We will be exploring some of the top Stocks That Could Help You Retire a Millionaire in this article.
Retiring a millionaire is a goal for many investors since it is a monetary threshold that many believe is required to retire comfortably. While market-tracking products such as ETFs might help you get there, buying the right individual stocks can help you get there much faster.
If that’s more your style, here are three stocks I believe will boost your portfolio returns and help you retire a millionaire someday. It takes time to become a millionaire, but these stocks can help you get there faster.
Overview of stocks?
Certainly! Stocks are units of ownership in a business entity. When you acquire stocks, you become a shareholder and have a claim on the company’s assets and earnings. Stocks are often bought and sold on exchanges such as the New York Stock Exchange (NYSE) or the NASDAQ.
Investing in stocks has the potential to build your wealth over time. As the company’s worth rises, so will the value of the stocks you own. However, stock values can be volatile and subject to market swings, so there is always some risk involved.
Investors can make money from stocks through two primary methods:
- Capital appreciation: If the stock price rises after you purchase it, you can sell it at a higher price and profit.
- Dividends: Some businesses pay out a percentage of their profits to shareholders in the form of dividends. These payments are normally paid on a regular basis, providing income to investors.
It’s essential to remember that investing in stocks carries risks, so do your homework and/or speak with a financial expert before making any decisions. Diversifying your portfolio by investing in several stocks and industries can also assist in reducing risks.
5 Stocks That Could Help You Retire a Millionaire
Below is a list of stocks that could help you retire a millionaire:
1 – MercadoLibre
MercadoLibre is the major player in Latin American e-commerce. It provides online retail, shipping logistics, digital payments, and a consumer credit section, similar to Amazon and PayPal.
This combination has resulted in tremendous growth, and Q1 was no exception. On a currency-neutral basis, revenue jumped 58%, while operating margin increased 5 percentage points to 11.2%. Even if MercadoLibre increases its profitability, the company can still swiftly increase revenue.
It also has a significant upside because Latin America has a vast population striving to get into the middle class.
Fortunately for investors, the stock trades at a significant discount to its historical valuation range, despite all of the upside and robust growth.
At these levels, MercadoLibre appears to be a wonderful buy, and investors who purchase this stock will be well-positioned to become millionaires if they hold it for a long enough period of time.
2 – BOSTON BEER
Boston Beer (NYSE: SAM), with a recent market value of over $4.3 billion, is a key player in the craft beer industry. It was founded in the year 1984 and now has a diverse portfolio of brands that includes, among others, Truly Hard Seltzer, Twisted Tea, Angry Orchard Hard Cider, Dogfish Head Brewery, Hard Mountain Dew, and Sauza Agave Cocktails. Its stock has been a consistent performer, averaging more than 12% annual increase over the last decade.
Revenue increased 6.2% year on year in the company’s third quarter. This was an improvement over the poor second quarter when revenue fell slightly, and the outlook remained uninspired.
Boston Beer’s stock has taken a beating in the recent market collapse, with shares recently falling 35% from their 52-week high. This creates an enticing buying opportunity for long-term investors. Its current forward-looking P/E ratio of 30.5 was lower than its five-year average of 36.7.
3 – Taiwan Semiconductor
Another important aspect of stock investing is spotting companies that the market may overlook due to short-term conditions. You won’t become a millionaire overnight by investing, but taking the long view can uncover some wonderful deals.
Taiwan Semiconductor (TSM -0.08%) fits into this group since the declining semiconductor market has fueled investor pessimism. Because TSMC is the world’s largest semiconductor contract manufacturing company, it does not sell its chips. Instead, it manufactures semiconductors for companies such as Apple and Nvidia. It is at the cutting edge of its industry, with world-leading 3 nanometers (nm) semiconductor technology.
However, with the PC market affecting every company in the value chain, Taiwan Semiconductor has felt the effects. Revenue declined 4.8% year on year in US dollars in Q1 (but increased 3.6% in local currency). This trend is projected to continue, with experts forecasting a 6% drop in revenue in 2023. However, they predict a 22.2% increase in sales in 2024.
This rise can be ascribed to TSMC’s 3 nm chip technology finally contributing to the company’s bottom line after generating no income in Q1. This signals a tremendous upside for TSMC, yet the company is trading as though it will never recover.
Even after accounting for expected earnings declines over the next 12 months, Taiwan Semiconductor trades below where it has traded over the last five years. This appears to be a good entry point, and investors should take advantage of the short-term downturn.
4 – CARMAX
CarMax (NYSE: KMX) is another firm that appears undervalued, with a PEG ratio recently approaching 0.88, significantly below its five-year average of 1.55, and a forward-looking P/E ratio of 12.6, well below the five-year average of 18.
CarMax is the largest used automobile retailer in the United States, with over 230 shops, and it is also committed to providing openness in its business practices. It sold 1.6 million vehicles and earned $32 billion in fiscal 2022, with its auto loan portfolio at $16 billion.
The company’s second-quarter sales increased by 2% to $8.1 billion, but total retail used units sold decreased by 6.4% year over year, owing in part to rising borrowing rates. This contributed to the stock’s recent 58% drop from its 52-week high. Low-interest rates will not persist forever, so interested investors should keep an eye on CarMax, whether they purchase it gradually over time, all at once, or simply add it to a watch list while waiting for less economic uncertainty.
5 – CrowdStrike
When evaluating a company’s development potential, it’s important to examine the company’s future operating environment and whether it could be disrupted. CrowdStrike (CRWD 2.02%) works in the cybersecurity market, which is expected to expand dramatically in the next years as bad actors scale up their attacks. Artificial intelligence (AI) is another buzzword in the tech business, and organizations that don’t employ it will certainly be left in the dust.
Fortunately for investors, CrowdStrike offers a top-tier AI-based cybersecurity technology that can prevent and stop intrusions by analyzing trillions of signals weekly. Its solution is extremely popular, with its customer base increasing by 41% in fiscal year 2023 (ending Jan. 31) to more than 23,000 people. Only 556 of the Global 2000 and 271 of the Fortune 500 are clients. Existing customers also contribute significantly to growth, with the average client spending $125 in Q4 for every $100 spent the previous year.
CrowdStrike has a large prospective market as well, with management believing that its existing services represent a $76 billion total accessible market. With the market expansion and anticipated product launches, that value will rise to $158 billion by 2026. Although the company has yet to earn a profit, the stock does not appear to be overpriced by other measures, at 13.5 times revenue and 45 times free cash flow. CrowdStrike should be at the top of your list if you’re looking for a stock with a lot of upside.
Investing in stocks can be an excellent tool for achieving your retirement objectives and possibly retiring as a billionaire. While there are no guarantees in the stock market, certain equities have the potential to produce significant long-term gains. The five Stocks That Could Help You Retire a Millionaire described in this article offer promising chances for long-term wealth creation for investors.
However, it is important to approach stock investing with prudence and care. Individual stock investing entails inherent risks; therefore, it is critical to undertake comprehensive research, diversify your portfolio, and be prepared for market volatility. It’s also a good idea to talk to a financial advisor who can give you specific advice depending on your financial condition and goals.