While traditional investment wisdom tells investors to buy a stock at a "low" point, it's fine to do so after a company has had a terrific run, provided you expect more upside, especially over the long run.
That brings me to Walmart (WMT +0.99%) and Moderna (MRNA 1.55%). These two stocks have performed well in recent months, but they may still be worth buying given their long-term prospects.
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1. Walmart
Walmart's performance over the past six months is an impressive achievement considering the headwinds it faced. Despite tariff-related problems that led to higher expenses for many retailers, Walmart weathered the storm better than most of its peers, partly thanks to its low-price promise. Consumers always want a good deal, especially as the costs of everyday items rise.
Walmart provides that and can attract decent foot traffic in its stores as a result, even when things aren't going that well. The company is also one of the leading e-commerce players in the U.S., a niche where it offers lower prices than most competitors.
NASDAQ: WMT
Key Data Points
Walmart proved once again that it can navigate challenging times. Will the stock perform as well this year? It's hard to say. What investors should focus on instead is the company's long-term prospects.
Walmart's deep retail footprints across the U.S., its massive purchasing scale that allows it to negotiate terrific deals with suppliers -- cost savings it passes on to customers -- and its willingness to embrace new tech, including artificial intelligence, make it a stock capable of delivering outstanding returns over the long run.
Then there is the company's strong dividend program. Walmart is a Dividend King, a member of a group of corporations that have increased their payouts for at least 50 consecutive years. With a streak like that, investors can rest assured that Walmart won't suspend its dividend program anytime soon.
2. Moderna
Is this the year Moderna finally rebounds? The biotech has spent the past few years struggling amid declining sales of its coronavirus vaccine. But the company has also made meaningful clinical and regulatory progress, and it seems to be inching closer to launching an important product.
Moderna has reported that its investigational personalized cancer vaccine, mRNA-4157, has shown strong efficacy over five years in preventing recurrence or death in melanoma patients when combined with Merck's Keytruda, compared with Keytruda alone.
NASDAQ: MRNA
Key Data Points
Moderna's mRNA-4157 is now undergoing several phase 2 and phase 3 studies and could earn approval within the next couple of years. The company's mRNA platform looks promising beyond this product. And over the next five years, we could see the company launch a couple of brand-new vaccines as its financial results improve with new launches.
Moderna may not keep the momentum it has had this year -- the stock is already up 73% year to date. However, the biotech's innovation may lead to key approvals and help power strong revenue growth and stock market performances in the medium term.
