4 Stocks To Buy Before The End Of The Year

Before we go further, a quick reminder: just because I, or anyone else for that matter—yes, even Warren Buffett—owns a stock doesn’t mean you should blindly follow suit. Do your own research and make decisions that align with your financial goals and strategies.

Stock #1: Nike (NKE)

Nike recently took a bit of a tumble in the market, but is the company really in trouble? Let’s break it down. Just three years ago, Nike’s stock price was at $179, and it hit a low of $70 back in August. This is a perfect example of how the news can follow the stock price rather than the actual fundamentals.

Nike is an iconic brand with an incredible presence in the sports industry. Think about their lifetime contracts with athletes like Kevin Durant, LeBron James, and Michael Jordan. Their brand is not only strong, but their products—like the classic Nike shoes—continue to be popular. I personally own four or five pairs myself, and I don’t see a world where Nike just disappears in the next few decades.

Now, some might say, "Nike is down 50%, so it’s a buy!" But that’s not always the case. Let's look deeper at the numbers. For example, Nike’s revenue has increased from $11.36 billion in Q4 of 2021 to $12.6 billion recently. That’s growth, even if it’s not astronomical. So why is the stock price down over 50%?

What really matters is whether you believe Nike will continue to be around for the long term. If the answer is yes, then ask yourself: can you buy the stock today at a reasonable price for a good return?

I ran the stock analyzer tool and used 5% revenue growth, a profit margin of 11%, and a PE multiple of 23. The result? A fair value of about $86 per share, with a potential return of 9-10%. My watchlist price for Nike is around $80, and I might sell puts at even lower prices.

Stock #2: Ulta Beauty (ULTA)

Retail can be tough, but Ulta Beauty has managed to stand out in the crowd. This is another company I own, but again, don’t buy it just because I do. What I like about Ulta is their ability to generate organic, same-store sales growth, which is rare in retail these days.

They have solid margins—a gross margin of almost 40% and a net margin of 10-11%. Their market cap is about $18 billion, with an enterprise value of $21 billion, which shows they have minimal debt. They’ve also consistently generated strong free cash flow.

Ulta’s stock has taken a hit too, dropping from an all-time high of $575 to a low of $318 in just five months. But in the long run, stocks are weighed based on their fundamentals, and Ulta has strong fundamentals.

Analysts project their earnings to grow from $26 per share to $42 in the next few years. Using the stock analyzer tool, I estimated Ulta’s value based on low assumptions of 3% revenue growth and a high of 7%, with a 9-11% profit margin. The fair value range came out between $346 and $670, making it a decent buy around the current price.

Stock #3: PayPal (PYPL)

PayPal has become a hot topic recently as its stock surged to $80 per share after hitting a low of $50 last year. I’ve been buying it below $85, and I’m still bullish on it despite the criticism it’s faced.

Yes, the number of PayPal users has slightly declined, but the important part is that the users they do have are transacting more often, and the average transaction value is increasing. This is a sign of trust in the platform.

Despite all the noise about PayPal “dying,” its revenue has been growing steadily, from $13 billion a few years ago to a projected $30 billion in the near future. I ran the stock analyzer tool with 4-10% revenue growth, profit margins ranging from 12.5% to 16.5%, and a PE ratio of 14-20. The fair value range was between $58 and $150 per share. Personally, I think PayPal is a solid buy, especially at the lower end of this range.

Stock #4: Google (GOOGL)

Finally, we have Google, or as I like to call it, the "googly moogly." My friend Mo was smart enough to buy it at $140, and it’s now trading at around $163. Google hit a low of $121 just a year ago, but since then, it’s rebounded to around $193.

Google is one of the biggest companies in the world, with a market cap of over $2 trillion. It’s hard for a company of this size to grow at the rates smaller companies can, but Google still owns two of the largest search engines in the world—Google.com and YouTube.

The stock analyzer tool gives us a fair value range of $113 to $280, depending on the growth assumptions. If you can buy Google at the lower end of this range, it could be a fantastic long-term investment.

Final Thoughts

All of these companies—Nike, Ulta, PayPal, and Google—are facing some challenges, but they also present great opportunities. The key is to analyze their fundamentals, use tools like the stock analyzer, and determine whether they align with your long-term investment goals.

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