There are some stocks to make friends envious for March this year. These companies have impressive growth prospects and strong fundamentals that position them for potential outperformance.
I chose these stocks due to their innovative business models, disruptive technologies, and ability to capitalize on emerging trends. Wall Street also seems to love these picks too, as most have a consensus rating of “Buy” or better.
In addition to tech stocks, as evidenced by the Nasdaq rally, I also feel that this year will be great for other sectors as well. The reason being is that the valuations of many tech stocks such as Nvidia (NASDAQ:NVDA) may be too inflated for some investors’ tastes, regardless of its speculative revenue projections moving forward.
So, if you want to make your friends blush from your results in the markets this year, here are seven stocks to add to your portfolio. Don’t miss out.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is known for its semiconductor and software solutions.
My thesis for AVGO is that as businesses increasingly migrate their operations to the cloud and demand for cloud services escalates, its advanced networking chips and storage solutions will continue to rise in demand.
AVGO announced its Q1 fiscal year 2024 results with notable figures: a revenue of $11.96 billion, marking a 34% increase from the previous year. This growth is attributed to the acquisition of VMware. GAAP net income for Q1 stood at $1.33 billion, with GAAP diluted EPS at $2.84. Non-GAAP net income was significantly higher at $5.25 billion.
AVGO has set an optimistic revenue guidance for fiscal year 2024 at approximately $50.0 billion, indicating a 40% increase from the previous year. This growth expectation is driven by the integration of VMware into its business operations.
This then makes it one of those stocks to make friends envious.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) specializes in memory and storage solutions. Like AVGO, I also like MU’s position in the market due to its results it posted in the short-term.
It reported a revenue of $4.73 billion for the first quarter of fiscal 2024, marking an increase from both the previous quarter and the same period last year. This financial performance was bolstered by strong execution and pricing, leading to better-than-anticipated results. MU’s President and CEO, Sanjay Mehrotra, anticipates business fundamentals to improve throughout 2024, with a record industry total addressable market projected for 2025.
Looking ahead, for the second quarter of 2024, MU has guided a revenue forecast of $5.30 billion, with a gross margin of 12% on a GAAP basis and 13% on a Non-GAAP basis. Analysts have also forecasted MU’s revenue and earnings growth, projecting a significant rise by fiscal 2026. The revenue is expected to reach approximately $37.64 billion with earnings of around $8.638 billion.
These projections put it firmly in a category of stocks that investors should consider.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) continues to grow with its expansive content library and is making inroads into further growth drivers. For instance, it’s exploring ad-supported video on demand (AVOD) and incremental subscription video on demand (SVOD) memberships. Analysts from Jefferies project that NFLX could achieve over $40 billion in revenue by 2024, thanks to a $6-7 billion boost from AVOD and additional SVOD members.
NFLX has also ventured into live sports entertainment, marking a significant addition to its portfolio with the acquisition of rights to broadcast WWE’s Monday Night Raw, set to begin in January next year.
The company’s projected earnings growth of 22.57% from $17.01 to $20.85 per share further supports its strong financial outlook, and I feel that its upside has not yet been fully priced into its valuation.
After cracking down on password sharing, NFLX has certainly turned a corner and I think that the future looks even more optimistic than current estimates imply.
Pfizer (PFE)
Pfizer (NYSE:PFE) has been highlighted by some analysts for its potential due to robust dividend yield and expected growth.
PFE projects its full-year 2024 revenues to fall between $58.5 and $61.5 billion, incorporating around $8 billion from COVID-19 vaccines and treatments (Comirnaty and Paxlovid) and approximately $3.1 billion from the acquisition of Seagen. Excluding these revenues, PFE aims for a 3% to 5% operational revenue growth.
Now might be a good time for investors to load up shares of PFE. Despite a sharp 41% decline in fourth-quarter revenues from 2022, primarily due to decreased sales of Comirnaty and Paxlovid, PFE maintained a steady pace in returning capital to shareholders, with $9.2 billion in cash dividends.
PFE currently has a dividend yield of 6.07% with a dividend growth rate of 2.48%. This makes it an impressive play in the medical and biotech spaces due to its combined income and capital growth potential.
Match Group (MTCH)
Match Group (NASDAQ:MTCH), uses AI to enhance user experiences in dating apps like Tinder and Hinge, and is one of the hottest stocks in the market right now. By leveraging advanced algorithms and machine learning techniques, the company is able to provide more personalized and relevant matches to its users
MTCH reported a 10% year-over-year increase in total revenue, reaching $866 million in Q4 2023. Operating income soared by 144% compared to the previous year, amounting to $260 million. Other highlights were that revenue per payer (RPP) increased significantly by 17%, reaching $18.67. The company also reported strong cash flow metrics, with $829 million in free cash flow for the full year 2023, and authorized a new $1 billion share repurchase program.
For 2024, Match Group anticipates continued revenue growth and has provided a positive outlook, expecting total revenue growth of 6% to 9%. Its an intriguing growth stock that may be underappreciated by the market.
Select Medical (SEM)
Select Medical (NYSE:SEM) operates a range of healthcare facilities, including long-term acute care hospitals, inpatient rehabilitation facilities, and outpatient rehabilitation clinics.
SEM reported Q4 2023 earnings with a $0.36 EPS, surpassing analyst estimates which predicted $0.31. The company’s revenue for the quarter was $1.66 billion, again beating expectations of $1.64 billion. This performance marks a year-over-year revenue increase of 4.9%. For 2024, SEM has provided earnings guidance with an EPS range of $1.88 to $2.18.
Analysts have set price targets for SEM shares ranging from $26 to $39, with an average target of $34.40. This suggests a potential upside of 18.3% from the stock’s current price.
I think it’s always important for investors to balance their investments with stocks from various sectors. SEM could be a great pick in the defensive healthcare sector, and could become an envious choice amid a market downturn or correction.
Delta Air Lines (DAL)
Delta Air Lines (NYSE:DAL) benefits from the ongoing demand for travel, which i feel is still rebounding after COVID.
The airline anticipates full-year earnings this year growth to $6 to $7 per share, with an expected substantial free cash flow of $3 to $4 billion. This financial foundation is further supported by a reduction in adjusted net debt to $21.4 billion and the continuation of debt reduction and balance sheet strengthening.
In order to cut down on costs, it has moderated its hiring plans, including for pilots, but continues to see strong demand across all markets, with record bookings.
DAL’s shares are cheap right now, trading at around just 8 times earnings. I think that investors should tap into this option as its shares could be in the process of making an upwards correction. The worst is over for this company, but it should be noted that supply chain problems are expected to persist, which could impact its bottom line.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.