The stock market has performed remarkably well lately. Within the last 12 months, the S&P 500, a benchmark representation of the U.S. stock market comprised of the 500 largest publicly traded companies, has increased by 26%. To put that into perspective, the average return for the S&P 500 annually since its inception is approximately 10%. Thus, it has nearly tripled the average rate of return recently due to evident positive sentiment from investors. A reduction in inflation with rate cuts on the horizon, increased consumer spending, and growing excitement for the burgeoning artificial intelligence (AI) industry have all greatly assisted the recent growth of the overall market.
Investors need to capitalize on this market moment with the rising trajectory that may continue to skyrocket. This could only be the beginning of a much larger rally in the stock market since the Federal Reserve hasn’t even cut rates yet this year. It has only left them stagnant.
Below are three transformative stocks that investors should consider due to their potential near-term and possible long-term growth. They all exhibited improving financial stability and positive future endeavors, making them stocks that could transform investment portfolios.
Stocks to Transform Your Portfolio: Ardelyx (ARDX)
Ardelyx (NASDAQ:ARDX) is a pharmaceutical company that develops, manufactures, and distributes medication to treat gastrointestinal diseases and chronic kidney disease (CKD).
Ardelyx’s stock price has more than tripled this last year due to several factors, including an announcement that its flagship medication, Ibsrela, which treats irritable bowel syndrome, may generate peak sales of up to $1 billion. ARDX also predicts that total sales for Ibsrela for the full year 2023 will be around $80 million and for the full year 2024 to be in the range of $140 and $150 million. Following this news, Ardelyx’s share price surged by nearly 50%.
On Feb. 22, it reported earnings for the fourth quarter full-year 2023, in which it stated that total revenue fell by 22% compared to the previous year, and it reported a net loss of $29 million. The recent earnings release left investors somewhat disappointed. Ardelyx beat on revenue estimates and slightly missed on EPS estimates.
Ardelyx still has upside potential even after its share price has more than doubled in the last six months due to increased sales estimates for Ibsrela and Xphozah, which is their other medication to treat CKD that was approved by the Food and Drug Administration (FDA) late last year and made approximately $2 million in revenue the year.
Celestica (CLS)
Celestica (NYSE:CLS) is an electronics manufacturing company that services the industrial, aerospace and defense, communications, and technology industries with fulfillment, engineering, mechanical assembly, and logistics solutions.
On Jan. 29, Celestica released earnings for the fourth quarter of 2023, stating that total revenue increased by 5% compared to the previous year. Earnings per share for Q4 2022 was $0.35. For Q4 2023, it increased to $0.71.
Over this past year, CLS has seen its share price triple due to its solid financials and positive future outlook.
Celestica saw particular growth within its communications and cloud segment, which reported a sales increase of 10% year-over-year. This is a positive sign for CLS because innovative cloud services technology is in high demand.
Celestica is a solid choice for investors seeking a strong buy technology company with a bright future. Definitely a stock that could transform your portfolio.
Stocks to Transform Your Portfolio: SkyWest (SKYW)
SkyWest (NASDAQ:SKYW) is a regional airline company that provides passenger and cargo transportation among a fleet of over 500 aircraft. Skywest also offers leasing and charter services.
Skywest’s performance over this last year has dramatically surpassed other competing passenger airline stocks, which it has more than tripled. This can be attributed to several factors, including stock buybacks, recent earnings beating analysts’ estimates, increased travel demand, and upgrades to its fleet.
On Feb. 1, Skywest reported earnings for the fourth quarter, which showed a 10% increase in total revenue year-over-year. In Q4 2022, Skywest reported a net loss of approximately $47 million; for Q4 2023, it increased to a net income of $18 million.
Skywest is poised to capitalize on improving travel demand due to a growing fleet from partnerships with other major airlines such as American Airlines (NYSE:AAL), United Airlines (NASDAQ:UAL), and Delta (NYSE:DAL). And even after a massive surge in its share price, analysts still regard the company as trading at a decent valuation. It is a strong buy airline stock that has outperformed its peers and continues offering upside into 2024.
As of this writing, Noah Bolton held a LONG position in CLS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
