3 actions that will help you become the millionaire next door

Finding the millionaire stocks next door can be extremely exciting for investors who aspire to a comfortable retirement. However, the reality is that very few investors have the strategic foresight or patience to realize such a dream.

The truth is, most investors will be better off parking their hard-earned cash in exchange-traded funds to avoid making rash decisions. Buying and selling companies on the stock market isn’t the hard part, the waiting is. This becomes especially true when you invest in growth stocks that have tailwinds ahead of them for years and even decades.

Furthermore, there is no one-size-fits-all approach to becoming a millionaire. If you’re a more risk-averse investor, then this route probably isn’t for you. However, those looking to outperform the market for the long term should keep a close eye on these three companies for August.

Now, let’s unpack the top three millionaire stocks next door to keep you on the radar this August!

CACI International (CACI)

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CACI International (NYSE:FOR) stands out as one of the top millionaire actions next door in August. The company is uniquely positioned to benefit from the increased demand for IT and cyber security solutions in the intelligence and defense sectors.

CACI International is having an incredible year so far in 2024. The stock is currently up over 40% year-to-date and recently wrapped up a monster fiscal year 2024. Moreover, it has continued to see positive trends in defense spending across sectors of the US federal government. This background has translated into annual contract awards of more than $14 billion, with a healthy book-to-bill ratio of 1.9x.

Additionally, CEO John Mengucci’s forward guidance was in line with estimates. The company achieved organic revenue growth in the mid-teens as well as strong free cash flow generation. In FY24, revenue rose 14% year-on-year to $7.7 billion, net earnings rose 9% to $420 million. With FY25 revenue estimated at $7.9-8.10 billion and adjusted net income in the range of $505-525 million, the future is bright.

Stride (LRN)

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Step (NYSE:LRN) is another compelling choice that could make investors extremely wealthy. This company has been on a roll since the pandemic, and its strong cash flow and earnings growth provide plenty of room for long-term growth.

Stride is a lesser-known company making significant strides in the online education space. It offers a hybrid learning environment for K-12 students, but has been a leader in online educational software for over two decades. In addition, the company’s high customer satisfaction has contributed enormously to its success. Its balance sheet is also extremely healthy and serves as a testament to management’s prudent risk management practices.

More recently, Stride completed another record year as one of America’s most successful e-learning companies. In FY24, revenue rose 11% year-on-year to a record $2.04 billion. Adjusted EBITDA increased to a record $390.7 million, with free cash flow at record highs of $276 million. Stride enrollment trends remain highly positive, indicating strong guidance for when Q1 FY25 earnings results are released.

Qualys (QLYS)

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Qualys (NASDAQ:QLYS) is the last company on the list that may have the biggest potential of the group. The stock is down 35% year-to-date despite its strong financial performance in fiscal 2024.

Qualys is leading the cloud security race, which has tremendous long-term potential. The last few years have been nothing short of sensational, with the company reporting compounded revenue, earnings and an increase in free cash flow. In addition, Qualys continued to innovate on its flagship vulnerability management platform, TruRisk. The company is pushing ahead to capitalize on the generative AI boom with the introduction of Qualys TotalAI. The platform includes a holistic approach to secure generative AI and large language model applications.

Its growth also continues to accelerate in 2024, despite strong stock performances in the broader market. In Q2 FY24, revenue rose 8% year-on-year to $149 million. In addition, net income increased 24% year-over-year to $44 million, while maintaining strong cash flow from operations. As the cybersecurity sector takes off, Qualys remains one of the best next-door millionaire stocks to buy in 2024 and beyond.

As of the date of publication, Terel Miles did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guide.

At the time of publication, the responsible editor had (neither directly nor
indirectly) any positions in the securities mentioned in this article.