We are in a bull market that defies explanation. We suffered through the highest inflation rates in 2022 only to see the market take off. That was followed by an unprecedented series of 11 hikes in interest rates yet the housing market did not stall or collapse. In fact, home prices still continue to rise. Despite all of this, there are still some top stocks to buy.
While inflation has come down from those peaks it still remains elevated. Furthermore, the Federal Reserve indicates it is in no mood to lower rates any time soon. Still the bull market charges ahead. The S&P 500 sits just below setting a new all-time high. If inflation finally eases enough to let the Fed cut rates, we could see the stock market go on another rampage higher.
That is all to say it is the perfect time to put money to work in the stock market. If you’ve got $10,000 ready to invest, and don’t need it to pay bills or for emergencies, I recommend getting in ahead of the rush with these three top stocks to buy.
Pinterest (PINS)
Ideas collation site Pinterest (NYSE:PINS) is not waiting around. It was dismissed as a pandemic darling that would find it hard to gain traction again like Peloton (NYSE:PTON) and Zoom Video Communications (NYSE:ZM) that sit 90% below their Covid-era highs. Pinterest, though, has proved the doubters wrong. The stock is up 12% in 2024 and trades 70% above the level it was at one year ago.
That’s because advertisers love Pinterest. It is the perfect market for them to direct their ad dollars. Users of the website are telling advertisers exactly what they are interested in and the products they want to buy. It allows marketing firms to zero in precisely on their target customer. Compared to Facebook, for example, where advertisers need to use a shotgun approach to find a customer, Pinterest users are waving to marketers saying, take my money!
Pinterest trounced its own first-quarter guidance as sales surged 23% year over year, its “fastest user and revenue growth since 2021.” The social media site now has 518 million monthly active users, up 12% from last year. In a dicey economy like we’re in, ad agencies will seek out the easy route. Pinterest is the most direct path for ad firms to customers who show what they want to buy.
SoFi Technologies (SOFI)
If SoFi Technologies (NYSE:SOFI) was still just a student loan debt service I wouldn’t be recommending it but since those early days it has diversified its offerings through a sleek, consumer-facing platform. SoFi now offers personal loans, credit card services and home mortgages. Auto loans could be a future service, though the fintech stock does allow consumers to refinance existing car loans.
After a stellar 2023, this year has turned out different. The stock is down 30% so far but still remains 30% above its year-ago level. It faces more competition now from other digital platforms including Affirm (NASDAQ:AFRM), Block (NYSE:SQ) and PayPal (NASDAQ:PYPL).
However, SoFi is maturing and is taking a more conservative approach to its balance sheet as loan growth was essentially flat in the first quarter. However, deposits now account for 82% of SoFi’s funding structure helping to fuel net interest margin expansion to 5.91%, a 430 basis point improvement.
Because SoFi targets targets young, high-income individuals who are more comfortable with a digital financial solution rather than going to a traditional bank, there is a significant runway for growth. The stock is still the only such business offering a full-service digital model and remains heavily discounted at its current price. If you are looking for stocks to buy, start here.
Exxon Mobil (XOM)
Integrated oil and gas giant Exxon Mobil (NYSE:XOM) is the third slam dunk stock to buy with $10,000. It just closed on its acquisition of Pioneer Natural Resources, catapulting it into the forefront of producers in the oil-rich Permian Basin.
The combined companies will have more than 1.4 million net acres in the region with an estimated 16 billion barrels of oil equivalent (BOE) resource. Its production volume will more than double to 1.3 million BOE per day. Second place Chevron (NYSE:CVX) is expected to have 900,000 BOE and won’t reach 1 million barrels to 2025. Diamondback Energy (NYSE:FANG) is forecast to produce almost 820,000 BOE after acquiring Endeavor Energy Partners while Occidental Petroleum (NYSE:OXY) follows at 800,000 barrels after its CrownRock purchase.
Exxon’s leadership position is key to the future as global fossil fuel demand remains strong. Despite the growth of electric vehicles, gas-powered cars are still the preferred choice. Exxon is a relatively low-cost operator and can support its dividend, which yields 3.3% annually, even if oil prices fall to $35 a barrel. West Texas Intermediate crude oil currently trades around $78 a barrel today.
With plenty of room for expansion, careful exploitation of assets and still producing a gusher of profits, Exxon Mobil is on of the top stocks to buy for long-term growth and income.
On the date of publication, Rich Duprey held a LONG position in XOM and CVX stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
