Investing in the stock market can be a daunting task, especially when trying to determine when to buy into a soaring stock. While it’s often wise to wait for a dip, there are instances where it’s better to invest in a stock that’s reaching new heights. The key is identifying those occasions and making informed decisions. With that in mind, here are three stocks that have recently reached rally-driven highs and still make for great long-term investments at their current price.
First up is Home Depot (NYSE: HD), the largest home improvement retailer in the US. Despite the current gloomy real estate picture, Home Depot’s shares have reached a new 52-week high, matching its late-2021 peak. This is because investors are looking beyond the current market conditions and focusing on the future. The US is facing a significant housing shortage, with a current deficit of 4.5 million homes. As the population continues to grow and the construction industry struggles to keep up, it’s likely to take several years to bridge this gap. Home Depot is well-positioned to capitalize on this demand, and analysts predict its top line will start growing again next fiscal year, with earnings growth resuming the year after.
Next is Coca-Cola (NYSE: KO), a stalwart in the beverage industry. While its growth engine may not be impressive, the company’s consistency and resilience make it an attractive investment opportunity. Coca-Cola has raised its dividend every year for the past 62 years, and its ability to pay it has never been in doubt. With a diverse portfolio of leading beverages, including Gold Peak tea, Minute Maid juice, and Dasani water, the company is well-equipped to adapt to changing consumer tastes. As long as people continue to get thirsty, Coca-Cola should be able to generate some degree of sales growth.
Lastly, there’s Microsoft (NASDAQ: MSFT), a software powerhouse that has been on a tear lately. The company’s software is still widely used, with roughly one-third of the world’s students, businesses, and individual consumers choosing its productivity tools like Word and Excel. Additionally, Microsoft is the fastest-growing name in the cloud computing arena, with a proven track record of innovation and adaptability. Its ability to address new opportunities as they arise, such as artificial intelligence and video gaming, makes it an attractive investment opportunity for the next 20 years.
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