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This has translated into explosive earnings growth for the company over the past three years -- and significant gains in return on invested capital. The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
To be fair, there aren't a lot of growth prospects here because most of the best midstream investment opportunities have been developed already. distribution yield this master limited partnership (MLP) offers will make up the lion's share of its returns. So the huge 7.5% That's a good thing and should make investors happy.
For example, had you bought the stock 20 years ago, you'd have generated a monster total return of 1,520%. The market for professionals is more fragmented with better growth prospects, so it makes sense why the company acquired SRS Distribution to further tap the opportunity. Home Depot clearly dominates the home improvement industry.
Second, investors must find stocks with favorable prospects for long-term growth. Favorable long-term growth prospects cannot exist without a durable competitive advantage. To quote Buffett, "A truly great business must have an enduring 'moat' that protects excellent returns on invested capital."
If you had invested $10,000 in Enterprise Products Partners (NYSE: EPD) three years ago, your investment would have grown to close to $15,400 today. That's a return most investors would likely love to get over such a short period. Without the distributions, your initial $10,000 investment would be worth only around $12,300.
Then, it was the de facto e-commerce company in China, a leader in its technology industry rivaled only by Tencent , and its prospects for growth seemed unlimited. But unlike 2014, when investors were optimistic about Alibaba's prospects, investors today are incredibly pessimistic. The Motley Fool recommends Alibaba Group.
Dividend stocks may not offer the exciting returnprospects of growth stocks, but when stock market volatility returns, it is always nice to have extra cash automatically deposited in your account. Double-digit earnings growth prospects in the near term should make it 63 and counting.
Maybe it's because some analysts (perhaps many of them) don't believe Nvidia's customers will see positive returns on investment (ROI) with their purchases of the company's GPUs. He argued in the Q2 earnings call, "The people who are investing in Nvidia infrastructure are getting returns on it right away."
This affects short-term earnings, as the rising costs squeeze profits and require a higher return on investment to make acquisitions worthwhile. Rising interest rates also make other, less risky income investments, like bonds or certificates of deposit , more attractive and put further pressure on the stock.
Foundry helps businesses make better decisions and solve problems, and Forrester estimated Foundry delivers a 315% return on investment (ROI) for its users. Given Palantir's recent and prospective growth, investors have many reasons to believe its growth could continue in 2024 and likely even beyond.
Amazon has a track record of growth in return on invested capital (ROIC) over time, showing the company has made wise investment decisions. The 10 stocks that made the cut could produce monster returns in the coming years. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
Since 2005, the company has never delivered a return on invested capital of less than 10% -- not even during the 2008-2009 financial crisis or the COVID-19 pandemic. The further we get from the banking crisis of early 2023, the better this stock's prospects should be. No one knows for sure what 2024 will bring. Bancorp U.S.
Aggressive spending on the business, without any up-front return on investment, had soured Wall Street on Meta's prospects. At that growth rate, investors could still reasonably expect double-digit investmentreturns, even if Meta's actual performance falls slightly short of estimates. I consider anything under 1.5
Celsius currently trades at a price-to-sales (P/S) ratio of 4.4 -- which compares nicely to its peer Monster 's ratio of 7.4 -- making it a reasonable time to buy into the company's growth prospects. MELI Return on Invested Capital data by YCharts. if you invested $1,000 at the time of our recommendation, you’d have $858,854 !*
And with the analyst community on the sidelines with Sea stock, it seems many investors were unenthused with the company's prospects as well. Since the start of the year, it's up more than 130%, absolutely crushing the returns for the S&P 500. I don't think anyone predicted what's happened with Sea stock in 2024.
The best way to ensure you're always a step ahead of Wall Street is to hold shares of quality companies with great prospects for long-term growth. The stock returned 450%, beating the major indexes, as the company grew revenue and earnings at double-digit percentages on an annualized basis. billion-$4.25
These products have not only helped Apple increase earnings over time, but also helped with other key financial measures like free cash flow and return on invested capital. Today, growth prospects are even brighter, and that means the stock continues to look like a bargain for the long-term investor.
As the economy gets back on solid footing, the company should return to normalized growth. And this helps explain why Home Depot has consistently posted better margins and return on invested capital than Lowe's. Even though this is already a massive enterprise, investors should be encouraged by the growth prospects.
The AI thesis is intact More bullish analysts think investors will soon have the lawsuit's impact priced into the stock and turn their attention to the core business, which has strong AI prospects that many investors may be overlooking. The 10 stocks that made the cut could produce monster returns in the coming years.
It refers to a group of tech companies that have historically delivered market-crushing returns and could continue to do so. Many investors are skeptical of Apple's future, but the company can still deliver market-beating returns. Reinvesting dividends will help boost long-term returns for those who choose to do so.
Accelerating revenue growth and prospects for an improving advertising market have pushed the stock up 17% this year, but Pinterest is not out of the woods yet. Pinterest CFO Julia Donnelly credits the company's improving growth to its "highly attractive user demographics, brand-safe environment, and strong return on ad spend."
All of this has helped the company grow revenue over time, as well as free cash flow and return on invested capital -- these last two measures slipped in recent times as Shopify invested in its own logistics network. Now, let's discuss the share price. They just revealed their ten top stock picks for investors to buy right now.
The industry's long-term issue comes down to its inability to generate a return on capital necessary to cover its cost of capital. Delta Air Lines 2022 2023 Long-Term Target Return on invested capital 8.40% 13.40% Mid-teens Weighted average cost of capital 8% 8% 8% Data source: Delta Air Lines. Image source: Getty Images.
Let's take a look at each of these stocks to invest in now. Tesla Tesla is the leader in the electric vehicle market and has grown important metrics such as free cash flow and return on invested capital in recent years. SHOP Free Cash Flow data by YCharts Finally, let's take a look at Shopify's share performance.
By investing in companies that contribute the most to the index's movement -- such as the top 10 most heavily weighted in the index -- and then narrowing that down to companies offering exciting growth prospects now. The 10 stocks that made the cut could produce monster returns in the coming years. trillion by 2030.
The company acquired Habana Labs in 2019, and that company's line of Gaudi AI chips is now garnering intense interest from prospective customers. Money is being hurled at building out GPU clusters no matter the cost, and no matter whether there's a clear return on investment. The AI market is in its gold rush phase right now.
Identifying dividend growth stocks with high returns on invested capital (ROICs) can be a great way to look for investments as both criteria have proven to be market-beating propositions over time. This extra step offers higher passive income prospects while potentially uncovering stocks trading at a discount.
Although the S&P 500 has taken a dip in the past few weeks, its trailing-12-month total return of 12.4% One clear reason investors might be discouraged from buying Ford stock is because of its growth prospects. Ford's operating margin and return on invested capital in the past decade have averaged 2% and 2.3%, respectively.
Investors can set themselves up for success by buying shares of companies with solid long-term prospects that are trading at reasonable valuations and holding on tight. IBM expects to grow revenue by 3% to 5% this year, driven by strong demand for digital-transformation projects that deliver clear returns on investment for customers.
The perception of more space and flexibility adds value, appeals to a broader pool of prospective buyers, and makes your home more competitive with larger, more expensive homes," they explain. A well-planned kitchen renovation can offer one of the highest returns on investment (60%-80%), especially in today's market.
Maybe another advertising channel is seeing a better return on investment. But prospective shareholders should certainly get familiar with and pay attention to those two numbers going forward to assess the health of the business. The 10 stocks that made the cut could produce monster returns in the coming years.
Airlines aren't productive (at least for shareholders) The ultimate test of whether a company is allocating capital productively for shareholders is the comparison between its return on invested capita l (ROIC) and its weighted average cost of capital (WACC). Data source: International Air Transport Association. Global $26.4
And investing in an ETF like the Invesco QQQ ensures a diverse portfolio and exposure to multiple breakthrough solutions. The pitfalls of overexuberance Getting fixated on the prospect of future earnings and sustained high growth can lead to drastically overpaying for a company. The cyclical nature of the solar industry isn't unique.
The company's return on invested capital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. That does create additional risk for shareholders in the event that unexpected performance issues arise, but that shouldn't dissuade prospective investors. With only $7.6
The 10 stocks that made the cut could produce monster returns in the coming years. if you invested $1,000 at the time of our recommendation, youd have $697,245 !* The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. And I'm thrilled with the prospects. So, we run a better supply chain.
Warren still calls the biggest shots in the investing portfolio, but Ted Weschler and Todd Combs have spent more than a decade managing billions of dollars' worth of Berkshire's investments -- and according to Buffett, gotten better returns than he has. Looking forward, there's plenty to like, too. Trading for about 1.5
The solar industry is too beaten down to pass up Daniel Foelber ( Invesco Solar ETF ): Despite multidecade growth prospects, the solar industry has been absent from this year's market rally. Rising interest rates make project financing more expensive and reduce the return on investment of utility-scale solar projects.
The Nasdaq Composite has returned an average annual return of 11% over the last 30 years. That comes out to a cumulative return of 2,440%. That's an enviable return on investment over the long term. If you want to beat that return, you need to invest in stocks with above-average growth prospects.
However, many of the once-soaring but now-sinking members of the Nasdaq still have excellent growth prospects. Where to invest $1,000 right now? More importantly, AWS continues to have exceptional growth prospects. The 10 stocks that made the cut could produce monster returns in the coming years.
That's because there's one major green flag for Home Depot that will get anyone excited about the company's prospects. The business has proven to be consistently profitable thanks to this scale, and its return on invested capital of over 40% is superb. And this will encourage consumers to focus on existing home renovations.
If DraftKings shares simply appreciate at the same rate as the online sports betting industry over the next six years, the company's stock should provide a lucrative 94% return on investment over this timeframe. That rate of return surpasses the historical average of around 10% per year for major benchmark indices like the S&P 500.
Companies that require capital but that actually have growth prospects can also be attractive. This leads to persistently low profit margins and returns on invested capital. Based on what I just described, I don't believe Ford is a smart investment to make for long-term investors whose goal is to outperform the broader market.
Return on invested capital (ROIC) is often viewed as the single most important indicator of whether a business has developed an economic moat. Growth prospects In the most recent fiscal quarter (Q1 2025 ended Dec. Besides Apple's softer growth prospects, with analysts projecting annualized earnings per share (EPS) growth of 10.8%
Pentair's growth prospects are long-term There are two key reasons to buy water solutions company Pentair. The second reason concerns its ongoing transformational initiatives to improve its return on sales from 20.8% They are more focused on its long-term profit prospects. Let's take a closer look at these three stocks.
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