The stock market has delivered phenomenal returns this year, with NASDAQ Composite up by ~32.7% on YTD basis. However, will this rally sustain or a major downturn is in the offing? Experts believe that corrections are the basic nature of stock market and no individual can escape these small corrections. There can be sell-offs and there can be losses. That being said, there are recoveries too and such recoveries can make up for the losses which an individual has incurred. It’s true that stocks tend to move in a zig-zag pattern, but if an investor succeeds in spotting some value plays, gains can be substantial. Keeping that in mind, let’s have a quick look at 3 stocks to invest which we believe can outperform the market in the long-term.
3 Stocks to Invest Now
- The Walt Disney Company
- Roku, Inc.
- Celsius Holdings, Inc.
1. The Walt Disney Company
The first stock in this list is “The Walt Disney”. It is one of the best stocks to invest experts believe as the company owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker.
After the successful ad-tier launch in the United States, the company announced that ad-supported offering should be available in certain selected markets throughout Europe and Canada beginning November 1. As the pricing gets updated for a range of plans later in the year, subscribers residing in the U.S. will have access to new ad-free bundled subscription plan, beginning September 6, which will feature Disney+ Premium and Hulu (No Ads) for $19.99/month.
The company reported earnings for its 3Q and nine months ended July 1, 2023, with revenues growing for the quarter and nine months by 4% and 8%, respectively. Results of the company this quarter exhibited of what it has achieved through significant transformation it has undertaken at Disney for restructuring, improving efficiencies, and restoring creativity.
Direct-to-Consumer revenues for 3Q went up by 9% to $5.5 billion, with operating loss decreasing to $0.5 billion from loss of $1.1 billion. Fall in the operating loss was because of the lower loss at Disney+, increased operating income at Hulu and the lower loss at ESPN+. Improvement at Disney+ was because of increased subscription revenue and decline in marketing costs, partially offset by a rise in the programming and production costs and lesser advertising revenue.
Increased subscription revenue was a result of Disney+ Core subscriber growth and higher Disney+ Core retail pricing.
Cash provided by operations went up by $1,586 million from $3,478 million in the prior-year period to $5,064 million in the present period. Growth was because of increased operating income at Disney Parks, Experiences and Products and lesser spending on produced and licensed content. This was partially offset by decline in operating income at Disney Media and Entertainment Distribution.
2. Roku, Inc.
Second most popular stocks to invest is Roku, Inc. It has been categorised as leading streaming platform in the United States. Its eponymous operating system is used not only in the company’s own hardware but in co-branded TVs and soundbars from manufacturers such as TCL, Onn, and Hisense.
The company saw strong results in 2Q, increasing scale, engagement, and monetization. Operating environment was largely unchanged from 1Q and there was strong consumer demand for Roku TV models while TV advertising remained muted industry-wide. The company began to see some improvement in ad verticals, which resulted in modest year-over-year platform revenue growth in 2Q. It is well positioned to re-accelerate growth as the ad market recovers.
In 2Q23, its total net revenue came in at $847 million, exhibiting a rise of 11% year over year, with Platform revenue growing 11% year-over-year to $744 million. Gross profit of the company came in at $378 million, up 7% year-over-year and active accounts were 73.5 million, exhibiting net increase of 1.9 million active accounts from 1Q23.
For 3Q, the company projects total net revenue of ~$815 million and total gross profit of ~$355 million. It expects its adjusted EBITDA of negative $50 million. Plans are there to moderate year-over-year OpEx growth rates, with 3Q likely to be lower than 2Q. The company is committed to its plan to deliver positive adjusted EBITDA for the full year 2024 with continued improvements post that.
Globally, the company’s users streamed 25.1 billion hours in 2Q23, making up 3.8 streaming hours per Active Account per day. It saw growth in engagement while viewing hours on traditional TV declined. Global Streaming Hours on the Roku platform went up by 21% year-over-year, while viewing hours on traditional TV in the United States fell 13%.
JPMorgan Chase & Co., an investment management firm, upped its target price on the shares of the company from $90.00 to $95.00. The firm gave an “Overweight” rating on the stock on July 28th.
3. Celsius Holdings, Inc.
The company develops, markets, sells, and distributes functional calorie-burning beverages. It provides flavors such as cola, orange, wild-berry and lemon iced tea and non-carbonated flavors including Raspberry Acai Green Tea and Peach Mango Green Tea under its brand name.
The company has released its preliminary financial results for the second quarter ended June 30, 2023. It saw record second quarter revenue of $326 million, exhibiting a rise of 112% from $154 million in the second quarter of the previous year. North American revenue went up by 114% to $311 million from $145 million in the second quarter of the prior year because of continued growth in distribution points, rise in average SKUs per location, accelerated Club Channel growth, and higher sales and marketing investments.
The company’s international revenue grew by 76% to $15.1 million, up from $8.6 million in the 2Q of the prior year as a result of new flavor innovation and brand awareness.
Gross profit of the company came in at $159 million, exhibiting 168% rise from $59 million in the second quarter of the previous year. Gross profit as a percentage of revenue was 48.8% for 3 months ended June 30, 2023, exhibiting a rise from 38.5% in second quarter of the previous year. Gross profit margin improvements were because of lower package and raw material unit cost, reduction in product waste/scrap, and improvement in inbound and outbound freight efficiency.
As of June 30, 2023, Celsius had $681 million of cash and cash equivalents against $60 million as on June 30, 2022.
These are the most popular stocks to invest in the long-term gain, however, stocks investment is subject to risk, do your own research and invest wisely.
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