7 Compelling Investment Opportunities for Beginning Investors in Their 30s

  • To build a solid retirement, these are the investment opportunities for beginning investors.
  • Waste Management (WM): Waste Management is permanently relevant.
  • IBM (IBM): IBM is an old dog with new tricks.
  • Rio Tinto (RIO): Rio Tinto is a great indirect play on EVs.
  • Chevron (CVX): Chevron may command long-term relevance.
  • Conagra Brands (CAG): Conagra feeds into a critical demand profile.
  • Pfizer (PFE): Pfizer can leverage its acumen for future innovations.
  • NextEra Energy (NEE): NextEra aligns with broader political winds.
investment opportunities for beginning investors - 7 Compelling Investment Opportunities for Beginning Investors in Their 30s

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Although financial advisors often urge the public to start saving for retirement as soon as possible, the realities of life mean that several people in their 30s must consider certain investment opportunities for beginning investors. To encourage anyone in this situation, it’s never too late to start planning ahead. And certainly, it’s better to do something now than not do anything at all. Further, with medical advancements and innovations in the broader health and wellness space, it’s quite possible that what we consider the 30s today may actually be the equivalent of the 20s. In addition, the wider changes in the global economy pinpoint certain market ideas that may stand the test of time.

So, if you’re interested in building a robust retirement, these are compelling investment opportunities for beginning investors.

WM Waste Management $149.33
IBM IBM. $125.45
RIO Rio Tinto $78.59
CVX Chevron $159.67
CAG Conagra $35.01
PFE Pfizer $39.39
NEE NextEra Energy $73.01

Waste Management (WM)

person depositing a plastic water bottle in a yellow plastic recycling bin. The bin is in a line-up of several other blue and green bins.
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Too often, people seeking the most compelling investment opportunities for beginning investors target enterprises that bring accretive value to society. And of course, there’s absolutely nothing wrong with that. However, Waste Management (NYSE:WM) makes for an intriguing idea because somebody has to deal with all the waste products that individuals and corporate entities create. In other words, WM most likely represents a permanently relevant market idea.

According to Gurufocus.com’s proprietary calculations for fair market value (FMV), Waste Management is modestly undervalued. Objectively, though, the company’s greatest strengths center on its operational attributes. For example, WM’s three-year revenue growth rate pings at 9.5%, outpacing 60% of sector peers. In terms of profitability, the enterprise features a net margin of 11.36%, above 74.19% of the industry. Also, it’s worth noting that the firm’s return on equity (ROE) is 31.68%, dominating the sector. It also signifies an extremely high-quality business. Finally, Wall Street analysts peg WM as a consensus hold. However, their average price target stands at $165.60, implying 10% upside potential.

IBM (IBM)

Photo of IBM (IBM) building as seen through the canopy of a tree. IBM logo is in large letters on side of building.
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To be frank, legacy technology giant IBM (NYSE:IBM) doesn’t offer the most exciting investment. However, as one of the compelling investment opportunities for beginning investors, it more than holds its own. In recent years, management made a concerted effort to lean off less-relevant endeavors for contemporary solutions such as cloud computing. As well, it’s made forays into genuinely exciting sectors such as blockchain and machine learning.

While IBM’s financials could use some shoring up, at the moment, it makes for an enticing market idea. For example, the market prices shares at a forward multiple of 13.2. As a discount to earnings, “Big Blue” ranks better than 80.62% of the competition. In addition, the company benefits from an ROE of 8.25%, outpacing 62.68% of its peers. Also, it’s well worth mentioning that IBM carries a forward yield of 5.23%. Plus, it features 29 years of consecutive annual dividend increases. Turning to Wall Street, covering analysts peg IBM as a consensus hold. However, their average price target stands at $143.56, implying nearly 14% upside potential.

Rio Tinto (RIO)

Production of copper wire, bronze cable in reels at factory.
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Over the next few decades, it’s quite possible that auto manufacturers may make conspicuous inroads into the electrification of mobility. However, what’s not so clear is which brand will end up dominating the electric vehicle market. Sure, everyone wants to say the T-word. However, no one has a lock on what might happen 20 to 30 years down the road. But that’s the beauty behind Rio Tinto (NYSE:RIO).

If you’re looking for investment opportunities for beginning investors, RIO deserves more than a second look. As a metal and mining stalwart, Rio Tinto specializes in several key commodities. However, for EVs, their lithium and copper units should perform very well. Throw in some geopolitical tensions and competition and RIO can truly fly. Not only that, RIO offers an undervalued opportunity. Presently, the market prices shares at a forward multiple of 9.09. As a discount to earnings, Rio ranks better than 62.35% of the mining industry. Lastly, Wall Street analysts peg RIO as a consensus hold. Still, their average price target hits $79.27, implying over 16% upside potential.

Chevron (CVX)

Chevron (CVX) sing with "diesel," "food mart" and "car wash" written underneath
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As one of the world’s top hydrocarbon specialists, Chevron (NYSE:CVX) does not initially appear as a viable candidate for investment opportunities for beginning investors. After all, I just got done talking about EVs and their implications for the future of transportation. However, it’s also wise to hedge against this grandiose wager. Frankly, it’s not guaranteed that EVs will take over. For one thing, EVs remain expensive for the average-income household. Yes, economies of scale may address this conundrum. But it’s also possible that the cost profile might not shrink fast enough. Second, EVs may remain inconvenient regarding quick-charging capabilities unless some radical invention materializes.

For those that don’t believe in the electrification narrative, Chevron offers an operationally robust and profitable enterprise. Also, the company carries a forward yield of 3.76% with a relatively low payout ratio of 41.4%. Looking to the Street, covering analysts peg CVX as a consensus moderate buy. Moreover, their average price target pings at $189.69, implying over 18% upside potential.

Conagra Brands (CAG)

Conagra logo on a sign outside of a corporate campus
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While no guarantees exist in the capital markets, over time, it’s almost a sure thing that Conagra Brands (NYSE:CAG) will be a relevant enterprise for many years to come. A consumer-packaged goods holding company, Conagra makes and sells products under various brand names. These products find themselves in supermarkets, restaurants, and food-service establishments.

Put another way, no matter what happens in future economic cycles, people got to eat. This obvious framework should keep the lights on at Conagra. Even better, the market prices CAG at a forward multiple of 12.34. As a discount to earnings, the food giant ranks better than 67.87% of sector peers. Regarding passive income, Conagra carries a forward yield of 3.76%. As well, the payout ratio sits at 47%, symbolizing confidence in yield sustainability. Finally, Wall Street analysts peg CAG as a moderate buy. Further, their average price target stands at $41.70, implying nearly 19% upside potential. Thus, it’s one of the compelling investment opportunities for beginning investors.

Pfizer (PFE)

medicine research, pharmaceutical background, LJPC stock
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A world-renowned pharmaceutical giant, Pfizer (NYSE:PFE) makes for an intriguing candidate for investment opportunities for beginning investors. Naturally, during the worst of the coronavirus pandemic, Pfizer gained considerable attention for forwarding a vaccine. However, with Covid-19 fears fading into the background, PFE lost its relevance. Since the start of the year, shares tumbled by 23%.

Here’s the thing – Pfizer never lost its scientific relevance. In addition, with its acumen in messenger-RNA-based vaccines, it could potentially forward other significant medical advancements. It’s not just an upside catalyst for the Covid crisis. Indeed, the market prices PFE at a forward multiple of 11.5. In contrast, the sector median value pings at 16.65. Beyond that, Pfizer carries an attractive forward yield of 4.16%, well above the healthcare sector’s average yield of 1.58%. Turning to Wall Street, analysts peg PFE as a consensus moderate buy. Additionally, their average price target stands at $49.67, implying nearly 26% upside potential.

NextEra Energy (NEE)

Person holding the glowing world in their hands with icons with different types of energy. Energy stocks; energy storage
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Probably one of the most obvious ideas for investment opportunities for beginning investors, NextEra Energy (NYSE:NEE) is a renewable energy stalwart. While the broader political ecosystem has been gradually pushing toward renewables, the military conflict in eastern Europe accelerated this initiative. With Russia’s hydrocarbon supplies largely offline for western nations, they will need to find workable solutions.

Over time, many climate advocates hope for a completely green energy infrastructure. To be honest, I’m not entirely sure we’ll get there. However, in the meantime, plenty of politically motivated funds will move into this space. Therefore, NEE should be one of the intriguing investment opportunities for beginning investors. Financially, NextEra’s greatest strength arguably lies in its profitability metrics. For instance, the company’s net margin pings at 19.79%, outpacing 85% of the competition. Lastly, covering analysts peg NEE as a consensus (and unanimous) strong buy. Their average price target comes out to $94.55, implying over 28% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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