3 Long-Term Stocks to Consider When Investing Your Tax Refund
- Amgen (NASDAQ:AMGN): Generated $2.5 billion of free cash flow, and has significant drugs in the pipeline for 2023.
- CrowdStrike (NASDAQ:CRWD): Free cash flow in fiscal 2022 increased 51% to a record $442 million.
- Walgreens Boots Alliance (NASDAQ:WBA): Retail comparable sales growth of 14.7% stateside was the highest in 20 years.
Now may be one of the best times to invest in long-term stocks. Tax season has arrived for around 170 million Americans. As of March 25, the IRS has issued 58 million refunds at an average refund of $3,473, up 23% year-over-year.
If you are one of the taxpayers getting a refund, this lump sum amount could be a prime opportunity to invest in long-term stocks.
With the market going through a significant correction, meaning that your money may go a long way on Wall Street. The S&P 500 index is currently down almost 8.5% year-to-date, while the tech-heavy Nasdaq 100 index has declined 15.7%.
Investing in long-term stocks with quality offerings, a wide economic moat, and solid fundamentals is essential for building long-term wealth. Given the economic and political uncertainties, it would be wise for investors to focus on established stocks that offer stable revenues and future growth opportunities.
|Walgreens Boots Alliance||WBA||$44.50|
Long-Term Stocks to Buy: Amgen (AMGN)
Amgen specializes in renal disease and cancer supportive care products and boasts a portfolio of 27 drugs, including 10 blockbusters.
Amgen issued Q4 results on Feb. 7. Revenue increased 3% year-over-year to $6.8 billion. Adjusted net income came in at $2.46 billion, or $4.36 per share, up 22% year-over-year from $2.02 billion in the prior-year quarter. The company generated $2.5 billion of free cash flow.
Analysts were pleased that osteoporosis drugs Prolia and Evenity, and the cholesterol drug Repatha saw double-digit volume growth during the quarter. In addition, analysts expect the lung cancer drug Lumakras to generate annual sales exceeding $1.4 billion from 2023.
Despite declines on the Street, AMGN stock returned a little more than 11% year-to-date. It is also an attractive stock for value investors with a dividend yield of 3.1%.
Shares are trading at 14.1 times forward earnings and 5.5 times trailing sales. Meanwhile, the 12-month median price forecast for Amgen stock stands at $240.
CrowdStrike is a leading cybersecurity vendor specializing in endpoint security and cloud-native applications.
Its Falcon platform provides AI-powered cybersecurity solutions. Clients rely on CrowdStrike for endpoint security services, identity protection as well as proactive threat intelligence offerings.
The cybersecurity name announced Q4 FY 2022 results on Mar. 9. Revenue soared 63% year-over-year to $431 million. Adjusted net income came in at $70.4 million, or 30 cents per diluted share, up from $31.6 million in the prior-year quarter. Cash and equivalents ended the period at $2 billion.
Crowdstrike generated its highest free cash flow of $442 million during fiscal 2022. Investors were pleased with this metric, which represented a 51% year-over-year increase.
Management recently announced a strategic alliance with Mandiant (NASDAQ:MNDT), another cybersecurity name that is being acquired by Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG). Mandiant will use the Falcon platform for incident response services and proactive consulting engagements for joint customers.
Many high-growth tech shares have fallen since January. Yet, shareholders in CRWD stock have been enjoying gains of more than 13% year-to-date. Shares are trading at 34 times trailing sales, down from more than 60 in January 2021.
At present, the 12-month median price forecast for Crowdstrike stock is $275.
Long-Term Stocks to Buy: Walgreens Boots Alliance (WBA)
Leading retail pharmacy chain Walgreens Boots Alliance has more than 21,000 stores throughout the U.S.
During the pandemic, a large number of Americans visited these stores. They have served as local centers for administering coronavirus vaccines and performing diagnostic tests.
Walgreens released Q2 2022 results on Mar. 31. Revenue increased 3% year-over-year to $33.8 billion. Adjusted net earnings came in at $1.38 billion, or $1.59 per diluted share, up from $1.21 billion in the prior-year quarter. Cash and equivalents ended the period at $2.03 billion.
Analysts were pleased that the U.S. retail comparable sales growth of 14.7% was the highest in two decades. Membership in MyWalgreens, the loyalty program, reached 96.1 million, up almost 11 million over the past six months. In addition, online sales surged 38% during the quarter.
WBA stock has declined 16% year-to-date. The pharmacy chain also boasts a generous 4.3% dividend yield.
Shares look like a bargain at 8.8 times forward earnings and 0.3 times trailing sales. The 12-month median price forecast for Walgreens stock stands at $50.
On the date of publication, Tezcan Gecgil 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.