Stocks to buy

Everyone loves a winner, and that holds true for Wall Street. When you’ve got winning stocks in your portfolio, you’re getting richer and setting yourself up for a nice retirement.

But as you know, the stock market is a game of dips and valleys. While many investors embrace a buy-and-hold philosophy, others are looking to buy low when the prices are right and then take their profits when the stock price reaches a crest.

Sure, there are some stocks out there that are already at a peak. But there are also a few winning stocks that are not only on the rise but are showing the potential for continued growth.

The Portfolio Grader is a fine tool for this exercise. It’s a free tool that grades every stock on an A through F scale based on a series of metrics, including recent performance, earnings history, analyst sentiment, momentum and other factors.

If you’re looking for winning stocks, the Portfolio Grader is among the first places on your stop. Here are seven to consider now.

LI  Li Auto $22.48
TRKA Troika Media Group $0.19
BABA Alibaba  $83.01
AI C3.ai  $17.66
BBAI  BigBear.ai $2.93
APO Apollo Global Management $61.17
BE Bloom Energy $16.43

Li Auto (LI)

Source: Olivier Le Moal/ShutterStock.com

You don’t have to look too far to find a Chinese electric vehicle startup hoping to duplicate what Tesla (NASDAQ:TSLA) has done in the U.S. But my favorite that trades on a U.S. stock market exchange has to be Li Auto (NASDAQ:LI).

Other EV startups are struggling now that Beijing’s EV subsidies ended last year, but not Li. The automaker delivered 20,823 vehicles in March, an 88.7% increase from February. And first-quarter deliveries of 52,584 was a 65.8% increase from a year ago.

Li launched its L7 luxury electric SUV in February and plans to add two new models, the L7 Air and the L8 Air. Excitement about the new models should help Li’s growth even as other EV companies struggle.

LI stock is up 8% this year, with a “B” rating in the Portfolio Grader.

Troika Media Group (TRKA)

Source: SFIO CRACHO / Shutterstock.com

Penny stocks are historically volatile, which is the case with Troika Media Group (NASDAQ:TRKA), a New York company in the advertising, marketing and consulting business.

The company’s stock started the year at 11 cents and by March spiked to 76 cents (a gain of 560%) on the backs of short-sellers looking for a squeeze.

But the bottom fell out, and now the stock’s down again to just under 20 cents per share. That’s still a gain of 68% so far this year, and now the stock’s looking oversold.

After acquiring Converge Direct last year, Troika had a 1,125% increase in revenue for the six months ending Dec. 31, 2022. The company also posted adjusted EBITDA of $4.95 million – a year after recording a $4.58 million EBITDA loss.

True, this is not for the faint of heart. But Troika has the potential to build on its gains if it can continue to show improvement in its revenue.

TRKA stock has a “B” rating in the Portfolio Grader.

Alibaba (BABA)

Source: zhu difeng / Shutterstock.com

Here’s one that I don’t think is risky at all. Alibaba (NYSE:BABA) is the massive Chinese e-commerce stock with a growing cloud business that many compare favorably to Amazon (NASDAQ:AMZN).

BABA is the superior stock that is still deeply discounted. In 2020 shares were more than $300 – they dipped as low as $63 late last year before beginning a slow climb back. Shares are up 14% from those lows, even after a recent slide.

Alibaba had roughly 900 e-commerce customers in its 2022 fiscal year, handling more than $1 trillion in transactions. It also has a 37% market share with the Alibaba Cloud, making it the most significant player in China.

Morgan Stanley analyst Gary Yu recently speculated that BABA stock could hit $200, more than doubling its current price because of its current plan to divide into six separate businesses. The plan should help BABA avoid unwelcome antitrust probes that hurt Alibaba in recent years.

BABA stock is an outstanding pick, with a “B” rating in the Portfolio Grader.

C3.ai (AI)

Source: shutterstock.com/YAKOBCHUK V

I would never say you should buy a stock just because of the boom of interest in artificial intelligence. But it’s undeniable that C3.ai (NYSE:AI) is riding that wave of interest, much to the delight of shareholders.

C3.ai stock is up 58% so far this year. The company works with many private sector clients, as well as the U.S. Air Force and the Department of Defense, to build enterprise AI applications.

“AI will soon be a $600 billion addressable software market,” CEO Tim Siebel predicts. “Everyone will be using enterprise AI applications, just like they use PCs, just like they use relational databases, just like we use [customer relationship management software].”

Earnings for the company’s fiscal Q3 2023 were much better than expected. Revenues of $66.67 million topped analysts’ estimates for $64.25 million. And the company reported losing 6 cents per share in earnings, which was much better than the 22-cent EPS loss that Wall Street expected.

OpenAI’s ChatGPT is a game-changing product, and rival companies are also developing other AI applications that will continue to give C3.ai some extra fuel. AI stock has a “B” rating in the Portfolio Grader.

BigBear.ai (BBAI)

Source: shutterstock.com/Nadya C

If C3.ai interests you, consider buying BigBear.ai (NYSE:BBAI). This Maryland company is located strategically close to Washington, D.C., and possesses a $900 million contract to be a prime contractor for the Air Force.

BigBear.ai uses an end-to-end data analytics platform, coupled with AI and machine learning, to provide strategic insights to its clients.

The stock spiked to over $6 per share in February but has since fallen back to about $2.40. Even so, that’s still a gain of 259% so far this year.

However, a word of caution. Currently, BBAI stock is a little depressed because the company proposed a public stock offering. It disclosed that investors intend to sell more than 113 million shares of BBAI stock. While the company won’t receive any proceeds from that sale, it will have to cover the costs, expenses and fees related to that offering.

But none of that is enough to shake me off BBAI stock, and it shouldn’t worry you, either. BBAI has a “B” rating in the Portfolio Grader.

Apollo Global Management (APO)

Source: Casimiro PT / Shutterstock

Based in New York, Apollo Global Management (NYSE:APO) is one of the world’s leading alternative asset managers. It invests in credit, real estate and private equity and manages many annuities following its $11 billion purchase of Athene early last year.

Apollo is also working on an $8.1 billion deal to purchase Univar Solutions (NYSE:UNVR), a specialty chemical and ingredient distributor. And it’s weighing a bid for THG, a U.K. software and online retail company.

Yes, a lot is happening with Apollo, but that’s to be expected for a company that has nearly $550 billion in assets under management, but it’s a profitable business for investors. Bloomberg recently reported that Apollo’s ninth private equity fund has a 25% net internal rate of return. Apollo is raising capital to launch its 10th fund.

APO stock may be less lucrative than that, but good potential exists. It has a “B” rating in the Portfolio Grader. Apollo stock is up 14% over the last year, including 5% last month.

Bloom Energy (BE)

Source: Sundry Photography / Shutterstock

California’s Bloom Energy (NYSE:BE) builds, sells and installs solid oxide platforms used to generate electricity and hydrogen. The renewable energy company is at the forefront of efforts to help businesses shift from fossil fuels.

Bloom should also see some benefits from the Inflation Reduction Act signed into law earlier this year. The federal legislation includes $10 billion in new energy tax credits to help industries convert to renewable energy sources. Bloom CEO KR Sridhar called the legislation “a game changer for Bloom Energy.”

That’s music to investors’ ears, as Bloom recorded a loss in the fourth quarter of $47.17 million, or 23 cents per share. But revenue of $462.5 million was better than expectations for $398.7 million. And the company is forecasting 2023 revenues between $1.4 billion and $1.5 billion.

BE stock is up 28% since reaching a low in May 2022, although the stock has been up and down in recent months. It currently has a “B” rating in the Portfolio Grader.

On the date of publication, Louis Navellier held BABA and APO. He did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.

On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article held TSLA and AMZN. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.

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