In this article, we discuss the 10 unstoppable stocks that will make you richer. To skip the detailed analysis of the economy and market, go directly to the 5 Unstoppable Stocks That Will Make You Richer.
On April 12, the week closed out with stocks tumbling as the S&P 500 recorded its worst day since January 31, declining 1.46% on the day. On top of that, oil prices are rising significantly as tensions in the Middle East grow. The WTI Crude has risen around $10 since January and is at $85.5 per barrel. The stubbornness of inflation has kept investors and other experts wondering what would happen next.
Interest Rates Amid Current Inflationary Environment
The latest inflation report showed a higher-than-expected increase of 3.5% which has shaken markets and raised concerns about the possibility of a recession. In an interview with Bloomberg, on April 11, BMO Capital’s strategist, Ian Lyngen, suggests that if inflation continues at these levels, the Federal Reserve may feel compelled to induce a recession in order to meet its 2% inflation target. Manulife Investment Management’s chief economist, Frances Donald also agrees with Ian Lyngen and thinks that inflation is going to “surprise upside” in the near term, causing the Fed to lose the data support to cut interest rates. She said:
“That increases the probability of a recession and I remember members of my team, back in December said, the Fed is pivoted early, this is gonna provide indirect easing, we should lower our probability of recession calls for 2024. But now that we’re back to an environment where we’re losing those embedded rate cuts, we actually have to increase the chance of something bad happening here.”
BlackRock, Inc.’s (NYSE:BLK) CEO, Larry Fink told CNBC on April 12, that he still expects two rate cuts this year but the Fed isn’t likely to meet the 2% inflation target. We previously mentioned the comments from BlackRock, Inc.’s (NYSE:BLK) Managing Director, Tony DeSpirito, that he keeps a bullish view of the current year and the years ahead. For more information on that, go to 12 Dirt Cheap Stocks To Buy According to Hedge Funds.
Stocks that Made People Rich in 2023
NVIDIA Corporation (NASDAQ:NVDA) has been the forerunner among the stocks that have made investors rich in 2023, as the company surged nearly 240% last year and is continuing its upward run with year-to-date gains of over 83% on April 12. The stock isn’t on our current list as analyst price targets do not show enough upside for the stock. However, the company still has massive future growth potential despite new competitors rising to take away a bit of AI accelerator market share from NVIDIA Corporation (NASDAQ:NVDA).
Nevertheless, Bank of America’s Vivek Arya still believes in the stock’s upside potential and says that the company’s commanding presence in business sales not only shields its market share but also positions it strategically to potentially increase its market share. On April 10, the analyst reiterated a Buy rating on NVIDIA Corporation’s (NASDAQ:NVDA) stock with a $1,100 price target, up from $925.
During the tech industry surge of 2023, there were a few multi-baggers that remained in the dark with all the news surrounding the AI revolution. XPO, Inc. (NYSE:XPO) was one such company that returned massively when everyone was busy looking at the Magnificent 7. It is a Connecticut-based company that handles less-than-truckload (LTL) shipping across North America. While the broader industrial sector significantly underperformed the market in 2023, XPO, Inc.’s (NYSE:XPO) share price gained over 163%. Additionally, the company’s stock is up 48.2% year-to-date on April 12 compared to the Industrial Select Sector SPDR Fund’s (XLI) 23% gain over the same period. On top of that, the company isn’t looking to slow down in the next few years. Its CEO, Mario Harik made the following comments at the company’s latest earnings call:
“For 2024, we expect our LTL capex level to be in the low-teens as a percent of revenue, and again, primarily allocated to our fleet. In terms of the 28 service centers, we acquired from Yellow, the largest impact on our capital strategy is timing. We’ve put forward dozens of real estate investments that we plan to make over the next several years. I’ll add some strategic color to my earlier comments on the acquisition.
These service centers will deliver important benefits to the business for years to come. First, they’ll get us closer to customers, and give us larger facilities in major metro areas. This should drive substantial cost efficiencies across our line haul, pickup-and-delivery and dock operations. Second, they’ll enhance our yield growth by further improving, our service with fewer…