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Certain stocks are outperforming the market right now. And no, we’re not referring to the mega-cap technology stocks known as the “Magnificent Seven.” There are many other securities that are rising and delivering big gains to shareholders, some of which have nothing to do with artificial intelligence (A.I.), weight loss drugs, or other cutting edge breakthroughs. Some of the best performing stocks of the past 12 months are involved in very old school industries and areas of the economy that many investors have forgotten about.
However, if you know where to look, it is possible to pick-up stocks of rock solid companies that are seeing their share prices rise due to strong fundamentals, better-than-expected financial results, rising dividend payments, stock buybacks, and having an edge over their competitors. Here is don’t miss out! Three stocks to buy on each and every dip.
Berkshire Hathaway (BRK-A,BRK-B)
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Berkshire Hathaway (NYSE:BRK-A,NYSE:BRK-B) just delivered its latest earnings report, and the results were typically strong. The holding company of Warren Buffett delivered a solid print driven largely by gains in its insurance businesses. The conglomerate that owns businesses ranging from Geico insurance to the Dairy Queen restaurant chain reported operating earnings of $8.481 billion in the fourth quarter of 2023. The result was 28% higher than the $6.625 billion reported a year earlier.
The company’s operating profits per class A share totaled $5,881 in Q4, up 30% from the same period of 2022 and topping the consensus estimate among analysts of $5,717 a share. Berkshire also reported a record $167.60 billion of cash on hand at the end of Q4, up from $157.20 billion at the end of last year’s third quarter. While Berkshire doesn’t pay a dividend, the company continues to buyback its own stock. Total share repurchases for all of last year were $9.20 billion, up from $7.90 billion in 2022. Insurance underwriting at Berkshire surged to $848 million in Q4, up 430% from a year earlier.
Warren Buffett continues to run Berkshire Hathaway like a Swiss watch and deliver for shareholders. The company’s Class B stock has gained 35% over the last 12 months, bringing its five-year increase to 103%.
Domino’s Pizza (DPZ)
Source: Ken Wolter / Shutterstock.com
Domino’s Pizza’s (NYSE:DPZ) stock is up 7% on the day that it issued strong quarterly results and announced that it is raising its quarterly dividend payout to shareholders by 25%. Moving forward, Domino’s will pay its shareholders a quarterly dividend of $1.51 per share, up from $1.21 previously. The chain of pizza restaurants also announced a new stock buyback of up to $1 billion, which is in addition to the $141.3 million that remains on the company’s current share repurchase program. The goodies for stockholders were announced along with strong Q4 2023 results from Domino’s Pizza.
The company reported earnings per share (EPS) of $4.48, which topped analyst expectations of $4.38. Revenue in the final quarter of last year came in at $1.40 billion, which was slightly below the $1.42 billion U.S. forecast on Wall Street. Same-store sales in the U.S. grew by 2.8% from a year earlier. Same-store sales in overseas markets were largely flat in the quarter. Domino’s Pizza opened more than 300 overseas locations in Q4, and about 100 new stores in America. Last December, Domino’s announced a growth strategy to open 1,100 stores through 2028 and increase its retail sales by 7% per year.
DPZ stock had been on a hot streak even before the latest earnings print and dividend hike were announced. Over the last 12 months, the company’s share price has risen 56%. Investors should definitely buy this stock on each and every dip.
MicroStrategy (MSTR)
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Here’s an example of a more cutting edge stock. Investors who believe that cryptocurrencies are here to stay should consider buying stock in software company MicroStrategy (NASDAQ:MSTR). CEO Michael Saylor just announced via social media that the company has purchased an additional 3,000 Bitcoin (BTC-USD) for $155 million, bringing the value of the company’s total holdings in the largest cryptocurrency to $10 billion, including an unrealized profit of $4 billion. The company now holds 193,000 Bitcoin, making it the largest corporate owner of BTC in the world.
MicroStrategy remains a company that develops business intelligence software. However, it is increasingly focused on cryptocurrencies. CEO Saylor is one of the biggest crypto bulls around and sees the price of Bitcoin continuing to climb higher from its current level. In a recent interview with Bloomberg Television, Saylor said he sees no reason to sell Bitcoin, adding that, in his view, “Bitcoin is the exit strategy.” MSTR stock rose 14% on news of the new Bitcoin purchases. The stock can fluctuate alongside the price of BTC. However, the company’s share price has gained 203% in the last 12 months.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
