A good stock can get you closer to your financial goals. Some of the top stocks to buy can help you retire much sooner or get you closer to buying your first home. People invest in stocks for many reasons, but you have to pick the right stocks and funds to get solid returns.
There are many good stocks available, but allocating capital toward top picks can increase your portfolio returns. These are some of the top stocks to buy for long-term investments.
Direct Digital Holdings (DRCT)
Some investors like to find hidden gems before they get big. Direct Digital Holdings (NASDAQ:DRCT) has the potential to become that stock. Some investors have already noticed, resulting in the advertising company gaining 447% over the past year.
Direct Digital Holdings specializes in buy-side and sell-side advertising. The company’s sell-side platform known as Colossus Media, is doing most of the work. This segment powered the company to a 129% year-over-year revenue increase in the third quarter of 2023. Guidance suggests we will see revenue more than double year-over-year when we get to see Q4 2023 results.
The stock’s P/E ratio has gotten much higher in the past month and is now at 77. However, the stock has a more reasonable 29-forward P/E ratio. The company’s net profit margins rose significantly in the third quarter. If this trend continues, DRCT stands to rally much higher from here. High revenue growth seems likely to continue for a while.
Meta Platforms (META)
You don’t have to go for a home run with every stock you choose. Meta Platforms (NASDAQ:META) doesn’t have the same growth potential that DRCT has. However, Facebook’s parent company makes up for it with steady revenue and earnings growth.
The tech giant rebounded dramatically in 2023 by growing its advertising network and applying effective cost measures. Revenue increased by 25% year-over-year while net income more than tripled year-over-year in Q4 2023. Meta Platforms has even become a dividend stock which is great for investors who are planning for retirement.
Meta Platforms will continue to report robust financials as more people use its family of apps. An 8% increase in daily active users and a 6% increase in monthly active users suggests the company will report strong financials in future quarters.
Shares have gained 170% over the past year and look less risky than DRCT due to its 32 P/E ratio.
Celsius Holdings (CELH)
Direct Digital Holdings and Meta Platforms are both great choices, but Celsius Holdings (NASDAQ:CELH) takes the crown. The sports beverage company produces healthy drinks that have been flying off the shelves. These drinks eliminate many of the unhealthy ingredients you’ll find in soda drinks and other beverages.
After a sluggish start, Celsius Holdings shares are up by 47% over the past year. The company’s 7,300% gain over the past five years trumps the Magnificent Seven stocks. Celsius Holdings maintained double-digit net profit margins while increasing revenue by 95% year-over-year in the fourth quarter of 2023.
While domestic sales growth remains strong, the company is tapping into international markets. Global sales are rising at a fast rate but still not as much as domestic sales. Once Celsius Holdings starts to realize its global opportunity in a bigger way, the stock can continue to soar. Celsius Holdings has a lofty 113 P/E ratio but has the net income growth to back it up. Shares trade at a 69-forward P/E ratio. Make sure you add these top stocks to buy to your portfolio.
On this date of publication, Marc Guberti held long positions in DRCT and CELH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.