Buying stocks can lead to more wealth. Your money will work for you and push you closer toward meaningful financial goals. However, you have to invest in the right stocks to increase your chances of success.
Corporations with rising revenue and profit margins look promising. These companies also need to have competitive advantages and plenty of runway in addition to having strong financials. These three stocks to buy exhibit those characteristics and can bring your portfolio higher.
Nvidia (NVDA) This stock has delivered generational wealth for its long-term investors. Nvidia (NASDAQ: NVDA ) is up by more than 2,700% over the past five years and has more than doubled year-to-date. Nvidia’s Blackwell platform is leading the AI boom and has poised the company for the next wave of growth.
The company’s innovative AI technology resulted in 262% year-over-year revenue growth in Q1 FY25. Profit margins also improved based on the firm’s 628% year-over-year net income growth. Nvidia also stirred up excitement with its 10-for-1 stock split.
While stock splits do not make a company more valuable, this stock split has a few benefits that can further push up the stock price. The first advantage is that a lower stock price can increase the likelihood of Nvidia getting added to the Dow Jones Index . The second perk is that a lower price per share should stimulate options trading.
Options can increase the volatility of the underlying asset and lead to more gains if the majority of opt.