The Top 7 Stocks to Buy in March 2024
Every month presents new opportunities for investors to make money. While it’s possible to make money by trading stocks, people who take a long-term approach can make higher profits with less effort. This has led to this list of top stocks to buy.
Buying and holding growth stocks and monitoring their performances can lead to better returns. However, you have to pick the right stocks to achieve your financial goals. These are some of the top stocks to buy in March 2024.
Deckers Outdoor (DECK)
Source: Golden Dayz / Shutterstock.com
Deckers Outdoor (NYSE:DECK) was recently added to the S&P 500 and has been a reliable pick long before its inclusion. Shares have more than doubled over the past year and are up by more than 500% over the past five years.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
You may not know Deckers Outdoor, but you might know some of the company’s brands. Hoka, Ugg, and Teva are some of the company’s child companies. The company’s lower profile compared to other shoe and apparel giants has resulted in a reasonable 33 P/E ratio.
Deckers’ earnings from the third quarter of fiscal 2024 further highlight why the stock is currently trading at a bargain. Revenue increased by 16% year-over-year to reach a record $1.56 billion. Net income came in 40% higher than the same period last year.
The company’s profit margins are also impressive and came in at 25.0% in the most recent quarter. Deckers Outdoors seems like a good dividend candidate in a few years but currently does not distribute funds to shareholders. All in all, it’s one of those top stocks to buy.
Celsius Holdings (CELH)
Source: shutterstock.com/ex_artist
Celsius Holdings (NASDAQ:CELH) operates with high-profit margins while producing a sports drink that is riding the tailwinds of health-conscious consumers. Shares are up by 172% over the past year after a strong earnings report. The stock has also gained more than 6,500% over the past five years.
The company surpassed Q4 earnings and revenue estimates. Domestic sales grew steadily at 97% year-over-year while the company continued to penetrate international markets. The sports beverage company achieved a 68% growth rate within international markets.
Celsius Holdings is performing well, but international expansion is largely untapped and is brimming with potential. The company generated $332.8 million in North America and $14.6 million in international markets. Celsius made less than 5% of its revenue from outside of North America. This percentage will grow as the company expands, and it doesn’t look like domestic revenue growth is slowing down either.
Celsius Holdings has the makings of a superb growth stock that can reward long-term investors.
Mastercard (MA)
Source: Teerasak Ladnongkhun/Shutterstock.com
Mastercard (NYSE:MA) is a reliable fintech company that makes money from credit and debit card transactions. The stock is up by 30% over the past year and has more than doubled over the past five years. The firm has a lengthy business history that started in 1966.
The company regularly posts high-profit margins above 40% and offers a 0.55% dividend yield. While that yield is low, the fintech company raises the dividend by a high percentage every year. For instance, Mastercard raised its quarterly dividend from $0.57 per share to $0.66 per share in 2024. That’s a 15.8% year-over-year increase.
Revenue and net income both saw double-digit growth rates in the fourth quarter of 2023. Revenue jumped by 13% year-over-year while net income was 11% higher year-over-year. Gross dollar volume, cross-border volume, and switched transactions were the key business drivers. These segments had year-over-year increases of 10%, 18%, and 12% respectively. It’s one of those top stocks to buy for investors to consider.
Direct Digital Holdings (DRCT)
Source: shutterstock.com/pichit
Direct Digital Holdings (NASDAQ:DRCT) fulfills the parameter of an undiscovered stock. The company’s market cap is still under $400 million. The stock has more than doubled since the start of February and will report earnings later this month.
That earnings report will shed light on the advertising company’s profit margin growth. High revenue growth is assured. The company reported 129% year-over-year revenue growth in the third quarter of 2023. Guidance suggests revenue will more than double, and we will figure out on March 21, 2024, if that’s the case.
Direct Digital Holdings is a programmatic advertiser based in Houston that specializes in buy-side and sell-side advertising. The company’s sell-side platform, Colossus Media, is doing most of the work for the company’s finances. New partnerships announced in 2024 suggest it’s picking up more traction.
Unlike many small-cap stocks, DRCT is profitable, and this is where the opportunity can become massive. The company more than quadrupled its net profits year-over-year in the third quarter, bringing the Q3 number up from $0.8 million to $3.4 million.
Shares trade at a forward P/E ratio of 28. If net profit margins continue to rise, the valuation will get even better. The company can reach a $1 billion market cap soon as long as net income growth continues to outpace revenue growth. We will know more after the company releases its earnings report this month.
Meta Platforms (META)
Source: rafapress / Shutterstock.com
Meta Platforms (NASDAQ:META) has posted robust growth rates over the past year. The company’s string of financial reports silenced doubts about slowing growth as the firm regained control over the narrative.
The fourth quarter of 2023 was no exception. Meta Platforms increased revenue by 25% year-over-year while net income more than tripled. This success prompted the company to announce its first quarterly dividend. Investors should expect a high dividend growth rate in subsequent years.
Meta Platforms makes most of its money from advertising. Its family of social networks has billions of daily users, which means plenty of ad impressions and clicks. The social media giant’s advanced targeting gives it a duopoly with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) in the advertising space. This helps make it one of those top stocks to buy.
The engineers at Meta Platforms use many strategies to keep people on the platform. Pings, notifications, FOMO, and other factors bring people back to the company’s family of social networks. The model has proven successful for the company as rising cash flow has enabled a dividend program.
Cava (CAVA)
Source: Thapana_Studio / Shutterstock.com
Cava (NASDAQ:CAVA) is an emerging fast food restaurant that specializes in Mediterranean meals. The Mediterranean diet has become trendy and was recently ranked as the best diet.
You will have to contend with a high valuation for this stock. It’s P/E ratio is just shy of 300, but expanding profit margins should make it more feasible for long-term investors. Investors are comparing the stock to Chipotle (NYSE:CMG) which has contributed to bullish sentiment.
However, a comparison isn’t the only thing that has helped the stock deliver returns for investors. Revenue growth for Cava restaurant chains came in at 52.5% year-over-year in the fiscal fourth quarter of 2023. The company increased its total number of restaurants by 30.9% year-over-year and plans on opening an additional 48-52 restaurants in fiscal 2024.
Profit margins expanded nicely. The company reported $13.3 million in net income which came in at 1.8% of total revenue. That’s a nice change from the company’s $59.0 million net loss in the same period next year. As the company expands its profits, the valuation will become more enticing. For now, investors get to enjoy a promising fast food restaurant chain with a market cap below $10 billion.
Chipotle (CMG)
Source: Tendo / Shutterstock
Chipotle is the most established fast food restaurant that still has plenty of growth left. The company has over 3,300 locations in the United States in 49 states and territories. Chipotle has restaurants in 1,706 cities with an emphasis on California and Texas.
The company’s strategy to reach more parts of the United States has worked wonders. The company reported 15.4% year-over-year revenue growth in the fourth quarter of 2023 and expanded its profit margins.
Chipotle opened 121 restaurants in the quarter, 110 of them including a Chipotlane. It’ ’s an efficient drive-thru lane thanks to the company’s mobile orders. When you place a mobile order, Chipotle’s workers proceed to craft your order. By the time you arrive at the drive-through, you will receive the order that you requested.
It’s a brilliant business model that gets customers out of the store sooner and minimizes traffic congestion at the drive-through. Keeping more seats open makes Chipotle’s restaurants more inviting to people who previously didn’t make any plans and want food. It’s surely one of those top stocks to buy.
On this date of publication, Marc Guberti held long positions in DRCT, CELH, and CAVA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
It doesn’t matter if you have $500 or $5 million. Do this now.
The post The Top 7 Stocks to Buy in March 2024 appeared first on InvestorPlace.
