It’s always difficult to buy a stock which is at record highs. Nobody wants to spend money for shares to suddenly discover they picked the worst time to buy.
Yet with many top-performing stocks, you just can’t sit around waiting for a buy opportunity to show up. If you’re unwilling to purchase shares at or close to record highs, you may never have a chance to buy, and you will miss the big opportunity to boost your overall profits.
In this article, we’ll reveal three popular companies that recently hit record highs. Each of them has more headroom for future increases — and a strong history of amazing business execution.
First is MercadoLibre (NASDAQ:MELI) a high-achiever among this list. The Latin e-commerce giant has seen its stock nearly 3x in the past year, and it has increased by 18% in just the first month of 2021.
MercadoLibre is a market leader within the booming e-commerce industry. Even before covid. They serve Brazil and other nations in Latin America. MercadoLibre’s online store is rapidly changing the way people shop in the area. Moreover, their additional services like their payment network and shipping platform have been picking up traction.
The problems of Covid helped increase the internet shopping trend worldwide, and MercadoLibre jumped to take advantage of that. Now that the convenience of MercadoLibre’s online shopping and epayments have caught on in Latin America, the stock has a long way to go to reflect its possibilities.
2. Johnson & Johnson
Johnson & Johnson (NYSE:JNJ) is probably the most vital company in the healthcare industry. Its pharmaceutical segment is the largest part of the organization, with tons of new treatments helping millions of people worldwide. It also contains a big consumer-health division that’s behind brands like Tylenol and Band-Aids. J&J’s medical-device division is also a leader.
Over the long term, pharmaceuticals have brought in the most growth, as candidate treatments have routinely won approval to replace older treatments that lose their patent protection. But much of the news about J&J has been about its part in creating a covid vaccine that could possibly become the first to give protection with only one dose.
Plus, it’s the only stock of these three that pays a dividend, with a yield of 2.5% to shareholders. Moreover, the company has a history of dividend growth that goes back decades. Combine all of that, and J&J makes a healthy portfolio even healthier, even at record highs.
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) is among tech investors’ favorite, mostly due to Google’s dominant ownership of the online advertising industry. The company has seen its stock skyrocket since its IPO in 2004.
Alphabet is keeping its huge advantage in the internet search industry, with recent studies putting their share of web searches at 92%. Moreover, Google’s Android operating system is the standard for most smartphones sold across most of the world, with only Apple‘s (NASDAQ:AAPL) iOS giving any noteworthy challenge.
Going forward, Alphabet’s growth can be driven by any number of strategies. Google will keep bringing in tons of cash and R&D in areas like AI and autonomous vehicles is progressing very well, despite regulatory pressure, the business overall looks very solid.
But maybe best of all, even as Alphabet has reached record highs, its stock has not increased much when compared to other big technology stocks. Even just catching up to the numbers of Apple, Alphabet shareholders would get a juicy payoff in 2021.
Don’t be scared
There’s always a possibility that buying at record highs will be a bad choice. But in the long run, it’s the strength of the foundation of a company that matters whether a stock rises or falls. Alphabet, Johnson & Johnson and MercadoLibre all have staying power to give solid profits to investors over the long term.