The overall market may look and feel a bit frothy right now -- particularly against the current economic backdrop. You may not want to worry about that too much, however. Stocks have a funny way of doing what seems unlikely. Besides, in as little as a year from now, what happened back in April of 2024 won't really matter all that much either.
In other words, don't be afraid to step into some new long-term positions at this time. Just pick wisely (as always).
On that note, here's a look at three compelling stock prospects that may prove particularly well-suited for retirement portfolios.
1. Amgen
Most people have heard of pharmaceutical company Amgen (AMGN +0.49%). However, most investors would be hard-pressed to name a single drug it makes -- the company just doesn't proverbially "swing for the fences" when it comes to R&D or acquisitions. In this vein, the two best-selling drugs of the two dozen in its portfolio each only account for about 15% of the company's top line, while no other drug makes up more than 8% of its sales.
This isn't a bad thing, though. It's a good thing. Amgen is diversified! That's not something many other drugmakers can say.
This isn't to suggest the drugmaker doesn't face the same basic challenges its rivals do. It does. Chief among these challenges is the never-ending expiration of patents. Pharmaceutical companies must constantly refill their developmental pipelines and renew their drug portfolios. Amgen was regularly criticized just a few years back for its seeming lack of research and development.
That's since changed, however, in a way that the company and its stock aren't getting enough credit for. For example, its recent acquisition of Horizon Therapeutics provides the new owner with thyroid eye disease therapy Tepezza and gout treatment Krystexxa. In the meantime, Amgen has been steadily beefing up its in-house developmental pipeline, so much so that analysts at BMO Capital upgraded Amgen stock to a rating of outperform late last year specifically because its pipeline was underappreciated. The upgrade echoes optimism from analysts at Leerink Partners shared just a couple of months earlier.
NASDAQ: AMGN
Key Data Points
The kicker: While February's report on the development of Amgen's anti-obesity drug MariTide failed to initially impress investors, it's now starting to get closer second looks. The treatment is distinctly different than popular anti-obesity drugs like Novo Nordisk's Wegovy and Eli Lilly's Zepbound. Although not seemingly as effective as other options at the onset of its use, the benefit of Amgen's drug appears to last even after its use is discontinued. MariTide also requires less frequent injections.
The point is, Amgen has more going for it than there seems to be from just a quick glance. The stock's pullback from January's peak creates a buying opportunity.
2. Uranium Energy
Amgen isn't the only name to consider stepping into while the company's stock is down. Also, take a look at Uranium Energy (UEC 0.63%) while its shares are still 16% below their February peak.
It's interesting. To date, the bulk of the worldwide shift away from fossil fuels and toward renewable energy has focused on solar power. And rightfully so. Solar is dependable and increasingly affordable.
There's a not-exactly-new option regaining some of its lost popularity, though. That's nuclear power. Although accidents like the 2011 meltdown of a nuclear power plant in Fukushima, Japan, have given the business a black eye, such problems are the exceptions to the norm. Most nuclear power plants operate quite safely -- and quite cleanly -- these days. That's why around 60 nuclear power production facilities are now under construction, according to the World Nuclear Association, with another 110 planned for the future.
Of course, these plants need fuel -- uranium, to be specific.
Enter Uranium Energy. Just as the name suggests, it's a provider of uranium, with several operational mines (most of which are found within the continental United States). It's one of the world's biggest uranium providers.
Although the rise of solar power, the advent of natural gas fracking, and the uncertainty surrounding fossil fuels all created years' worth of turbulence for the nuclear power industry, that dust is finally starting to settle. As it turns out, we still need uranium and an increasing amount of it. That's why uranium prices have nearly tripled in just the past three years alone.
NYSEMKT: UEC
Key Data Points
It's unlikely that uranium prices will continue to rally at their current pace. But, it is likely that uranium prices will hold near their current levels as the world works to wind down the use of fossil fuels. That's great news for long-term investors interested in this often-ignored stock, which analysts say is worth nearly 50% more than its present price.
3. Snowflake
Last but not least, consider adding Snowflake (SNOW +1.52%) to your retirement portfolio before April comes to a close.
In simplest terms, Snowflake helps organizations store and utilize digital data when they can't (or just don't want to) build such solutions for themselves. Walt Disney is a customer, for example, relying on Snowflake to make its digital advertising business more effective. Credit card company MasterCard and drugmaker Sanofi are also paying customers counting on Snowflake for help with things like identifying consumer-spending trends or analyzing clinical drug trial data, respectively. Other potential uses of Snowflake's platform include cybersecurity applications, improving manufacturing processes, and even personalized investment planning, just to name a few. It's facing off with bigger competitors within this cloud database management market. But Snowflake is consistently competitive with these bigger players.
The development of cloud computing and artificial intelligence has led to such a need, but the business has only scratched the surface. The analyst community is calling for sales growth of 22% this year to accelerate just a bit next year. Where Snowflake is shining, however, is on the profit front. Finally, with enough scale, Snowflake's bottom line is projected to begin firming up at an even healthier pace.
NYSE: SNOW
Key Data Points
Do know that, of the three stocks in focus here, Snowflake is the most aggressive and highest-risk prospect -- particularly for a retirement portfolio. It's certainly not the kind of foundational holding you'd want to build an entire long-term portfolio around.
Given that the stock price is still down to the tune of 60% from its 2021 peak, however, the potential recovery justifies Snowflake's above-average risk for a small sliver of long-term growth-seeking investors.
