Forget Nvidia: Putting $300 to Work in These 3 Unstoppable Stocks Right Now Would Be a Smarter Move

Sep 25, 2024 at 9:21 AM

Unlock Your Financial Potential: 3 Unstoppable Stocks to Outshine Nvidia

In the ever-evolving world of investing, the barriers that once kept retail investors on the sidelines have been largely eliminated. With the rise of online brokers, even a modest sum of $300 can now be the perfect starting point to put your money to work in the stock market. However, as tempting as it may be to dive into the latest tech sensation like Nvidia, there are three unstoppable stocks that offer a smarter and safer path to long-term success.

Unleash Your Investing Prowess: Discover the Unstoppable Stocks Poised to Outperform Nvidia

Visa: The Resilient Payment Powerhouse

Visa (NYSE: V) stands out as a sensational stock that can be purchased with just $300 and has the potential to deliver superior returns compared to Nvidia in the coming years. Despite the looming recessionary concerns, Visa's business model is designed to thrive in both economic expansions and contractions.The non-linearity of the economic cycle works in Visa's favor. While recessions are inevitable, they are typically short-lived, with only three of the 12 U.S. recessions since the end of World War II lasting a full year. In contrast, periods of economic growth tend to be much more prolonged, often lasting for a decade or more. Visa is poised to capitalize on these extended growth phases, as it benefits from the long-term expansion of consumer and enterprise spending.Moreover, Visa's strategic decision to avoid lending sets it apart from its peers. By solely focusing on payment facilitation, Visa is not required to set aside capital for periods of economic weakness, granting it greater financial flexibility and the ability to bounce back from recessions more quickly than its lending-focused competitors.Visa's growth opportunities extend beyond the domestic market, as it has an incredible opportunity to capitalize on the underbanked regions of the world. Cross-border payment volume has consistently demonstrated double-digit growth, and with many emerging markets chronically underbanked, Visa is well-positioned to sustain this momentum and deliver double-digit annual earnings growth through the remainder of this decade and beyond.

Walt Disney: The Irreplaceable Media Powerhouse

Another unstoppable stock that can outpace Nvidia and makes for a stellar buy with $300 is the media giant Walt Disney (NYSE: DIS). The COVID-19 pandemic dealt a significant blow to Disney's operations, with the closure of theme parks and limited studio output. However, as China's economy has reopened and Disney's studio output has ramped up, the company is once again shining.What sets Disney apart is its unparalleled ability to create and deliver unmatched content and experiences. No other company can replicate the depth of engagement, characters, and storytelling capacity that Disney brings to the table. This unique positioning ensures that Walt Disney will continue to generate predictable cash flow from its diverse operating segments.Investors should be excited about Disney's progress in its direct-to-consumer (DTC) segment. After years of significant losses, Disney's DTC operations have now reached profitability, a milestone achieved a full quarter ahead of schedule. The company's ability to increase subscription prices across all its DTC tiers further underscores the strength of its brand and the irreplaceable nature of its content.Notably, Disney's valuation is currently quite attractive, with a forward price-to-earnings ratio of 18, representing a 31% discount to its average forward-year earnings multiple over the past half-decade. As Disney's DTC segment and studio operations continue to gain momentum, the company is poised to deliver sustained double-digit earnings growth, making it a compelling investment opportunity.

PubMatic: The Adtech Disruptor Riding the Digital Advertising Wave

The third unstoppable stock that offers a smarter buy than Nvidia with $300 is the small-cap adtech company PubMatic (NASDAQ: PUBM). PubMatic is perfectly positioned to capitalize on the rise of digital advertising, a sector that, while cyclical, benefits from the non-linearity of economic cycles.One of the key advantages of PubMatic is its decision to design and develop its own cloud-based programmatic ad platform. By not relying on a third-party provider, PubMatic can achieve a higher operating margin as it scales its revenue, a strategic move that sets it apart from its competitors.PubMatic has honed in on the fastest-growing segments of the advertising industry, including mobile, video, and connected TV (CTV). These areas are poised to sustain double-digit annual ad spending growth for the foreseeable future, with CTV ad spend expected to grow the fastest.Importantly, PubMatic's balance sheet is in a strong position, with $165.6 million in cash and cash equivalents and no debt as of June. This financial flexibility allows the company to navigate economic cycles and continue investing in its growth initiatives, including the repurchase of approximately $100 million worth of its common stock.PubMatic's consistent track record of generating positive operating cash flow for the past 10 consecutive years further underscores its financial stability and resilience, making it a compelling investment opportunity for those seeking exposure to the rapidly evolving digital advertising landscape.