Investing in stocks at all-time highs can be a daunting task, especially when the market is experiencing a significant rally. However, sometimes the underlying reasons for the surge are strong enough to justify taking a chance on these soaring stocks. Here are three high-flying stocks that still have tremendous upside potential and are worth considering.
Membership-based retailer Costco Wholesale has been on a tear, with its paid membership base reaching a record 76.2 million, translating to 136.8 million total cardholders. The company’s aggressive expansion plans, with 26 new store openings planned for the fiscal year, will further boost its reach. As consumers become more cost-conscious in the face of rising inflation, Costco’s value proposition is resonating strongly. Analysts expect the company’s top line to grow by over 7% this fiscal year and nearly as much again next year, making its current stock price attractive.
Restaurant management platform Toast has been a quiet winner, with its software solutions helping eateries streamline operations and improve revenue. With over 120,000 restaurants already on its platform, Toast has a massive addressable market, particularly outside the US. The company’s top line grew 27% in the second quarter, and it’s expected to swing to a full-year profit in 2025. Toast’s subscription-based model ensures a steady revenue stream, making it an attractive bet for investors.
Tech giant Apple has also reached new heights, driven by the launch of its iPhone 16 with generative artificial intelligence capabilities. While initial demand may be slow, the long-term potential is immense. IDC predicts over 230 million AI-capable smartphones will be sold this year, rising to over 900 million by 2028. Apple’s brand loyalty and ecosystem will help it capture a significant share of this growth, driving sales of apps, music, and video streaming services. With its services segment boasting a higher gross profit margin than its hardware sales, Apple’s stock remains an attractive bet.
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