Top Two Stocks to Secure Before the Upcoming Bull Run
Navigating current economic challenges can be daunting, but fret not! These tough times are actually an excellent opportunity to prepare for what's coming next – a booming market, often referred to as a bull market. History has consistently shown that this type of market emerges following tough economic periods. And guess what? It's never too early to invest in potential bull market winners, particularly at a bargain price.
If you're on the lookout for promising stocks, two names present exciting opportunities: Etsy (ETSY -1.59%) and Disney (DIS -1.01%). These companies possess the characteristics needed to thrive in a growth environment. So, grab the chance to invest in them while you still can!
1. Etsy
Etsy serves as an online marketplace for creators hawking unique, handmade items. Its popularity skyrocketed during the initial wave of the pandemic. Amazingly, Etsy has continued to flourish, with its marketplace gross merchandise sales (GMS) recording a remarkable 35% compound annual growth rate from 2019 through last year! This impressive growth significantly surpassed its projected rate of 16% to 20%.
What's more, Etsy boasts a whopping 89.2 million-plus annual active buyers, marking a considerable increase from its 2020 tally of approximately 80 million. Keep in mind that the economic landscape was more favorable during that period. Despite the present difficulties, Etsy has effectively managed expenses to retain substantial free cash flow, and even reported remarkable record consolidated non-GAAP adjusted EBITDA in Q4 of last year.
The e-commerce sector is characterized by high growth potential. Etsy has proven its ability to attract customers and expand internationally, which positions it for long-term success. Presently, Etsy is trading at 23 times forward earnings expectations – a relatively affordable price for a company that's strategically positioning itself for success in the upcoming bull market and beyond!
2. Disney
Disney's focus on expanding its streaming services has generated a surge of subscribers; however, it has also resulted in increased expenses. Last year, its direct-to-consumer business recorded an operating loss, causing investor concerns.
But a turnaround might be in sight. Disney recently invited back its longtime CEO, Bob Iger, to formulate a strategy aimed at reducing costs and fostering growth. Iger has a limited two-year tenure to meet his objectives before handing over the reins to his successor. Consequently, expect Iger to be proactive in achieving his targets.
Iger has already rolled out several initiatives – including job cuts, organizational restructuring, and improvements to the guest experience. His goal is to save $5.5 billion. Meanwhile, Disney continues to invest heavily in vital sectors to boost growth. For instance, it's allocating substantial resources to its biggest revenue generator, the parks, experiences, and products unit. Disney forecasts a total fiscal 2023 capital expenditure of $6 billion! Disney amasses the title of the world's most-visited theme park, and the unit consistently enjoys strong performance, as evidenced by its recent Q4 revenue and operating income growth, which were both double-digit.
Disney is now poised to reap the benefits of its growth strategy and the forthcoming growth-oriented market. Currently, Disney shares trade at about 24 times forward earnings estimates – a significant discount from its previous valuation of more than 30. Seize this moment and invest in this top entertainment company!
- Given the potential for a booming market, now might be an excellent time to consider investing in Etsy, especially with its impressive marketplace gross merchandise sales growth and substantial free cash flow.
- As Disney continues to focus on expanding its streaming services and cutting costs, investing in its shares could be a good move, considering its current valuation is significantly lower than its previous peak, making it an attractive option for those seeking to capitalize on the upcoming growth-oriented market.
