Investing in the stock market can be a great way to build wealth over time. However, it’s essential to choose the right stocks to invest in.
In this article, we will take a closer look at four companies that show great potential for long-term investment: GFL Environmental Inc (NYSE: GFL), ResMed (NYSE: RMD), Charter Communications (NASDAQ: CHTR), and Avantor Inc (NYSE: AVTR).
We will delve into each company’s specifics, financial health, growth prospects, and why they could make great investments.
GFL Environmental Inc (NYSE: GFL)
GFL Environmental Inc (NYSE: GFL) is a Canadian waste management company that operates across Canada and the United States. It provides various waste management services, including solid waste collection, recycling, and disposal. GFL has expanded rapidly in recent years, both organically and through acquisitions. In 2020, it acquired Waste Industries for $2.825 billion, which grew its presence in the southeastern United States.
GFL’s financials are impressive, with revenue growing at a CAGR of 39% over the past three years. The company is also profitable, with a net income of $211 million in 2020. GFL has a debt-to-equity ratio of 1.37, higher than the industry average but still manageable.
GFL’s growth prospects are bright. The waste management industry is expected to grow at a CAGR of 6.2% from 2020 to 2025. GFL’s recent acquisitions and investments in new technology, such as landfill gas-to-energy facilities, position it well for future growth.
ResMed (NYSE: RMD)
ResMed is a medical equipment company that specializes in sleep apnea devices. It is headquartered in San Diego, California, and operates in over 140 countries. ResMed’s products include continuous positive airway pressure (CPAP) machines, masks, and accessories. Sleep apnea is a growing problem worldwide, and ResMed is well-positioned to benefit from this trend.
ResMed’s financials are strong, with revenue growing at a CAGR of 11% over the past three years. The company is also profitable, with a net income of $770 million in 2020. ResMed has a debt-to-equity ratio of 0.56, lower than the industry average.
ResMed’s growth prospects are bright. The sleep apnea market is expected to grow at a CAGR of 8.3% from 2020 to 2025. ResMed is investing in new technology, such as its AirSense 11 CPAP machine, which should help it capture a larger market share.
Charter Communications (NASDAQ: CHTR)
Charter Communications is a telecommunications company that provides cable television, high-speed internet, and phone services to residential and commercial customers. It is headquartered in Stamford, Connecticut, and operates in 41 states. Charter is the second-largest cable operator in the United States, behind Comcast.
Charter’s financials are solid, with revenue growing at a CAGR of 4.8% over the past three years. The company is also profitable, with a net income of $3.7 billion in 2020. Charter has a debt-to-equity ratio of 3.06, higher than the industry average but still manageable.
Charter’s growth prospects are positive. The demand for high-speed internet services is growing, and Charter is well-positioned to benefit
from this trend. The company has been investing heavily in network infrastructure and expanding its coverage area. In addition, Charter’s acquisition of Time Warner Cable and Bright House Networks in 2016 has allowed it to increase its market share and customer base.
Avantor Inc (NYSE: AVTR)
Avantor Inc is a global provider of products and services to the life sciences and advanced technologies industries. It offers various products, including chemicals, laboratory equipment, and bioprocessing solutions. Avantor is headquartered in Radnor, Pennsylvania, and operates in over 30 countries.
Avantor’s financials are impressive, with revenue growing at a CAGR of 7.2% over the past three years. The company is also profitable, with a net income of $167 million in 2020. Avantor has a debt-to-equity ratio of 3.14, higher than the industry average but still manageable.
Avantor’s growth prospects are positive. The life sciences and advanced technologies industries are expected to grow at a CAGR of 7% and 5.5%, respectively, from 2020 to 2025. Avantor Inc. can benefit from these trends due to its broad product offerings and global footprint. The company is also investing in new technologies, such as gene therapy, which could provide significant growth opportunities in the future.
Conclusion
GFL Environmental, ResMed, Charter Communications, and Avantor Inc are four companies with excellent long-term investment potential. Each company operates in a growing industry and has a solid financial position. In addition, they all have growth prospects that make them attractive investment opportunities.
Of course, investing in the stock market always involves some risk, so conducting your research is vital before making any investment decisions is essential. However, these four companies could be a great starting point for investing in the stock market long-term.