Since the financial crisis, companies have skyrocketed to impossible valuations. While growth isn’t linear, some have even reached the trillion-dollar club. That’s why investing in the stock market is one of the best ways to accumulate wealth, as investors often benefit from fortuitous timing or great foresight when picking out their top stocks.
Thankfully, you don’t need to look into the nearest crystal ball to make wise investment choices (though I won’t judge you if you have a crystal ball handy). An article from Morningstar cites one of the best characteristics of a great company is its ability to maintain and grow profits over time. While I can’t predict the future, I can use available data to look for companies with the same characteristics. So, today, let’s look at three stocks that offer investors the ability to make their money work for themselves.
To get the list, I used the filters below:
- Companies with a market cap of at least $10 billion,
- A strong presence in its sector.
- Three years of consecutive earnings growth, and
- Three years of consecutive revenue growth.
Then, I sorted the list based on their latest revenue growth from highest to lowest.
Here are the results for the top stocks to buy today.
United Airlines Holdings (UAL)
United Airlines Holdings (NASDAQ:UAL) is the holding company that owns United Airlines, the third-largest airline in the world. The company operates in various destinations in North America, the Pacific, the Middle East, Europe, Latin America and Africa.
With its staggering market cap of $17 billion, the company continues to expand its flights to expand its global destinations. Recently, it has included flights to destinations and routes like Tokyo/Narita-Cebu, Philippines, Houston-Medellin, Colombia and New York/Newark-Marrakesh, Morocco, to increase global routes.
Like all airlines, United was decimated by the pandemic. However, what’s surprising is the rate of growth it showed after the global economy opened its doors, especially in the last three years.
For further proof, the FY’23 year-end report had some very good news for investors. Total operating revenue grew 19.5% YOY, driven by double-digit passenger and other revenue growth but slightly offset by a 31.1% decrease in cargo revenue. Diluted EPS ended at $7.89, a significant improvement over last year’s $2.23.
This continuing growth trajectory—amidst an ever-improving macroeconomic environment—might be a good sign for investors to start stocking up on UAL shares.
Live Nation Entertainment (LYV)
Live Nation Entertainment (NYSE:LYV) is a live entertainment company that holds and produces live music concerts globally. The company operates in three main business segments:
- Concerts: covers global promotion of live music events.
- Ticketing: handles ticket sales on its clients’ behalf.
- Sponsorship & Advertising: creates and maintains relationships through sponsors and allows businesses to reach customers via advertising.
Live Nation is the largest entertainment company in the world, with a market cap of $21.8 billion. It has worked with various artists, including Taylor Swift, Eminem and Black Eyed Peas.
Like the previous company, Live Nation was hit hard by the pandemic. However, it has since recovered quite nicely, with continuous revenue and net income growth in the last three years.
According to their 2023 year-end report, Live Nation’s revenue increased by 36%, while consolidated operating income increased by 42%. Meanwhile, EPS more than doubled, reaching $1.38 from last year’s 66 cents per share.
Looking ahead, Live Nation expects continued double-digit growth in operating income and adjusted operating income (AOI), supported by strong ticket sales and expanding venue portfolios.
“We expect all our businesses to continue growing and adding value to artists and fans,” said Michael Rapino, President and CEO of Live Nation. So, if you want to cruise along the sound of growing wealth, LYV stock may be for you.
Mercado Libre (MELI)
Mercado Libre (NASDAQ:MELI) is a retailer in Latin America similar to eBay and Amazon. Based in Uruguay, the company offers an online auction and an e-commerce platform that serves 18 countries in Latin America under its platform ecosystem. The company has consistently made milestones, with its biggest sales during Buen Fin and Black Friday.
Mercado Libre’s FY’23 results saw a 37% YOY increase in net revenue, which reached $14.5 billion. Fast-tracking to the bottom line, net income ended at $987 million, an impressive increase from $482 million last year.
This strong growth has been preceded by three years of consecutive revenue and earnings growth. With a market cap of $85 billion, MELI is Latin America’s leading e-commerce platform, and that is despite Argentina’s macroeconomic challenges. Therefore, it has earned its spot as one of the top stocks for anyone looking to build their long-term wealth portfolio.
On the date of publication, Rick Orford held long positions in MELI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.