Want to get richer? 2 best stocks to buy now and hold forever
Investing is a long-term game; a little patience and a strong appetite for risk are essential if you want to see big gains. I believe the juggernaut of health Johnson & Johnson (JNJ -0.18% ) and growing multi-state cannabis operator (MSO) VSUraleaf Holdings ( CURVE -1.91% ) are two companies poised for that kind of success, both capable of reaping massive returns for investors.
Johnson & Johnson released impressive numbers in its most recent results, and Curaleaf is expected to release its first quarter results in early May. Let’s see why these two companies are the best choices for investors looking to make big money over the long term.
1. Johnson & Johnson
Johnson & Johnson is the parent company of popular brands such as Listerine, Neutrogena and Benadryl which have taken over the global market. The company has a diversified business, which is its competitive advantage in this volatile market. Johnson & Johnson operates through three segments: Consumer Health, Pharmaceutical and MedTech (formerly known as Medical Devices). Last November, Johnson & Johnson announced plans to spin off its consumer segment into a new publicly traded company. The company reclassified certain international over-the-counter drugs from the pharmaceutical segment to Consumer Health; this segment recorded a loss of 1.5% in the first quarter of 2022.
But it’s the Pharmaceuticals and MedTech segments that are propelling the company to new heights. This is evident from Johnson & Johnson’s first quarter results, which were released on April 19. In the first quarter of this year, the Pharma segment increased by 6.3% compared to the same period of the previous year, and MedTech increased by 5.9%.
Overall, first-quarter sales rose 5% to $23.4 billion, with earnings per share (EPS) up 3% to $2.67, and beating Wall Street’s estimate $2.58. CEO Joaquin Duato noted in a press release, “Our first quarter results demonstrate strong performance across the business, despite macro headwinds.”
The company adjusted expected 2022 revenue to a range of $94.8 billion to $95.8 billion, down from its previous estimate of $95.9 billion to $96.9 billion. Adjusted EPS expectations also fell to naught, sitting between $10.15 and $10.35. Johnson & Johnson has suspended guidance on its COVID-19 vaccine sales due to supply and demand uncertainty. But since the company makes no profit from vaccine sales, its revenue will not be affected.
Buoyed by this strong quarter, Johnson & Johnson, which is already considered a dividend kingpin, increased its quarterly dividend by 6.6% to $1.13 per share – good news for shareholders. This is the company’s 60th consecutive annual dividend increase. It also shows the company’s impressive ability to reconcile stability and strong growth. This healthcare company is a safe bet for investors who want to grow their money and also earn regular income through dividends.
2. Curafeuille farms
This The Massachusetts-based cannabis producer outperforms its peers with nearly $1.2 billion in revenue for the past 12 months. Over the past two years, Curaleaf’s strategic and timely acquisitions of cannabis products, manufacturers and dispensaries have contributed to the company’s consistent performance. Recent acquisitions include Select, Curaleaf NJ, Blue Kudu, Remedy and Grassroots.
For the full year, its total revenue jumped 93% to $1.2 billion. Despite this remarkable growth, the company has not seen the green in its results. But adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) continue to rise, reaching $298 million for 2021 and representing 107% year-over-year growth. It ended the year with a total of 117 dispensaries.
Most of these acquisitions have not yet shown their full potential. But Curaleaf will publish its first quarter results during the first week of May; investors can expect another strong quarter from Curaleaf as it undergoes further aggressive expansion this year. Analysts expect revenue to rise 25% year-over-year to $324 million in the first quarter.
During its fourth quarter, Curaleaf acquired MSO Tryke Companies and the Arizona Natural Remedy Patient Center dispensary. It opened five new dispensaries in the fourth quarter of 2021 alone, bringing its total retail operations to 126 as of March 3.
The industry is still in its infancy, but analysts expect its value to double to $72 billion by 2030. The cannabis industry is still a limited legal market in the United States, and yet Curaleaf has grown revenue at drastic rates – the company is a hot buy with huge opportunities continue to expand in the future.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.