If you're dreaming of retirement, you're not alone. According to a survey from Bankrate, 62% of Americans view retiring as part of the American dream. Images of a retired couple walking down the beach in Florida are common enough that they're part of Americana, and the notion of a well-deserved retirement has been reinforced by Social Security, which kicks in between ages 62 and 70, depending on when you choose to start receiving it.
Of course, if you're dreaming of retirement, you'd probably like to get an early start on your golden years. It might surprise you then to learn that 51% of Americans retire by age 61 and 23% retire between 62 and 64, according to Motley Fool Research.
If you're looking to get a head start on retirement, here are two top stocks that can help you get there.
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1. The Trade Desk
Digital advertising continues to grow, and that trend seems unlikely to change. According to The Trade Desk (TTD 1.36%), the leading demand-side platform (DSP) in the adtech industry, there is now a $1 trillion addressable market in digital advertising globally.
That's likely to expand as market share from traditional media markets like linear TV shifts to digital media, and as new opportunities for growth to emerge like digital billboards and the metaverse. Meanwhile, new artificial intelligence (AI) technologies have the power to improve targeting and return on investment for advertisers.
The Trade Desk stands to be a winner from all of these trends, and it has the track record, customer satisfaction rates, and technology pipeline to prove it. The company offers a cloud-based, self-serve platform for ad agencies and brands to manage digital ad campaigns and maximize their return on investment.
NASDAQ: TTD
Key Data Points
Since its IPO in 2016, the stock has returned roughly 2,000%, and it's posted a customer retention rate of 95% or greater in every quarter for over nine years. During the recent slowdown in the advertising industry, Trade Desk has outgrown the competition and gained market share. And unlike many fast-growing tech stocks, Trade Desk is profitable, and its margins should scale up as the company grows.
Trade Desk's new AI-based Kokai platform, which leverages deep learning algorithms across the digital media buying process, will begin to be deployed to most of its customers this year, and its Unified ID 2.0 protocol also seems to be well positioned to replace third-party cookies when Google Chrome eliminates them later this year. Both of those innovations should strengthen Trade Desk's adtech leadership.
Altogether, the company is an industry leader that should capitalize on the secular recovery in digital advertising demand and the long-term growth in the industry, especially with innovations like Kokai. The stock also looks well priced, down 38% from its peak in 2021.
2. Cava Group
Plenty of restaurant stocks have been billed as the next Chipotle Mexican Grill, but Cava Group (CAVA +3.88%) looks like the real deal. The Mediterranean fast-casual chain has about everything you could want from a restaurant stock: proven management, rapid growth, strong margins, and a successful concept.
Cava's chairman is Ron Shaich, who founded Panera Bread and Au Bon Pain, and he was an early investor in Cava. Following its June IPO, the stock has traded mostly sideways, but it's continued to deliver stellar results.
Revenue grew 50% in the third quarter, driven by 14.1% same-store sales growth and continued expansion. It also reported a restaurant-level profit margin of 25.1%, which is near Chipotle levels, even though Cava is a much less mature business.
NYSE: CAVA
Key Data Points
Cava employs a similar model to Chipotle, serving Mediterranean food in bowls and in pitas that closely resemble burritos. Its restaurants even have the same minimalist, industrial-chic interior design as Chipotle, and Cava's concept is clearly resonating with its customers, as same-store sales and new restaurant growth indicate.
The company has also capitalized on the digital sales, as 36% of its revenue came from the digital channel in the third quarter, and management believes the company can grow from less than 300 restaurants today to more than 1,000.
The stock looks affordable at a price-to-sales ratio of 7, which seems like a good price for a fast-growing restaurant chain whose margins are rapidly expanding. If Cava can follow in Chipotle's footsteps, the stock could soar in the coming years.
