AMZN, LULU, and CVX are the Best Stocks to Invest $50,000

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The creation of a better stock portfolio is much similar to making fantastic food. However, it needs a perfect recipe, more ingredients, patience, and sufficient time to bring them all together. Most investors design it for 25 or more stocks when creating a large portfolio. However, there are fewer well-reputed companies that would support boosting and modifying any excellent stock portfolio.

All picks aren’t created equally if you just had 3 stocks to select from and $50 thousand to invest. Meanwhile, AMZN 2.66% (Amazon), CVX 2.58% (Chevron), and LULU 0.83% (Lululemon) are considered the top 3 stocks to buy. Keep in mind that AMZN and LULU are growth-oriented and Chevron brings value to the portfolio. The following is a closer look at how these 3 stocks are excellent picks.

AMZN or Amazon’s Market Share

Amazon offers an excellent foundation when it comes to a stock portfolio with a solid base. The retailer is one of the leading companies in the world. The company is operating throughout various segments such as cloud computing, advertising, and e-commerce. Amazon commands the e-commerce sector with around 40% of its market share.

Moreover, Amazon Web Services is its cloud business that maintains a massive share of the hot cloud market infrastructure. The advertising business of the company is getting market share from its rivals such as Meta and Alphabet Platforms. The size and scale of Amazon are extremely astonishing with $486 billion in revenue over the past year.

Amazon has now become the 2nd largest American revenue-generating company. Experts are suggesting that the growth of the company will continue to accelerate. Wall Street estimated that the revenue of Amazon with boost to $522 billion in 2022, up 11% from 2021. However, experts predicted that the figure could jump to more than $600 billion in 2023 with an increase of 15%.

LULU or Lululemon’s Market Growth

Lululemon recently bumped off analyst expectations with its earnings results for the fiscal 2nd quarter, ending July 31, 2022. Key highlights are the following:

The earnings and revenue per share have defeated estimations.

The management improved its guidance level for the entire fiscal year.

The same-store sales were boosted by around 23% with a significant 35% increase in international sales.

Meanwhile, the real stars behind these remarkable numbers are Lululemon’s products. The company makes and sells relaxing, stunning, and exclusive clothing and accessories. The premium brand status for the company has received significant support as other consumer brands have staggered. The customers of the company have found constant spending in spite of inflation.

CVX or Chevron’s Value to the Portfolio

It is important that CVX is the cheapest among AMZN and LULU with a forward price-to-earnings ratio of just 10X. The company is paying around $5.68 per share annually and it works out to a 3.6% share return. However, Chevron has earned its annual gain for straight 35 years to make it a Dividend Aristocrat. The company is considered well positioned for constantly strengthening its dividend for years to come.

Meanwhile, Chevron produced around $30.2 billion of independent cash flow in its recent quarter, ending on June 30, 2022. The company announced an improvement in its share repurchase plan by lifting the total from $10 billion to $15 billion. Warren Buffett maintains at least $25 billion or 8.4% shares of Chevron. CVX has become the 3rd massive holding for Berkshire Hathaway of Buffett.