With thousands of companies listed in the stock market, finding the right ones to buy becomes a challenge. It is why many investors trade on rumors picked up in internet stock chatrooms. Just look at the meme stock trading frenzy from a few years ago (or last month even).
Yet, investors have a better tool at their disposal. Wall Street routinely rates stocks on whether they deserve a spot in your portfolio. It is true analysts can be conflicted and push shares of companies their firms are underwriting but mainly they are taking data and analysis unavailable or not easily attainable by retail investors and offering up their opinions.
Sometimes it can seem no better than throwing a dart at a dart board, but reading their analyses can give you greater insight into the stock. Riding their coattails by digging deeper into their strong buy stocks can give you a leg up on the rest of the market.
Wall Street won’t always get it right, but it puts you ahead of the game. That is why the three companies below deserve your attention, as they are strong buy stocks. It is a good place to begin your own due diligence.
Vistra (VST)
Born from the bankruptcy of Energy Future Holdings in 2015, Vistra (NYSE:VST) has emerged as a solid, important renewable energy stock in the Texas market. With the growth witnessed in data center construction and demand, the availability of low-cost energy in the southern states sets Vistra up for significant growth.
In March, it acquired nuclear power generation provider Energy Harbor and divided its business in two. Vistra Vision houses Energy Harbor’s assets and is now the second-largest nuclear operation in the U.S. It also contains Vistra’s renewable energy and energy storage projects. Vistra Tradition has the energy stock’s fossil fuel fleet, with more than 20,000 MW of highly efficient natural gas generation capacity.
The division of the two units also primes Vistra for a potential sale or spinoff of either business in the future. In the meantime, investors are likely to see Vision growing faster than Tradition, helping to bolster its bottom line.
Vistra stock is up 130% so far this year and 255% higher over the last 12 months. Yet, Wall Street sees more growth to come in this strong buy stock to buy now.
T-Mobile (TMUS)
Telecom giant T-Mobile (NASDAQ:TMUS) is the largest U.S. carrier, with 21.6 million prepaid users and 99.3 million postpaid customers. It also has more people covered by its 5G network than any other carrier, with over 5 million high-speed internet customers.
The ongoing 5G infrastructure rollout is one of the biggest drivers of future growth for the carrier, as increased download speeds will lure more people into using their devices more often. Because carriers tend to make most of their earnings from data consumption, greater customer usage will expand profits further.
The postpaid average revenue per user (ARPU) rose to $48.79 compared to $48.63 last year, while prepaid ARPU declined to $37.18 from $37.98 last year. However, that’s not as bad as it sounds. T-Mobile has been targeting enterprise customers and the government for additional growth, but they carry lower ARPU than residential customers. So. it is increasing its volume but at a slightly lower price.
Shares of the telecom giant are up 10% in 2024 and 35% higher over the past year. Analysts see T-Mobile’s earnings growth accelerating over the next five years to 25% annually. That’s a fair bit faster than the 11% growth it enjoyed over the last five years.
Cameco (CCJ)
Uranium prices have eased back to around $86 from a 16-year high of more than $100 a pound but they remain well above the lows they hit back in 2021 of just $30 a pound. That bodes well for Cameco’s (NYSE:CCJ) bottom line.
Cameco is one of the world’s largest uranium miners, with mines in Saskatchewan and the U.S.. It also has a 40% position in a joint venture with Kazatomprom (OTCMKTS:NATKY) for a mine in Kazakhstan and recently acquired a 49% interest in Westinghouse Electric, one of the world’s largest nuclear services businesses.
Because of the uranium miner’s 35-year history of doing business, it has clarity on where its business is heading at any particular time. Operating under long-term contracts with customers, it is assured of stable revenue streams.
Shares are up 21% year-to-date and 65% above their year-ago level. Analysts expect that to kick into overdrive, though, with earnings growth accelerating to 48% compounded annual growth from a comparatively anemic 12% growth over the past half-decade.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.