The top generational buying opportunities are those with durable business models in high-margin industries. In fact, in this article, I will highlight three of the best ones you can buy now for your future generations. These three companies are what I would consider generational buying opportunities over the long-term. These are stocks I either own, or am considering owning, on any significant pullback moving forward.
| QSR | Restaurant Brands | $73.22 |
| DE | Deere | $357.21 |
| DVN | Devon Energy | $48.07 |
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) is a company I’ve been pounding the table on for some time. The parent company of Burger King and Tim Horton’s among other banners, has garnered a “moderate buy” consensus recommendation from twelve research firms due to its strong earnings report.
That may not sound like a resounding buy call. However, there’s a reason for the optimism. The company exceeded earnings expectations with an EPS of C$1.01, surpassing the consensus estimate by C$0.16. The company’s revenue for the quarter also exceeded analyst estimates at C$2.15 billion. These impressive results highlight the effectiveness of Restaurant Brands’ international business strategy.
Restaurant Brands had a strong Q1, surpassing earnings expectations. Its revenue increased by 9.7% year-over-year to $1.59 billion, exceeding estimates by $30 million. The company’s earnings per share of 75 cents were 11 cents higher than predicted. Despite macro challenges, Restaurant Brands achieved growth in comparable and system-wide sales, making it a positive start to the year.
Burger King is seeing record sales of Whoppers due to a viral marketing campaign. Tim Hortons has refreshed its menu and loyalty program, becoming the most popular food and drink app in Canada. Popeyes Louisiana Kitchen experienced 5.6% same-store sales growth in Q1 with the return of Ghost Pepper Wings, while Firehouse Subs saw a 6.1% rise in same-store sales.
Deere (DE)
Deere (NYSE:DE), a farm equipment manufacturer, is among the generational buying opportunities on my list right now. The company is capitalizing on increased farmer income due to high food prices, resulting in greater demand for Deere’s machinery.
Deere delivered impressive results in the first quarter with a 32% increase in revenue and a significant rise in net income. With a low forward price-earnings ratio of 13-times, DE stock stands out as a top contender for a spectacular rally among short-squeeze stocks. Deere delivered an exceptional quarter, surpassing revenue and earnings expectations. However, the stock experienced volatility, fluctuating by over $31 per share in a single trading day.
Deere stock is becoming increasingly undervalued and presents a compelling low-risk investment opportunity. The company’s revised guidance for fiscal 2023 anticipates a remarkable net income range of $9.25 billion to $9.5 billion. Deere’s current market conditions are exceptionally favorable.
Devon Energy (DVN)
From 2015 to 2020, oil stocks lagged behind the S&P 500 due to a lack of capital discipline during a period of declining oil prices. However, companies in the industry have shifted their focus towards prioritizing returns to shareholders and implementing capital discipline. Devon Energy (NYSE:DVN) stands out as a pioneer in adopting this model.
Devon Energy stock dropped 17% in the past year amid falling crude oil prices and recession fears from Federal Reserve rate hikes. Despite this, the International Energy Agency forecasts record petroleum demand growth and declining global supplies, potentially pushing prices back to $100 per barrel. Billionaire investor Ray Dalio’s Bridgewater Associates holds an $11.1 million stake in DVN stock, indicating confidence in its long-term prospects.
Devon Energy has announced a quarterly dividend of $0.72 per share for shareholders of DVN stock, payable on June 30th. Shareholders as of June 15th will be eligible for this dividend, which amounts to an annual dividend of $2.88 per share.
Devon Energy reported impressive Q1 earnings on May 8th, with operating revenues exceeding $3 billion and a net margin of over 31%. This translates to earnings per share of $1.46, surpassing Wall Street’s consensus estimate of $1.39. These positive results indicate a promising outlook for Devon Energy’s future performance and increased investor interest in the stock.
On the date of publication, Chris MacDonald has a position in QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.