If I could only buy 3 stocks in the second half of 2024, these would be my pick

Successful investing requires insight into a company’s finances and assessment of its prospects. This process may seem tedious, but it can give you a better idea of ​​which growth stocks are likely to do well in the long term. Because research takes time and effort, it’s a good idea to make a short list of stocks that you wouldn’t hesitate to buy for long-term capital appreciation. Ideally, these stocks should have a solid growth history, dominant market share, and possess the catalysts that can ensure their continued and continued growth.

As you learn more about companies, you’ll have a pool of solid stock ideas to consider. The next step is to choose the best ideas to purchase first, as these will be the most compelling purchases. When challenges arise, here are three stocks I will choose over the rest because of their promising prospects and strong business fundamentals.

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Hawkins

Hawkins (NASDAQ:HWKN) is a specialty chemicals and ingredients company producing products for the industrial, water treatment, health and nutrition sectors. Not only has the company demonstrated consistent revenue and net profit growth over the years, but it has also paid dividends for 39 years in a row.

Hawkins saw sales increase from $774.5 million in fiscal 2022 (ended March 31) to $919.2 million in fiscal 2024. Net income increased 46% during the period, from $51.5 million to $75.4 million USD. Most impressive was the company’s free cash flow generation, which increased more than eightfold from $14.3 million in fiscal 2022 to $119.3 million in fiscal 2024.

Hawkins’ strong performance continued in the first quarter of fiscal 2025. Sales increased by almost 2% year-over-year to $255.9 million, but operating income managed to increase 22.5% year-over-year to $39.8 million. Net income increased 23.3% year-over-year to $28.9 million, and the company also generated positive free cash flow of $6.9 million, continuing its track record of generating free cash flow. In addition to the strong results, management increased the company’s quarterly cash dividend from $0.16 to $0.18.

Investors can also expect an increase in acquisitions to push profits to higher levels. Hawkins has demonstrated a solid track record of growing acquisitions, averaging two per calendar year since 2020. In June and July of this year, the company completed two acquisitions – Wofford Water Service and Intercoastal Trading, both in its water treatment division.

Wofford will help Hawkins build a larger customer base in Mississippi, while Intercoastal will help the company expand into the East Coast region. Across the Industrial, Health and Nutrition segments, Hawkins will focus on new product development, with the goal of advancing its specialty branded products supported by research and development.

Garmin

Garmin (NYSE: GRMN) is a technology and engineering company producing products for five key sectors: fitness, outdoor, aviation, marine and automotive OEM. The company is well known for using global positioning satellite (GPS) technology and incorporating it into its various products such as multi-sport watches, smartwatches and golf devices. Garmin saw revenue increase from $5 billion to $5.2 billion from 2021 to 2023, and net income increased from $1.1 billion to $1.3 billion. The company also generated average positive free cash flow of $810 million during the period.

Garmin’s strong performance continued in the first half of 2024. Sales increased 17% year-over-year to $2.9 billion and operating income increased 33% year-over-year to $640.4 million. Net income increased 17.6% year-over-year to $576.6 million, and the company generated positive free cash flow of $620.3 million. Garmin paid a quarterly dividend of $0.75 per share, raising its annual dividend to $3. The company has steadily increased its dividend, starting with a quarterly payment of $0.40 in 2011.

Garmin raised its full-year revenue guidance and expects revenue to grow 13.8% year-over-year to $5.95 billion in 2024, demonstrating solid revenue growth for the accessories company. The company continues to launch new, innovative products for its five divisions with Garmin Pay, which supports contactless payments. The company looks set to continue to do well thanks to its wide range of products that are appreciated by customers.

Symbolic

Symbolic (NASDAQ: SYM) is an automation technology company that integrates artificial intelligence (AI) into its platform to solve distribution and supply chain problems. The company helps its customers by implementing solutions that improve the efficiency and accuracy of product delivery to help them achieve savings and streamline workflow. Symbotic’s revenue saw a nearly five-fold increase from $251.9 million in fiscal 2021 (ended September 30) to $1.2 billion in fiscal 2023. Gross profit also skyrocketed from just $10.4 million to $189.7 million during the same period. The company also saw free cash flow more than double from $97.4 million in fiscal 2021 to $209.5 million in fiscal 2023.

The technology company continued to report strong results for the first nine months of fiscal 2024. Revenue increased 63.6% year-over-year to $1.3 billion, while gross profit increased almost 39% year-over-year to $181. $7 million. The company also generated positive free cash flow of $18.3 million. Symbotic has 39 systems deployed, which helped it achieve record revenue levels in the current quarter. While implementation delays temporarily impacted gross margin, CFO Carol Hibbard expects margins to return to historical levels by the fourth quarter of the fiscal year.

More may happen for Symbotic. In August, the company spent $8.7 million to acquire Veo Robotics, a company focused on intelligent security for industrial robots. Veo has developed the FreeMove 3D depth-sensing computer vision system, which Symbotic plans to integrate with its robotic warehouse automation system to increase productivity in line with improved human-machine collaboration. Management sees a large, exploitable $432 billion market for internal supply chains, which means there is significant opportunity for Symbotic to expand its reach and continue to grow for many years to come.

Is it worth investing $1,000 in Hawkins now?

Before you buy Hawkins stock, consider this:

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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Garmin. The Motley Fool has a disclosure policy.