Identifying the right stocks to buy can profoundly affect portfolio performance. Three standout companies may derive high returns. Each represents a compelling opportunity emerging through robust fundamentals and strategic initiatives aiming for growth in 2024 and beyond. The first on the list leads the charge for digital payments, showcasing impressive growth in transaction volumes and profitability metrics. The company’s ability to innovate within the fintech sector underscores its potential to continue dominating in a cashless economy.
Similarly, the second is a behemoth in the semiconductor industry. The company capitalizes on the increasing global demand for high-performance computing solutions with advancements in semiconductor processes and strategic collaborations. Finally, the third holds a potent content pipeline and investments in AI-driven technologies. It prepares for major film and series releases, including new installments in globally beloved franchises. In short, these companies have strategic leadership, market positioning, and financial health, making them growth-oriented stocks to buy.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) facilitates online transactions globally. The company’s total payment volume (TPV) for Q1 2024 was $403.9 billion. A considerable increase reflects the platform’s extensive usage and trust among users. This 14% increase in TPV points to PayPal’s moat in the digital payment sector and its ability to handle vast transaction volumes sharply. The transaction margin dollars, which grew by 4% to $3.5 billion, are another essential metric. Although slightly below the top-line growth rate, this growth indicates an improvement in operational edge and profitability per transaction.
Moreover, PayPal’s EPS increased by 27% annually, reaching $1.08, reflecting the company’s ability to boost market value through sharp cost management and strategic reinvestments. Meanwhile, operating income increased by 15% to $1.4 billion, demonstrating effective cost management and operational edge. The operating margin grew by 0.84% to 18.2%. Hence, these improvements reflect the company’s ability to generate higher profits from its revenue.
In short, PayPal is on the stocks to buy list based on growth in total payment volume, sharp transaction margins, and an uplift in the bottom line.
Intel (INTC)
Intel (NASDAQ:INTC) leads in CPUs and other computing technologies. The company can secure considerable deals, highlighted by Microsoft (NASDAQ:MSFT) as the fifth Intel 18A customer and updating the lifetime deal value to greater than $15 billion. Indeed, the roadmap extension with Intel 14A marks Intel’s tech advancements. This is the first process node in the industry to use High Numerical Aperture Extreme Ultraviolet (High NA EUV) technology.
Further, the grants and tax incentives from the CHIPS Act derive massive financial support. This enables large-scale investments (CapEx) in research and manufacturing capabilities. Intel’s aim of hitting five nodes in four years, while ambitious, is on track. This rapid node transition is crucial for maintaining technological leadership and competitiveness in the semiconductor industry.
Moreover, the production ramp of products like Clearwater Forest and Panther Lake may initiate in H1 2025. This positions Intel to capitalize on these new technologies, like AI. The sequence of product launches with advanced node availability ensures that Intel remains at the forefront of high-growth tech markets.
In summary, Intel’s presence on the stocks to buy list is led by its technological advancements and large contract deals.
Warner Bros. Discovery (WBD)
Warner Bros. Discovery (NASDAQ:WBD) produces and distributes films, TV series, and digital content. The company’s content pipeline is robust. Numerous high-impact projects are scheduled over 2024-2025. This includes new seasons of massively followed series like House of the Dragon, The White Lotus, and The Last of Us. There are also major film releases like Joker 2. The release of new Lord of the Rings movies starting in 2026 is vital, given the franchise’s appeal and historical leads.
Additionally, the company is also investing in new technologies like AI. AI is used to personalize content discovery, optimize ad placements, and streamline various processes. This tech integration may derive sharp consumer experiences and increase the efficacy of marketing and ad sales. The company has considerable leads in deleveraging, repaying $1.1 billion of debt in Q1 and more than $6 billion over the past 12 months. This has reduced interest expenses and improved the company’s financial flexibility.
To conclude, Warner Bros. is a high mark on the stocks to buy list based on its robust content pipeline and investments in AI-driven technologies.
As of this writing, Yiannis Zourmpanos held long positions in PYPL, INTC and WBD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.