3 Proven Winners: Invest in These Soaring Stocks Now

Imagine you’re at a bustling market, eyes scanning for the best deals. Savvy shoppers know the thrill of snagging a bargain. But sometimes, that shiny gem at full price is worth every penny. This principle applies to the stock market too.

Did you know that some of the most successful investors make their moves while stocks are soaring? It’s not just about paying less—it's about recognizing unstoppable momentum. As Warren Buffett once said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Today, we’ll delve into three incredible stocks that are not just climbing but rocketing. Waiting for a dip might cost you more than you think. Here’s why these high-flyers deserve a spot in your portfolio right now.

MercadoLibre

If you haven't heard of MercadoLibre (MELI -1.69%), don't worry. It's a Latin American e-commerce giant, often referred to as the Amazon of Latin America. But it’s more than that—it combines elements of Shopify, PayPal, and eBay. This company offers online malls, mobile payment services, and logistics support for its operations.

MercadoLibre is thriving in the right market at the right time. South America is now where North America was 20 years ago. While internet and mobile phones have been present for years, they’re only just becoming widespread. From 2012 to 2022, internet penetration in the continent grew from 42% to 74%. However, broadband access is still limited, with only a bit over half of Latin American homes connected. Mobile phone penetration is expected to reach 75% by 2025.

This means South America’s e-commerce industry is set for massive growth. Payments and Commerce Market Intelligence forecasts the region’s e-commerce market will grow by 24% this year and by 21% each of the next two years. MercadoLibre is projected to see a revenue increase of 33% this year and 24% in 2025. With all the pieces falling into place, MercadoLibre's stock is making forward progress, and there’s much more progress ahead.

DraftKings

DraftKings (DKNG -3.10%) shares have surged over 300% since the end of 2022, still hovering near their 52-week high from March. A move of this size can be intimidating, but don't be deterred. This rally is likely to continue for a while.

DraftKings is a sports-betting stock that started in the fantasy sports business. The 2018 lift of the federal ban on sports wagering sparked a wave of state-level legalizations. Currently, sports betting is legal in 38 U.S. states. However, two of the largest states, Texas and California, have yet to legalize it, though measures are in the works.

Moreover, it takes time for DraftKings’ business to reach its maximum potential even in states where betting is legal. The average customer doesn’t become gross profitable until their third year. Many of DraftKings’ clients are just now reaching this milestone, which is why last year’s per-share loss of $1.73 is expected to swing to a profit of $0.85 per share next year. With new users continuously joining, this profit growth cycle could last for years.

Walmart

Last but not least, Walmart (WMT -0.63%) is a stock you can feel confident buying, even though it's been soaring. The world's largest retailer recently posted an incredible quarter with $161.5 billion in revenue, up nearly 6% year over year and surpassing estimates of $159.5 billion. Earnings of $0.60 per share also beat expectations of $0.52, growing 22% from $0.49 per share a year earlier. Same-store sales in the U.S. improved by 3.8%, and its e-commerce business grew by 21%.

Walmart is firing on all cylinders, which is why its stock jumped 7% on the day of the report, pushing deeper into record-high territory—63% above its mid-2022 low. Despite a trailing 12-month price-to-earnings ratio of over 27, you’re paying for reliability, quality, and consistency.

The COVID-19 pandemic and post-pandemic fallout have proven beneficial for Walmart. It’s one of the few retailers maintaining a wide assortment of merchandise at reasonably low prices, thanks to its scale and leverage with vendors. For example, Walmart told its suppliers to cut their own costs or it would seek alternatives, maintaining low prices for customers.

Since 2020, Walmart has attracted many customers from households earning over $100,000. With consumer prices now 22% higher than four years ago, everyone feels the pinch. This trend of value-minded convenience seems here to stay, which works in Walmart’s favor.

Investing in these stocks might feel intimidating due to their current high valuations, but their strong business fundamentals and growth potential make them solid picks for the long run.

Conclusion

In summary, MercadoLibre, DraftKings, and Walmart are three high-flying stocks that offer incredible growth potential despite their current strength. These companies are strategically positioned in their markets, showing robust financial health and impressive future prospects.

Are you ready to take your investment portfolio to the next level? Which of these soaring stocks will you add to your watchlist? Dive into the research, make informed decisions, and seize the opportunities these stocks present.

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