{"id":500850,"date":"2021-12-29T04:12:04","date_gmt":"2021-12-29T09:12:04","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=500850"},"modified":"2021-12-07T14:25:51","modified_gmt":"2021-12-07T19:25:51","slug":"stocks-that-can-turn-100000-into-500000","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/stocks-that-can-turn-100000-into-500000","title":{"rendered":"3 Stocks That Can Turn $100,000 Into $500,000 By Retirement"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/financhill.com\/blog\/investing\/warren-buffett-leadership-style\">Warren<\/a> <a href=\"https:\/\/financhill.com\/smart-money\/warren-buffett-portfolio\">Buffett stocks<\/a> have three things in common: the underlying companies have:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> solid foundations, <\/span><\/li>\n<li><span style=\"font-weight: 400;\">undervalued shares, and <\/span><\/li>\n<li><span style=\"font-weight: 400;\">promising long-term growth prospects. <\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The theory is that high-quality companies might be undervalued in the current market, but share prices will catch up sooner or later. Investors who buy when prices are low stand to realize substantial gains when market prices eventually match the stock\u2019s intrinsic value.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key is to identify undervalued stocks and buy in before the prices go up. Of course, that\u2019s not always easy. Before buying, traders must carefully evaluate a collection of company characteristics including financials, leadership, strategic planning, and health of the overall industry.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some of the figures used to identify undervalued stocks include the following:&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Current Ratio<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Debt-Equity Ratio (D\/E)<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Dividend Yield<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Earnings Yield<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Price-Earnings to Growth Ratio (PEG)<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Price-to-Book Ratio (P\/B)<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Price-to-Earnings Ratio (P\/E)<\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Return on Equity (ROE)<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These are helpful in finding stocks that meet <a href=\"https:\/\/financhill.com\/blog\/investing\/warren-buffett-favorite-way-to-invest\">Warren Buffett\u2019s criteria<\/a>, but they aren\u2019t the only method of identifying undervalued stocks. Certain methods of technical analysis can also give insight into the right stocks to buy and when to make the trades.&nbsp;<\/span><\/p>\n<h2><strong>Baxter&nbsp;<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The healthcare industry is growing at a rapid rate, and the growth is expected to continue for the foreseeable future. While that doesn\u2019t mean that every healthcare company will succeed in delivering stable revenues and steady growth, it appears that <a href=\"https:\/\/financhill.com\/blog\/investing\/al-gores-fund-bets-1-6-billion-on-1-stock\">Baxter International is well-positioned to be a winner<\/a>.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.baxter.com\/our-products\" target=\"_blank\" rel=\"noopener\">Baxter\u2019s product line<\/a> touches a variety of categories, but its biggest advantage is a collection of basic medical supplies. For example, <strong>Baxter supplies the tools and supplies necessary to deliver medication and nutrition intravenously, and it is a leading maker of dialysis therapies.<\/strong><\/span><\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/BAX?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">With providers delaying elective and non-urgent procedures due to the COVID-19 pandemic, some of Baxter\u2019s product lines have experienced a decline in demand. That lost revenue caused a drop in <a href=\"https:\/\/financhill.com\/stocks\/sp500\/bax\">Baxter\u2019s stock price<\/a> \u2014 roughly seven percent in the past year \u2014 which could make it a bargain today.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Based on discounted cash flow forecast analysis, Baxter is currently undervalued by 17 percent.<\/strong> Those who buy Baxter stock today are likely to see strong returns because share prices will rise as the pandemic recedes. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When combined with the company\u2019s dividend yield of 1.5 percent, which is on par with the S&amp;P\u2019s average of 1.4 percent, most analysts agree that Baxter stock is a smart buy.&nbsp;<\/span><\/p>\n<p><iframe style=\"width: 100%; height: 418px; margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/valuation\/BAX\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<h2><strong>Stride&nbsp;<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Long before COVID-19 infected its first human patient, K-12 was hard at work creating a market for digital learning. Then, the pandemic forced schools across the country and around the world to come up with a strategy for remote classrooms, and suddenly K-12\u2019s expertise was in high demand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Stride (<a href=\"https:\/\/financhill.com\/stocks\/nyse\/lrn\">LRN<\/a>)<\/strong> weathered the complexities of 2020 and broke new ground in 2021. <strong>Among other developments, K-12 acquired two high-growth, high-margin companies dedicated to learning opportunities for adults. Once those acquisitions were in the works, K-12 decided to rebrand.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\"> It <\/span><a href=\"https:\/\/www.stridelearning.com\/meet-stride.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">changed its name from K-12 to Stride<\/span><\/a><span style=\"font-weight: 400;\"> in an effort to ensure the company\u2019s name \u201cbetter reflects the commitment to providing educational opportunities for learners of all levels.\u201d<\/span><\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/LRN?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">For the quarter ending September 30, 2021 \u2014 Stride\u2019s fiscal first-quarter 2022 \u2014 the company saw a loss of $0.15 per share, which was slightly off from the expected loss of $0.14 per share. However, that was the only bad news.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/investors.stridelearning.com\/financials\/quarterly-results\/default.aspx\" target=\"_blank\" rel=\"noopener\">Stride reported $400.2 million in sales<\/a>, which beat analysts\u2019 projections by 10 percent.<\/strong> Better still, Stride leadership indicated that the company expects to continue exceeding revenue expectations in the coming quarters.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the fiscal first quarter of 2022, Stride saw revenue increase by eight percent year-over-year. <strong>Management projected that total sales for fiscal 2022 will come in between $1.56 billion and $1.6 billion.<\/strong> When adjusted operating income and effective tax rates are added to the equation, it appears Stride\u2019s full-year net profits could be as high as $50 million or $1.24 per share.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite this rosy outlook, <a href=\"https:\/\/www.marketbeat.com\/stocks\/NYSE\/LRN\/\" target=\"_blank\" rel=\"noopener\">Stride\u2019s stock price<\/a> hasn\u2019t seen the sort of pop investors expected. In fact, <strong>the stock is currently 47 percent undervalued based on discounted cash flow forecast analysis.<\/strong> That means now could well be the right time to buy Stride stock, particularly if you&#8217;re looking for stocks that can turn $100,000 into $500,000 by retirement.&nbsp;<\/span><\/p>\n<p><iframe style=\"width: 100%; height: 418px; margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/valuation\/LRN\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<h2><strong>Cirrus Logic&nbsp;<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">No discussion of stocks that can turn $100,000 into $500,000 by retirement would be complete without a look at the technology sector. While a majority of big-name tech stocks appear overvalued, determined investors can identify the rare situation in which a promising tech stock is undervalued. At the moment, <a href=\"https:\/\/www.cirrus.com\/\" target=\"_blank\" rel=\"noopener\">Cirrus Logic<\/a> is that stock.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Cirrus Logic (<a href=\"https:\/\/financhill.com\/stocks\/nasdaq\/crus\">CRUS<\/a>) is an American semiconductor supplier that has a special advantage over many of its competitors. Specifically, the chipmaker enjoys partnerships with market-leading smartphone manufacturers such as Apple.<\/strong> <\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s important as the transition to 5G gathers momentum. Apple customers are upgrading their devices in droves, which suggests Cirrus Logic is poised for a windfall.&nbsp;<\/span><\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/CRUS?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">In its fiscal first quarter of 2022 \u2014 the period ending June 30, 2021 \u2014<strong> Cirrus Logic saw revenue increase 14 percent year-over-year for a total of $277 million. Adjusted earnings per share came in at $0.54, which is a cent higher than the same period in 2020.&nbsp;<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the fiscal second quarter of 2022 \u2014 the period ending September 30, 2021 \u2014 the company reported <a href=\"https:\/\/investor.cirrus.com\/news-and-events\/investor-news\/news-details\/2021\/Cirrus-Logic-Reports-Q2-FY22-Revenue-of-465.9-Million\/default.aspx\" target=\"_blank\" rel=\"noopener\">total revenue of $465.9 million<\/a>. That represents an increase of 34 percent year-over-year and a company record for the September quarter.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>It seems investors haven\u2019t taken notice of Cirrus Logic quite yet, as the stock is undervalued by 30 percent based on discounted cash flow forecast analysis.<\/strong> That may change if the next quarter confirms the trend, which means the time to buy Cirrus Logic stock is now.&nbsp;<\/span><\/p>\n<p><iframe style=\"width: 100%; height: 418px; margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/valuation\/CRUS\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<h2><strong>The Bottom Line&nbsp;<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">No stock purchase comes with guaranteed returns, and total returns are typically linked to the level of risk involved. However, buying stock in quality companies when prices are low is the next best thing to a sure-thing, at least in Buffett&#8217;s value investing world.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shareholders quickly discover that, in many cases, profits come once the rest of the market realizes the stock\u2019s intrinsic value. Baxter, Stride, and Cirrus Logic are three stocks that appear to have all the characteristics of a winner for value investors. That makes these three stocks a buy, especially if you&#8217;re willing to hold them over the next few decades.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Warren Buffett stocks have three things in common: the underlying companies have: solid foundations, undervalued shares, and promising long-term growth prospects. The theory is that high-quality companies might be undervalued in the current market, but share prices will catch up sooner or later. Investors who buy when prices are low stand to realize substantial gains [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":500852,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[22],"tags":[],"class_list":["post-500850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/financhill.com\/blog\/wp-content\/uploads\/2021\/12\/Untitled-design-2021-12-07T131436.504.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9czeV-26ie","_links":{"self":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/500850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/comments?post=500850"}],"version-history":[{"count":6,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/500850\/revisions"}],"predecessor-version":[{"id":500857,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/500850\/revisions\/500857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media\/500852"}],"wp:attachment":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media?parent=500850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/categories?post=500850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/tags?post=500850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}