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3 Great Stocks from Key Industries to Buy and Hold
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Today’s episode of Full Court Finance at Zacks dives into some of the stock market uncertainty heading into the heart of quarterly earnings season. Despite nerves, investors must remember that the selling was due at some point following the huge rally off the October lows.
Patient, long-term investors should consider buying strong stocks and holding them through any near-term pullbacks. The three stocks we explore today—Visa (V - Free Report) , Union Pacific (UNP - Free Report) , and D.R. Horton (DHI - Free Report) —all report their quarterly results during the week of January 22.
The downturn heading into fourth quarter earnings season has been sparked by a mixture of much-deserved profit-taking and slightly recalibrated interest rate outlooks.
Thankfully, the Fed is certain to cut rates in 2024 and the outlook for Q4 earnings has improved since the big banks started reporting last week. Plus, current Zacks estimates showcase impressive earnings expansion in 2024 and 2025. And the market made a comeback on Thursday.
Earnings season brings unknowns and the major U.S. indexes will test longer-term moving averages at some point. Still, the last several years highlight how difficult the market-timing game is and why investors are often best served to buy strong stocks and hold them.
Visa Inc. ((V - Free Report) ) will report its Q1 fiscal 2024 results on January 25. The credit card giant and digital payments firm is more influential in the U.S. and around the world than ever before despite the expansion of fintech upstarts.
Visa’s extensive and powerful payment and processing network is expanding in our increasingly cashless economy, with Visa taking a piece of a seemingly endless number of swipes, taps, and other payments 24/7.
Image Source: Zacks Investment Research
Visa has topped our earnings estimates for five years running, and its payment volume climbed 9% in FY23 and sales jumped over 11%. V is projected to grow its sales by another roughly 10% in both FY24 and FY25 to help boost its adjusted earnings by 13% during both years to extend an impressive growth streak that was only disrupted by Covid.
Image Source: Zacks Investment Research
Visa shares have blown away the S&P 500 and the Tech sector over the last 15 years. V stock is up 33% during the trailing three years and it hit new all-time highs on Thursday. Yet it still trades 5% below its average Zacks price target and 32% below its highs at 25.9X forward 12-month earnings. Visa also has a solid balance sheet and pays a dividend.
Union Pacific Corporation ((UNP - Free Report) ) is prepared to report its Q4 fiscal 2023 results on January 25. Union Pacific is a rail freight titan that links together over 20 states in the western two-thirds of the U.S., helping serve many of the fastest-growing cities in the country.
UNP connects with Canada’s rail system as well, and it is the only railroad serving all six major Mexico gateways. Union Pacific is running fewer trains with far more cars to help boost its bottom line.
UNP hired a new CEO last year after an activist push. Union Pacific has paid a dividend for 124 years in a row and it has raised its payout by 10% annualized over the past five years. UNP’s dividend yields 2.2% vs. its industry’s 1.3% average.
UNP stock has climbed roughly 1,400% in the last 20 years vs. the Zacks Transportation sector’s 225%, including a 50% run in the past five years. UNP currently trades around 13% below its all-time highs.
Image Source: Zacks Investment Research
UNP is projected to return to solid earnings and revenue growth in 2024. Union Pacific’s commitment to efficiency and modernization should reduce costs over the long haul. Plus, UNP stands to benefit from the ongoing expansion of the U.S. economy since trains remain the most cost-effective, energy-efficient long-haul transportation method.
D.R. Horton, Inc. ((DHI - Free Report) ) will report its Q1 fiscal 2024 financial results on January 23. D.R. Horton is the largest American homebuilder, currently operating in nearly 120 markets across 33 states.
DHI’s various brands cater to different types of buyers at different stages of life and income brackets, with prices ranging from roughly $200K to $1 million. D.R. Horton also offers mortgage financing, title services, and more.
Image Source: Zacks Investment Research
D.R. Horton is coming off a blockbuster stretch of growth, which began over 10 years ago and includes 21% revenue growth in FY22 and 37% in FY21. DHI’s revenue is still projected to grow by 3% in 2024 and then climb 7% higher next year (after 6% growth in its FY23) to help boost its adjusted earnings by 2% and 9%, respectively.
Better yet, D.R. Horton’s long-term outlook remains impressive since Millennials are driving the housing market, and Baby Boomers are finally retiring and moving. More importantly, home builders didn’t overbuild during the Covid boom, with supply still far below overall demand. And mortgage rates have fallen from their recent highs alongside interest rates.
Image Source: Zacks Investment Research
D.R. Horton stock has soared by over 300% in the last five years to more than double the Zacks Construction sector and the S&P 500 and top its highly-ranked industry. This is part of an even more impressive run during the last 15 years.
Despite sitting near all-time highs, it trades at a 33% discount to its highs and 36% below the Construction sector at 10.5X forward 12-month earnings. DHI also buys back stock and pays a dividend.
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3 Great Stocks from Key Industries to Buy and Hold
Today’s episode of Full Court Finance at Zacks dives into some of the stock market uncertainty heading into the heart of quarterly earnings season. Despite nerves, investors must remember that the selling was due at some point following the huge rally off the October lows.
Patient, long-term investors should consider buying strong stocks and holding them through any near-term pullbacks. The three stocks we explore today—Visa (V - Free Report) , Union Pacific (UNP - Free Report) , and D.R. Horton (DHI - Free Report) —all report their quarterly results during the week of January 22.
The downturn heading into fourth quarter earnings season has been sparked by a mixture of much-deserved profit-taking and slightly recalibrated interest rate outlooks.
Thankfully, the Fed is certain to cut rates in 2024 and the outlook for Q4 earnings has improved since the big banks started reporting last week. Plus, current Zacks estimates showcase impressive earnings expansion in 2024 and 2025. And the market made a comeback on Thursday.
Earnings season brings unknowns and the major U.S. indexes will test longer-term moving averages at some point. Still, the last several years highlight how difficult the market-timing game is and why investors are often best served to buy strong stocks and hold them.
Visa Inc. ((V - Free Report) ) will report its Q1 fiscal 2024 results on January 25. The credit card giant and digital payments firm is more influential in the U.S. and around the world than ever before despite the expansion of fintech upstarts.
Visa’s extensive and powerful payment and processing network is expanding in our increasingly cashless economy, with Visa taking a piece of a seemingly endless number of swipes, taps, and other payments 24/7.
Image Source: Zacks Investment Research
Visa has topped our earnings estimates for five years running, and its payment volume climbed 9% in FY23 and sales jumped over 11%. V is projected to grow its sales by another roughly 10% in both FY24 and FY25 to help boost its adjusted earnings by 13% during both years to extend an impressive growth streak that was only disrupted by Covid.
Image Source: Zacks Investment Research
Visa shares have blown away the S&P 500 and the Tech sector over the last 15 years. V stock is up 33% during the trailing three years and it hit new all-time highs on Thursday. Yet it still trades 5% below its average Zacks price target and 32% below its highs at 25.9X forward 12-month earnings. Visa also has a solid balance sheet and pays a dividend.
Union Pacific Corporation ((UNP - Free Report) ) is prepared to report its Q4 fiscal 2023 results on January 25. Union Pacific is a rail freight titan that links together over 20 states in the western two-thirds of the U.S., helping serve many of the fastest-growing cities in the country.
UNP connects with Canada’s rail system as well, and it is the only railroad serving all six major Mexico gateways. Union Pacific is running fewer trains with far more cars to help boost its bottom line.
UNP hired a new CEO last year after an activist push. Union Pacific has paid a dividend for 124 years in a row and it has raised its payout by 10% annualized over the past five years. UNP’s dividend yields 2.2% vs. its industry’s 1.3% average.
UNP stock has climbed roughly 1,400% in the last 20 years vs. the Zacks Transportation sector’s 225%, including a 50% run in the past five years. UNP currently trades around 13% below its all-time highs.
Image Source: Zacks Investment Research
UNP is projected to return to solid earnings and revenue growth in 2024. Union Pacific’s commitment to efficiency and modernization should reduce costs over the long haul. Plus, UNP stands to benefit from the ongoing expansion of the U.S. economy since trains remain the most cost-effective, energy-efficient long-haul transportation method.
D.R. Horton, Inc. ((DHI - Free Report) ) will report its Q1 fiscal 2024 financial results on January 23. D.R. Horton is the largest American homebuilder, currently operating in nearly 120 markets across 33 states.
DHI’s various brands cater to different types of buyers at different stages of life and income brackets, with prices ranging from roughly $200K to $1 million. D.R. Horton also offers mortgage financing, title services, and more.
Image Source: Zacks Investment Research
D.R. Horton is coming off a blockbuster stretch of growth, which began over 10 years ago and includes 21% revenue growth in FY22 and 37% in FY21. DHI’s revenue is still projected to grow by 3% in 2024 and then climb 7% higher next year (after 6% growth in its FY23) to help boost its adjusted earnings by 2% and 9%, respectively.
Better yet, D.R. Horton’s long-term outlook remains impressive since Millennials are driving the housing market, and Baby Boomers are finally retiring and moving. More importantly, home builders didn’t overbuild during the Covid boom, with supply still far below overall demand. And mortgage rates have fallen from their recent highs alongside interest rates.
Image Source: Zacks Investment Research
D.R. Horton stock has soared by over 300% in the last five years to more than double the Zacks Construction sector and the S&P 500 and top its highly-ranked industry. This is part of an even more impressive run during the last 15 years.
Despite sitting near all-time highs, it trades at a 33% discount to its highs and 36% below the Construction sector at 10.5X forward 12-month earnings. DHI also buys back stock and pays a dividend.