It still happens. Reddit retail investors continue to overload market chaos AMC Entertainment Holdings (NYSE: AMC). AMC’s business has been battered by the pandemic and is struggling to stay afloat, but retail traders motivated by the meme stock mania have pushed the company’s shares up nearly 1,760% over the course of the year. of the past six months only. And despite the fact that AMC management has made several offers in recent months to issue new series of shares in hopes of reviving the company’s struggling finances, retail investors have consistently put an end to the deal. these efforts.
The final result ? At this point, who can say? AMC could recover from pandemic headwinds in time. But for now, its artificially high stock price is just that – and retail investors continue to muzzle management to the point that the company’s prospects as a viable long-term investment appear to be fading quickly.
Long-term investors should not buy stocks based on the hype, but instead should focus on high-quality companies with strong competitive advantages that can generate consistent and sustainable growth. If you’ve been tempted to buy into the AMC hype, here are three top stocks to consider that can enrich your portfolio for years to come.
1. Innovative industrial properties
When it comes to investing in marijuana stocks, not all investments are created equal. Few potted stocks offer the combination of growth, long-term value, portfolio returns and profitability that Innovative industrial properties (NYSE: IIPR) Is.
Innovative Industrial Properties is a real estate investment company (REIT) that leases its properties only to licensed producers of medical marijuana. Its properties span the Americas, from Arizona to Colorado via Florida and Massachusetts, and the company regularly adds to its portfolio.
The company pays an impressive dividend, which it is constantly increasing. Its return is 2.7% as of this writing, and on June 15, management announced a 6% increase in the company’s quarterly payout.
In 2020, Innovative Industrial Properties said its total revenue increased 162% and its net profit increased further, up 191% from the previous year.
During the first quarter of 2021, the company’s revenue and net income grew at rates of 103% and 122% year-over-year, respectively, and its funds from operations adjusted (AFFO) increased by a total of 116%. The company also made several new real estate acquisitions in early 2021, while maintaining zero debt (not including $ 143.8 million in senior exchangeable notes) and increasing its position in cash, cash equivalents and investments to short term to $ 661.4 million.
Shares of innovative industrial properties continue their upward trend. The stock is up 17% year-to-date and is trading around 133% more than just 12 months ago.
Innovative Industrial Properties still has a lot of growth to explore as it expands its national presence in the multi-billion dollar medical cannabis industry in the United States. It is sure to remain that the company is far from exhausting its upside potential, and now seems like the perfect time for investors to jump on this compelling stock pot.
Amazon (NASDAQ: AMZN) is the type of stocks that investors can return to for the long-term growth and value of their portfolio.
From its thriving e-commerce business to its cloud computing giant Amazon Web Services (AWS) to Prime Video, Amazon’s ever-growing footprint in a wide range of highly lucrative industries continues to generate levels. high balance sheet growth and more victories for its shareholders.
For a company with decades of double- or triple-digit revenue growth under its belt, the first quarter of 2021 was just another of many remarkable growth periods. During the three-month period, Amazon’s net sales rose double-digit (44%) and its net income jumped 224%.
Amazon’s shopping ecosystem has certainly not slowed down despite increased competition in the global e-commerce space. By the first quarter, Amazon Prime had grown its global membership base beyond the 200 million mark. The company also opened several new Amazon Fresh stores during the three-month period.
The first quarter also marked the launch of several new products in Amazon’s device and service ecosystem, including “the next generation of Echo Buds”, the Ring Video Doorbell Pro 2, and the Ring Floodlight Cam Wired Pro. .
Meanwhile, AWS increasingly represents the overall growth of the business and generates tens of billions of dollars in sales every year. In the first quarter alone, AWS revenue increased 32% year-on-year.
As the giant that is Amazon continues to follow an explosive growth trajectory, so too is its share price. Amazon shares have risen more than 400% in the past five years alone, and the stock is trading up to 17% so far this year.
In any market environment, Amazon has shown time and time again that its highly diverse business model is ready to meet any challenges that come its way. Amazon is an investment that can truly stand the test of time and continue to build shareholder wealth in both bullish and bearish markets.
3. Monster drink
Energy drink company Monster drink (NASDAQ: MNST) May not be at the top of your list of stocks to buy, but this large-cap company has a lot to offer long-term investors.
Consumer discretionary stocks have shown mixed performance during the coronavirus pandemic, but Monster Beverage has demonstrated its resilience and the strength of its brand authority since the onset of the crisis.
In 2020, management said the company’s net sales increased by a good 9.5% as it achieved a gross margin of 59.2% in the 12-month period. And the company increased its bottom line by more than 27% compared to 2019.
In the first quarter of 2021, not only did Monster Beverage increase its net sales by 17%, but its net profit jumped 13%. The company also saw consistent year-over-year growth in its three main reporting segments: Monster Energy Drinks (18%); strategic brands (5%), which includes a range of products such as its “affordable energy brands”; et al. (12%), which presents a selection of products from its American Fruits and Flavors activity.
Monster Beverage is in an excellent position in terms of available liquidity. At the end of the first quarter, the company reported total assets of $ 6.5 billion (including $ 1.2 billion in cash and cash equivalents) and approximately $ 789 million in current liabilities.
Monster Beverage shares have gained 30% in the past year alone, but the stock is still trading below $ 100. If you’re looking for a resilient stock that can offer an attractive mix of share price and balance sheet growth, Monster Beverage passes both benchmarks with flying colors.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.