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3 No-Brainer Stocks to Buy With $1,000 Right Now for the New Year
BIDUBIDU(BIDU) The Motley Fool·2025-01-07 10:21

Group 1: Market Overview - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rose by 13%, 23%, and 29% respectively in 2024, reaching multiple all-time closing highs [1] - Despite significant gains, there are still investment opportunities available for those willing to seek them out [1][2] Group 2: NextEra Energy - NextEra Energy is highlighted as a strong investment option due to its focus on renewable energy, with nearly half of its 72 gigawatts (GW) of capacity coming from renewable sources [7] - The company has demonstrated sustained high-single-digit earnings per share (EPS) growth and double-digit annual dividend growth, aided by lower electricity generation costs [8] - NextEra anticipates bringing 36.5 GW to 46.5 GW of new renewable and storage projects online from 2024 to 2027, and its forward price-to-earnings (P/E) ratio is less than 20, marking a 22% discount to its five-year average [9] Group 3: Baidu - Baidu holds a 45.2% share of China's internet search market and has maintained a significant market presence over the past decade, providing substantial ad-pricing power [11] - The company is positioned for growth through its involvement in artificial intelligence (AI) and cloud infrastructure services, with its AI solution Ernie handling 1.5 billion API calls per day as of November [13] - Baidu's balance sheet is strong, with nearly 30billioninnetcapital,allowingforsharebuybacksthatcanenhanceEPS[15]Group4:AnnalyCapitalManagementAnnalyCapitalManagementhasdeclared30 billion in net capital, allowing for share buybacks that can enhance EPS [15] Group 4: Annaly Capital Management - Annaly Capital Management has declared 27 billion in dividends since its IPO and currently offers an annual yield of almost 14% [16] - The company primarily invests in agency assets, with 72.5billionofits72.5 billion of its 81.8 billion portfolio in highly liquid agency securities, providing a safety net against defaults [20] - Annaly's valuation is attractive, trading at a 3% discount to its book value, making it appealing for income-seeking investors [21]