Toast: Undervalued Gem with Ambitious Growth Trajectory

The stock market has started 2024 with a strong performance, with the S&P 500 climbing 10.2% in the first quarter. Despite concerns about market overextension, some investors remain optimistic, while others emphasize the importance of investing in quality companies for long-term growth. This article presents five stocks that analysts believe are worth considering for purchase in April: Toast, Viking Therapeutics, Brookfield Renewable, United Parcel Service, and Procter & Gamble. These companies offer a blend of growth, income, and value, with potential for strong returns in the future.

Toast: A Rough-Cut Diamond with Robust Growth Plans

Anders Bylund analyzes Toast, a provider of restaurant-management software and payment solutions, acknowledging its recent struggles. However, he highlights the company's user-friendly platform, increasing sales growth, and improved profitability. Despite management missteps, Bylund believes Toast's future is bright, emphasizing its undervalued stock, which trades at a low multiple of 3.4 times sales while sales surged 35% year-over-year. He predicts strong returns for patient shareholders who invest in Toast.

Viking Therapeutics: A Top-Takeover Target

Keith Speights believes Viking Therapeutics is an excellent pick for investors due to its potential to be acquired by a large drugmaker by 2025. He cites the growing obesity drug market, projected to exceed $100 billion by 2030, as a key factor attracting potential suitors. Speights highlights the impressive results from phase 2 studies of Viking's injectable and oral VK2735 drugs, showing significant weight loss and a favorable safety profile. He also mentions the company's promising phase 2 study of VK2809 for nonalcoholic steatohepatitis (NASH), indicating Viking's potential in this high-growth market. Speights concludes that Viking Therapeutics' strong pipeline candidates could make it a valuable acquisition target, providing significant returns for investors.

Brookfield Renewable: A High-Yield Stock from a High-Potential Industry

Neha Chamaria recommends Brookfield Renewable, a company operating in the renewable energy industry, which is witnessing significant growth as nations transition to cleaner energy sources. Chamaria highlights India's ambitious clean energy targets and Brookfield Renewable's global operations in hydropower, wind, solar, and energy storage. She notes the company's diversified portfolio, long-term power contracts, and plans to invest $7 billion in growth projects over the next five years. Chamaria anticipates an increase in funds from operations (FFO) per share by at least 10% annually from 2023 to 2028, which would support dividend growth of 5% to 9% each year. With Brookfield Renewable's strong financials and high dividend yield, Chamaria believes it's a compelling investment opportunity for long-term investors.

United Parcel Service: A High-Yield Dividend Stock Too Good to Pass Up

Daniel Foelber examines United Postal Service (UPS), a stock that has underperformed recently after the company's Investor and Analyst Day. Despite the company's projected weak 2024 results and high costs, Foelber believes UPS has a clear path to return to growth. He cites the long-term tailwinds of e-commerce and package delivery, both domestically and internationally. Foelber highlights UPS's 4.5% dividend yield, providing investors with an incentive to hold the stock through challenging periods. He believes that UPS has sold off enough and expects the company to achieve its 2026 guidance targets.

Procter & Gamble: Looking for a Higher Dividend

Demitri Kalogeropoulos suggests Procter & Gamble (P&G) as a compelling investment in April due to the company's upcoming fiscal third-quarter update and dividend announcement. Kalogeropoulos acknowledges the recent market trend of consumer staples companies falling out of favor, but he emphasizes P&G's impressive results, including profit growth of 16% in the latest quarter. He anticipates a larger dividend increase for 2024 given the company's strong profitability and cash flow. Kalogeropoulos advises investors to monitor P&G's volume trends in the upcoming earnings report and its continued market share gains. He highlights P&G's long dividend growth streak and its strong competitive advantages, making it an attractive option for income-oriented investors seeking stability during a period of sluggish sales growth.