The stock market is something that has helped people gain wealth over the years. In this article, we are going to go over some stocks that have a huge growth potential and will make you wealthy over time.
1. Pfizer (PFE)
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. Pfizer is trading at $53.73, with a 52 week low of $33.36 and a 52 week high of $54.46. With a Market Cap of $301.58 billion, PFE pays a dividend of 2.98%. In November 2021, the stock rose 2.5% to $53.73, ending the month with a 23% gain, the most since 1991. Pfizer is up about 46% thus far this year, with its dividend boosting the entire return to about 50%.
Pfizer expects a minimum of $65 billion sales of the Covid vaccine in 2022. The corporate has also been showing promising results from their new antiviral Covid pill, Paxlovid. Pfizer’s pill gives hospitals and doctors another weapon to battle the virus. CEO Albert Bourla said the study news “is a true game-changer within the global efforts to halt the devastation of this pandemic.” While the severity of the pandemic has ended, the pandemic is not yet over. What’s worse, there is a new variant of the virus called Omicron that has begun to instigate fear among people in the world again. By the looks of it, the virus will linger in communities for at least the next few years or so.
Pfizer’s vaccine results against the coronavirus appear effective so far, but it will be interesting to see how the company deals with the growing prevalence of the Omicron variant. Pfizer expects to collect billions in revenue within the next few months and the years to come. Having said that, there is no doubt that this company will make investors wealthy at the top of the road.
2. CarMax, Inc. (KMX)
CarMax is an American Company that is known for selling used cars. The company is also known for its “no haggle” policy, meaning the upfront price of vehicles is completely transparent and cannot be negotiated. Right now, KMX is trading at $142.68 per share, with a 52 week low of $90.30 and a 52 week high of $155.98. They have a Market Cap of $23.13 billion. Their 1 year price chart portrays a consistent growth throughout the year. Looking at analysts’ predictions, it seems that they are in favour of the stock. They have rated KMX as 1.9, meaning it’s a buy. Their average price target is $151, which is a little bit higher than the current price.
The company’s most recent quarterly report showcased that they collected net revenue of just over $4 billion, approximately representing 47% year-over-year growth. It also reported sale of nearly 420,000 used vehicles displaying a year-over-year growth of about 20%. This suggests that CarMax is headed towards the right direction. The company also recently announced that they are hiring 3,700 new employees (who are interested to build their careers with them) by the end of 2021. All in all, the evidences suggest that KMX is a solid investment with a huge potential in the long-term.
3. Trullieve Cannabis Corporation (TCNNF)
Trullieve is now the largest and most profitable as medical cannabis multi-state operator or MSO after having recently acquired Harvest Health & Recreation Acquisition. The majority of Trullieve’s operations are still based in Florida (being the only state where cannabis is legalized) but with the acquisition, they now operate in 11 different states, having 149 dispensaries nationwide. TCNNF is currently trading at $26.45, with a 52 week low of $23.38 and 52 week high of $53.73, and a market cap of $4.9 billion. Despite the legal restrictions on cannabis, the US cannabis industry is expected to double by 2025 to $41.5 Billion with the annual growth rate of 21%.
There are a few catalysts that could affect Trullieve’s growth. The first major potential would be federal legalization, which would allow cannabis decriminalization. This means cannabis could be used and sold anywhere in the country. Another one is 280E tax code revocation, which would highly increase their profitability. The third one would be the approval of Safe Approval Act that allows cannabis companies to do business with major banking institutions. If everything goes well for cannabis companies, TCNNF is likely to be a profit making machine.
4. Novartis AG (NVS)
Founded in 1996 in Switzerland, Novartis AG is a company that researches, develops, manufactures, and markets healthcare products worldwide. NVS is currently trading at $80 per stock with a 52 week low of $79.34 and a 52 week high of $98.52. With a dividend payout ratio of 73.88%, the company offers a dividend yield of 4% at the moment. Over the last 12 months, they have piled up a total revenue of $52.3 Billion compared to $49.8 Billion in 2020. Novartis believes in delivering annual revenue growth of 4% or higher by 2026, as it accumulates multi-billion dollar sales of its blockbuster drug Cosentyx. The company also expects to get approval for 20 new drugs in that period. This would create a sales potential upto $1 billion, which should fuel further growth through 2030 and beyond. It’s always interesting to see what the analysts have to say. They have given it a rating of 2, meaning it’s a buy. Their average price target for this company is $104, which portrays a 30% growth from the current price. Given its financial evidences, NVS looks quite convincing in the long-term which would prove to be a treasure in the investors’ portfolio.