Investing in the stock market can be daunting, but finding once-in-a-lifetime stocks can offer considerable rewards. Here, the exploration concentrates on three such stocks with high growth potential. Despite their low stock prices, these companies exhibit impressive fundamentals that make them attractive investments. These companies’ solid top-line growth and expanding transaction volume showcase their market dominance and customer trust. One of them has a Max streaming service rapidly gaining subscribers and expanding globally, indicating a solid growth trajectory. With its extensive pharmacy network and resilient financial performance, the last one stands out as a trusted healthcare provider.
Understanding these fundamentals is crucial to lock in high returns in the long term. Each company’s unique strengths and strategic initiatives position them well for future growth, making them compelling options for those looking to invest in solid stocks. This analysis reveals why these stocks are poised for extraordinary returns and how they align with high investment goals.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) is a major online transaction and payment platform. The company derived 10% top-line growth in Q1 2024 to hit $7.7 billion. This demonstrates high top-line growth, suggesting the company’s fundamental ability to derive solid revenue despite macro challenges. The constant revenue increase indicates a high demand for PayPal’s services. Its massive client base includes large enterprises, small and medium-sized businesses (SMBs), and consumers. Total payment volume (TPV) grew by 14% annually (FX-neutral). This sharp growth in TPV reflects the increasing transactions processed through PayPal’s platform. Hence, this marks the company’s expanding user base and loyalty to its payment solutions.
Moreover, international TPV grew 17% annually on a FX-neutral basis. This is driven primarily by strength in continental Europe and improvement in Asia. This geographical diversification reduces dependency on any single market and positions PayPal for continued expansion. The transaction margin dollar performance increased by 4%, which was better than expected. This higher transaction margin indicates that PayPal effectively manages its cost structure while growing its transaction volume. Overall, PayPal’s sharp top-line growth and expanding transaction volume make it prime among the top once-in-a-lifetime stocks.
Warner Bros. Discovery (WBD)
Warner Bros. Discovery (NASDAQ:WBD) dominates the media and entertainment industry. Its direct-to-consumer (DTC) segment (Max) is gaining rapid traction. In Q1 2024, Max added 2 million new subscribers. This led the total subscriber count to the 100 million mark. This growth is vital, especially considering the anticipated seasonal impact in the U.S. due to sports events in Q2. solid international expansion, with the service set to launch in over 25 additional markets across Europe, including new territories like France and Belgium, ahead of the Paris Olympics.
Further, the company generated nearly $90 million in positive EBITDA in Q1 despite absorbing launch costs in Latin America. This indicates the segment’s potential to hit the targeted $1 billion in EBITDA by 2025. Metrics supporting this growth include a 4% increase in global average revenue per user (ARPU), with the U.S. ARPU growing by 8%. This reflects an effective monetization strategy through more substantial content and product enhancements that boost user engagement. To sum up, the rapid subscriber growth and international expansion solidify Warner Bros. Discovery’s mark as one of the best once-in-a-lifetime stocks.
Walgreens Boots Alliance (WBA)
Walgreens Boots Alliance (NASDAQ:WBA) is a major player in the retail pharmacy and healthcare sectors. The company holds a solid presence (network) in the U.S. and internationally. Walgreens’ extensive network of retail pharmacies touches nearly 9 million lives daily. The U.S. retail pharmacy segment experienced a 2.3% increase in sales. Pharmacy comparable sales grew by 5.7% (Q3 2024). This is driven by brand inflation and volume growth, though offset by a decline in retail sales. The U.S. healthcare segment derived an 8% increase in sales, driven by growth in VillageMD and solid performance in Shields.
Additionally, for Q3, Walgreens’ international segment, particularly Boots UK, showed solid performance with a 1.6% increase in sales. Boots UK delivered meaningful retail comp growth and achieved sequential market share gains. The company’s CapEx declined by $497 million versus the first nine months of fiscal 2023, contributing to improved free cash flow. Free cash flow was up by $778 million in the third quarter compared to the year-ago quarter, driven by the phasing and optimization of working capital. In short, Walgreens’ extensive network and operational edge make it a high choice among top once-in-a-lifetime stocks.
As of this writing, Yiannis Zourmpanos held long positions in PYPL, WBD and WBA. 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.