A common objection that keeps people from investing is a lack of money. But the premise of that objection is that you have to be wealthy already to invest. However, that's not the reality for many successful investors. Many retail investors (people like you and me) have built wealth by starting with $1,000 or less.
This brings to mind another objection that has to be challenged: you have to own a large number of shares in order to be successful. That may be true if you're buying inexpensive stocks. But those stocks come with a significant level of risk. More often than not, those investments turn out poorly.
A different approach is to buy blue-chip stocks. This lets you own shares of companies with rock-solid financials. They'll have their ups and downs, but over time the trend on these stocks is positive.
In this special presentation, we're using the MarketBeat Top-Rated Stocks tool to identify seven stocks that are outperforming the S&P 500 in 2024 and have catalysts that should drive growth into 2025.
This isn't about buying low and selling high. It's about buying best-in-class stocks and watching them continue to move higher.
Quick Links
- Delta Air Lines
- T-Mobile
- UnitedHealth Group
- Walmart
- Skechers
- Mondelez International
- Broadcom
#1 - Delta Air Lines (NYSE:DAL)
Airline stocks have been a poor investment since 2020. But Delta Air Lines Inc. (NYSE: DAL) is a notable exception.
Over the last three years, DAL has delivered a total return of over 20%. That’s significantly higher than the industry average, which is -4.5%. And in 2024, DAL stock is up an impressive 27.5%. That’s less than the S&P 500, but it’s still strong growth that comes with a dividend that was reinstated in 2023. The catalysts that are likely to move Delta higher include continued demand for international travel along with strong growth in business travel.
Delta reported its third quarter 2024 earnings in October and posted a slight miss in earnings that the company attributed to the more than 7,000 flight cancellations caused by the CrowdStrike Holdings Inc. (NASDAQ: CRWD) outage. Analysts seem to agree. At least six analysts have increased their price target for DAL stock in the 30 days ending October 11, 2024. JPMorgan Chase is the most bullish with a price target of $80.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.
Read More - Current Price
- $64.04
- Consensus Rating
- Buy
- Ratings Breakdown
- 14 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.22 (11.2% Upside)
#2 - T-Mobile (NASDAQ:TMUS)
T-Mobile US Inc. (NASDAQ: TMUS) is an example of why you can make exciting profits from what are considered to be boring stocks. At its core, T-Mobile is a wireless communications company. It makes revenue from selling wireless plans, which it does better than many competitors due to the size of its network.
The company is a leader in what’s known as fixed wireless. This is the practice of providing broadband service to residential consumers using the company’s existing 5G connections. In coming years, the company will pivot to fiber-optic cable connections.
This will command a premium price, but it will bring competition from more established competitors. And the company has already invested approximately $6 billion into joint ventures to support this transition.
The stock is up 33% in 2024, which is on par with the S&P 500. Over the last five years, investors have received a total return of 174.24%. That includes the company’s dividend, which has a yield of 1.64% as of October 14, 2024. T-Mobile management has also announced plans to return up to $50 billion to shareholders through share buybacks and dividends through 2027.
About T-Mobile US
T-Mobile US, Inc, together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services.
Read More - Current Price
- $235.54
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $241.83 (2.7% Upside)
#3 - UnitedHealth Group (NYSE:UNH)
If you’re looking for a no-brainer stock to own, you should consider UnitedHealth Group Inc. (NYSE: UNH). The company is one of the nation’s largest health insurers. Specifically, the company is the leading provider of family health plans offered through the Affordable Care Act (ACA) health marketplaces.
This includes Medicare Advantage plans, which are expected to show strong growth in coming years. Plus, the company may benefit from consumers moving away from Humana Inc. (NYSE: HUM) and CVS Health Co. (NYSE: CVS) plans.
Admittedly, $1,000 won’t buy you much of UNH stock which trades for $606.04 as of this writing. However, the stock has delivered a total return of over 189% in the last five years. That’s a reminder of the stock’s dividend, which has increased for 15 consecutive years. Future stock price growth would get a boost if Kamala Harris were to win the presidency in November. However, Medicare spending will continue to increase no matter which party is in office.
About UnitedHealth Group
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage.
Read More - Current Price
- $592.44
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $615.53 (3.9% Upside)
#4 - Walmart (NYSE:WMT)
Walmart Inc. (NYSE: WMT) is up 52% in 2024, easily outpacing the S&P 500. At $80, the stock is trading near its 52-week high, but analysts continue to bid the stock higher. And in the last five years, the total return in WMT stock is 115.45%. That means a $1,000 investment made at that time would be worth $2,015.45 today.
There are both systemic and macroeconomic catalysts that could support a higher WMT stock price. The systemic reason is that the company continues leaning into automation and artificial intelligence (AI) to make its operations more efficient. This can help the company take market share away from competitors.
On a macroeconomic level, Walmart has shown in its earnings reports that it’s managing to attract more affluent consumers who are looking to make their dollars stretch further. And they’re capturing this market, even as its core group of consumers are using buy now pay later (BNPL) systems.
About Walmart
Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications.
Read More - Current Price
- $84.26
- Consensus Rating
- Buy
- Ratings Breakdown
- 29 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $85.18 (1.1% Upside)
#5 - Skechers (NYSE:SKX)
For many years, if investors were looking for specialty retailers, they might consider Nike Inc. (NYSE: NKE). However, in 2024, Skechers USA Inc. (NYSE: SKX) may be a better name to consider. The stock is up 36.9% in the last 12 months, which is on par with the S&P 500. In 2024, the stock is up just over 5%, but analysts give the stock a consensus price target of $77.55, which would be a gain of over 18%.
The reason to believe that SKX stock is ready for multi-year growth is the way the company appeals to two broad popular demographics. Its slip-on shoes make it popular with older, more affluent consumers. The company’s footwear is also catching on with the prized Gen-Z consumers. Both younger and older consumers are buying their shoes via its direct-to-consumer (D2C) model, which is helping increase profits by cutting out the retail middleman.
SKX stock has delivered a total return of 84.79% to investors in the last five years. However, it’s important to note that the company does not currently pay a dividend so that growth is all from capital gains.
About Skechers U.S.A.
Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children worldwide. The company operates through Wholesale and Direct-to-Consumer segments. It offers footwear under Skechers Hands Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam brands.
Read More - Current Price
- $60.71
- Consensus Rating
- Buy
- Ratings Breakdown
- 11 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $78.09 (28.6% Upside)
#6 - Mondelez International (NASDAQ:MDLZ)
Mondelez International Inc. (NASDAQ: MDLZ) is a contrarian pick for 2025. The snack food and beverage manufacturer best known for brands like Oreo and Toblerone is facing the same reality that is true for many consumer discretionary companies. That is, it’s struggling with a weakening consumer. The company’s topline revenue is down year-over-year, but the company’s earnings are up. This may, however, be due more to cost-cutting measures than pricing power.
The concern is that the growth of GLP-1 drugs will eat away (no pun intended) at the company’s revenue and earnings. However, the slump in sales may be due to consumers shopping less at convenience stores where Mondelez does a brisk business. Either way, the company does have popular healthy snacks like CLIF bars in its portfolio.
After an October sell-off, MDLZ stock is down about 3% in 2024. However, analysts have a consensus price target of $78.41, which gives the stock an 11.8% upside. That goes along with a dividend that has a yield of 2.68% and has been increasing for 13 consecutive years.
About Mondelez International
Mondelez International, Inc, through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products.
Read More - Current Price
- $64.50
- Consensus Rating
- Buy
- Ratings Breakdown
- 16 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $80.31 (24.5% Upside)
#7 - Broadcom (NASDAQ:AVGO)
No list of stocks to buy with $1,000 would be complete without at least one technology stock. This sector, particularly companies with a link to AI, have been among the top performers. Broadcom Inc. (NASDAQ: AVGO) is part of the ongoing build-out phase that will be necessary for companies to deliver on their AI plans.
What makes AVGO stock particularly attractive right now is that it recently conducted a 10-for-1 stock split. That puts its shares at $181.96, as of this writing. And investors should be encouraged that the stock is up nearly 35% since the stock split.
Adding to Broadcom's attraction is the company’s dividend, which currently yields around 1.16%. That’s about average for technology stocks. AVGO stock is up 649.75% in the last five years and analysts have been bidding the stock well above the current consensus price target of $191.54%.
About Broadcom
Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.
Read More - Current Price
- $164.95
- Consensus Rating
- Buy
- Ratings Breakdown
- 25 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $192.79 (16.9% Upside)
When it comes to investing, the first step is often the hardest one to take. While we're talking about objections to owning stocks, let's address another one. It can be scary to invest money in stocks. However, time is one of the biggest advantages that investors have. Owning stocks is a proven way to build wealth over time. And with dividend-paying stocks, you can generate income that will outpace inflation.
While there's no way to take away all risk from the market, you can take strategies to mitigate your risk. One way is to invest in blue-chip stocks, like many of the stocks in this presentation. Investing just $1,000 in these stocks can reward you with an impressive total return over time.
MarketBeat gives you access to many free tools that ensure you have accurate, up-to-date information to help you make prudent investing decisions. And when you become a MarketBeat All-Access member, you gain access to an even wider range of tools.
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