InvestorPlace – Stock Market News, Stock Advice & trading Tips
For those seeking to strike gold in the stock market, the S&P 500 remains the Holy Grail. This index, comprising the top 500 publicly traded American giants, has bestowed an average annual return of 9-10% since 1957. These titans are stalwarts, catering to patient investors’ portfolios with a sprinkle of magnificent returns.
These three S&P 500 stocks have solidified their status as perennial winners in their sectors. What’s their secret sauce? Robust cash flows, sturdy moats in their respective industries, and exceptional management teams. Despite reigning as some of the most valuable corporations globally, these three gems are primed for a future of growth. Here are the three S&P 500 darlings favored by Wall Street, beckoning for you to embrace and never let go.
Amazon.com Inc (AMZN)
Source: Sundry Photography / Shutterstock.com
Amazon (NASDAQ:AMZN), the global eCommerce behemoth, emerged from the visionary mind of Jeff Bezos in 1994. According to Yahoo Finance, analysts have tagged a one-year average price target of $206.20 for the stock, nearly $30.00 above its current price.
This trailblazer has revolutionized global shipping norms, making 2-day deliveries ubiquitous through its Prime membership boasting over 200 million subscribers worldwide. Amazon’s Amazon Web Services (AWS) platform dominates the enterprise cloud services market, hauling in a hefty $90 billion in revenue for Amazon in 2023. Did you know? Institutions covet Amazon, with over 62% holding its 10.65 billion shares.
It’s mind-boggling to fathom Amazon’s 5-year revenue CAGR of 20%, especially given its colossal stature. This explains its trading at 41x future earnings, although the 3.1x future sales is easier to swallow. With a P/S ratio edging out other mega-cap tech firms, Amazon indeed stands as a discounted gem.
Meta Platforms Inc (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META), the corporate metamorphosis of Facebook, dances to a tune endorsed by 54 Wall Street analysts, predicting an average price target of $504.54, a $20.00 uptick from the present.
Basking in ad revenue from Facebook, Instagram, Threads, and WhatsApp, Meta draws over 3 billion daily active users into its labyrinth. Venturing into hardware, Meta flaunted its Ray-Ban Meta smart glasses and the latest Oculus AR/VR headsets this year. As of March 2024, Meta stands tall as the planet’s seventh-largest company by market cap.
In the past year, Meta has outpaced expectations, returning over 144%. Despite the heightened multiples post-rally, the stock still trades at a humble 24x forward earnings and 9.4x sales. Boasting a 10-year revenue CAGR of 33%, Meta trumps the Magnificent 7. To cap it off, Meta’s initiation of a quarterly dividend showcases a flaunt of its balance sheet strength.
Visa Inc (V)
Source: Kikinunchi / Shutterstock.com
Visa Inc (NYSE:V) reigns as the global payments monarch, celebrated for its credit and debit card services. By 2023, Visa cards flaunted acceptance in over 200 countries with a staggering 4.3 billion cards circulating. With 34 analysts dissecting Visa’s stock, the aggregated average price target stands at $302.49.
Succeeding China’s Union Pay in card transactions, Visa lays claim to the second-largest credit card issuer globally. A nearly 85% return over the past five years sans dividend reinvestment, Visa struts as a component of the S&P 100, the S&P 500, and the Dow Jones Industrial Average. It’s a barometer for economic vigor and consumer sentiment.
Couched in a loftier valuation for a blue-chip, Visa currently trades at 28.5x forward earnings and 17.5x sales. Despite this, Visa’s steadfast growth and stock returns are incontrovertible. The company braves the tumultuous waters of tech fluctuations and macroeconomic headwinds like a seasoned sailor, making it a darling for many a wise investor.
On the date of publication, Ian Hartana and Vayun Chugh had no direct or indirect positions in the securities mentioned. The views expressed belong to the writers, adhering to the InvestorPlace.com Publishing Guidelines.
Chandler Capital bears the mark of Ian Hartana and Vayun Chugh.
These self-taught investors have graced the pages of Seeking Alpha, focusing on GARP stocks across technology, energy, and healthcare through a lens of long-term investment principles.
More From InvestorPlace
The post Wall Street’s Favorite S&P 500 Stocks? 3 Names That Could Make You Filthy Rich appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
