7 ‘FIRE’ Stocks to Put You on the Path to Financial Freedom

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  • Ceva (CEVA): Ceva could be a hidden gem opportunity among semiconductor specialists.
  • Pixelworks (PXLW): Pixelworks’ advanced imaging solutions could jump higher.
  • Crispr Therapeutics (CRSP): Crispr Therapeutics may lead the charge in addressing serious diseases.
  • Here’s your holistic list of FIRE stocks to consider.
FIRE Stocks - 7 ‘FIRE’ Stocks to Put You on the Path to Financial Freedom

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Because it’s tied to one of the six leading causes of “finality,” stress represents a silent public health crisis. And few things cause heightened stress than dealing with you-know-what at work. Therefore, the concept of financial freedom, retire early or FIRE has garnered significant momentum. To get there and to keep you there, we have some so-called FIRE stocks to discuss.

We’re going to talk about an eclectic mix of ideas. In the first set of publicly traded enterprises, we’ll focus on the FIRE stocks that may help accelerate your portfolio. If you’re going to get out of the rat race early, you’re going to need to ramp up your risk-reward profile – that’s just the reality.

Following that, we’ll shift over into a few ideas that should be relevant for the long haul. These companies offer stable and predictable businesses that should frankly outlast you. That’s good because you’ll want to enjoy those dividends coming in.

There’s no better time to start your journey to independence than right now. With that, let’s discuss FIRE stocks to buy.

Ceva (CEVA)

AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks. Semiconductors Stocks to Sell
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The first idea on this list of FIRE stocks to consider is semiconductor specialist Ceva (NASDAQ:CEVA). Per its public profile, Ceva provides silicon and software intellectual property (IP) solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. It encompasses a range of connectivity solutions that tie in with the Internet of Things (IoT). It also features a specialization in artificial intelligence protocols, particularly in the development of networks for embedded devices.

As you know, AI has been all the rage, sparking robust upside in some of the world’s top chipmakers. Fundamentally, a key benefit of CEVA stock is its size. Right now, shares trade at only $20.42 a pop, translating to a market capitalization of less than $482 million. Of course, this framework presents high risks. At the same time, once more investors become aware of the CEVA narrative, this thing could fly.

During the trailing 12 months, Ceva a net loss of $21.19 million or 90 cents per share in the red. Revenue hit $93.23 million. In fiscal 2024, analysts anticipate earnings per share of 27 cents, an improvement of 170%. On the top line, sales may reach $103.35 million, up 6.1%.

Pixelworks (PXLW)

Close-up Presentation of a New Generation Microchip. Gloved Hand Holding Piece of Technological Wonder. Semiconductor stocks are in the news.
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An extremely high-risk idea among FIRE stocks, Pixelworks (NASDAQ:PXLW) will require caution. On paper, the company along with its subsidiaries develops and markets semiconductor and software solutions for mobile, home and enterprise-level clients. It also serves the cinema markets in the U.S., Japan, China, Taiwan, Korea and Europe. Its specialty is in image-processing integrated circuits (ICs), particularly embedded microprocessors.

Interestingly, Pixelworks utilizes AI to enhance resolution and overall image quality. Some of the main customers of the tech enterprise include mobile device manufactures, along with those which specialize in projectors. Further, Pixelworks offers relevancies for the gaming device and accessories market. Given the enormous popularity of this sector, PXLW should enjoy sustained relevance.

Analysts are very enthusiastic about the enterprise, rating shares a unanimous strong buy. Also, the price target stands at $2.50, implying about 144% upside potential.

Financially, during the TTM period, Pixelworks posted revenue of $65.77 million. In the most recent quarter, its growth rate year-over-year stood at 61.1%. Interestingly, fiscal 2024 may be a down year for the company. However, in fiscal 2025, sales could soar to $75.73 million, making PXLW an intriguing candidate for FIRE stocks.

CRISPR Therapeutics (CRSP)

the CRISPR Therapeutics (CRSP) logo seen displayed on a smartphone
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Based in Switzerland, CRISPR Therapeutics (NASDAQ:CRSP) falls under the advanced biotechnology field. Per its corporate profile, CRISPR is a gene-editing specialist, focusing on developing medicines addressing serious human diseases. Underlying the business is its CRISPR-associated protein 9 (Cas9) platform, which may facilitate precise directed changes to genomic DNA. It’s controversial to be sure but the potential for the enterprise to address the human condition could be enticing.

Another element to consider is that CRISPR can pull off some surprises financially. Notably, ahead of the fourth quarter of 2023, analysts anticipated the biotech to produce a loss per share of 7 cents. Instead, the company posted EPS of $1.10, resulting in an earnings surprise of 1,671.4%.

During the TTM period, CRISPR incurred a net loss of $217.14 million or $2.70 per share in the red. Revenue in the cycle hit $271.71 million. For fiscal 2024, covering experts anticipate a down year in both earnings and sales. However, in fiscal 2025, the most optimistic analyst is calling for sales to hit $3.31 billion.

That could be a gamechanger. It could also send shares flying, making CRSP one of the possible FIRE stocks to consider.

PayPal (PYPL)

Closeup of the PayPal app icon seen on a Google Pixel smartphone. PayPal Holdings, Inc. (PYPL) is a global financial technology company operating an online payment system.
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In the ultra-competitive world of buy now, pay later (or BNPL) platforms, PayPal (NASDAQ:PYPL) appears to have lost a step. As a result, PYPL stock has only offered up a muted performance this year, gaining a little over 5%. That’s nothing compared to other tech firms. More problematic is that since Sept. 2021, PYPL has looked like a sad shell of its former self.

Still, the years-long downturn could make PYPL an intriguing opportunity. Most notably, the company offers significant relevance for the burgeoning gig economy. Following the disruption of the Covid-19 crisis, few people want to go back to business as usual. Those who have received an ultimatum have decided to branch out as independent contractors.

So, PayPal isn’t just about competing in the crowded BNPL space. It also offers tremendous utility for gig workers. Financially, during the TTM period, the company posted net income of $4.34 billion or EPS of $3.97. Revenue hit $30.43 billion.

Looking out to the end of the year, analysts anticipate EPS of $4.21 on sales of just under $32 billion. That would translate to top-line growth of 15%. It’s one of the FIRE stocks to keep on your radar.

PepsiCo (PEP)

Logotype of PepsiCo (PEP) against the blue sky
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Once you’ve got the speculation portion of your FIRE stocks into financial freedom, the next step is to stay free. For that, investors may want to consider beverage and snacks giant PepsiCo (NASDAQ:PEP). Now, with the obesity crisis sparking a rise in weight-loss drugs, some concerns exist that PEP may become irrelevant. Cynically, I don’t think so.

The obesity crisis didn’t just materialize yesterday. No, it has been decades in the making, let’s not kid ourselves. With Americans’ sweet tooth combining with the aforementioned work-related stress, I see the obesity crisis worsening. It sounds terrible to say but that provides a “positive” framework for enterprises like PepsiCo.

Plus, PepsiCo specializes in caffeinated beverages. With the growth rate of energy drinks projected to rise above that of coffee, PEP should be viable as one of the FIRE stocks; that is, viable in the sense of staying retired.

It’s a robust enterprise too. In the TTM period, net income reached $4.34 billion, translating to EPS of $3.97. Also, revenue in this cycle hit $30.43 billion. Finally, investors may enjoy the company’s forward dividend yield of 3.28%.

Chevron (CVX)

Chevron (CVX) logo on gas station sign with "diesel" and "food mart" written underneath
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One of the top integrated oil and gas players in the world, Chevron (NYSE:CVX) covers all areas of the hydrocarbon value chain. Admittedly, though, that makes CVX one of the curious ideas for FIRE stocks. With the ideological and political machinery pushing for renewable energy infrastructure, Chevron seems an odd bet. Wouldn’t CVX become woefully irrelevant as we all zip around in electric vehicles?

While that future may finally arrive, I’m not entirely sure that it will arrive soon. Until the nation overhauls the present infrastructure to accommodate EVs, anything close to full integration just won’t happen. And it’s not as if the government can one day force everyone to drive EVs. There are millions and millions of combustion-powered vehicles on U.S. roadways.

I’m not saying combustion cars are the future of mobility. However, going all-in on EVs is not as easy as the sector apologists make it out to be. Plus, you got to consider the robust profitability potential of Chevron, especially if critical supply chains become threatened.

Oh yeah – the company also offers a forward yield of 4.16%. That’s something to think about.

LTC Properties (LTC)

A group of senior people having lunch together in a retirement home, LTC Properties operates senior housing and living facilities
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Structed as a real estate investment trust or REIT, LTC Properties (NYSE:LTC) invests in senior housing and healthcare properties. Primarily, LTC conducts business through sale-leasebacks, mortgage financing, joint ventures and structured financial solutions, including preferred equity and mezzanine lending. That’s all great but the key here – lest we get off track – is senior housing.

Basically, it comes down to demographic math. During the post-World War II baby boom, a massive increase of people materialized, for lack of a better word. With these folks rapidly entering their golden years, senior care has become a profoundly important issue. And so long as humans walk the earth, senior care is an infinite game. In other words, LTC is tied to a permanently relevant narrative.

That doesn’t mean that LTC itself is permanently relevant. But the concept of caring for older people is perpetual. Therefore, you can probably trust LTC more so than other REITs or standard corporations. Even with a bad miss in the second quarter last year, the average earnings surprise for LTC in the past four quarters came out to 0.35%.

Lastly, LTC offers a forward yield of 6.78% and it pays out monthly.

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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2024/06/7-fire-stocks-to-put-you-on-the-path-to-financial-freedom/.

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