It is always difficult to buy a stock that is on the rise. Nobody wants to pay dearly for stocks only to find that they couldn’t have chosen a worse time to invest.
Even so, with so many high-performing stocks on the market, you just can’t wait for a great bargain opportunity to appear. If you are not willing to buy shares at or near the historic maximum, then you can Never have a chance to invest and miss out on a great opportunity to increase your overall returns.
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Below, we will reveal three well-known companies that have just reached historical records. Although their stock prices have already risen sharply, each has more room for future growth – and a strong track record of extraordinary business execution.
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1. Alphabet
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a favorite among technology investors, largely because of the dominant position that its Google division has in online search and advertising. As one of FAANG’s original shares, Alphabet has seen its shares skyrocket since its 2004 IPO.
Alphabet continues to maintain its huge advantage in Internet search, with recent states giving the tech giant a 92% share in web searches. In addition, Google’s Android operating system has become the standard for most smartphones worldwide, with only Applein (NASDAQ: AAPL) IOS represents a considerable challenge for Alphabet’s supremacy.
Looking ahead, Alphabet has many growth drivers. Google will remain a dairy cow and should benefit from a recovery in the advertising market. Development in areas such as artificial intelligence and autonomous vehicles is going well and, despite regulatory pressure, the business in general remains solid.
Perhaps best of all, while Alphabet has reached its peak, the performance of its shares has lagged behind other FAANG shares. Even just achieving the highest returns that Apple and other companies have generated, it would give Alphabet shareholders a good reward in 2021 and beyond.
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2. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) it is arguably the most important company in the health sector. The pharmaceutical division of J&J is the largest part of the company, with many innovative treatments that have helped millions of patients around the world. It also has a large segment of health consumption that is responsible for brands known as Tylenol pain relievers and curative dressings. Johnson & Johnson’s medical device segment is also an industry leader.
In the long run, pharmaceuticals have been the biggest driver of growth, as new candidate pipeline treatments have consistently obtained approval to replace older treatments, losing their patent protection. Still, much of the recent J&J hype came from his role in developing a coronavirus vaccine that could become the first to provide protection against COVID-19 in a single dose.
Even conservative investors can appreciate Johnson & Johnson. It is the only share on the list that pays dividends and, with a return of 2.5%, shareholders have ample revenue. In addition, J&J’s dividend growth history dates back to decades. Add it all up and Johnson & Johnson will be a healthy choice for anyone’s portfolio, even at the height of it.
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3. MercadoLibre
Finally, MarketLibre (NASDAQ: MELI) is the one that flies most among these three actions recently. The Latin American e-commerce king saw its stock nearly triple last year, and has increased by 18% just since the beginning of 2021.
Even before the COVID-19 pandemic hit, MercadoLibre was a leader in the rapidly growing e-commerce sector. Serving Brazil and other important Latin American nations, MercadoLibre’s online market was rapidly transforming the way people shop. In addition, complementary services such as the Mercado Pago payment network and the Mercado Envios remittance platform were gaining momentum on their own.
The challenges of the pandemic helped to accelerate the movement towards Internet shopping around the world, and MercadoLibre seized the moment. Now that more and more people have come to see the convenience of online shopping, electronic payments and other important resources available on the MercadoLibre platform, the sky is the limit for actions to reflect the company’s growing dominance in the region.
Have no fear
There is always a chance, when you buy a stock at the highest point ever, that your time will end up being bad. However, in the long run, it is the strength of the underlying business that determines whether stock prices rise or fall. MercadoLibre, Johnson & Johnson and Alphabet have the staying power to offer solid returns to investors in the long run.