With economic numbers reaching higher numbers than expected, there is a high chance of several companies seeing much better days ahead. Inflation is slowly coming in control and the Fed has paused the rate hike. The fears of a near-term recession is slowly coming to an end. This means the stock market could pick pace and investing in the right companies today could generate significant returns. These hot stocks to buy are already industry leaders and trading at a premium but investing $1,000 in them today will ensure stable and significant returns.

You might also be able to make passive income through them. If you have an extra $1,000 and are looking to invest, here are the hot stocks to buy that will not disappoint you. 

Hot Stocks to Buy: Visa (V)

One of my favorite high-potential stock picks, Visa (NYSE:V) is a great choice when the economy is improving. A defensive growth stock, the company has a global presence and several opportunities to grow. The world is going cashless and this is where Visa is set to gain. Despite the market turmoil, V stock has steadily grown throughout the years. It is trading around $237 currently and is up 14% year to date. The stock has generated more than 77% returns in the last five years. The stock is trading at the 52-week high today and is not cheap. However, the future prospects of the company make me believe in its potential to grow further. 

The company recently agreed to acquire Pismo, a Brazilian fintech company for $1 billion in cash. With this acquisition, Visa will get a cloud-native API platform that will support its banking and card services. Visa can be a long-term winner because of the move towards digitization. People are no longer using cash for payments and Visa, being the largest card network in the world, is set to benefit. Additionally, Visa is also working on central bank digital currencies (CBDCs), and this has positioned it as a leader in the digital space. It has taken a front seat in the adoption of Tap-to-Pay technology, and this is set to benefit the top and bottom line as the business grows. 

Visa has a remarkable history of success and it is a business that even thrived during a period of high inflation. With year-over-year revenue growth of 15%, the company reported sales of $7.98 billion in the recent quarter. Its EPS was $2.09 per share and the year-over-year revenue growth was 10%. The company is also set to benefit from revenge travel, and we could see even better numbers in the coming quarter. Visa enjoys a dividend yield of 0.76% and is one of the best hot stocks to buy today. Investing your $1,000 in Visa could be a worthwhile choice. 

Hot Stocks to Buy: First Solar (FSLR)

There are several reasons to invest in First Solar (NASDAQ:FSLR). One of the most important reasons is the world moving towards a greener and cleaner future. The demand for renewable energy is only going to rise with each year, and First Solar is a provider of advanced thin-film photovoltaic modules. They have high efficiency and can be used in commercial and residential rooftops. The company couldn’t impress investors after the first quarter results, but it still reaffirmed the full-year revenue guidance. 

First Solar recently acquired Evolar, a European thin-film company, for $38 million of an upfront payment and another $42 million on technical milestones. The company is also investing heavily into research and development which will pay off in the long-term. FSLR stock is trading at  around $191 today, and is up 31% year to date. It has generated more than 250% returns in the past five years, and I believe this is only the beginning for First Solar. The company is also set to benefit from the Inflation Reduction Act since it has operations in the United States.. 

First Solar has set itself apart from other companies in the industry with its diversified offerings that are beyond residential solar solutions. While residential demand may drop, the company still has a strong backup in the form of U.S. utility providers. It holds a solid 30% of the utility market, and it could become a leader as solar power is the fastest growing part of the renewable energy industry. With states adopting new policies and moving towards clean energy, the company will see a surge in demand. First Solar could hit $200 this year, and quarterly numbers could improve in the coming years. Looking at the potential of this company, the stock looks undervalued to me. The company is highly relevant today and it has all the potential to double your $1,000 investment. 

Hot Stocks to Buy: McDonald’s (MCD)

Known for selling affordable fast food, McDonald’s (NYSE: MCD) is one of the top hot stocks to buy. The company has enjoyed a recent rally and is trading near all-time highs. MCD stock is exchanging hands at around $294 today and is up 12% in the past six months. The stock could hit $300 anytime soon as there is no stopping its momentum. McDonald’s was thriving when other industries were struggling, and this is the power of its global presence and the franchise model. Consumers are spending more on experiences and less on products like luxury meals. This explains why McDonald’s is thriving even after the pandemic.

First-quarter sales saw a 13% rise in each of its geographic categories, and it saw a higher profit margin. It reported a revenue of $5.9 billion and an EPS of $2.45 per share, which is a 66% rise year over year. With operations spread globally, the company has a reliable cash flow and a recession or inflation in one country will not have a huge impact on its balance sheet due to its wide operations. 

With better numbers, it certainly rewarded shareholders and increased the dividend payout by 10%. I believe MCD is one of the best dividend stocks to own with a yield of 2.06% and a quarterly payout of $1.52. If you are wondering where to invest $1,000, start with MCD. You will generate passive income and can make your money work for you through dividend reinvesting. Even if you have to pay a premium for the stock, it will pay off in the long term. 

On the date of publication, Vandita Jadeja did not hold (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