While the benchmark S&P 500 index may be up for the year, investors should consider acquiring the below top-rated stocks to buy. One key reason is that momentum appears to be fading. For example, in the trailing one-month period, the index only gained slightly over 0.2%.
Second, the distinct period following the Covid-19 pandemic where anything and everything seemingly shot higher is gone. And, in a time dominated by stubborn inflation, rising interest rates, and more recently bank failures, it’s survival of the fittest. Therefore, investors should focus on the best stocks for portfolio list for upside success. Each of the market ideas below features strong sales growth and have the bonus of being undervalued. So, without further ado, here are the top stock picks to consider.
Kulicke and Soffa
Kulicke and Soffa (KLIC)
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A lesser-known enterprise, Kulicke and Soffa (NASDAQ:KLIC) deserves our attention as one of the top-rated stocks to buy. A leading provider of semiconductor and electronic assembly solutions, Kulicke and Soffa undergirds several industries, including the global automotive, consumer electronics, and communications sectors, among others. Since the beginning of this year, KLIC gained more than 8% of its equity value.
Fundamentally, what makes KLIC a viable candidate for the best stocks for the portfolio list is its operational prowess. According to investment resource Gurufocus, Kulicke’s three-year revenue growth rate comes out to 44.2%, blowing past 92.78% of companies listed in the semiconductor industry. As well, it enjoys a three-year book growth rate of 19.8%, above 68.58% of sector players.
Notably, KLIC trades at 10.3 times free cash flow (FCF). As a discount to the metric, Kulicke ranks better than 77% of its peers. Finally, Wall Street analysts peg KLIC as a consensus moderate buy. Their average price target lands at $55, implying over 18% upside potential.
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An American technology and specialty materials firm, Celanese (NYSE:CE) garners attention for being the world’s leading producer of acetic acid. So far this year, CE prints a quietly positive performance, moving up over 2%. However, in the trailing one-year period, shares tumbled nearly 26%. Nevertheless, for the adventurous type, CE could be one of the top-rated stocks to buy.
Going to my trusty guide Gurufocus, Celanese posts a three-year revenue growth rate of 20.6%. This stat swings above 81.36% of companies listed in the chemicals industry. Also, it prints a three-year EBITDA growth rate of 21.7%, above 70.68% of sector players. Just for good measure, its book growth rate during the same period is an impressive 35.3%. Also, CE makes for one of the top stock picks because of its value proposition. Right now, the market prices shares at a forward multiple of 8.49. As a discount to projected earnings, Celanese ranks better than 82.89% of the competition.
Lastly, analysts peg CE as a consensus moderate buy. Their average price target comes out to $129.86, implying over 24% upside potential.
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A British multinational oil and natural gas company, BP (NYSE:BP) is one of the hydrocarbon supermajors. It’s also one of the globe’s largest companies measured by revenues and profits. Since the start of this year, BP gained nearly 8% of its equity value. Further, in the past 365 days, shares returned stakeholders almost 24%. However, there may still be room for growth left, making it one of the top-rated stocks to buy.
Per Gurufocus, BP’s three-year revenue growth rate comes in at 20.5%, above 74.69% of the oil and gas industry. Also, its FCF growth rate during the same period impresses at 47.7%. That’s above 80.79% of peers. As well, its trailing-year net margin stands at 10.27%, beating out 62.81% of rivals.
Additionally, the market prices BP at a forward multiple of 6.07. As a discount to projected earnings, BP ranks better than 61.82% of the competition. To close out, analysts peg BP as a consensus strong buy. On average, their price target lands at $46.25, implying 25% upside potential. Thus, it’s worth considering for best-performing stocks.
While seemingly everybody loves expressing the (annoying) mantra that electric vehicles are the future of mobility, recent developments seem to threaten this aspiration for several enterprises. Specifically, the EV price war may drag down sector players until only the strongest survive. Fortunately, you can cut through the nonsense with lithium-provider Albemarle (NYSE:ALB). Given its infrastructural importance, it’s one of the top-rated stocks to buy.
A high-flying performer, Albemarle’s three-year revenue growth rate pings at 22.6%, outflanking 84.27% of its peers. Also, its EBITDA growth rate during the same period is 45.7%, above 89.35% of the industry. Not to be outdone, its book growth rate in the past 36 months came out to 22.5%, above 80%. Attractively, the market prices ALB at a forward multiple of 8.58. As a discount to projected earnings, Albemarle ranks better than 86.18% of companies listed in the chemicals sector.
Turning to Wall Street, analysts peg ALB as a consensus moderate buy. Overall, their price target hits $259.18, implying nearly 33% upside potential.
Marathon Petroleum (MPC)
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An American petroleum refining, marketing, and transportation company, Marathon Petroleum (NYSE:MPC) largely focuses on the downstream component of the hydrocarbon industry’s value chain, though it does offer midstream relevancy with its transportation unit. Since the Jan. opener, MPC is just a hair above parity. However, in the trailing year, it’s up 21%. Despite a less-than-encouraging performance in 2023, MPC ranks among the top-rated stocks to buy.
Compared to the rest of the industry, Marathon stands out as a growth machine. Per Gurufocus, its three-year revenue growth rate pings at 27.1%, above 81.66% of the field. Also, its EBITDA growth rate during the same period impresses at 60.9%, above 89.12% of sector players.
Notably, the market prices MPC at a forward multiple of 5.87, noticeably below the sector median stat of 7.1 times. In addition, shares trade at 3.52 times FCF. As a discount to the underlying metric, Marathon ranks better than 76.32% of the competition. Looking to the Street, analysts peg MPC as a consensus moderate buy. Their average price target stands at $148.20, implying almost 34% upside potential. Thus, it’s a worthy idea for top growth stocks.
Sibanye Stillwater (SBSW)
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Fundamentally, the upside narrative for Sibanye Stillwater (NYSE:SBSW) centers on the steadily rising gold price. Obviously, as a precious metals miner, Sibanye would benefit from this dynamic, all other things being equal. However, an EBITDA miss for the first quarter cratered SBSW, making it incredibly risky. Still, if you’re a daring contrarian, SBSW could be an intriguing idea for top-rated stocks to buy.
On paper, SBSW doesn’t seem like a viable candidate for the best stocks for the portfolio list. For instance, data from Gurufocus shows that 2022 revenue came in at just a bit over $8 billion. That’s conspicuously lower than the $10.84 billion posted in 2021. However, with the geopolitical flashpoint in Eastern Europe, several nations will be scouring for other valuable precious metals that have industrial uses beyond gold, such as palladium, platinum, and rhodium. These metals fall under Sibanye’s specialty, potentially making SBSW one of the top stock picks for gamblers.
Lastly, analysts peg SBSW as a strong buy. On average, their price target stands at $12.53, implying almost 50% upside potential.
Vir Biotechnology (VIR)
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Headquartered in San Francisco, California, Vir Biotechnology (NASDAQ:VIR) per its website focuses on combining immunologic insights with cutting-edge technologies to treat and prevent serious infectious diseases. Since the start of this year, VIR dipped almost 3%. However, the trailing-year performance looks much better, returning over 10% of equity value. For those that want to swing for the fences with their top-rated stocks to buy, VIR could be intriguing.
Thanks to acquisitions and lucrative partnerships and contracts, Vir’s operational stats look extremely impressive. Obviously, the three-year revenue growth rate of nearly 700% isn’t going to last that long. However, its book growth rate during the same period impresses at 58.2%. As well, the company enjoys a solid balance sheet, with a cash-to-debt ratio of 18.77.
Notably, VIR trades at 1.59 times tangible book value. In contrast, the sector median stat comes out to a much loftier 2.71 times. On a final note, analysts peg VIR as a consensus strong buy. Overall, their average price target stands at $49, implying 102% upside potential.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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