategies to get the right clicks. Its fourth-quarter revenue grew 25% YOY, and net income has tripled.
That led the management to announce the first-ever dividend, which is something investors should count on.
We could see a high dividend growth rate in the coming years as Meta continues to grow its profit. Trading at $512 today, META stock is close to the 52-week high of $523, and it could keep moving upwards.
The stock is up 46% year to date and 180% in the year. As the economy improves and marketing spending increases, we could see Meta report another quarter of impressive financials.
On the date of publication, Vandita Jadeja did not hold (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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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