Based on the given text and analysis, the three brand-name businesses that have the potential to surpass Tesla’s market cap over the next two years are:
1. Payment processor Mastercard (NYSE: MA): Mastercard benefits from its cyclical ties as economic expansion leads to higher consumer and business spending. Its management team’s focus on payment facilitation rather than lending reduces the risk associated with potential credit delinquencies and loan losses during economic downturns. Additionally, there is significant growth potential in underbanked regions of the world.
2. Healthcare conglomerate Johnson & Johnson (NYSE: JNJ): Johnson & Johnson’s focus on novel drug development has led to exceptional pricing power and lifted its gross margin. Its decade-long focus on internal research and collaboration has allowed the company to consistently invest in growth opportunities. Its defensive nature, as healthcare needs remain consistent during economic downturns, ensures sustained operating earnings growth.
3. Integrated oil and gas titan Chevron (NYSE: CVX): Chevron’s operating structure, which includes transmission pipelines, chemical plants, and refineries, provides predictable operating cash flow and acts as a hedge against potential declines in the spot price of crude oil. Its management team’s decision to acquire Hess in an all-share deal valued at $53 billion is expected to boost production in Guyana and gain access to 465,000 net acres of oil-rich land in the Bakken Shale. Macroeconomic factors should lead to an increase in the spot price of crude oil, providing a lift to Chevron’s highest-margin segment.
These three businesses have distinct growth prospects, while Tesla’s stock price has been negatively affected by competition, price wars, reduced sales prices, and CEO Elon Musk’s unfulfilled promises. Mastercard, Johnson & Johnson, and Chevron have all demonstrated sustained operating earnings growth and offer promising future growth prospects, making them better investment options compared to Tesla over the next two years.
Note: This article was initially written by The Motley Fool and has since been republished by GobbleDeals. GobbleDeals does not bear any responsibility for the accuracy, reliability, timeliness, or completeness of this information. This information is provided for your personal use only and is not intended to be, nor does it constitute, a recommendation of, or an offer to buy or sell, any securities. GobbleDeals advises you to verify the accuracy and completeness of the information yourself before making any investment decisions. Never rely on information from GobbleDeals alone; instead, it should always be used as a starting point of your own research.
Before making any investments, it’s essential to conduct thorough research to ensure that the investment aligns with your financial goals, risk tolerance, and investment horizon. As previously mentioned, this article should not be considered a recommendation to buy or sell any security. Instead, it is meant as general education and should serve as a starting point for your own investment research. Seek professional advice or consult reliable sources before making any investment decisions. GobbleDeals shall not be held liable for any errors, omissions, or misstatements contained herein, neither shall GobbleDeals be liable, in any circumstances, for any actions taken or not taken on the basis of the information contained herein, nor for any loss or damages (direct, indirect, special, consequential, punitive or otherwise) allegedly arising out of or in connection with project documentation and/or access thereto. Any and all information contained herein is provided as is and is deemed correct and accurate, but GobbleDeals does not make any representation or warranty, express or implied, with respect to the same. Moreover, GobbleDeals assumes no responsibility for updating or otherwise correcting any such information should it change, or should it later transpire to be inaccurate, incomplete, delayed, or misleading.
This article contains links to web sites operated by parties other than GobbleDeals (“Third Party Websites”). Such Third Party Websites are provided for your convenience only, and the content of such Third Party Websites is owned or operated by a third party and is provided as is without any warranty of any kind, either expressed or implied. GobbleDeals makes no representation or warranty regarding any Third Party Website or any information or materials found there, and access to any Third Party Website shall be at the user’s own risk. GobbleDeals shall have no liability arising out of or related to such Third Party Websites, any linked site or any information or materials provided therefrom.
This website uses cookies to improve the user experience. By continuing to browse this site you agree to our use of cookies in accordance with our privacy statement.
© 2024 GobbleDeals. All Rights Reserved. Based on the passage above, How does Chevron’s acquisition of Hess affect its overall growth prospects and what macroeconomic factors could potentially benefit its drilling operations?
Leave a Reply