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Yahoo
18 hours ago
- Business
- Yahoo
Which High-Conviction Stock Picks Are Set to Soar in the Coming Years? Amazon (AMZN) Is One.
Key Points Each of these companies has an impressive track record and promising growth potential. Each could help a long-term portfolio grow. Consider a fast-growing ETF or two, as well. 10 stocks we like better than Amazon › It's a question many growth-stock investors often ask themselves: Which high-conviction stock picks are set to soar in the years ahead? (Value investors, who seek undervalued stocks and a margin of safety, might be asking a different question, perhaps wondering which growing companies have stocks that are being underappreciated in the market?) Here's a look at a few very promising high-conviction stocks. See if any pique your interest for your long-term portfolio. What's "high conviction"? First, let's define terms. A high-conviction stock is one that investors believe is likely to outperform in a particular period, delivering above-average returns. We might consider average to be about 10%, as the S&P 500 has averaged annual returns close to 10% over many decades. I'm going to offer a brief review of several stocks highly regarded by my colleagues at The Motley Fool, but keep in mind that though they may be high-conviction stocks, they're not guaranteed to soar. Some great growth stocks flame out. And others may indeed soar, but at their own pace and not yours. So, as with most stock investing, it's smart to spread your dollars across multiple companies, and to plan to give them time to perform -- which includes time to recover, should the market swoon. Our Foolish investing philosophy suggests buying about 25 or more companies and aiming to hang on to your shares for at least five years. (You might, instead, simply plunk much of your money in one or more excellent index funds, of course.) 1. Let's start with (NASDAQ: AMZN). Plenty of people will agree that its future is very promising, and on top of that, its stock seems attractively priced, too! Its recent forward-looking price-to-earnings (P/E) ratio of about 34 is well below the five-year average of 47. In case you don't appreciate Amazon's potential, understand that it's much more than one of the biggest online marketplaces on earth. It's also a major player in the cloud computing arena, with its Amazon Web Services platform. Meanwhile, one aspect of the company that's underappreciated is how significantly it's incorporating artificial intelligence (AI) into its operations, such as by using robots in its warehouses. This can significantly reduce its costs, boosting profitability. If you're fearing a recession, you might worry about Amazon's retail business being hurt (as it could be by tariffs). But with Amazon often seen as a relatively low-cost seller, it might be hurt less than other retailers. And it has a lot more going on than e-commerce. 2. Berkshire Hathaway Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) might not seem like a typical growth stock, but it's outperformed the overall market for decades, and it certainly has the potential to soar in the years ahead. The shares are down about 7% during the past three months (as of Aug. 13), in part due to anticipation over Chief Executive Officer Warren Buffett stepping down at the end of the year. But Buffett has built Berkshire to last, and he has long planned for his succession, with Greg Abel ready to take over. Buy Berkshire Hathaway and you will become a part-owner of gobs of businesses entirely owned by Berkshire, such as GEICO, Benjamin Moore, See's Candies, and the entire BNSF railroad -- and you will have a stake in Berkshire's stock portfolio, too, which features major positions in companies such as Apple, American Express, Coca-Cola, and Bank of America. (Berkshire recently owned 9% of Coca-Cola, for example, and 2% of Apple.) Berkshire stock is reasonably valued, too, at recent levels, with a recent forward P/E of 22.5, roughly on par with its five-year average of 21, and its price-to-sales ratio of 2.6, a bit above the five-year average of 2.2. It's a promising stock to own if you're worried about an economic downturn because with more than $300 billion in cash, the company can capitalize on opportunities that arise, as Buffett has frequently done. 3. Shopify Shopify (NASDAQ: SHOP) is home to a platform that helps e-commerce businesses get up and running. It's also been a boffo stock, averaging annual gains of 45% during the past decade and 41% year to date (as of Aug. 13). There's a lot to like about Shopify, including the fact that its business model is light and doesn't require lots of raw materials that might be affected by tariffs or global disruptions. The stock recently surged 22% in a single morning after posting estimate-beating revenue for its second quarter. Much of its revenue is recurring, too, which should appeal to investors. Investors responded well to the company's increasing stickiness for customers as it adds features to its ecosystem and makes it harder for customers to leave. Shopify's forward P/E, recently 101, is a bit below its five-year average of 104, but both those numbers are on the steep side, reflecting high expectations for the company. Consider any or all of these growing companies for your long-term portfolio -- and perhaps consider one or more fast-growing exchange-traded funds (ETFs), as well, if you're focused on growth and can handle some risk. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Selena Maranjian has positions in Amazon, Apple, Berkshire Hathaway, and Shopify. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Shopify. The Motley Fool has a disclosure policy. Which High-Conviction Stock Picks Are Set to Soar in the Coming Years? Amazon (AMZN) Is One. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Which High-Conviction Stock Picks Are Set to Soar in the Coming Years? Amazon (AMZN) Is One.
Key Points Each of these companies has an impressive track record and promising growth potential. Each could help a long-term portfolio grow. Consider a fast-growing ETF or two, as well. 10 stocks we like better than Amazon › It's a question many growth-stock investors often ask themselves: Which high-conviction stock picks are set to soar in the years ahead? (Value investors, who seek undervalued stocks and a margin of safety, might be asking a different question, perhaps wondering which growing companies have stocks that are being underappreciated in the market?) Here's a look at a few very promising high-conviction stocks. See if any pique your interest for your long-term portfolio. What's "high conviction"? First, let's define terms. A high-conviction stock is one that investors believe is likely to outperform in a particular period, delivering above-average returns. We might consider average to be about 10%, as the S&P 500 has averaged annual returns close to 10% over many decades. I'm going to offer a brief review of several stocks highly regarded by my colleagues at The Motley Fool, but keep in mind that though they may be high-conviction stocks, they're not guaranteed to soar. Some great growth stocks flame out. And others may indeed soar, but at their own pace and not yours. So, as with most stock investing, it's smart to spread your dollars across multiple companies, and to plan to give them time to perform -- which includes time to recover, should the market swoon. Our Foolish investing philosophy suggests buying about 25 or more companies and aiming to hang on to your shares for at least five years. (You might, instead, simply plunk much of your money in one or more excellent index funds, of course.) 1. Let's start with (NASDAQ: AMZN). Plenty of people will agree that its future is very promising, and on top of that, its stock seems attractively priced, too! Its recent forward-looking price-to-earnings (P/E) ratio of about 34 is well below the five-year average of 47. In case you don't appreciate Amazon's potential, understand that it's much more than one of the biggest online marketplaces on earth. It's also a major player in the cloud computing arena, with its Amazon Web Services platform. Meanwhile, one aspect of the company that's underappreciated is how significantly it's incorporating artificial intelligence (AI) into its operations, such as by using robots in its warehouses. This can significantly reduce its costs, boosting profitability. If you're fearing a recession, you might worry about Amazon's retail business being hurt (as it could be by tariffs). But with Amazon often seen as a relatively low-cost seller, it might be hurt less than other retailers. And it has a lot more going on than e-commerce. 2. Berkshire Hathaway Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) might not seem like a typical growth stock, but it's outperformed the overall market for decades, and it certainly has the potential to soar in the years ahead. The shares are down about 7% during the past three months (as of Aug. 13), in part due to anticipation over Chief Executive Officer Warren Buffett stepping down at the end of the year. But Buffett has built Berkshire to last, and he has long planned for his succession, with Greg Abel ready to take over. Buy Berkshire Hathaway and you will become a part-owner of gobs of businesses entirely owned by Berkshire, such as GEICO, Benjamin Moore, See's Candies, and the entire BNSF railroad -- and you will have a stake in Berkshire's stock portfolio, too, which features major positions in companies such as Apple, American Express, Coca-Cola, and Bank of America. (Berkshire recently owned 9% of Coca-Cola, for example, and 2% of Apple.) Berkshire stock is reasonably valued, too, at recent levels, with a recent forward P/E of 22.5, roughly on par with its five-year average of 21, and its price-to-sales ratio of 2.6, a bit above the five-year average of 2.2. It's a promising stock to own if you're worried about an economic downturn because with more than $300 billion in cash, the company can capitalize on opportunities that arise, as Buffett has frequently done. 3. Shopify Shopify (NASDAQ: SHOP) is home to a platform that helps e-commerce businesses get up and running. It's also been a boffo stock, averaging annual gains of 45% during the past decade and 41% year to date (as of Aug. 13). There's a lot to like about Shopify, including the fact that its business model is light and doesn't require lots of raw materials that might be affected by tariffs or global disruptions. The stock recently surged 22% in a single morning after posting estimate-beating revenue for its second quarter. Much of its revenue is recurring, too, which should appeal to investors. Investors responded well to the company's increasing stickiness for customers as it adds features to its ecosystem and makes it harder for customers to leave. Shopify's forward P/E, recently 101, is a bit below its five-year average of 104, but both those numbers are on the steep side, reflecting high expectations for the company. Consider any or all of these growing companies for your long-term portfolio -- and perhaps consider one or more fast-growing exchange-traded funds (ETFs), as well, if you're focused on growth and can handle some risk. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025
Yahoo
3 days ago
- Business
- Yahoo
Should Value Investors Buy Array Technologies (ARRY) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today. One company value investors might notice is Array Technologies (ARRY). ARRY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.85. This compares to its industry's average Forward P/E of 13.33. ARRY's Forward P/E has been as high as 12.17 and as low as 5.23, with a median of 7.81, all within the past year. Investors will also notice that ARRY has a PEG ratio of 0.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ARRY's industry has an average PEG of 0.60 right now. Over the last 12 months, ARRY's PEG has been as high as 1.22 and as low as 0.28, with a median of 0.67. Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARRY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.12. Finally, investors will want to recognize that ARRY has a P/CF ratio of 10.52. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.66. ARRY's P/CF has been as high as 21.25 and as low as 6.15, with a median of 11.64, all within the past year. These are only a few of the key metrics included in Array Technologies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ARRY looks like an impressive value stock at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Array Technologies, Inc. (ARRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
5 days ago
- Business
- Yahoo
Are Investors Undervaluing Bayer (BAYRY) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One stock to keep an eye on is Bayer (BAYRY). BAYRY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.68 right now. For comparison, its industry sports an average P/E of 13.70. Over the past 52 weeks, BAYRY's Forward P/E has been as high as 6.45 and as low as 3.72, with a median of 5.20. These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayer is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAYRY feels like a great value stock at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
