2 monster stocks you can buy right now before they go even higher

Many investors are worried about a resurgence of market turbulence and what it could mean for stocks in the coming weeks and months. But large companies can stand the test of time and deliver significant portfolio returns. Concerns about the US economy, its impact on the global economy, and the spillover impact of inflation on businesses in all industries are legitimate.

At the same time, if you’re investing your cash in great companies and intend to hold onto your positions for years to come, these short-term moves shouldn’t deter you from your overall financial goals. On that note, here are two monster growth stocks you should consider adding to your portfolio right now.

1. AbbVie

AbbVie (ABBV -0.08%) has faced some short-term headwinds in recent quarters due to the loss of patent exclusivity on Humira. The drug was once the world’s best-selling drug and the crown jewel of this health care company’s portfolio.

While the entry of generic drugs into the market has certainly caused a decline in Humira sales, AbbVie has other winners in its portfolio that are slowly but surely offsetting the result of these changes. Note that pharmaceutical companies tend to be much less cyclical than other businesses. However, they endure changing business cycles as new drugs are developed and approved and older, best-selling drugs give way to competition.

The average period of patient exclusivity for newly approved drugs is approximately 12 years, but this can vary depending on the specific product in question. AbbVie delayed the expiration of Humira’s patent for years, eventually extending its patent exclusivity period to about two decades, before finally being forced to deal with the impact of biosimilars.

Fast-forward to the second quarter of 2024, and the impact of AbbVie’s broad portfolio of other blockbuster drugs is taking hold, despite declining Humira sales, driving revenue and profits higher. Worldwide net income for the three-month period totaled $14.5 billion, up about 4 percent from a year ago, healthy growth for a business at its maturity level.

This performance was driven by robust growth in its oncology and neuroscience drug portfolios of 11% and 15%, respectively. Blockbuster immunology drugs like Skryizi and Rinvoq, which grew revenue at respective rates of 45% and 56% in the year-ago quarter, were also strong here.

The company is very profitable. In the first half of 2024, AbbVie brought in net earnings of about $2.8 billion, up 21% from the first half of 2023. And in the trailing 12 months, AbbVie brought in operating cash flow of about $19 billion with free cash flow. in the $20 billion stage.

As a long-time dividend payer, AbbVie has increased its dividend by more than 285% since separating from Abbott Laboratories over a decade ago. It currently boasts an annualized forward dividend yield of about 3.1%, roughly double the stock’s average trading on the stock exchange. S&P 500with a forward annual dividend rate of $6.20 per share.

If you’re looking for a top-tier, income-generating healthcare stock to add to your portfolio, AbbVie might be worth a long, hard second look.

2. Cava Group

The Cava Group (COFFEE 1.59%) owns and operates a chain of fast-casual Mediterranean-style restaurants in the US. The stock has done exceptionally well recently, with shares up 200% since January.

The company only went public in June 2023, but its fast-growing business, which is already generating profits, appears to be attracting increased interest from investors. Now, it’s important to look beyond stock price increases and underlying businesses to see what’s going on.

In the second quarter of 2024, Cava’s revenue rose 35% year over year to $231 million. The restaurant stock also opened 18 new restaurants in the three-month period, leading Cava to end the quarter with 22% more restaurants in its portfolio than in the same period last year.

Same-restaurant sales increased more than 14% from the year-ago quarter, while restaurant-wide profits increased 37% from the comparable period in 2023. About 36% of Cava orders in the quarter came from sales digital.

In terms of profitability, Cava reported net income of just $20 million in the three-month period. This was about 3 times the net income just a year ago. The company is also cash flow positive. Net cash from operations totaled about $49 million in the second quarter of 2024, while free cash flow came in at about $23 million.

Cava Group, like other members of the restaurant industry, will experience some level of cyclicality and vulnerability to changing consumer spending patterns. However, the company’s fast-casual dining experience can offer consumers a more accessible and affordable (not to mention slightly healthier) option that can be especially appealing when wallets are tight.

If you have a well-diversified portfolio and the risk appetite to invest in restaurant stocks, Cava looks like a solid choice to capitalize on growth in the fast-casual segment.