Investing in the best stocks to buy ahead of a bull run could take your portfolio to the next level. The S&P 500 has been on a killer run over the past 12 months, with more to come from potential interest rate cuts expected in September.
Following a series of soft inflation and jobs reports, particularly in May, it’s an ideal time for investors to strap in and get ready for potential gains. That said, it’s important to identify businesses with robust growth potential and superb track records in dominating their respective markets. Opting for such a strategy should help harness the momentum of market surges while avoiding the pitfalls of reactive investing.
Considering that, these three stocks are in a position to thrive in the next bull run with their innovative approaches, resilience in volatility, and powerful growth. Their adaptability to industry trends and consumer demands position them impressively for the upcoming market surge.
Vale (VALE)
Vale (NYSE:VALE) is spearheading mining efforts, particularly in iron ore and copper, to achieve robust upside ahead. Copper prices are up 13.2% year-to-date (YTD), with demand picking up again following the surge in AI technologies and renewable energy. Consequently, some analysts have even called for copper prices to jump north of 75% by next year.
Moreover, with the Biden administration imposing heavy tariffs on imported steel, Vale is set to benefit immensely. It recently announced its highest iron ore production levels since 2019 during the first-quarter (Q1). Its spectacular production levels are coupled with improved efficiency at its S11D complex, further underscoring its operational prowess. Also, its strategic expansions, including the Vargem Grande project, are nearing completion, potentially increasing its capacity by 50 million tons by 2026.
These positive developments position Vale in an enviable spot to pounce on both market needs and regulatory shifts.
Data Storage (DTST)
Data Storage (NASDAQ:DTST) has been one of the hottest stocks over the past year, gaining over 204%. Propelled by last year’s AI boom, DTST has made remarkable strides in cloud solutions and data management. Moreover, the firm has taken things up a notch by layering its potent CloudFirst strategy with its subsidiaries. Despite its small size, it has effectively carved out a niche in high-growth sectors. It now serves a growing clientele of more than 450 firms, progressively increasing its market share.
DTST’s financials have been growing rapidly, beating top-line estimates for the past five consecutive quarters. Its Q1 report showed revenues jumping over 20% year-over-year (YOY) to $8.24 million, beating estimates by $936,000. Moreover, it managed to milk out a small profit of five cents, beating estimates by a couple of cents. Also, it secured a major contract with one of the top U.S. insurance companies and a major contract with a global telecommunications giant.
Wall Street analysts are bullish on DTST stock’s prospects, pointing to a 43% upside potential.
Upwork (UPWK)
Upwork (NASDAQ:UPWK) has been one of the most popular hotspots for freelancer services. Its stock went parabolic during the pandemic, rising from a modest $5 to an impressive peak of $60 per share. However, since then, the stock has shed most of those gains, trading just over $10 at the time of writing.
Its fundamentals, though, remain in excellent shape. Remote work trends have held up post-pandemic, and the freelancer marketplace continues to boom. Upwork is still growing its top-line by double-digit margins, and is firmly in the green as far as its bottom-line is concerned. In its most recent quarterly showing, it posted a net income of $18.4 million, marking a solid 7.4% jump on a YOY basis. Additionally, its Q1 revenues are up 19% to $190.9 million, backed by a growing active client base exceeding 872,000.
Moreover, the firm is building new revenue streams, such as its successful Freelancer Plus subscription service, which boasts over 100,000 active subscribers. Additionally, advertising revenue has been growing at a rapid clip, surging more than 93% in Q1. Hence, with such solid fundamentals and exciting growth avenues, Upwork is poised for long-term success.
On the date of publication, Muslim Farooque 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
