Retire Rich: 3 Powerhouse Stocks to Buy for Long-Term Stability
Stocks with extended outlook and stability can guide long-term investors, especially when considering retirement stocks to buy.
The stock market is unpredictable, with daily changes that may be highly unstable. Short-term results are naturally volatile, swinging drastically depending on recent economic news. In this setting, even a single piece of unexpected economic news can significantly alter market dynamics, highlighting the uncertainty and randomness inherent in short-term investing.
Moving forward from this volatility, the picture established by the Federal Reserve’s stable interest rates in last week’s meeting and the S&P 500’s robust comeback recently demonstrates a market full of potential and pitfalls. Strong GDP growth predictions for the second-quarter highlight sustained economic resilience despite rising inflation. This suggests that long-term investment initiatives can offer considerable benefits.
Thus, investors must prioritize portfolio diversification to reduce risks and capitalize on growth opportunities. Adopting this strategy can uncover the potential of stocks positioned for long-term success.
Meta Platforms (META)
Meta Platforms (NASDAQ:META), a trillion-dollar company, has recorded an impressive turnaround. Its stock has increased by 80% year-over-year (YOY) and a whopping 168% in the past five years, which makes it a solid long-term bet. META now focuses on metaverse and artificial intelligence (AI), allowing it to escalate its value and scale up even more.
Despite losing over $45 billion in Reality Labs since late 2020, Meta remains committed to metaverse innovations. This dedication is clear in its shift from the Workplace app to cutting-edge technologies like Ray-Ban Meta Smart Glasses.
Moreover, Meta’s release of the open-source AI model Llama 3 showcases its forward-thinking approach. The AI model’s use on platforms like Facebook, Instagram and WhatsApp enhances safety and conversation reliability, leading users to learn efficiently from AI technologies.
Lastly, META is a lucrative choice for investors with $12.53 billion in free cash flow and a low debt-to-equity ratio of 0.25.
Advanced Micro Devices (AMD)
Several standout semiconductor stocks have consistently outperformed the broader market in recent years. Advanced Micro Devices (NASDAQ:AMD) is spearheading that charge with its high-performance chips. This has made its stock skyrocket by over 400% in a half-decade, which speaks volumes of the company’s huge growth prospects.
As Nvidia’s (NASDAQ:NVDA) biggest competitor, AMD is stepping up its game in the AI space with its latest products. Its Instinct MI300X accelerators are a hit, racking up a billion dollars in sales in the first quarter of 2024.
Moreover, AMD is smartly entering emerging markets like the metaverse. This variation fits their broader strategy to expand in the $300 billion high-performance computing market. By doing so, AMD is set to keep cashing for a sustained period.
Financially, AMD crushed it this quarter, pulling $5.5 billion in revenue, a 47% sales margin, and $123 million in net income. Additionally, with projected 2024 AI chip sales of $4 billion, AMD is on a roll, standing out as a top choice for long-term stability.
Visa (V)
A fintech stalwart, Visa (NYSE:V) rebounded strongly from its 2021 pandemic lows. The stock boasts a 18.5% YOY increase, surrounded by bullish sentiment. Plus, it has a modest dividend yield of 0.77%, which is pretty neat if you’re looking to invest long-term.
Debit and credit cards are here to stay. They’re essential for every generation, so Visa is in a sweet spot for steady growth. It reported a solid 10% jump in revenue and net income YOY in Q2 2024. Visa is also notably good to its shareholders, allocating a stellar $3.8 billion towards share buybacks and dividends.
Furthermore, Visa is keeping up with the latest cryptocurrency trends and is already considering how to incorporate this into its network. For instance, it has partnered with different cryptocurrency companies to enable the use of cryptocurrencies when making purchases. Visa is also investing in blockchain technology to enhance transaction security and efficiency. With its commitment, Visa looks primed for continued success.
On the date of publication, Nabeel Bukhari did not hold (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.
