If you go to certain corners of YouTube, targeting winning stocks for a booming economy is simply out of the question. The sky is falling, martial law will be declared and it’s time to buy gold, guns and patriot seeds. And there’s absolutely nothing wrong with being prepared. However, being too prepared for a negative outcome could lead to a disastrous opportunity cost.
Because if we’re looking at the data, going after winning stocks for a booming economy seems prudent. For one thing, the fourth-quarter GDP number came in at a 3.3% annualized rate, well above Wall Street’s estimate for a 2% gain. As well, the latest January jobs report showed that the economy added 353,000 jobs, better than the projected 185,000 increase.
Of course, having said all that, a correction could materialize. So, it’s important to be sensible amid the optimism. Still, if we’re looking at the hard data, circumstances look rather auspicious for the time being. On that note, below are winning stocks for a booming economy.
Online sports betting specialist DraftKings (NASDAQ:DKNG) might seem an odd idea for winning stocks for a booming economy. Don’t get me wrong, I believe the sports betting segment is a growing one and offers long-term upside opportunities. However, DraftKings also has competition in the form of FanDuel parent Flutter Entertainment (NYSE:FLUT). Still, the market could be big enough for the both of them.
According to Grand View Research, the global sports betting market reached $83.65 billion in 2022. Further, analysts anticipate that the segment could expand at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030. At the end of the forecast period, the sector could print revenue of $182.12 billion. Right now, DraftKings has a market capitalization of around $19 to $20 billion. Flutter is looking at around $37 billion.
Further, certain states – especially the big two of California and Texas – do not allow sports betting. However, with so much pressure related to adult liberties and freedom of choice and all that jazz, it may be inevitable that these two will cave. If so, that makes DKNG – and FLUT – winning stocks for a booming economy.
To repeat the mantra, electric vehicles are the future. And automotive manufacturing giant Toyota (NYSE:TM) wants a piece of the pie, pivoting toward EVs in recent years. However, the company wants to make the pivot the smart way. It’s not giving up on its combustion-engine acumen entirely and that may be a wise choice. After all, the stranding of EVs caught in extreme winter weather proves that the old platform is still viable.
Further, Toyota is hard at work experimenting with alternative promising technologies. For example, the company produced a new water electrolyzer to produce hydrogen. Given some of the weather-related concerns tied to EVs, this could yield a viable solution. However, it’s no slouch in the EV department, making significant progress on its possibly revolutionary solid-state battery. If the battery reaches commercial development, we’re talking about a range of 750 miles.
Plus, a company like Toyota has the capability to scale production for average-income drivers. That should give it an edge of many other pure-play EV companies. As a result, TM should be on your radar for winning stocks for a booming economy.
Meta Platforms (META)
With so much talk about generative artificial intelligence, we have seen the usual suspects rise higher. And by that, I’m talking about Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT). However, it’s also time to give Meta Platforms (NASDAQ:META) some love. For sure, the company has received a ton of adoration – just look at its performance over the past year. Also, it announced a dividend for the first time.
Further, Meta is relevant for its social media network Facebook, which doubles as a data goldmine. Also, it’s heavily involved in the metaverse and related accoutrements; that is, virtual reality headsets. However, it’s very much a player in the generative AI ecosystem. And that’s important because Bloomberg recently reported that this industry could clock in a valuation of $1.3 trillion by 2032.
However, I really appreciate the practicality behind Meta’s AI endeavors. Back in October last year, Reuters reported that Meta began rolling out generative AI tools for all advertisers. This enables advertisers to create content and develop variations of written text. Basically, it adds substantive value-add for its all-important digital ad ecosystem.
With more discretionary dollars potentially available, META is one of the winning stocks for a booming economy.
While Cameco (NYSE:CCJ) may be somewhat controversial among some circles because of its nuclear energy specialty, it’s also an unavoidable reality. According to the International Energy Agency, nuclear power represents an important low-emission source of electricity, providing about 10% of global electricity generation. And that number could rise higher as global population trends increase.
Yes, we can all wax poetic about renewable energy and such infrastructures do represent viable ideas for winning stocks for a booming economy, as you’ll see later. However, it’s not possible to just rely on one source of energy production, especially with population growth and migration trends. Further, if our booming economy translates to upside for other regions, guess what? We’ll have more people consuming more resources.
Plus, we didn’t talk about the uranium supply shortage situation. With major international players unable to adequately secure the commodities necessary for nuclear fuel production, we could be looking at production shortfalls through 2025. If so, CCJ represents a cynical but compelling idea for winning stocks for a booming economy.
As a hydrocarbon energy giant which can trace its heritage back to the iconic Standard Oil, Chevron (NYSE:CVX) might not strike investors as a contemporary example of winning stocks for a booming economy. Instead, modern investors may prefer a company specifically and exclusively tied to the renewable energy ecosystem. And again, there’s certainly a place for that. However, we shouldn’t ignore the oil and gas space.
Basically, it comes down to this harsh reality: the world runs on oil. It’s not just an empty statement. According to a Forbes article, oil supplies 33% of all energy needs, making it the global economic machinery’s primary fuel. And yes, alternative energy sources have made significant progress. However, the trend isn’t going to dent oil’s dominance anytime soon.
Further, hydrocarbons benefit from a physical attribute: high energy density. What that means is that a gallon of gasoline can move an average modern car about 30 miles down the freeway whereas the equivalent jug of electrons can’t do the same for an EV. Given the importance of big oil, Chevron is one of the winning stocks for a booming economy.
NextEra Energy (NEE)
Despite all the talk about traditional energy sources, we can’t ignore the viability of renewable energy. And therefore, we have to talk about NextEra Energy (NYSE:NEE). Fundamentally, we can’t sidestep the issue of climate change. It can be a controversial subject and there are many underlying political, ideological, and even religious currents backing certain positions. However, as mentioned earlier, we have to look at the data.
According to NASA’s website, the vast majority of actively publishing climate scientists (that’s 97%) agree that human activities cause global warming and climate change. One mechanism to help address the problem is to support renewable energy infrastructures. And going green can also yield green.
Per Precedence Research, the global renewable energy market reached a valuation of $970 billion in 2022. Further, the segment should reach an impressive $2.18 trillion by 2032. That comes out to a CAGR of 8.5% from 2023.
Lastly, analysts believe that NextEra could recover from its funk last year and eventually reach $70.09 per share. And that might be a modest target given the robust jobs market. Thus, NEE ranks among the winning stocks for a booming economy.
Another controversial idea for winning stocks for a booming economy, Amazon (NASDAQ:AMZN) is both beautiful and devastating. If you’re a consumer looking for the ultimate in retail convenience, it’s difficult to top the e-commerce-giant-turned-tech-overlord. However, if you’re a mom-and-pop retail store serving local communities across the U.S., you might feel differently. Still, the data is undeniable: Amazon just keeps winning.
If we just look at the retail component of its vast business empire, we find much to be bullish about. Specifically, e-commerce as a percentage of total retail transactions slipped from its pandemic peak to a low of 14.4% in Q2 2022. However, since then, this metric has steadily risen to 15.6% in Q3 of last year. What makes this statistic more impressive is that during this period, consumers pulled back their discretionary spending.
Just look at the personal saving rate to a peak of 5.3% last year (in May). Back in December 2022, the personal saving rate was only 3.4%. So, with consumers much more confident about their financial prospects, AMZN should be one of the winning stocks for a booming economy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.