With roughly 6,000 publicly traded securities listed on U.S. exchanges, it’s difficult to know where to start an investment journey, even with a solid account balance of $10,000. Adding to the vagaries, both the domestic and international markets face recession concerns. However, a sensible approach to the investment arena tied to relevant stocks to buy with credible growth trajectories should help improve the probabilities of success. And these three tickers – DUK, VALE, and SMR – may do just that.
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First, it’s important to understand which potential stocks to buy present a high degree of significance or applicability to present market conditions. For instance, petroleum-related securities performed very well this year due to inflationary conditions and geopolitical flashpoints. Still, mere relevance is not enough. Market participants must also identify within presently compelling ideas which stocks feature credible long-term narratives.
Will hydrocarbons undergird the future of mobility? Or will electric vehicles dominate the open road? Therefore, before you plunk down your $10,000, you should conduct due diligence on the likelihood that your targeted stocks to buy will stand the test of time.
While this exercise is always difficult, the current juncture, unfortunately, imposes unparalleled challenges. For instance, the Federal Reserve’s efforts to control inflation will likely lift the purchasing power of the dollar. If so, such a deflationary circumstance – where fewer dollars chase after more goods – will invariably impact strategies regarding stocks to buy.
Essentially, under a deflationary cycle, an incentive exists to merely sit on cash, which would create a positive return. Therefore, any market idea would have to be so compelling for investors to eschew free money in exchange for the possibility of much more significant gains.
Fundamentally, the below stocks to buy may meet the aforementioned criteria, thus deserving serious consideration if you have $10,000 to invest.
Duke Energy
An American electric and natural gas holding company, Duke Energy (NYSE:DUK) brings plenty of positive attributes to the table. For one thing, as a utility firm, Duke effectively features a permanently relevant profile. While its maximum growth potential ranks below innovation-driven stocks to buy, let’s face reality: no matter what happens in the future, society will need access to reliable power.
In addition, Duke Energy stands above several other utilities-based stocks to buy because of demographic trends. Specifically, Duke provides energy services to 7.4 million customers in the Carolinas, Florida, Ohio, Kentucky, and Indiana. Many of these states – particularly the Carolinas – are popular with millennials seeking regions with lower costs of living. Therefore, Duke operates a market that’s likely to expand based on migration trends.
Finally, the company brings solid financials to the mix. For instance, Duke has a net profit margin of 14.7%, which is better than nearly 73% of its peers.
Is DUK Stock a Buy or Sell?
Turning to Wall Street, DUK stock has a Moderate Buy consensus rating based on three Buys, seven Holds, and zero Sells assigned in the past three months. The average DUK price target is $101.70, implying 8.17% upside potential.
Vale
As a mining firm, Vale (NYSE:VALE) presents both opportunities and risks. Indeed, even though shares gained nearly 4% on a year-to-date basis, they’ve been all over the map throughout 2022. Still, VALE represents one of the stocks to buy because it features an appropriate balance between stability and forward growth potential.
Fundamentally, Vale attracts the astute investor because it’s the world’s largest producer of iron ore and nickel. The latter commodity features significant implications in the global EV rollout, comprising a critical ingredient in lithium-ion battery cells. Therefore, if you’re convinced that EVs represent the future of mobility, owning a nickel powerhouse brings tremendous potential to your portfolio.
On the financials, Vale equally impresses. Anchored to a balance sheet with decent strengths, Vale commands myriad growth and profitability metrics that rank well above their respective industry medians levels. Most notably, Vale features a return on equity of over 55%, reflecting incredibly high business quality.
Is VALE Stock a Buy?
Turning to Wall Street, VALE stock has a Hold consensus rating based on two Buys, three Holds, and one Sell rating. The average VALE price target is $15.42, implying 21.95% upside potential.
NuScale Power
With NuScale Power (NYSE:SMR), investors will be eschewing an established business model in the present in exchange for the possibility of massive upside in the future. With no earnings and thus no dividends, SMR represents one of the aspirational stocks to buy. Nevertheless, because NuScale may be the future of nuclear energy, it’s well worth putting on the speculative side of your $10,000 portfolio.
Specifically, NuScale specializes in small modular reactors or SMRs. These facilities feature a smaller physical footprint, thus enabling greater integration in previously inaccessible regions. In addition, because of their relative ease of development, SMRs can be incorporated closer to the source of energy demand. Therefore, NuScale can empower previously economically unviable endeavors such as desalination.
Financially, SMR admittedly has much room for improvement. For instance, in the second quarter of 2022, NuScale posted revenue of only $2.75 million against a net loss of $2.6 million. However, it’s also important to note that the company has zero debt. Therefore, SMR is speculative, but it’s smart speculation.
Is NuScale Stock a Good Buy?
Turning to Wall Street, SMR stock has a Moderate Buy consensus rating based on one Buy, two Holds, and zero Sells assigned in the past three months. The average SMR price target is $16, implying 39.37% upside potential.
You Can Still Win with Compelling Stocks to Buy
Although current business headlines leave little room for encouragement, the reality is that investors seeking relevant stocks to buy can still win out, even under these trying circumstances. By focusing on practical businesses that also enjoy a credible long-term pathway, market participants can tilt the odds in their favor.
