One of the most appealing aspects of the stock market is that you don’t have to be a big spender to benefit from the potential for long-term gains. Many of the world’s most successful companies trade at share prices in the thousands. Hence, it’s helpful to remember that Amazon was once a stock trading for less than $100 per share.
Raytheon Technologies Corp
The aerospace and defense sector has had a strong start in 2022. A stock like Raytheon Technologies may clear for takeoff in the coming months. It is a diversified company with exposure to both the commercial aerospace industry and the defense market. This allows it to navigate potential downturns in either component of its business successfully. The airline industry is still on shaky ground in the aftermath of the global pandemic. However, any signs that air travel volumes are increasing should be a positive catalyst for Raytheon stock, given its exposure to commercial airline customers.
The US government is likely to continue spending heavily on improving intelligence and defense capabilities due to bipartisan support for the National Defense Strategy. Hence, investors should also expect long-term growth from Raytheon’s other business segments. Raytheon recently increased its dividend payout by 7. Moreover, it reported a 125 percent increase in EPS in Q3. Both indicate that the company is on the right track. The bottom line is that Raytheon Technologies is a high-quality company in a strong industry, making it an intriguing pick as the stock approaches a breakout.
SPDR Series Trust S&P Metals and Mining ETF
In your long-term portfolio, ETFs such as the SPDR Series Trust S&P Metals and Mining ETF can provide diversified exposure to specific sectors that are rallying due to news or specific macroeconomic factors. Commodity prices rose in recent months. Moreover, demand for raw materials such as copper, aluminum, and coal should remain strong in the near term. Hence, purchasing shares of this ETF for 2022 could prove to be a wise investment. The ETF seeks exposure to the S&P Metals and Mining Select Industry Index. It includes sub-industries such as Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel.
Micron Technology Inc
Although the technology sector has been sluggish to begin the year, semiconductor stock Micron Technology has performed admirably. It indicates strong demand for shares and that higher prices may be on the way, significantly if tech stocks can stabilize. Micron manufactures semiconductor memory products such as DRAM and NAND flash memory and image sensors. These products play an essential role in some of today’s most exciting technologies, such as data centers, smartphones, video games, personal computers, and others, implying that Micron will be in high demand for many years to come.
Following a solid Q1 earnings report that included revenue growth of 33% year over year to $7.7 billion, the stock is trading near all-time highs. Micron’s management also provided a solid Q2 forecast despite ongoing global supply chain constraints. It is another positive for investors to consider. It is one tech stock that could hit $100 per share sooner rather than later. Hence, think of adding shares if you’re looking for a semi-stock with a reasonable valuation.