Investing along with you, fellow foolish investors, here is a selection of stocks that some of our contributors have been buying over the past month.
Crocs
What it does: Crocs is the owner and distributor of footwear sold internationally under brands including Crocs and Hi, friend.
By Christopher Ruane. I don't like it Crocs (NASDAQ: CROX) shoes. But I like the business.
Last year, the iconic shoe company saw its revenue rise 14%, while its net income increased 46% to $793 million. The current market cap of $9 billion makes the stock look cheap, in my opinion.
The business benefits from strong growth in international revenues (24% in the first quarter), a positive boost for the Crocs brand and increase sales in other product lines such as Hi, friendI think this company could be worth more than its current share price suggests.
Generic rivals to its core range of plain footwear pose a constant risk to sales and profits. A weak retail environment in the US market could also hurt demand.
But Crocs is very profitable and has a well-established business that I think could continue to grow. It is paying down debt and I expect it will continue to buy back shares this year.
Christopher Ruane owns shares in Crocs.
Joby Aviation
What it does: Joby Aviation is an electric vertical takeoff and landing aircraft. (eVTOL) Aeronautical company that builds an air taxi service.
By Ben McPoland I recently bought some more shares of Joby Aviation (NEW YORK STOCK EXCHANGE: JOBY). The ToyotaA NASA-backed company has built an electric air taxi designed to carry a pilot and four passengers. These eVTOLs fly at speeds of up to 200 mph and are nearly silent, meaning there is much less pollution and noise.
It plans to launch its transportation service next year, initially in New York and Los Angeles. With partners Delta Air Lines and Uberaims to reduce travel time between John F. Kennedy Airport and nearby areas from 1 hour to 7 minutes.
It has also signed an exclusive agreement to provide air taxi services in Dubai and sell aircraft to Mukamalah, the aviation division of Saudi Aramcowhich will introduce eVTOL aircraft to Saudi Arabia. Joby also delivered the first-ever electric air taxi to the US Department of Defense last year.
That's a high-risk move, though, because the innovative company has yet to generate revenue and still needs to get final approval from regulators to begin commercial operations. There may be delays, but the firm remains well capitalized, with $924 million in cash on its balance sheet at the end of March.
Ben McPoland owns shares in Joby Aviation.
Real estate income
What it does: Realty Income is an American real estate investment trust that leases a portfolio of retail properties.
By Stephen Wright I've been buying stocks in Real estate income (NYSE:O) recently. The company has an outstanding track record of dividend increases and I believe it can be a good source of income in the future.
The current dividend yield is 6%. This is high compared to the last decade and I think there is a real opportunity right now.
Things have been tough in the industry lately. And the latest news is that Walgreens Boots Alliance – one of the company’s largest tenants – is planning to close some of its stores.
Walgreens may be one of Realty Income’s largest tenants, but it only accounts for about 2.5% of total rent. As a result, the impact on the overall portfolio should be limited.
That's the advantage of renting to a diversified tenant base. It makes the company resilient and puts it in a good position to continue to grow its dividend in the future.
Stephen Wright owns shares in Realty Income.
Unilever
What it does: Unilever is a multinational consumer goods company. It has more than 400 brands, including 30 major brands.
By Charlie Keough I bought some stock in FTSE 100 Index giant Unilever (LSE:ULVR) last month. There are several reasons for this.
First, I want to expand my portfolio with defensive stocks. I want most of my investments to be companies that have the potential to deliver stable returns over the long term. Unilever is a good choice.
I also think the stock looks decently valued right now, trading at 20.2 times earnings and below its historical average.
Then there's its dividend yield. At 3.4%, it's far from the highest in my portfolio, but it's reliable, and for me, that's incredibly important.
The risks are that Unilever tends to sell high-end products, which come at a price. So during a cost of living crisis, there is the constant threat that consumers will opt for cheaper, unbranded alternatives.
But Unilever has a strong brand and that gives it an advantage, as seen in its latest results, where in the first quarter the company recorded underlying sales growth of 4.4% and underlying volume growth of 2.2%.
Charlie Keough owns shares in Unilever.
Vesuvius
What it does: Vesuvius is a market leader in metal flow engineering, providing solutions for handling molten metals in iron and steel foundries.
By Roland Head. I added London Stock Exchange Index (FTSE) 250 member Vesuvius (LSE:VSVS) to my portfolio recently. In my opinion, this 108-year-old company looks to be a decent value at the moment.
In a trading update in May, CEO Patrick André confirmed that he expected 2024 results to be in line with existing expectations.
Broker forecasts suggest profits are expected to grow modestly again in 2024, following last year's decline. City analysts predict further profit growth in 2025.
The big risk here is the company's cyclical exposure. Demand for Vesuvius' services is tied to global industrial and construction activity. If this slows in major markets such as the United States or India, results could disappoint.
Personally, I think a cautious outlook is already priced in. I bought the stock on a 2024 earnings forecast of less than 10 times, with a well-supported 5.2% dividend yield.
At this level, I am happy to cash out the income and wait for market conditions to improve.
Roland Head owns shares in Vesuvius.
ETF UCITS Xtrackers MSCI World Momentum
What it does: Xtrackers MSCI World Momentum UCITS ETF invests in global stocks that show strong price momentum.
Over the past few months I have been looking for ways to diversify my portfolio. I have been looking for ways to manage risk and take advantage of some interesting investment opportunities.
ETF UCITS Xtrackers MSCI World Momentum (LSE:XDEM) is an exchange-traded fund (or ETF) that allows me to do this efficiently. It has shares in almost 350 different companies.
The fund is focused on the US: as I write this, a whopping 68.5% of its capital is tied up in companies listed on the New York Stock Exchange. Its five largest holdings are Nvidia, Goal, amazon, Broadcom and Eli Lilly.
But, as the name suggests, it also has a pan-global focus and holds stakes in Japanese, German, Dutch and Danish stocks, among others. It also offers exposure to many sectors, such as semiconductors, software, banks and mining, which gives my portfolio additional diversification.
As you can see, this Xtrackers product is highly exposed to several cyclical sectors, so if interest rates remain high, it could endure disappointing returns in the short term.
But over time, I believe the fund could be an effective way to achieve my investment goals.
Royston Wild owns Xtrackers MSCI World Momentum UCITS ETF.
