The Buy List: 3 Stocks That Could Fund Your Dream Retirement

Advertisement

  • These stocks for a dream retirement can get you to your golden years sooner.
  • Celsius Holdings (CELH): Drinks continue to fly off the shelves.
  • Elf Beauty (ELF): The company continues to gain market share in the cosmetics industry.
  • Nvidia (NVDA): The AI juggernaut is still delivering impressive revenue and earnings growth.
stocks for dream retirement - The Buy List: 3 Stocks That Could Fund Your Dream Retirement

Source: Shutterstock

When retirement is far away, investing in growth stocks with captivating long-term catalysts is easier. Investors who can wait 10-15 years before retirement may want to focus on the most promising stocks instead of rushing to assets with more stability and high yields.

All the stocks on this list are up by more than 1,000% over the past five years. Despite those impressive gains, these corporations have low enough market caps and promising growth opportunities to suggest that more gains are coming. 

These three long-term retirement stocks boast strong financial growth and can be great picks for long-term investors. 

Celsius Holdings (CELH)

CELH stock: A view of several cases of Celsius energy drinks, on display at a local big box grocery store.
Source: The Image Party / Shutterstock

Celsius Holdings (NASDAQ:CELH) is capturing market share in the sports beverage industry. The firm offers a healthier drink than most competitors and doesn’t contain unhealthy ingredients like sugar, high fructose corn syrup, artificial colors, or aspartame. The drink has seven essential vitamins and a lot of caffeine. 

Roughly half of Americans are health conscious. Many of these individuals have been choosing Celsius over other brands. It’s easy to see that in the company’s financial reports. Revenue jumped by 95% year-over-year in the fourth quarter of 2023. Full-year revenue surged by 102% year-over-year. 

Net income attributable to common shareholders reached $39 million in the quarter compared to a $28 million net loss at the same time last year. The company also has $756 million in cash and cash equivalents.

Most of Celsius Holdings’ revenue comes from North America. The firm is beginning its global expansion efforts, which can lead to additional long-term growth. Net income growth has been outpacing revenue growth. Celsius shares are up 236% over the past year and have gained more than 5,500% over the past five years.

Elf Beauty (ELF)

an elf branded beauty product on a stone counter
Source: Lisa Chinn / Shutterstock.com

Elf Beauty (NYSE:ELF) has been another winner for in-the-know investors. The beauty brand only has an $11 billion market cap and almost fulfills the eligibility requirements for inclusion in the S&P 500. Getting added to the index will bring more attention to the stock and can lead to another rally. 

The cosmetics company hasn’t had much of an issue with rallying for its shareholders. Shares have gained 170% over the past year and are up by more than 2,000% over the past five years. The low market cap, impressive financial growth and 59 forward P/E ratio suggest that more gains can come.

Elf Beauty delivered its 20th consecutive quarter of sales growth in Q3 FY24. Revenue grew by 85% year-over-year during that quarter, while net income increased by 41% year-over-year. Net income usually has outpaced revenue growth, which will be the case in subsequent quarters. Adjusted net income demonstrates growth rates were higher. This figure “excludes expense related to stock-based compensation and other non-recurring items.” 

Adjusted net income came in at $152.9 million, while GAAP net income was $113.1 million. The firm continued raising its fiscal 2024 outlook, suggesting more revenue and earnings growth. 

Nvidia (NVDA)

Nvidia logo seen on smartphone which is placed on pile of US dollar bills. Concept. Selective focus. Stocks to buy like Nvidia
Source: Ascannio / Shutterstock.com

Nvidia (NASDAQ:NVDA) remains enticing even after its incredible 263% gain over the past year. The company’s revenue and net income growth have outpaced those gains. 

Revenue in the fourth quarter of fiscal 2024 increased by 265% year-over-year, while GAAP net income was up by 769% year-over-year. Artificial intelligence growth is expected to slow down eventually. However, the company can fit into its valuation with these growth rates and currently has a 37-forward P/E ratio

The artificial intelligence rally still looks strong. Other competitors are emerging, but Nvidia has the lion’s share of the GPU market for artificial intelligence. Nvidia offered guidance for $24.0 billion in revenue for Q1 FY25. That’s an 8.6% quarter-over-quarter growth rate and is even more impressive when looking at year-to-year growth.

Analysts still project some upside at current levels. However, the latest price targets suggest Nvidia can reach $1,000 per share. The highest price target of $1,200 suggests the stock can increase by 36% from current levels.

On this date of publication, Marc Guberti held long positions in CELH, ELF and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.


Article printed from InvestorPlace Media, https://investorplace.com/2024/03/the-buy-list-3-stocks-that-could-fund-your-dream-retirement/.

©2024 InvestorPlace Media, LLC