Investing

3 Dynamite Stocks to Load Up On For the Next Major Bull Market Rally

Chris MacDonald

Published: August 9, 2024 12:16 pm

Long-term stocks, or those that are meant to be held for over a year, let investors ignore daily market fluctuations. Known as “sleep-at-night” stocks, they remain reliable in the face of volatility, and generally trend higher over the long-term. This investing strategy has certainly faced challenges recently, with gains mostly seen in top tech stocks, increasing investor anxiety in a range of other top names. 

However, in mid-2024, a sector rotation began, shifting investors’ focus from solely tech to other sectors. The Dow and Russell 2000 indices showed renewed activity. Plus, earnings season saw tech and sector leaders impacting the market. It’s best to rely on top analysts’ long-term insights rather than single-quarter results. 

Notably, blue-chip stocks and those with sustained elevated growth rates are worth considering. The three companies on this list are certainly tech or tech-adjacent, but provide sustainable long-term growth profiles. For growth investors, that’s the type of company that’s worth focusing on right now.

So, without further ado, let’s dive into why these top long-term stocks are worth loading up on right now. 

Key Points About This Article:

• Finding stocks that can provide meaningful total returns over the long-term is important, and these stocks look positioned to do just that.
• Here’s why Meta Platforms, Eli Lilly and Taiwan Semiconductor are three top growth stocks that have the potential to continue to outperform expectations moving forward.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Meta Platforms (META)

Social media and tech giant Meta Platforms (NASDAQ:META) had just introduced AI Studio to the world. The feature enables Instagram, WhatsApp, and Facebook Messenger to create characters through AI. Users can develop characters as extensions of themselves or based on their interests. Initially targeting creators, AI Studio aims to enhance personal connections with audiences while saving time. The tool’s ability to mimic creators’ voices and tones is expected to be well-received.

According to data from Investing, about 77% of internet users use Meta Platforms’ apps. Digital ad is anticipated to reach $1.6 trillion by 2032. In the recent report, revenue saw a 22% increase, boosting market position. Additionally, the company is integrating new AI features to boost ad effectiveness and user engagement, potentially increasing future revenues. Meta’s ventures in VR and the metaverse promise new income streams, reflecting the growing trend of online and digital interactions.

After peaking at $543 in July, the stock has since corrected by 10%. Meta’s projected capex for the year is $35 to $40 billion, with ongoing high investments anticipated. That said, CEO Mark Zuckerberg foresees profitable AI services following this investment phase. Meta’s Q2 2024 ad revenue came in at $38 billion, and despite Reality Labs’ losses, future growth is expected, especially from emerging markets. Buying META stock now could yield significant benefits as growth accelerates.

Eli Lilly (LLY)

With its latest Q2 2024 report just released, Eli Lilly’s (NYSE:LLY) impressed the market again by exceeding analyst estimates. This led to the company increasing its FY 2024 revenue outlook by $3 billion. Shares also surged 11% premarket trading in reaction to this beat and raise quarter.

The company now projects annual revenue between $45.4 billion and $46.6 billion and raised its adjusted earnings forecast to $16.10-$16.60 per share. This boost was driven by strong sales of diabetes drug Mounjaro and weight loss injection Zepbound, alongside improved clarity on production expansions and international launches. Eli Lilly also reported achieving several supply-related milestones.

Demand for incretin drugs like Zepbound and Mounjaro has surged, prompting Eli Lilly and Novo Nordisk to invest heavily in manufacturing. Eli Lilly’s supply issues are easing, with the FDA reporting full availability of both drugs in the U.S. Despite this, the company warned of potential supply tightness due to rising demand. CEO David Ricks highlighted that demand remains high even without aggressive promotion. Currently, the company has built new plants and hired more workforce to boost production. Eli Lilly expects a 50% increase in output before 2024 ends. That’s the kind of growth long-term investors want to hear about, and it’s why LLY stock remains a top pick of mine for those looking at higher-valuation growth stocks right now. 

Taiwan Semiconductor (TSM)

As the largest chip foundry holding 60% global market share, Taiwan Semiconductor (NYSE:TSM) remains a great stock to buy. A publicly-traded company since 1997, TSMC excels with high operating margins due to its scale and advanced technology. The company has shifted to a fabless model, adding major clients like AMD, Apple, and Nvidia over the years. Currently, TSMC has over 73,000 workers powering an absolute chip behemoth. 

Moreover, the company has capitalized on the high demand for AI-related chips. With Nvidia’s influence on trends and high demands, this also helped TSMC boost in production capacity. TSMC now continues to transition to 2-nanometer technology to enhance performance and be more cost-effective. Although Apple is rumored to seek all of TSMC’s 2-nanometer output, the company anticipates improved margins and potential price hikes due to its strong market position and high demand.

TSMC is thriving amid high demand for AI chips and is well-positioned with its shift to 2-nanometer technology and expanded capacity. Despite potential risks from high fixed costs and uncertain future demand, TSMC’s valuation at under 20-times 2025 earnings offers an attractive buying opportunity. The recent stock pullback presents a favorable chance to invest, given the company’s promising long-term growth prospects.