7 Winning Stocks That Will Make You an Investing Champion
With inflation under control, and economic growth still strong, there should be plenty of winning stocks between now and the end of the year. In fact, consider this. According to CNBC reporter Steve Liesman, the annualized increase in the Consumer Price Index over the three months was only 2.5%. That’s definitely low enough to keep the Federal Reserve from hiking interest rates again this year. In addition, the labor market remains strong. I also expect investors’ fears about rates to recede even more. All of which could fuel even more upside for these winning stocks.
Winning Stocks: Exact Sciences (EXAS)
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Two relatively prominent Wall Street firms just issued bullish notes on Exact Sciences (NASDAQ:EXAS). Piper Sandler, for example, just upgraded EXAS stock to “overweight” from “neutral,” citing valuation after the company’s shares plunged about 36%. Calling EXAS “the highest quality company in the” lab sector, the firm believes EXAS’ top line could grow an average of 21% between 2022 and 2025.
Analysts at Bernstein added that EXAS’ stock carries relatively little risk compared to its peers. They also noted EXAS is cash flow positive, and gave the stock an $83 price target.
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Rivian (RIVN)
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Firms have also been upbeat on Rivian (NASDAQ:RIVN). All after the EV start-up announced that it had delivered over 15,200 vehicles last quarter, a 23% jump year over year. Better, RIVN reiterated its guidance for the production of 52,000 vehicles this year. Helping, analysts at Needham reiterated RIVN as a pick on its Conviction List. Analysts also noted the stock’s risk/reward ratio had attained its highest level since March.
UBS also upgraded RIVN to a “buy” from “neutral,” citing the company’s enhanced outlook. The firm also believes RIVN will not have to raise money again until Q4 of 2025. All after it issued $1.5 billion of convertible bonds.
Winning Stocks: Plug Power (PLUG)
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Plug Power (NASDAQ:PLUG) could become one of the top winning stocks.
At the moment, PLUG has big projects in development in development in South Korea and North America. On the financial front, PLUG expects its gross margin per kilogram of green hydrogen delivered to climb from about $1.30 in 2023 to roughly $3 in 2024 and nearly $8 in 2025. The firm also predicts that its hydrogen deliveries will increase from 50 metric tonnes per day (MTPD) this year to nearly 200 MTPD next year and almost 500 MTPD in 2024.
As a result of all of these projects and many other initiatives, PLUG expects to report revenue of about $6 billion by 2027.
MGM (MGM)
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MGM (NYSE:MGM) is well-positioned to benefit from the continued, rapid growth of Las Vegas. In fact, the company believes it will generate record results from its properties in the city next month.
Thankfully, the impact of last month’s cyberattack appears to have not done a great deal of damage to the company. Moreover, a portion of its lost EBITDA will be reimbursed by an insurer, and multiple, large sporting events will bring many more visitors to the city in the coming months. Additionally, investment bank Macquarie says that the roughly 20% retreat of MGM stock in response to the cyberattack was overdone “given the one-time nature of the disruptions.”
Winning Stocks: Super Micro (SMCI)
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Barron’s recently published a glowing article on Super Micro (NASDAQ:SMCI).
In fact, they noted SMCI “has become the leading independent manufacturer of high-end AI servers,” while its servers incorporate the extremely popular AI chips made by its partner, Nvidia (NASDAQ:NVDA). Super Micro’s servers can be easily tailored to the needs of each of its customers, giving it an edge over its competitors, while its liquid cooling technology reduces data centers’ power costs compared to many competing offerings, CEO Charles Liang explained.
Axon Enterprise (AXON)
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Axon (NASDAQ:AXON) manufactures and markets Taser weapons and body cameras used by police. It also sells software used in conjunction with the software.
Axon continues to grow very rapidly and generate big profits. In the second quarter, for example, its revenue jumped 31% versus the same period a year earlier to $375 million, while it generated EBITDA, excluding some items, of $82 million. Moreover, its net revenue retention level came in at 122%, showing that it has been able to both gain new clients and obtain more revenue from its existing customers.
First Solar (FSLR)
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First Solar (NASDAQ:FSLR) stock is down 40% from its May peak of $250 as investors fret about the impact of elevated interest rates on the solar sector.
But this selloff is more than likely an overreaction.
First Solar caters to firms undertaking large solar projects. These are huge companies with a great deal of money that, for the most part, shouldn’t be deterred by higher rates.
Indeed, analysts, on average, predict that FSLR’s 2024 earnings per share will come in at $13.22, versus a loss per share of 41 cents in 2022. With shares currently trading at a very low forward P/E of 11.5 times, investors have a clear opportunity to get into shares at a discount. If you want to win, it’s time to buy First Solar now.
On the date of publication, Larry Ramer held long positions in SMCI, EXAS, RIVN and PLUG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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