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Wall Street’s recent declines have baffled most investors. So far this year, the S&P500 the index lost about 21%. But you can still find some good stocks to buy right now.
Investing is a long-term strategy that helps many of us prepare for the years to come. Measurements suggest that between 1991 and 2020, the average return of the S&P 500 index has been well over 10%.
For example, suppose you are now 35 with $10,000 in savings and plan to retire at age 65. You decide to invest that $10,000 in several solid stocks and exchange-traded funds (ETFs). You will also make additional contributions of $4,800 per year at the end of each calendar year.
If the annual return is 8%, compounded once a year, at the end of those 35 years, the total amount saved will be almost $975,000. Concretely, saving $4,800 per year would be equivalent to setting aside $400 per month, or about $13 per day. And if annual returns increase to 9%, the total exceeds $1.2 million.
So, being a millionaire may very well be within your grasp. These stocks to buy give you a possible route to get there.
|TXG||10x Genomics, Inc.||$41.72|
|TUE||Marriott International, Inc.||$136.46|
|SEDG||SolarEdge Technologies, Inc.||$280.40|
Stock to buy: 10X Genomics (TXG)
Credit: Michael Vi/Shutterstock
Biotechnology Group 10x Genomics (NASDAQ:TXG) designs genetic sequencing technology. It has more than 3,500 instruments used in various research institutions around the world. The biotechnology name focuses on five main areas: infectious diseases, immunology, cancer, neuroscience, and drug discovery.
In early May, 10x Genomics released first quarter financial results. Revenue totaled $114.5 million, representing an 8% year-over-year increase. Diluted net loss per share was 38 cents, compared to a loss of 11 cents a year earlier. Cash and cash equivalents were $539.3 million.
Recently, 10x Genomics launched two new products designed to increase adoption of its cellular analysis platform. The Fixed RNA Profiling Kit contains new tools designed to improve the speed and efficiency of RNA sequencing. Meanwhile, the Nuclei Isolation Kit enables the generation of nuclei suspensions from frozen samples for a fraction of the time and cost.
Despite trading growth, TXG stock has fallen over 70% in 2022. Shares are trading at 10.56x trailing sales. Meanwhile, the median 12-month forecast stands at $100.
Source: Michael Vi / Shutterstock.com
Brucker (NASDAQ:BRKR) provides scientific instruments and equipment for various research and medical purposes. Its customers come from a wide range of industries, such as life sciences, pharmaceuticals, agriculture and materials.
In early May, Bruker released first quarter results. Revenue was $595 million, representing a 7.3% increase from a year ago. Diluted EPS was 49 cents, compared to 44 cents a year earlier. Free cash flow (FCF) was $58.8 million.
Recently, the company announced key innovations focused on integrating mass spectrometry imaging into cell biology. Additionally, Brucker has introduced a new state-of-the-art detector for X-ray spectrometers. The XFlash 7 will increase detection sensitivity and speed.
So far in 2022, BRKR stock is down 27%. The shares are trading at 3.7x trailing sales. Finally, the median 12-month forecast stands at $78.
Source: Sergey Yelagin / Shutterstock
E-commerce platform Etsy (NASDAQ:ETSY) made our list of stocks to buy as it benefited from increased online sales during the pandemic. Management hopes the trend of online shopping will continue in the coming months.
ETSY released its first quarter results on May 4. Revenue was $579.3 million, up 5.2% from the first quarter of 2021. Diluted EPS generated 60 cents, and the e-commerce giant ended the quarter with 1 billion dollars in cash and cash equivalents.
Recently, ETSY launched a purchase protection program for buyers and sellers. The platform will invest at least $25 million for refunds on purchases, with no additional fees for sellers.
ETSY stock is down 66% in 2022 and 56% over a 12-month period. Shares change hands at 29.1x forward earnings and 5.1x sales. The 12-month price prediction for ETSY is $130.
Stock to buy: Insulet (PODD)
Source: Maria Wan / Shutterstock.com
Manufacturer of medical devices island (NASDAQ:PODD) is known for its flagship product, the Omnipod drug delivery system. It is a portable and programmable device that adheres to the patient’s body. It delivers the correct dosage at specified intervals.
In early May, Insulet released first quarter financial results. Revenues totaled $295.4 million, an increase of 17.1% from a year ago. Diluted EPS was 40 cents, compared to a breakeven quarter the previous year. Cash and cash equivalents totaled $709.6 million.
Recently, the company inaugurated a new manufacturing facility in Malaysia, with production expected to begin in 2024. Additionally, Insulet presented the positive results of a study on its new Omnipod 5 insulin delivery system. This device is intended for use in the treatment of type 1 and type 2 diabetes.
PODD stock has lost around 22% so far this year. The shares are trading at 156.25x forward earnings and 12.10x trailing sales. The median 12-month forecast stands at $258.
Marriott International (MAR)
Source: DELBO ANDREA / Shutterstock
With approximately 8,000 properties, Marriott International (NASDAQ:TUE) is one of the largest hotel chains in the world. Its portfolio spans 30 brands, including Westin, Sheraton and Ritz-Carlton. Bonvoy, Marriott’s loyalty program, has more than 140 million members worldwide.
At the beginning of May, the management announced the results for the first quarter. Total revenue reached $4.2 billion, an increase of 81% from a year ago. Diluted EPS was $1.14, compared to a diluted loss of 3 cents per share in the first quarter of 2021. Cash and cash equivalents totaled $1 billion.
Since early June, Marriott has opened several new hotels around the world. Some of these new properties include the W Algarve in Portugal, Le Royal Meridien Doha in Qatar and a Ritz-Carlton in Jordan.
MAR stock is down over 17% in 2022. The forward P/E and P/S figures are 23.6x and 2.9x respectively. The median 12-month analyst forecast is $180.50.
Source: Andriy Blokhin / Shutterstock.com
Designer and retailer of home furnishings HR (NYSE:HR) has more than 70 venues in the United States and Canada, many of which are located in renovated historic buildings. Additionally, RH owns and operates restaurants and wine bars in select stores.
In other words, the group is on its way to becoming a luxury name. It is also known as one of Warren Buffett’s holdings. Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B).
At the beginning of June, RH published the results for the first quarter. Revenue rose 11% from a year ago to $957 million. Diluted net earnings per share were $12.16, compared to $4.19 the previous year. FCF was $107 million.
Recently, the company announced the opening of RH San Francisco in the historic Bethlehem Steel Building at Pier 70. The new store is a five-story gallery with a restaurant, wine bar and rooftop garden. Investors hope that the new site will contribute to the growth of the turnover of RH.
However, the HR stock has lost around half of its value so far in 2022. The forward P/E and P/S figures are 9.42x and 2.01x respectively. Finally, the median 12-month forecast stands at $400.
Stock to buy: SolarEdge Technologies (SEDG)
Specialist in alternative energy components SolarEdge Technologies (NASDAQ:SEDG) provides photovoltaic panels to increase energy production levels. He developed the DC-optimized inverter that reduces costs.
SEDG released its first quarter results on May 2. Revenue hit a record $655.1 million, up 62% from a year ago. Diluted EPS was $1.20, down from 98 cents a year ago. The energy innovator generated strong cash flow of $163 million, up from $24.1 million a year ago.
Recently, the solar power plant launched a home energy management portfolio in Europe, expanding its market to the environmentally conscious continent. Additionally, SolarEdge opened a 2 GWh battery cell factory in South Korea to meet growing demand for battery storage.
The SEDG stock is about stable so far in the year. The shares are trading at 38.2x forward earnings and 7.1x sales. Analyst price prediction for SEDG stands at $359.
At the date of publication, Tezcan Gecgil did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.