Which is the Best Stock to Buy
If you’re looking to invest in stock market, it’s important to know the right questions to ask before you purchase a particular stock. There are several different factors to consider. Here are a few to keep in mind.
Johnson & Johnson
If you are looking for a growth stock with a great dividend yield, Johnson & Johnson (JNJ) may be an option. The company has a strong history of paying reliable dividends and has a diverse revenue stream. This makes it a good buy for risk-averse growth investors.
J& J is a healthcare conglomerate that produces billions of dollars in revenue from different businesses. These businesses include pharmaceuticals, medical devices, and consumer health. The company also pays a dividend of about 2.6%, which is higher than the industry average.
The company has been gaining share from high-growth products, such as blood clot medication Milvexian and prostate cancer treatment Erleada. Another drug, Imbruvica, has been approved in Europe for leukemia treatments.
Axon Cloud
The Axon Cloud stock has been one of the best investments since its IPO. Despite the recent sell-off in the market indexes, Axon’s share price has continued to rise.
Axon is a technology company that provides security solutions to various industries. Their products include Taser devices, body cameras, and cloud services. They also offer digital evidence management and dispatch solutions.
In addition, Axon has been operating debt free for five years. It recently made its first profit in over a year.
The company’s recurring software revenue grew 34% in the third quarter. This is a good sign of its strength as a sales force and a growing product line.
Atlassian
Atlassian is a company that provides software tools to help people and teams work better. It offers a suite of products such as Jira, Trello, and Confluence.
Atlassian has a strong customer base. Nearly 250,000 paying customers use its software. However, Atlassian is slightly behind its rivals regarding the total addressable market. Currently, it has only 5.0% of the addressable market. Atlassian can increase its share by expanding its product offering or adding smart acquisitions.
Atlassian also has a strong balance sheet. The company ended its latest quarter with $1.5 billion in cash and cash equivalents. That’s more than twice its debt.
Brookfield Renewable Corporation
If you are looking for a stock that generates strong total returns, consider investing in Brookfield Renewable Corporation (BEPC 0.36%). This renewable power giant is located in New York and is a leading player in the clean energy industry. The company’s portfolio includes solar, wind, and hydroelectric power plants, storage facilities, and real estate solutions.
While the company’s assets are impressive, its leverage can be challenging. Nonetheless, the company’s cash flow is more than inflation-resistant and has the potential to grow at a steady rate.
As for the dividend, it is growing at a steady rate, and the company plans to continue raising it. They plan to increase the dividend between five and nine percent per year, which is good news for investors.
Texas Roadhouse
Texas Roadhouse may be your stock if you’re looking for a casual dining chain focusing on suburban America. Its restaurant locations span nearly 700 stores in 49 states, making it one of the biggest casual chains in the country.
However, the best Texas Roadhouse stock to buy isn’t necessarily cheap. TXRH is trading at a premium to its true value.
Despite this, the company remains profitable and is expanding its business. Through the first half of 2022, TXRH reported $2 billion in revenue. Moreover, Texas Roadhouse is a top Zacks Rank stock.
The company’s EPS jumped 8% in the year’s first half. Furthermore, Texas Roadhouse has maintained an operating margin of just under 9%. This should lead to more robust cash flows.
D.R. Horton
DR Horton (NYSE: DHI) is a US home builder and a leader in the sector. Its products include entry-level homes, luxury homes, and commercial buildings. The company also provides mortgage financing.
The company’s earnings are very strong. They have increased by 53% in the most recent quarter. For the fiscal year 2021, the stock is trading at seven times earnings. This is an excellent entry point for the long-term investor.
The company’s debt-to-equity ratio is 0.31. While this is an important measure, it is not the only one to consider.
Another critical factor is DR Horton’s financial leverage. DR Horton has 6.07 billion dollars in debt. These are liabilities that DR Horton must be able to repay, which is a concern to investors.