While investing might at first seem like a daunting task, it’s not as complicated as it’s made out to be. If you adopt a long-term mindset, stick to profitable companies with competitive advantages, and diversify to avoid single-stock risk, then you’re well on your way to achieving satisfactory returns. It really can be that simple.
In the same vein, if you’re a newbie stock market investor, here are three no-brainer stocks to consider buying right now. I’m sure you are already familiar with these businesses, making the decision to buy them for your portfolio even less intimidating.
1. Home Depot
Home Depot (HD 0.26%) is first on this list. The leading home-improvement chain benefited from a pandemic-fueled demand surge that has largely faded. Gains are still respectable, though, as same-store sales climbed 4.3% in the latest fiscal quarter that ended Oct. 30, 2022, compared to 6.1% growth in the year-ago period.
The business has found remarkable success by serving both professional customers — general contractors and the like — and do-it-yourselfers. In fact, Home Depot generates about half of its revenue from each customer group. Nonetheless, it’s the professionals that are critical to the company’s outstanding profitability.
Compared to its archrival, Lowe’s, Home Depot generates far greater sales from professionals, who tend to visit stores often and spend a lot more than DIY customers. This resulted in Home Depot’s operating margin expanding significantly in recent years. And the company’s return on invested capital of 43.3% is superb by any industry standard, let alone a retailer’s.
With shares down 20% over the past year, now might be as good a time as ever to scoop up Home Depot stock. While a weaker housing market is on every shareholder’s mind, this business will have no problem making it through any downturn.
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