Wall Street investors are constantly looking for stocks to buy for a bull market. The S&P 500 index has recently reached a new record high, solidifying the bull market that began in October 2022. Notably, the S&P 500 has surged 18% year-to-date (YTD). Similarly, the Dow Jones Industrial Average and Nasdaq 100 have advanced 8% and 21%, respectively.
While many companies have benefited from this bull market, a select few have truly stood out by outperforming the broader indices. As we look to the next leg of the bull run, these companies could still deliver remarkable returns for investors. They are likely to benefit from a favorable landscape of potentially strong earnings growth, declining inflation, and upcoming interest rate cuts. With that information, here are three standout stocks to buy for the next bull market.
Micron (MU)
First on our list of stocks to buy for a bull market is Micron (NYSE:MU), a leading semiconductor player, specializing in memory and storage products. The company’s portfolio includes DRAM, NAND, and NOR, marketed under the Micron and Crucial brands.
In its third quarter of 2024, Micron posted impressive results. Total revenues reached $6.8 billion, marking an 82% year-over-year (YOY) increase and adjusted diluted EPS soared 48% YOY to 62 cents. Robust demand for artificial intelligence (AI) fueled a 50% sequential growth in data center revenue. The company also strengthened its position in high-margin products such as High Bandwidth Memory.
At Computex 2024, Micron launched its advanced GDDR7 graphics memory, boasting a 32 Gb/s speed, a significant 60% faster than GDDR6. This innovation emphasizes reliability and data integrity, making it ideal for AI, gaming, and high-performance computing. With strong AI investments and an impending PC refresh cycle, Micron is well-positioned amid rising memory prices.
So far this year, MU stock has surged more than 50%, while the shares are trading at 15.2 times forward earnings and 6.8 times sales. Analysts project a 12-month median price target of $167.50 for MU, signaling nearly a 30% potential upside.
Regeneron Pharmaceuticals (REGN)
We continue our discussion on stocks to buy for a bull market with Regeneron Pharmaceuticals (NASDAQ:REGN). Its treatments focus on eye conditions, allergies, inflammation, and cardiovascular issues, and more.
In May, Regeneron reported mixed first-quarter 2024 earnings. Total revenues slightly declined YOY to $3.15 billion. However, excluding Ronapreve, the Covid-19 antibody cocktail, revenues increased by 7% to $3.1 billion. Non-GAAP diluted EPS was $9.55, down from the prior year’s $10.09. Meanwhile, Research and Development (R&D) expenses rose 17% YOY to $1.1 billion, reflecting ongoing pipeline investments.
Recently, Regeneron and Sanofi (OTCMKTS:SNYNF) achieved a milestone with the European Commission’s approval of Dupixent for chronic obstructive pulmonary disease (COPD). This approval, the first-ever targeted therapy for patients with elevated blood eosinophils, marks a significant breakthrough. Furthermore, Regeneron’s strategic emphasis on rare diseases, immuno-oncology, and ophthalmology positions it for substantial future growth.
Since January, REGN stock has increased close to 25%. The shares are trading at a valuation of 24.8 times forward earnings and 9.4 times sales. Wall Street has set a 12-month median price target of $1,125.00 for Regeneron stock, suggesting an over 3% upside potential. Interested readers may regard a potential dip in Regeneron shares as an opportunity to buy into the share price.
Vertiv (VRT)
Rounding out our discussion of stocks to buy for a bull market is Vertiv (NYSE:VRT), which provides digital infrastructure solutions. The company’s portfolio spans power and thermal management products, along with systems for monitoring and controlling digital infrastructure critical for e-commerce, online banking, video streaming, energy storage, and wireless communications.
In April, Vertiv released robust first-quarter 2024 earnings. Net sales grew 8% YOY to $1.64 billion. Adjusted operating margin expanded 370 basis points to 15.2%. This growth is driven by favorable pricing, higher volumes, and productivity gains despite increased R&D and capacity investments. Diluted EPS rose 80% to 43 cents.
Investors are pleased that Vertiv stays ahead of the competition by innovating and meeting the rising demand for advanced data center solutions. The company has seen a 60% increase YOY in organic orders and holds a record $6.3 billion backlog fueled by surging AI demand. Initiatives like Vertiv™ 360AI solutions and the launch of Vertiv AI Hub are significant growth catalysts, supporting AI-ready infrastructure in data centers.
VRT stock has soared over 85% since January, while the shares are changing hands at 37.6 times forward earnings and 4.9 times sales. Finally, analysts have a 12-month median price forecast of $125 for Vertiv stock, suggesting more than 14% upside potential.
On the date of publication, Tezcan Gecgil has both long and short positions in MU stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.