In the dynamic world of stock markets, the quest for financial prosperity often leads investors on a journey filled with opportunities and risks. For those aspiring to join the ranks of millionaires, strategic investments in stocks to buy can be the key to realizing their dreams. This article lists three must-own stocks quietly but consistently carving their paths to success. Explore the fundamentals behind these stocks to buy, their strategies for growth and why they deserve a place in an investment portfolio. Especially for those with the vision and determination to become aspiring millionaires.
Super Micro Computer (SMCI)
It is hard to discuss stocks to buy without picking at least one artificial intelligence (AI) company. I think the smart choice is Super Micro Computer (NASDAQ:SMCI). The company is enjoying strong growth primarily driven by the increasing demand for AI platforms. Fundamentally, Super Micro Computer’s engineering capabilities have allowed it to deliver optimized AI products and solutions to customers ahead of the competition. This first-mover advantage has enabled the company to gain market share and establish itself as a leader in the field.
In addition to being a first-mover, the company’s logistics and production teams have executed efficiently to maintain a competitive time-to-market advantage. The company established a state-of-the-art facility in California. This has been a critical factor in SMCI delivering high-performance AI racks quickly.
With nearly half of its revenues in the last quarter based on AI-related designs, the company expects to expand further. This expansion includes targeting emerging markets and diversifying its product offerings into storage, switches, software and services.The company is strategically expanding its presence beyond traditional markets, adding a new building near its Silicon Valley headquarters. Also, it plans to build another manufacturing campus in North America. This expansion may increase its production capacity and revenue potential, enabling the company to meet growing demand.
Opendoor Technologies (OPEN)
Opendoor Technologies (NASDAQ:OPEN) is dedicated to providing a simplified and trustworthy platform for residential real estate transactions. By emphasizing the customer experience and constantly innovating, Opendoor is positioning itself as the go-to choice for millions of home buyers and sellers. The company recognizes the value of partnerships with homebuilders, agents and online real estate platforms.
Despite reducing marketing spend by nearly 80% year-over-year (YOY) in Q2 2023, Opendoor achieved stable brand awareness. The company has prioritized efficient marketing investments such as creative ad campaigns, brand media and influencer programs. Additionally, Opendoor’s focus on growing its registered customer base is pivotal for long-term growth. Treating all potential sellers as future clients maximizes its opportunities to serve them when they decide to sell. This strategy minimizes incremental costs and has already yielded results. In this context, 75% of acquisition contracts in Q2 2023 came from sellers who accepted subsequent offers.
Despite short-term challenges, Opendoor has demonstrated financial resilience. It has strategically managed its balance sheet maintaining a solid capital position with $1.2 billion in liquidity. Finally, Opendoor targets an adjusted net income breakeven with an annual revenue of $10 billion, demonstrating a clear path to profitability.
Harmonic (HLIT)
Harmonic (NASDAQ:HLIT) is a broadband and video streaming company that has found a solid competitive position in the market. Its record backlog and deferred revenue of over $663 million demonstrate a sustained demand for its products and services and a solid foundation for future growth.
Harmonic’s Broadband segment revenue grew by an impressive 20% YOY. And, Harmonic continues to win new customers. These new customer relationships position the company for further growth once they scale. Harmonic has been recognized as the cable broadband equipment market share leader by market intelligence firm Dell’Oro Group. This recognition solidifies its position in the industry and could lead to further growth opportunities.
Moreover, Harmonic is leading in enabling high-bandwidth communication, which opens the door to compelling multi-gigabit services. HLIT is making progress in the fiber-to-the-home (FTTH) by putting Claro Perú in charge of its new fiber service. As cable customers expand their footprints and compete with telecom companies, the demand for FTTH solutions is expected to grow.
Notably, Harmonic’s video segment experienced substantial growth in revenue, with a 58% YOY increase. This reflects the company’s strategic transformation towards a focus on live sports streaming, which continues to drive sales growth. Lastly, their ability to generate positive EBITDA demonstrates their commitment to managing expenses effectively.
On the date of publication, Yiannis Zourmpanos did not hold (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.
