With the stock market trading around record highs, we have compiled three top stocks for long-term investors. Despite concerns regarding potential macroeconomic headwinds and global geopolitical instability, the bullish market sentiment continues on Wall Street. Generative AI’s disruptive potential and a wave of strong corporate earnings are fueling this optimism.
The S&P 500 index is already up a staggering 7% year-to-date, and the VIX, a key volatility gauge, remains comfortably below 15%. This environment presents a compelling opportunity for investors seeking growth. With that information, here are the three top stocks that deserve your attention in March.
Broadcom (AVGO)
Among the first in our list of top stocks is the semiconductor company Broadcom (NASDAQ:AVGO). It has emerged as a leading play in high-speed networking. On March 7, management released solid first quarter results. Revenue grew 34% year-over-year (YOY) to $11.96 billion. Non-GAAP earnings per share (EPS) increased more than 6% YOY to $10.99.
Broadcom boasts a diverse revenue base and currently operates a highly regarded networking development platform. First quarter infrastructure software revenue skyrocketed more than 150%, driven by sales generated from Broadcom’s VMWare acquisition. Broadcom continues to focus on integrating virtualization software into its existing software solutions portfolio. As a result, revenue growth in this segment is expected to accelerate in the coming quarters.
Meanwhile, CEO Hock Tan highlighted a $10 billion guide for AI use cases between networking and custom silicon. In fiscal year 2024, management guided for 40% YOY revenue growth, fueled by VMWare upselling and robust AI demand.
As a result, AVGO stock is up 17% year-to-date (YTD) and offers a dividend yield of 1.6%. Shares are trading at 27.9 times adjusted forward earnings and 14.3 times trailing sales. Finally, the 12-month median price forecast for AVGO stock stands at $1400, suggesting an upside potential of over 20%.
Palantir (PLTR)
Next up on our list of top stocks is Palantir (NYSE:PLTR), a prominent software company in the AI space that works with governments and enterprises.
On Feb. 5, the company announced robust fourth quarter metrics. Revenue grew 20% YOY to $608 million, driven by a 70% jump in U.S. commercial income. Palantir reported its fifth consecutive quarter of GAAP profitability, delivering $93.4 million in net income, which translated into EPS of $0.04.
Analysts note that the growing adoption of Palantir’s Artificial Intelligence Platform (AIP) has become a key growth catalyst, significantly expanding the target addressable market. Customers can detect patterns through the platform and gain valuable insights from unstructured data.
During the fourth quarter, AIP allowed the company to close 103 deals. The move in revenue mix in favor of commercial clients is expected to improve overall margins due to higher pricing flexibility as well as lower regulatory setbacks.
PLTR stock is up 52% year-to-date (YTD).”We believe the AIP foundation is becoming viewed by many US enterprises as the ‘launching pad of AI use cases,'” Wedbush Securities said. Yet, we should note that Palantir is richly valued at 180.9 times forward earnings and 25.1 times trailing sales. Therefore, interested investors may wait for a potential decline in the PLTR stock price before hitting the “buy” button.
Viking Therapeutics (VKTX)
Viking Therapeutics (NASDAQ:VKTX) is the final name in our list of top stocks. VKTX stock more than doubled after the company reported positive results from the phase 2 trial of VK2735 in obese patients, offering exceptional weight loss and a favorable safety profile. The company quickly moved to take advantage of its soaring stock price, raising $550 million with an offering of 6.47 million shares priced at $85 each to fund the continued development of the programs in its pipeline.
Meanwhile, in early February, Viking Therapeutics announced fourth quarter financial results with cash, equivalents and marketable securities of $362 million at the end of the year. Net loss stood at $24.6 million.
The Glucagon-like Peptide 1 (GLP-1) market is forecast to exceed $100 billion by 2030, driven by its use in treating diabetes and obesity. Consequently, VK2735 has strong potential to achieve blockbuster status. The company is expected to share data from a study of an oral version of the drug, suggesting significant volatility in VKTX stock price going forward.
As a potential buyout target, analysts expect the Viking Therapeutics stock, which has returned over 250% YTD, to continue its bull run. But such speculation could also mean increased choppiness in VKTX stock price. Finally, the 12-month median price forecast for the biotech stock stands at $110.
On the date of publication, Tezcan Gecgil 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.
